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7 October 2015
|Japan agrees to slash pork, beef tariffs under TPP agreement|
[06 October 2015] Japan has agreed to reduce tariffs on pork, beef and other items under the Trans-Pacific Partnership (TPP) agreement, leaving dairy products and rice as the final sticking points. The 4.3% tariff on high-priced pork will likely be eliminated 10 years after the TPP comes into effect, and the tariff on low-priced pork will be cut from the current USD 3.99/kg to USD 0.42/kg over the same period, reported Nikkei Asian Review. Though tariffs on the meat will be phased out, the two countries have, in a nod to Japanese producers, settled on a safeguard allowing a temporary return to high tariffs should imports spike.
|Five Star Chicken expands in India|
[06 October 2015] Charoen Pokphand Foods (CPF) has opened new Five Star Chicken outlets in Pune and Mumbai in India. Five Star Chicken now has a total of 319 outlets in India in Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Goa and Maharashtra states. “We are growing steadily in metros as well as in smaller towns through franchising,” Sanjeev Pant, Senior Vice President of CP Foods said. CPF is planning for expansion in south India and the western part of the country by end 2015.
|Midamar manager gets probation for role in beef misbranding|
[06 October 2015] A former manager of Midamar, a halal food supplier in the US, has been sentenced to three years of probation and fined USD 20,000 for conspiring to mislabel beef for sale abroad. Philip Payne was charged in December last year and pleaded guilty in January to the conspiracy charge. Mr Payne and others at Midamar were accused of creating false certificates and writings to give the impression shipments of beef headed for Malaysia and Indonesia had been slaughtered according to Shariah law and met import requirements.
|Taiwan to maintain ban on US pork with ractopamine|
[06 October 2015] Taiwan’s Council of Agriculture (COA) said that it will insist that the country maintains a ban on pork imported from the US that contains traces of ractopamine, amid fears that the issue could affect future bilateral trade talks. According to Chang Sheng-chin, Secretary General of Taiwan Swine Association, Taiwanese nationals consume 37kg of pork annually and the government has vowed to make food safety a priority. The issue also has economic implications, Mr Chang said. There are nearly 8000 swine farmers in Taiwan who raise 5.5 million pigs with an annual output value of around USD 2.03 billion, accounting for 44.3% of the livestock industry.
|Queensland cattle exporters start to fill Indonesia’s Q4 quota|
[06 October 2015] Australia’s Queensland live cattle exporters have followed in the footsteps of their Northern Territory counterparts to begin sending cattle to Indonesia. Indonesia last week issued import permits for an additional 200,000 heads before the year’s end. Wellard Manager Bernie Brosnan said: “The Australian herd is under a lot of pressure. You’ve got increasing demand from Vietnam in parallel with Indonesia.” Indonesian and Australian Trade ministers have recently expressed support for a yearly permit system, a move Mr Brosnan said would deliver more security for the cattle export trade.
|New slaughterhouse for General Santos|
[05 October 2015] The Philippine Department of Agriculture (DA) will construct a USD 2.15 million abattoir complex in General Santos City, a major pig producing region in the country, a report by Mindanews said. The complex will also include packing and storage facilities. According to Dr John Pascual, Livestock Coordinator for DA-Region 12, bidding for the project has already begun and construction could start by December. He said the facility will process pork and other meat products for export out of the region, and even for the Middle East, where there are significant numbers of overseas Filipino workers. A local industry player, who did not wish to be identified, told Asian Agribiz that the project, would be welcome, as currently there is only one Triple-A meat processing facility in the region.
|Asian shrimp processors automate production of value added products|
[05 October 2015] Shrimp processors in Asia are looking to automate production of handmade value added products like shrimp rolls, dim sum, samosa and dumplings. Fumihiko Hirabayashi, Senior Staff of Japan’s Nichimo Co Ltd, told Asian Agribiz during Allpack Indonesia Expo in Jakarta: “Processors also want to reduce exports of raw frozen shrimp as value added products offer a premium.” Nichimo’s machines are gaining ground especially in Thailand and Indonesia. “We sold units to CP Foods in Thailand and CP Prima in Indonesia. And we are now eyeing Vietnam,” said Mr Hirabayashi. Nichimo offers fully automatic machines with capacity ranging from 1000-15,000 pieces/hour.
|GBT slashes production, leaves farmers unpaid|
[05 October 2015] Global Bio-Chem Technology (GBT), China’s largest corn refiner, has left thousands of farmers unpaid after it suspended operations in Northeastern China, according to Chinese media reports. The company reported a H1 loss of USD 126 million last week and said it had cut production of lysine and other refined products in H1. Government support has kept domestic corn prices well above international prices, squeezing margins for refiners like GBT and making it difficult to compete in the export market. GBT owes corn farmers at least USD 12.7 million, according to reports by China Business News. It plans to raise capital via an equity subscription by a state-owned company, to pay the farmers.
|Farmers launch campaign for cheaper chicken |
[05 October 2015] To ensure lower chicken prices, farmers in India’s Maharashtra state have launched the ‘My Bird My Price’ campaign. Models such as encouraging farmers to set up their own stores and employing salespersons to cut out middlemen are being followed to keep the retail prices lower. While farm gate price of chicken in India is just USD 0.84/kg, customers pay up to USD 2.3/kg. “The campaign has helped us bring down the retail price to USD 1.45/kg in some localities,” Sanjay Brahmankar, Secretary of Central India Vencobb Broiler Breeder Hatcheries Association said. According to him, lower retail prices would encourage higher consumption.
|Indonesia eyeing to import beef from Brazil, Uruguay|
[05 October 2015] The Indonesian government hopes to start importing beef from Brazil and Uruguay next year to meet demand for the country’s expanding population. “The soonest we can start importing is next year, since we have to prepare the infrastructure, lay out the quarantine process and establish other requirements to ensure that it is safe for public consumption,” said Karyanto Suprih, Acting Directorate General of International Trade at the Trade Ministry. Australia is currently Indonesia’s only source of imported beef. The government of Colombia also recently expressed interest in beef exports to Indonesia, Mr Karyanto said.
|H5N6 detected again in Vietnamese poultry|
[05 October 2015] Vietnam's agriculture ministry reported another highly pathogenic H5N6 avian flu outbreak late last week. The outbreak began on September 29, striking backyard birds in a village in Lai Chau province, in North Vietnam, according to a report to the World Organization for Animal Health (OIE). Vietnam has had a host of H5N6 outbreaks since August 2014, when the virus was first detected there and identified as a new strain.
|Evonik plans for new DLmethionine plant in Singapore|
[02 October 2015] Evonik Industries has started plans for the construction of an additional world-scale production facility in Singapore to produce the amino acid DLmethionine. It is expected to have an annual production capacity of 150,000 tonnes and is expected to start operations in 2019. “We are convinced that the market for DL-methionine will continue to show dynamic growth," said Klaus Engel, the Chairman of the Evonik Executive Board. The new facility will be next to the existing Evonik methionine plant on Jurong Island in Singapore. The location in Singapore allows Evonik to serve Asian growth markets well.
|Formal indictments in Shanghai expired meat scandal|
[02 October 2015] Shanghai authorities have formally indicted an OSI Group subsidiary and 10 of its employees in connection with the sale of expired meat products last year, according to reports in Chinese media. The subsidiary’s plant was closed and all products recalled after the scandal broke in July 2014. The incident was a blow to OSI itself and its customers in China, including McDonald’s and KFC. Several OSI employees have been held in custody since they were arrested last year. Following the announced indictments, OSI posted a statement on its website saying it would “address the charges according to legal procedures,” and added, “We have confidence in China’s legal system and believe that the judicial authority will come to a fair and reasonable judgment with full respect to the facts and laws.”
|Karya Indah Pertiwi grows broiler business|
[02 October 2015] Karya Indah Pertiwi, Indonesia’s poultry company based in Tasikmalaya, West Java, recently received around 30,000 (D-Line) broiler GP hatching eggs from Hubbard. “We are pleased that Karya Indah Pertiwi chose to grow their broiler business with Hubbard. They chose us because France is free from avian influenza,” Suryo Suryanta, Hubbard Regional Technical & Sales Manager, told Asian Agribiz. Karya Indah Pertiwi is a family-run company that currently produces 150,000-160,000 broiler DOC per week for both internal needs and commercial purpose.
|New meat processing plant in Pune|
[02 October 2015] The Pimpri Chinchwad Municipal Corporation (PCMC) in Pune, India will set up a USD 2.7 million modern meat processing unit. The slaughterhouse in the plant will have the capacity to slaughter 200 large animals and 1000 small animals per day. “The meat processing plant will meet high standards of hygiene and safety. Consumers will get certified meat after this plant is commissioned,” Mr Rajeev Jadhav, Commissioner of PCMC said. The integrated abattoir project will also have chiller systems, a blood rendering plant and an effluent treatment plant.
|Indonesia to import 10,000t of beef from New Zealand|
[02 October 2015] In order to stabilise the price of beef, Indonesia’s Trade Ministry has issued permits for the State Logistics Agency (Bulog) to import 10,000 tonnes of frozen (prime cut) beef from New Zealand. “The permit has been issued. Bulog must now check the price to ensure that it won’t be too high,” said Karyanto Suprih, Acting Director General of Foreign Trade. Darmin Nasution, Coordinating Minister for Economy, said the beef is estimated to arrive next month. New Zealand was chosen because the price of beef from the country is lower than that from Australia.
|CP Prima ventures into e-commerce|
[01 October 2015] Indonesia's Central Proteinaprima (CP Prima) launched belanjaseafood.com early this year, an online sales platform for its processed products. This saw it lead as the first company in Indonesia to venture into e-commerce in the frozen seafood category. With the online platform, CP Prima aims to extend its market channel. Ricky Suhendar, Deputy President of Marketing, told Asian Agribiz that e-commerce is gaining popularity in the country. "Consumers prefer quick and efficient transactions using their gadgets,” he said. CP Prima sees a bright future in e-commerce. “Online shopping for frozen food is still growing so we need to do a lot of education and promotion to draw customers.”
|India’s buffalo meat exports down by 30%|
[01 October 2015] India's buffalo meat exports have come down by close to 30% in the last three months due to a 50% drop in Chinese demand. India's buffalo meat exports to China is routed through Vietnam. Buffalo meat has traditionally been India's top agri export commodity generating over USD 4 billion per year. “Buffalo meat exports have come down by at least 30% in the last three months. China is reluctant to buy buffalo meat that has been indirectly exported via Vietnam,” DB Sabharwal, Secretary of All India Meat and Livestock Exporters' Association said. Exports to Vietnam were down by nearly 20% in terms of both quantity and value.
|Association for pig farmers in North Sulawesi |
[01 October 2015] More than 100 pig farmers in Indonesia’s North Sulawesi recently gathered in Tomohon to form the North Sulawesi Pig Farmers Association. Ronald Rumondor who was elected Chairman told Asian Agribiz that their aim is to advance pig farming in the province, as well as to increase the capacity and prosperity of members. Gilbert Wantalangi, Head of Public Relations, said the association plans to collect data such as pig population, consumption, market demand and import figures from neighbouring provinces. “To increase capacity, we will ask feed millers and veterinary drug companies to share their technical expertise. In addition, we plan to cooperate with the local government to utilise the pig slaughterhouse in Manado,” Mr Gilbert told Asian Agribiz. According to him, pork consumption per capita in the province is more than 10kg.
|QL Resources puts off expansion plans |
[01 October 2015] Malaysian egg producer and marine products maker QL Resources is reviewing its expansion plans in Vietnam and Indonesia as a weakening ringgit makes foreign operations costlier. The company has been eyeing growth opportunities in these countries where per capita consumption of eggs lags that in Malaysia. “Potential is big but our investment capex will be reviewed in view of the ringgit depreciation,” said the company’s Head of Financial Reporting and Investor Relations, Freddie Yap. Indonesia consumes about 90 eggs per capita while Vietnam’s per capita consumption stands at about 70 eggs, reported Nikkei Asian Review.
|Sausage exports from India up in 2014-15|
[01 October 2015] Exports from India in the sausage and similar products category rose to 321.14 tonnes in 2014-15, according to government data. The Directorate General of Commercial Intelligence and Statistics (DGCIS) revealed that the country exported 112 tonnes of sausage to Vietnam only in 2014-15. This is the first time since 2012-13, sausages are being exported to Vietnam. Saudi Arabia, United Arab Emirates, Thailand and Qatar are other notable importers of sausage from India. “Exports have increased to 321.14 tonnes valued at USD 2.06 million in 2014-15 from 169.91 tonnes valued at USD 0.74 million in 2012-13,” data from DGCIS pointed out.
|Chinese beef market steady despite weaker economic growth|
[01 October 2015] Demand for beef in China will remain firm through 2016 despite weaker economic growth, according to analysis recently issued by USDA and Rabobank. Rabobank’s Q3 beef sector report noted that retail prices have fallen slightly, but said supply remains tight compared to demand going into the peak winter and Chinese New Year seasons. The USDA Beijing office’s annual livestock report forecast 2016 beef production of 6.785 million tonnes, with another 600,000 tonnes of imports bringing consumption to 7.35 million tonnes, all slightly higher than 2015. USDA said continued demand is attracting investment and consolidation to the sector, even though economic weakness is leading to some consumers opting for cheaper protein.
|South Korea expected to import more beef in 2016|
[01 October 2015] Soaring South Korean beef prices should be welcome news for the country’s hard-pressed cattle producers, but a failure to rebuild herds and customers balking at paying record levels for prized local Hanwoo meat mean imports are set to keep pouring in. Imports are at four-year highs and a further rise is expected in 2016 - mainly benefiting Australia. While locals have been prepared to pay more for Hanwoo, their willingness to pay extra may have reached a tipping point. “Hanwoo is the beef we eat on special days but on a regular basis we eat imported beef,” said Park Hee-jung, a housewife, as reported by The Land.
|BIPS to inaugurate new chicken processing plant|
[30 September 2015] Indonesia’s Batam Inti Pangan Sejahtera (BIPS) based in Batam Island is set to inaugurate its new chicken processing plant in October. Jeffry Hakim, Director, told Asian Agribiz that construction has been completed and test runs are in progress. “In line with the local government’s target to make Batam a smart & clean city, the plant will provide quality dressed birds and portioned cuts with a good cold chain system to consumers, helping reduce the sales of live birds in traditional markets,” said Mr Jeffry. The plant, which cost the company around USD 484,000, has an installed capacity of 1000 birds/hour that can be upgraded to 2500 birds/hour.
|High cost preventing Philippines from exporting pork|
[30 September 2015] High production cost is keeping Philippine pork producers from exporting their products and competing in the international market, Chester Warren Tan, President of the South Cotabato Swine Producers Association, told Asian Agribiz. Reacting to a news report that Japanese and Singaporean buyers are interested to buy Philippine pork, Mr Tan said “interested buyers are always there given our historical animal health and animal welfare record, but the problem eventually lies in the price. There is no way we can compete.” He said local producers are already at par with other pork exporters in terms of technology and know-how, but government support and protection which will allow them to be more competitive, is lacking.
|Wellhope establishes JVs in India, Russia|
[30 September 2015] Wellhope Agri-Tech, a major Chinese feed company, has inked international joint ventures in India and Russia. The first JV with Nexus Feeds, India’s largest aquafeed supplier, was signed in Shenyang, Liaoning Province. According to a report by China Securities Journal, the JV is capitalised at USD 1.6 million, with 70% coming from Nexus and 30% from Wellhope. Wellhope also inked a JV with the Hua Yu Group to form a joint venture in Russia. Hua Yu is based in Heilongjiang, which shares a border with Siberia. Royal De Heus Group, the Dutch feed company, owns a minority share in Wellhope, which is a listed company.
|Russia restricts import of buffalo meat from India|
[30 September 2015] Following cases of foot and mouth disease in Uttar Pradesh state in India, Russia has limited meat deliveries from the state. Buffalo meat exports to Russia commenced earlier this year and four processing units, three in Uttar Pradesh and one in Maharashtra supply buffalo meat. “There are only few reported cases and no major FMD outbreak but yet Russian authorities have limited buffalo meat exports from Uttar Pradesh,” Pravin Chawla, a Commerce Ministry official told Asian Agribiz. According to him, stringent measures to eliminate FMD is in place.
|Monsanto eyes Indonesia as potential global corn exporter|
[30 September 2015] Monsanto is eyeing Indonesia’s potential as a global exporter of corn, riding on President Joko Widodo’s food self-sufficiency goals. “Indonesian farmers can deliver self-sufficiency in corn and make the country a global exporter,” said Christopher Samuel, Director Corporate Engagement for Monsanto Asia Pacific. He said the government’s goals need the support of innovative partnerships and technology to increase yields and Monsanto wants to participate. Indonesia produced 19 million tonnes of corn last year, up 3% from the previous year on nearly 4 million ha. Still, the country’s consumption reached nearly 20 million tonnes last year, which led to a deficit of some 941,000 tonnes.
|Lack of vaccination affects livestock in Bangladesh|
[30 September 2015] About 80% of livestock deaths in rural Bangladesh are due to diseases because of a lack of quality vaccination in the country, a study claimed. The study by Islamic Relief Bangladesh and Bangladesh Agricultural University said that Department of Livestock Services in the country can vaccinate only 10% of the livestock and provide treatment to 6.5% of the rural livestock population. “The ratio of animals to a qualified veterinarian is 1:170,000 and there are no staff at the union or village level,” the study said. There is also an acute manpower shortage in the livestock department.
|Sumber Pakis diversifies into RTE pork products|
[29 September 2015] Business diversification is important in the pig industry in Indonesia. Since January 2012, Sumber Pakis, a pig breeding & fattening company in Surabaya, has been producing ready-to-eat (RTE) pork products such as slow roasted and smoked pork knuckle, ribs and loin packed in an attractive paper bags with the Crispigs brand. “This business is progressing well and we target medium to high earners. Every month we sell around 180 bags and we rely on social media to promote the products,” Andrew Djuana, Managing Director, told Asian Agribiz. Its main market is now in Surabaya, but its market penetration has reached Bali, Jakarta, Central Java and Kalimantan. For orders outside Surabaya, the products are vacuum packed.
|FMD-free status fails to drive Philippine pork exports|
[29 September 2015] Despite the country being been declared FMD-free for several years now, the Philippines has yet to take advantage of opportunities offered by the global pork market. According to Eduardo So, President of Davao Hog Raisers Association, while the capability to produce pigs is there, government support particularly with accreditation and other policies is needed. With the regional economic integration due end 2015, local hog raisers have been working towards being competitive. A local swine production consultant told Asian Agribiz that until now, the industry focus remains mostly on the local market, noting that the country is still not self-sufficient in pork.
|Burger King Cambodia to open outlets outside capital|
[29 September 2015] Having established a foothold in the capital, Burger King is pushing into Cambodia’s provinces and will launch its first branch in Siem Reap next month. The US fast-food giant plans to open four branches outside the capital by the end of 2016, with locations in Sihanoukville, Battambang and Poipet set to open after Siem Reap, according to Fin Sotheany, Operations Manager for Burger King Cambodia. Cam F&B Services, a jv between Vietnamese conglomerate Pan-Pacific Group Inc and local partner HSC Group, operates Burger King in Cambodia. The company currently manages five outlets in Phnom Penh. A sixth outlet will open on Mao Tse-tung Boulevard in the capital next month.
|KPPU takes feedlotters to court on beef price fixing allegations|
[29 September 2015] Indonesia’s anti-monopoly agency is taking 32 cattle feedlot companies to court under allegations of price-fixing and holding back supplies from the Greater Jakarta region, after beef prices spiked nationwide last month. After the first hearing in Jakarta, M Syarkawi Rauf, Chief of the Commission for the Supervision of Business Competition (KPPU), said that his team has been investigating these companies since 2012. “During a visit to the market, we discovered that one month prior to the Idul Fitri holiday, slaughterhouses received as many as 30 heads of cattle from the feedlots, but after Idul Fitri, they only received eight, because supply from the feedlot had declined,” Mr Syarkawi said. “Based on that, we saw that there may be a deliberate move to control supply.”
|Erratic monsoon hits corn output in India|
[29 September 2015] The erratic monsoon in India this year will affect corn production. Production is expected to be around 20 million tonnes, the lowest in five years due to irregular rainfall across Tamil Nadu, Andhra Pradesh, Maharashtra and Madhya Pradesh, according to estimates by the Central Government. Corn production was 23.67 million tonnes last year. Up to 7.59 million hectares was planted up to September 11 compared with 7.46 million hectares last year. Lower production is expected to keep prices remain firm even though global prices have declined.
|Fucheng Group to buy Queensland cattle ranch|
[29 September 2015] China’s Fucheng Group has agreed to buy a 31,000-hectare cattle ranch in Queensland, Australia for about USD 20 million, according to owner, MP Evans Group. In a filing at the London Stock Exchange, MP Evans said the sale price covered property only, with cattle, plant and equipment to be sold separately. Fucheng last month said it had established a wholly-owned Australian subsidiary, capitalised at USD 31 million, to invest in beef properties. In a filing on the Shanghai stock exchange, Fucheng said it was investing in Australia to “solve the shortage of beef cattle” in China and to improve the company's breeding, slaughter and processing capacities.
|MAP brings down energy cost for Indian meat exporters|
[29 September 2015] The Indian Institute of Packaging in Mumbai claims that its modified atmosphere packaging (MAP) technology can help meat exporters bring down energy cost by up to 40%. “MAP allows export at -4°C instead of the present -20°C,” N C Saha, Director of the institute said, adding that this sees a massive saving in energy cost and will benefit the export community. According to him, this extends the shelf life of goat meat from three days to nine days and shelf life of buffalo meat from seven days to 13 days.
|Damage from El Niño tops USD 70m|
[28 September 2015] The Philippine Department of Agriculture (DA) said that as of August this year, damage to agriculture, including corn and the livestock sector, has topped USD 70 million, with losses in the corn sector alone accounting for about two-thirds of the total. About 112,387 ha planted to corn has been damaged, with 36,869 ha unlikely to recover. To help mitigate damage, the DA has been conducting cloud seeding as well as distributing drought resistant seeds. Meanwhile for the livestock sector, the DA has been encouraging modernisation toward climate control and other cooling facilities. Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that producers raising animals in traditional open sided houses would be most affected. However, many bigger commercial producers have already begun converting operations to tunnel ventilation to improve efficiencies.
|TUF initiates global rebranding |
[28 September 2015] Thai Union Frozen Products Plc announced a rebranding for its businesses around the world with the company changing its name to Thai Union Group Public Co Ltd and its share symbol moving to TU from TUF previously. CEO Teerapong Chansiri said this rebranding reflects confidence and transparency of its operations and will encourage efficiency of the company as a leader in the seafood industry with better products and service and higher share value. The new vision of TU is to become the most trust seafood processor and the leader for change in the seafood industry with greater emphasis on the environment and on sustainable operations.
|Colombia offers beef to Indonesia|
[28 September 2015] Colombian entrepreneurs have offered Indonesia the opportunity to import beef from the Latin American country, according to the Indonesian Chamber of Commerce and Industry (Kadin). “They have asked for beef export access to Indonesia,” said Jocobus Dwihartanto, Kadin Chairman for South American Affairs. He further said Colombia desire to export its beef to Indonesia can be taken into consideration as the government is now taking steps to reduce its beef and cattle supply dependence on Australia.
|Taxes push up poultry production cost in Bangladesh|
[28 September 2015] Owing to withdrawal of tax exemption and imposition of new taxes in Bangladesh, production cost of poultry products including eggs and chicken meat have gone up. Bangladesh Poultry Industries Coordination Committee (BPICC) said this would result in reduction in consumption of poultry products as it affects the consumers directly. “This in turn will affect demand and supply and future investments in the poultry sector in Bangladesh,” Moshiur Rahman, Convener of BPICC said. BPICC also wants the government to continue tax exemption for another 10 years to save the domestic poultry industry from further decline.
|Central Sulawesi develops super-intensive shrimp farms|
[28 September 2015] To boost vannamei production, Indonesia’s Central Sulawesi has introduced environment friendly, super-intensive shrimp farming. Shrimp production in the province reached around 8000 tonnes in 2014. Following the introduction of the super-intensive technology, the province is projected to become a major shrimp producers in Indonesia as the technology could boost production to 153 tonnes/ha, according to Hasanuddin Atjo, Head of the Central Sulawesi Maritime Affairs and Fishery Office. “If the province is able to develop 1000ha of shrimp ponds using this technology, it will be able to produce 300,000 tonnes of shrimp annually,” Mr Hasanuddin said.
|Burger King launches home delivery in India|
[28 September 2015] Within nine months of its debut in India, Burger King has launched home delivery services in the country. With a footprint in close to 100 countries, it offers home delivery only in the US, Spain, Korea and China, with India being the latest and only the fifth country. The company has partnered with three tech firms to start the service in Delhi and Mumbai to begin with. “We believe tech enabled solutions will give us a chance to keep pace with customers as online apps and mobile penetration have changed the way business is being done," Burger King CEO Raj Varman said.
More from Livestock Asia Expo and Forum 2015
September 21-23 2015, Kuala Lumpur
[28 September 2015]
Valli sees quality customers in Asia
In Europe enriched housing that promotes animal welfare is compulsory. This is not the case in Asia. Nevertheless some producers are installing this system. “Farmers here have no reason to buy them but sooner or later this is going to happen so they want to be in the lead,” Paolo Zazzeri, International Sales, Valli SpA told Asian Agribiz. Enriched systems have bigger colony cages for layers, and costs about 35% more compared to conventional systems. These systems have laying nests, perches, litter distribution system and additional feed trough for extra feeding space. Each house can hold 47,000 layers per building compared to a conventional house, which can hold about 60,000 birds. “Asia is a good market for us,” he said. “If a customer chooses Valli they are interested in quality. Some 60% of our sales in the last few years make their way to Asia. We sell to China, Taiwan, Japan, Korea, Indonesia and Singapore.”
Equipment makers see dent in sales due to currency drop
Large integrators in Malaysia are not much affected by the drop in the value of the ringgit. With their economies of scale it balances out. “They may see a small drop in revenue but this is not the case with small producers,” said Alfred Tan, BD Agriculture (Malaysia) Sdn Bhd, Vice President of Sales. “There is a slowdown on expansion in Malaysia. Integrators are not much affected. The medium-sized farmers, yes. Even those who have decided to upgrade their machines, are putting their decision on hold,” he said. “Indonesia is also seeing a slowdown due to the overproduction. Small and medium producers are suffering.” On the upside foreign suppliers are seeing opportunities across the region because of the impending Asean Economic Community.
Termotecnica Pericoli expects sales to grow in China
Two years down the road and Termotecnica Pericoli is satisfied with its regional office in Malaysia, one of three globally. “We are able to grow our business from Malaysia. The strategic duty-free agreement the Malaysian government has with China is one of the reason we are here. Our business with China has grown from zero to good numbers today,” Mauro Pericoli, Sales Director, said. In 2017 the company will celebrate its 50th anniversary and among its plans is to improve its presence in China. The company also enjoys a good market share in Malaysia. “Our products are produced here with the same quality and standards as in Italy, said Felix Tang, Regional Technical Sales Engineer.”
Emka Incubators expect energy-saving models to sell well
Emka Incubators is two years in Malaysia and is represented by RhoneMa. “In the last two years we have successfully installed our systems in Indonesia, Thailand and Pakistan,” said Daniel Abrahams. He observed that hatcheries in the region are consolidating. Smaller farms are either getting bigger or disappearing, and “we are seeing more integrated set ups”. He said energy saving systems are popular. Its Extend incubator allows producers to hold fertile eggs at cold store temperature and increases hatchability rate and chick quality even after long-term storage. Special features of the system ensure controlled and progressive heating of the eggs to incubation temperatures.
|Chellam Poultry to double layer capacity |
[25 September 2015] Chellam Poultry Farm in India’s Namakkal region is set to expand its layer capacity by another 100,000 by March 2016. CS Prakash, Joint Managing Director of the company told Asian Agribiz the capacity addition will be done in a phased manner with 50,000 birds in a month and another 50,000 birds by March 2016. Chellam Poultry has three farms in Namakkal with a total capacity of 400,000 birds. “We are looking forward to a major expansion of our operations and plan to increase our layer flock to 800,000,” he said.
|5L Farm expands pig farm capacity through acquisition|
[25 September 2015] Many pig farms in Solo, Indonesia’s Central Java are family-run farms. These farms are facing succession problems as the next generations are reluctant to continue the business, said Lingko Sugiarto, owner of 5L Farm in Solo. “However, this is an opportunity for me to expand my farm capacity. I am ready to grow and develop my pig business through acquisition. I am looking for pig farms that are for-sale,” he told Asian Agribiz. Mr Lingko has been in pig farming since 2007. He acquired three farms in Solo with a sow capacity of 550 heads. “Setting up new farms will result in over population as market demand is restricted. Besides, farmers in Solo rely heavily on the Jabodetabek market.”
|Philippine pork prices to rise by end October|
[25 September 2015] Pork prices in the Philippines have remained fairly stable over the past few months, albeit lower than the previous year. This is expected to remain until next month, when prices are expected to pick up with the coming holiday season. “We are expecting that by end of October, prices will pick up,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz. Demand for pork typically picks up leading up to the Christmas season, Mr Tan said. He added that prices would increase further in January due to shortage following the holiday. Meanwhile, Pork Producers Federation of the Philippines President Edwin Chen told Asian Agribiz that traditionally, pork demand tapers in Q3, but agreed that things will get better when the last quarter kicks in.
|Cargill Indonesia to invest USD750m|
[25 September 2015] Cargill Indonesia plans to invest USD 750 million over the next few years to expand its operations in Indonesia, a government official claimed. The food-processing giant will expand its animal feed and sweetener plants across the country, according to Tamba Hutapea, Deputy Chairman for Investment Planning of Indonesia’s Investment Coordinating Board (BKPM). The company has invested more than USD 1 billion in Indonesia in the last five years and employs 26,000 workers at its various operations producing animal feed, cocoa, sugar, grains, palm oil and other vegetable oils, according to the BKPM.
|S. Khonkaen moves into fast food|
[25 September 2015] Thai meat processing company S. Khonkaen which is famed for its pork snacks, has set up a new company to operate a fast food business. Deputy Chief Executive Officer Niramon Rujirasopon said S. Khonkaen holds 79.98% in the new company named Thai Home Food (Bangkok) Co Ltd. It serves noodles and rice with varieties of choices such as rice with pork leg stew, rice with barbeque pork and beverages. “The setting up of the new company is expected to be completed in November,” she said. Apart from this, S. Khonkaen also has a marketing plan for its halal food products and will expand exports of halal snack made from seafood and chicken to countries in the Middle East in Q4 this year.
|Rabobank Indonesia focuses on agrifood sector|
[25 September 2015] Rabobank Indonesia said it will be focusing on the food and agribusiness sector in the country, after its parent company injected USD 35 million capital in May. “Rabobank Indonesia finances the entire food supply chain, from farm to fork,” said Jopie Jusuf, Director for Business Banking. “If we take the dairy supply chain for example, Rabobank Indonesia can finance the milk cooling tanks, cattle feed providers, cattle, milk processing plants, dairy product manufacturers, transportation companies, packaging companies, as well as the distributors and supermarkets that sell the milk and dairy products,” he said. Recently the bank signed a deal to finance six automated cooling tanks for dairy farmer members of the Dairy Cooperatives of South Bandung in Pangalengan, West Java.
|KFC records 10% annual growth in Bangladesh|
[25 September 2015] KFC in Bangladesh is recording 10% annual growth and is planning more outlets in the country. Akku Chowdhury, Managing Director of Transcom Foods Ltd, the local franchisee of KFC said that they have a total of 15 outlets in the country and will open four more outlets as the market is growing, riding on the expansion of the middle class. KFC celebrated nine years of operations in Bangladesh recently. “Keeping in mind the local taste, we introduced beef burger,” Mr Chowdhury said, adding that they import processed beef from Saudi Arabia.
13th CIMIE features automation, safety and new products
September 20-22, Qingdao, China
Onsite report by RICH HERZFELDER
[23 September 2015]
Automation, product diversification and product safety were the watchwords for exhibitors and potential customers at the 13th annual China International Meat Industry Exhibition (CIMIE) in Qingdao September 20-22. The show drew about 500 exhibitors occupying three halls, fewer than last year when the show took place in conjunction with the World Meat Congress in Beijing. Some exhibitors complained that this year’s CIMIE was scheduled only one month before the China Foodtech expo in Beijing next month. Even so, Chinese interest in automation and in raising product quality and safety led to encouraging business, although some projects are being slow-walked due to the slowing Chinese economy.
Vemag helps processors diversify their offerings
Chinese meat processors are increasingly looking to diversity their products and raise their quality instead of simply making plain sausage, because sausage has become a commodity item with low margins, Matthias Becker, head of Vemag’s office in Shanghai, told Asian Agribiz. Customers are switching to natural casing instead of cellulose and are making Taiwan-style sausages with bigger cubes of fat and meat. Customers are also interested in Vemag’s extruders, which can extrude 6-14 “lanes” of product that can be dried into jerky in stick, small chunk and puck form, all of which have become popular (and higher margin)snacks in China.
Banss introduces CO2 stunner
Banss introduced its Somnia CO2 pig stunner to Chinese meat processors at CIMIE with a special presentation at a well-attended seminar. Pigs enter a gondola at ground level and are then lowered into a pit of CO2 which knocks them out. They are then raised back to the exit position for slaughter and processing. The stunner takes advantage of the pig’s natural curiosity, handles pigs in groups and minimises human contact, all in order to reduce stress for the animals. A medium gondola stunner can handle 400-600 head per hour.
Marel boosts focus on China market
Marel has decided to boost its focus on China as part of a wide-ranging restructuring, according to Johannes Gunnarson, who took over as general manager at the company’s China office earlier this year. Marel, which has been on an acquisition spree over the last few years, will close some of its 19 manufacturing sites around the world to eliminate redundant operations. The company formerly classified China as an emerging market, but it will now become a priority region. Marel will focus on determining the specific characteristics of the market and on adapting its machines to meet specific Chinese requirements.
Holac says processors moving to automation
Chinese meat processors are increasingly interested in automation, and increasingly sophisticated about the functions and the results that they want, according to Roland Ambrassat, international sales representative for Holac. “I need to go into a lot of detail, because they already know the basics,” he said. The Cubixx120 dicing machine is well-adapted to the market, says Mr Ambrassat, because it’s easy to handle, boasts programmable functions and gives the final product a good appearance.
Handtmann features flexible computer-controlled equipment
Handtmann featured its VF612 vacuum filler in combination with its PVLH228 with double nozzle, suitable for all kinds of casing, at CIMIE. The machine can handle a wide range of sizes, and offers operational flexibility because an operator can adjust for a new product run with computer controls, without needing to open the machine or make any other hand or instrument adjustments. “You can cover a big part of your product range with one set-up,” said Sales Director Uwe Kessler.
First-timer Ceylan introduces its flavours and aromas
Ceylan, Spain’s largest meat flavouring company, introduced itself to the Chinese meat market at CIMIE in Qingdao. The family-owned company produces more than 300 varieties of savoury, sweet and spicy flavourings in markets around the world, but only began to distribute in China last year. “We are just at the beginning, China is a difficult target,” said Technical Director Vicente Margarit. The flavouring market in China is in its infancy, but meat producers are beginning to look for ways to save money, time and labour. The company plans to set up a test facility at its representative’s office in Zhengzhou, Henan Province, where it can show customers how the technology works and how it can benefit their operations.
|Arm & Hammer, Vicor merger smooth|
[23 September 2015] Arm & Hammer is in the midst of a merger with Vicor, and by early next year it hopes to complete the takeover process and the rebrand its products. “Vicor is a science-based company steeped in research. It produces natural products to enhance the productivity of animals,” Roger E Beers, Manager, Global Business said. “Through the merger we hope to create a suite of products for our clients in the beef, dairy, swine and poultry categories,” he said, adding that the transition has been relatively smooth. The company has managed to capture double digit growth through the process. The merger offers some exciting opportunities in the dairy sector. “International markets that are trying to get dairy started, such as China and Vietnam, need more technical support and resources. We have the means to do this.” He said these countries are only realising 30% of the genetic potential of the cows and that there are opportunities to improve, he told Asian Agribiz.
|Astino grows in confidence, takes on challenging projects|
[23 September 2015] Malaysia-based Astino Agro-House Multi System Sdn Bhd has matured and can tailor-make its products to suit its clients’ requirements. According to Edvent Chin, General Manager, the company now has more machines and is more flexible with design and manufacturing. It hopes to soon clinch a deal and take on a Japanese client. “Japan is interesting because their requirements must take into consideration many things like the climate and animal welfare,” Mr Chin told Asian Agribiz. In Bangladesh the company is manufacturing whole systems and taking on turnkey projects.
|Indonesia to broaden cattle imports|
[23 September 2015] Indonesia will seek to import cattle from a wider range of countries, said Indonesia’s Chief Economics Minister Darmin Nasution. This is reduce the cost of beef, which has contributed to keeping inflation high. “With more suppliers beef prices can be more competitive,” Mr Darmin said during the announcement of a stimulus package. The package is intended to support the rupiah, help contain inflation and prop up sagging growth in Southeast Asia’s largest economy.
|Illegal facilities taking up slaughter business|
[23 September 2015] Illegal slaughterhouses are taking a toll on licensed, qualified facilities in the southern Vietnamese province of Dong Nai by offering much cheaper prices, despite their openly flouting safety and hygiene regulations. One illegal facility can slaughter up to 60 pigs per night and the pork, with no safety and hygiene certificate, is distributed in Dong Nai and Ho Chi Minh City. Tran Van Quang, head of the Dong Nai Animal Health Agency, admitted that there are more than 60 illegal slaughterhouses in the province. These facilities are operating with impunity, leaving those with a safe and hygienic slaughtering process in dire shortage of pigs to maintain their operations.
|McDonald’s India to double number of outlets|
[23 September 2015] McDonald's India is stepping up its operations in the western and southern parts of the country, doubling its outlets by investing USD 113 million in the next five years. "We currently have 213 restaurants in India and are looking to add another 250 restaurants by 2020,” said Amit Jatia, Vice Chairman, Westlife Enterprise, a master franchisee for McDonald's here. According to him, they have brought down the calorie content in its sauces by 60-70%, cutting down the overall calories in the meal by 9%. “We also plan to increase our McCafe outlets from 45 to 140 in the next two years,” Mr Jatia added.
Livestock Asia Expo and Forum 2015
September 21-23 2015, Kuala Lumpur
Onsite report by RACHAEL PHILIP
Bangkok Ranch, Meng Kee Poultry win Asian Livestock Industry Awards
Thai duck producer and processor Bangkok Ranch Plc emerged the winner of the prestigious Asian Livestock Industry Award while the Emerging Poultry Integrator Award went to Meng Kee Poultry (M) Sdn Bhd, a broiler and dressed meat producer that has operations in Malaysia and Singapore. The awards were presented at the opening ceremony OF Livestock Asia Expo and Forum 2015, which opened in Kuala Lumpur yesterday. Mooted by Asian Agribiz, the award is presented bi-annually in association with United Business Media (M) Sdn Bhd. “Nominations for these awards have grown over the years. Asian producers are placing emphasis on good production standards, efficiency, productivity, safety, innovation, branding and marketing both locally and increasingly within the region,” said Asian Agribiz CEO Rex Holyoake.
Livestock Asia honours 17 Malaysian individuals and organisations
Livestock Asia 2015 opened which opened in Kuala Lumpur yesterday also celebrated 17 individuals and organisations in the 8th Malaysian Livestock Industry Award. Among the winners were Dindings Poultry Development Centre for Outstanding Broiler Farm Award and Outstanding Breeder Farm Award, while FFM Bhd emerged won the Outstanding Feedmiller Award. CAB Cakaran clinched the Outstanding Meat Processor award. Malaysia’s Ministry of Agriculture and Agro-Based Industry, Dato Ahmad Shabery Cheek, said producers must embrace technology in farming, especially when faced with current challenges such as limited resources, feeding a growing population and climate change. “We might have the technology and the tool but the challenge is in the adoption of these technologies,” he said.
Producers must find long-term solutions to challenges
The Malaysian livestock industry has to move out of its reactive approach to problems and instead understand to root cause of the problems and from there find solutions. For instance, said Steven Goh, Regional Business Director, Delst Asia Sdn Bhd, one of the causes of poor feed quality is mould in feed ingredient raw material. Mould is caused by is water activity. “Producers should keep water activity at a safe level and treat feed raw ingredients that are in storage,” he said. Delst is in the midst of building a new USD 7 million production facility in Westport, Malaysia. The facility, which will be ready in 2018, will manufacture the company’s DMX-7, which helps to inhibit mould growth in grain and feed. The new plant will have the capacity to produce 6000 tonnes/month compared to its current plant’s production capacity of 1000 tonnes/month.
Dindings to double production capacity
Malaysia’s Dindings Poultry Development Centre Sdn Bhd is in the midst of expanding its breeder and broiler businesses to accommodate its growth at its processing plant. The company will increase its breeder farms to four from the current two farms. It hopes to produce 40,000 tonnes of feed a month by then. Besides dressed chicken, the company produces Dindings, Ayam Jimat and Fiesta brands of ready-to-cook products. “We want to make sure that Malaysians have safe food that is free from antibiotics. We support the government’s move to encourage farmers to build closed houses," said Dindings Executive Director, Ang Pun Heng. Some 80% of houses in the country are open houses. Closed houses deliver production efficiency, lowers mortality rate and reduces complaints from residents and businesses close to the farms.
|Lay Hong plans for egg and downstream business expansion|
[22 September 2015] Malaysian poultry firm Lay Hong Bhd expects to attract institutional investors to subscribe to shares in the company now that rival company QL Resources Bhd had divested its 38.6% stake in the company. Group Managing Director Yap Hoong Chai said the group has set aside some USD 6.96 million as capital expenditure for financial year 2016 to grow and expand its egg and downstream business. Lay Hong is aiming to increase its egg production by 30% within three years and boost its export market to sustain growth. Meanwhile, a report from TheEdgeMarkets.com said QL Resources’ stake was sold to RHB Investment Bank Bhd, which has now placed the shares in several tranches. Kenanga Research said that QL Resources will remain as a business partner to Lay Hong Bhd, in a business deal which involves USD 11.61 million.
|KPPU: Indonesia’s beef self-sufficiency is too ambitious |
[22 September 2015] Indonesia’s monopoly watchdog said that the government’s goal to achieve beef self-sufficiency by 2019 is too ambitious, warning of possible scarcity if the administration of President Joko Widodo continues to aggressively pursue the target. “Targeting to be self-sufficient in beef by 2019 is too soon. It shouldn’t be a five-year target, maybe a 10-year,” Syarkawi Rauf, Chairman of the Business Competition Supervisory Commission (KPPU). “Self-sufficiency means lowering the portion of import, however the current local cattle population won’t be able to completely cover the demand, which will lead to beef becoming scarce,” he explained.
|India releases guidelines for biosecurity for poultry farms|
[22 September 2015] India’s Department of Animal Husbandry, Dairying & Fisheries (DADF) recently released the ‘General guidelines for biosecurity at Central Poultry Development Organizations (CPDO)'. Rakesh Kumar Dogra, Senior Officer with DADF told Asian Agribiz that the department from time to time reviews the biosecurity situation in CPDOs. The last biosecurity guidelines was issued in 2013. “It was decided to revisit the biosecurity guidelines in light of latest developments and to incorporate some practices for better efficacy,” he said. According to him, basic tenets of revised guidelines is now applicable to state and private poultry farms and not just CPDOs.
|Indonesia’s fish canning capacity utilization not yet maximal|
[22 September 2015] Fish canning plants in Indonesia have not maximised capacity utilisation, according to the Indonesian Fish Canning Association. Of the total installed capacity of around 575,000 tonnes/year (225,000 tonnes/year for sardinella and 350,000 tonnes/year for skipjack tuna), the capacity used is only around 45%, said Adi Surya, Chairman of the association. “This is because it’s not easy to get the raw material, especially sardinella fish.” Mr Adi said that in the last five years there was no significant increase in capacity utilisation. From 2009 to 2014 the increase was only 10%. There are 38 fish canning plants in the country spread in Sumatera, Java and Bali, and of the plants 20% is foreign-investment companies.
AEC offers challenges and opportunities
[21 September 2015]
The Asean Economic Community (AEC) will be realised by the end of 2015. AEC envisages the following key characteristics; a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy. It will transform Asean into a region with free movement of goods, services, investments, skilled labour, and freer flow of capital. However, consequences of the trade bloc on the poultry industry and trade in the region has had mixed reactions as Asean member countries are likely to experience both opportunities and challenges with regional economic integration.
Thailand sees better flow of products via inland borders
AEC will allow for better flow of Thai chicken exports and related trade to member countries, especially those that share borders with Thailand such as Laos and Cambodia, Teerasak Urunanon, Executive Director of Charoen Pokphand Foods Plc (CPF) told Asian Agribiz. “Prior to AEC, products from Thailand went via border trade, and we sometimes smuggled across. But AEC will facilitate official flow of our products,” he said. Free flow under the trade bloc will benefit Thai poultry raising as raw materials for feed such as corn from Laos and Cambodia, for example, can be easily accessed, Mr Teerasak said. However, a concern is that Asean corn supply can also go outside the bloc if prices are more attractive, he pointed out. “Corn supply in Southern Vietnam, for instance, could go to China instead of Thailand. Price will be a factor to be considered,” he said.
Free flow of labour a boon to Thailand
According to the Thai Broiler Processing Exporters Association, labours from neighbouring countries namely Laos, Cambodia and Myanmar are expected to move freely into Thailand after the AEC and this would help ease the labour shortage problem in the poultry processing industry. Meanwhile, Mr Teerasak added that although more foreign labour is anticipated, the food and poultry processing sectors are still likely to face shortages so processors should look at automation. “We must opt for technology and automation to reduce our reliance on human labour,” Mr Teerasak said.
Investment base for Thailand
Several Thai companies such as CPF and Betagro have already invested in poultry and related businesses such as feedmills, farms and processing in AEC countries. Thai processors have production bases in Vietnam, Malaysia and Indonesia but most of the products are currently designated for those domestic markets. However, there are efforts to export chicken products from Indonesia to Japan. Bangkok Ranch, a Thai duck processing company, also has plans to extend its reach to Asean markets particularly Indonesia and Vietnam and also plans to invest in a duck processing plant in Indonesia.
Common effort on bird flu disease control
Thailand and other countries in AEC have conducted workshops on epidemic prevention that also includes the prevention and spread of the bird flu. Although Thailand has bird flu-free status, the free flow of people would raise concerns over the spread of the disease as several AEC countries are still riddled with outbreaks. The Department of Livestock of Thailand will continue to strictly implement bird flu x-ray and disinfection practices on regular basis, especially along the borders and risky areas, as a preventive measure.
Indonesia aims for AI-free status
Indonesian poultry industry is working hard to prepare itself and benefit from the AEC and gaining AI-free status is a goal. The Ministry of Agriculture of Indonesia since last year has been actively auditing and certifying poultry breeding, hatchery and commercial farming units. Recently the ministry certified 34 poultry production units with AI-free compartmentalisation status. Companies that received the certification are Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Malindo Feedmill, Sierad Produce, Sujaya Group and Kerta Mulia Sejahtera. Syukur Iwantoro of the Ministry of Agriculture said the compartmentalisation program is important for the companies to tap export markets in the region. This effort has already seen results as Myanmar recently sanctioned the import of PS broiler and layer hatching eggs from Indonesia.
Indonesia aims for corn self-sufficiency
For Indonesia, the AEC is driving it towards corn sufficiency. Indonesia is currently the region’s largest corn producer, however, its corn consumption continues to outpace domestic production. Corn is among the four strategic commodities accorded special attention in the blueprint of AEC to enhance food security. Indonesia wants to achieve corn self-sufficiency within two or three years, but this may be unrealistic as demand is growing at 40% annually, while domestic corn production has been growing at 6% annually. Agriculture Minister Amran Sulaiman remains optimistic that corn self-sufficiency can be achieved through state efforts such as adding 1 million ha of corn plantations, promoting the use of hybrid corn seeds and relying on state logistics agency Bulog for the availability of corn reserves and price stability.
Cold chain network offers competitive edge for Indonesia
Logistics and infrastructure are seen as weaknesses in Indonesia’s meat processing industry in the face of AEC. Bambang Sutantio, Advisor of the Indonesian Meat Processors Association, told Asian Agribiz that despite these weaknesses the industry could compete with other Asean member countries, saying that an established cold chain distribution network would offer a competitive edge. “It’s not easy for other countries to export processed meat products to Indonesia since they need to have a cold chain distribution network here,” said Mr Bambang. Haris Munandar, Head of Industrial Policy Assessment of the Ministry of Industry, said to help players in the industry improve their competitiveness within Asean, the ministry plans to offer incentives like tax holidays or lower taxes.
Vietnam will grow in competitiveness
Despite detractors who say that Vietnam’s livestock and poultry industries could lose out when trade blocs are formed, Dr Tong Xuan Chinh, Director of Livestock Production Department, Ministry of Agriculture and Rural Development (Mard), is confident that Vietnam will only grow in competitiveness. He told Asian Agribiz that big poultry companies in Vietnam, such as CP Vietnam, Emivest and Japfa Comfeed already operate an efficient farm-to-table system for poultry production. “These companies are expanding their businesses not only in poultry but also in pigs. Some new companies from Japan are looking at investment opportunities in Vietnam,” he said, adding “the local poultry sector will modernize and shift from household production to a more intensive and integrated farming system”.
While the AEC may increase the movement of meat products among member countries, these products must be well treated so that diseases such as avian influenza does not spread and other food safety risks are not breeched. “It will be important for member countries to develop standards on animal health, food quality and safety as well as technical standards for poultry raising, such as AEC GAHP, AEC GMP, etc,” said Dr Tong Xuan Chinh, Director of Livestock Production Department, Mard.
Opportunities with China
The advent of the AEC may provide future opportunities for expanded trade, according to an analysis by the Gira Asia Meat Club. Chinese and Asean officials recently agreed to speed talks to upgrade the China-Asean Free Trade Area. However, China’s poultry industry is suffering from overcapacity following a slump in demand due to AI and consumer safety concerns. China has not officially imported frozen or chilled poultry meat from any Asean nation in more than five years. An improved FTA might give Asean nations an edge as Chinese importers are looking to diversify their sourcing. Chinese producers are also looking to boost a modest trade in processed chicken products, as their main market in Japan has weakened due to safety concerns.
Philippines still focused on domestic market
Despite its AI-free status, the Philippine poultry industry is not ready for the AEC. While the bigger integrators are exporting, the volume remains small. The domestic market is still the main market for poultry producers. According to Atty Elias Jose Inciong, President of the United Broiler Raisers Association (UBRA), to say the Philippines is ready for the AEC is “wishful thinking.” He pointed out that the industry and allied industries like corn get little support from the government. Unlike Thailand, where the poultry industry is controlled by just a few corporations, in the Philippines a substantial commercial sector made up of small and medium players coexist with the big integrators. In such a situation, he pointed out that subsidies would be an ideal. Meanwhile, AEC provides challenges as it allows countries like Thailand to export easily to the Philippines.
Imports and investment implication
The Philippines still lacks a genuine quarantine system. As such imports are only inspected when they are in cold storage, where they can be mixed with locally produced chicken, at which time contamination could occur. The Philippine government still must address these and several other problems, said Atty Elias Jose Inciong. On a positive note, the AEC could result in more investments in the country, whether from multinational or domestic investors.
Non-tariff barriers prevalent in agri-food sector
While Asian tariffs are currently low, non-tariff barriers such as licensing, quotas, certifications, origin of the product, are increasing. This is especially prevalent in the agri-food sector. Puspanathan Sundram, Deputy Secretary of Asean, AEC, told Asian Agribiz these “road blocks at the national level in Asean countries must be dismantled to facilitate poultry trade”. He said the non-alignment of laws and regulations between AEC and the national economies will impede poultry exports within Asean. When these are out of the picture, he said companies will be able to place their production and processing facilities across Asean taking advantage of the factors of production. Meanwhile, Malaysian International Trade and Industry Minister Mustapa Mohamad said despite current global headwinds, Asean would be staying the course of regional economic integration. “We are committed to reducing the gaps among us and engaging more intensively with our partner countries.”
|Malindo confident of exports to Japan|
[18 September 2015] Indonesian poultry integrator Malindo Feedmill remains confident of exporting processed chicken products to Japan by the end of this year. The company has already secured a permit to ship chicken nuggets, karaage, wings and drumsticks, but has yet to find a suitable partner in the East Asian country, said Rudy Hartono, Finance Director. “But, [the goal of starting shipments] can still be realised this year depending on the negotiations,” Mr Rudy said, referring to ongoing talks with prospective partners. The setback may hurt the company’s sales, which was targeted to grow 10% to USD 344.6 million.
|Japanese seafood exports rising|
[18 September 2015] Demand for seafood has been dropping in Japan over the past decade as people eat more pork and beef, forcing domestic fishermen to look for buyers abroad. With the plunging yen, exports are surging, and companies like Yamato Holdings and ANA Holdings are expanding a delivery network across Asia. “We can offer fish we catch in the morning to buyers in the afternoon of the same day,” said Shigeru Koike, a fisherman in the port of Inatori. Foreign shipments by Japan reached 293,806 tonnes this year through June, up from 232,424 over the same period in 2014, according to data from the Ministry of Agriculture, Forestry and Fisheries.
|Lay Hong expects better performance in current FY |
[18 September 2015] Malaysian poultry integrator Lay Hong Bhd expects to perform better in the current financial year ending March 31, 2016 thanks to low feed prices and a favourable foreign exchange. “The current financial year will be better than FY15,” Group Managing Director Yap Hoong Chai said after the group’s annual general meeting. However, net profit growth would be under 10% driven by its chicken and egg business segments. For the first financial quarter ended June 30 2015, Lay Hong saw its net profit jump 66% to roughly USD 600,000, despite a 1.04% fall in revenue to USD 35.88 million. Mr Yap said the group’s export segment is benefitting from a weaker ringgit. Lay Hong exports eggs to Singapore and Hong Kong, which combined account for about 20-30% of the group’s revenue from the egg segment.
|Indonesia needs to import 390,500 beef cattle in Q4|
[18 September 2015] Indonesia will need to import 390,500 heads of cattle, including 100,000 heads for breeding, and 38,400 tonnes of frozen beef in Q4 to meet domestic demand. Indonesia has already issued permits for the import of 482,600 heads of cattle and 45,000 tonnes of frozen beef in the first nine months of this year, said Suhanto, Secretary at the Trade Ministry’s Domestic Trade Directorate General. Local businesses are concerned that, without the additional import, current stocks of cattle will run out in October, said Yudi Guntara Noor, Deputy Chairman of Agri-industry and Livestock at the Indonesian Chamber of Commerce and Industry.
Asian Agribiz regional dairy update
[18 September 2015]
Amul to set up cheese plant in Gujarat
Gujarat Cooperative Milk Marketing Federation (GCMMF) in India, owner of dairy brand Amul, has plans for a greenfield cheese plant in Palanpur in Gujarat state. Amul hopes to service the horeca sector, which contributes substantially to the company’s revenue. The USD 92 million project would initially produce mozzarella and processed cheddar cheese before venturing into other varieties. “The new project is also expected to increase Amul’s share in the Indian cheese market from the present 65%,” R S Sodhi, Managing Director of GCMMF said.
Japfa, Food Union plan milk processing plant in China
Singapore-based agrifood company Japfa Ltd and European-based dairy and milk processing company Food Union Group unveiled a jv between Japfa’s 61.87% owned subsidiary, AustAsia Investment Holdings (AIH), and Food Union to build, own and operate a USD 200 million premium milk processing plant in Shandong province, China. AIH will invest up to USD 20 million in stages for a 10% stake in the milk processing plant. The approximately 300,000-metric tonnes per annum milk processing plant is about 5km from AIH’s dairy farms in Dongying city, Shandong province. The plant is expected to commence operations in the first quarter of 2017.
Financial support for Philippine dairy industry
Philippine dairy farmers have a new fund source as the Development Bank of the Philippines (DBP) and the National Dairy Authority (NDA) signed a memorandum of agreement for a special lending program aimed at aiding the local dairy industry in boosting production, a report by BusinessWorld said. The credit program is meant for projects throughout the dairy value chain from production to marketing, and is available to funding institutions as well as “all types of duly-registered dairy businesses and even local government units and government-owned and controlled corporations with dairy development initiatives and commitments.”
Amul introduces India’s first lactose free milk
India’s Gujarat Cooperative Milk Marketing Federation (GCMMF) is all set to launch the country’s first branded lactose free milk under its Amul brand. R S Sodhi, Managing Director of GCMMF is confident that many consumers in India will opt for lactose free milk. “We are yet to work out pricing but like other Amul products, this too will be reasonably priced,” he informed. According to him, a large percentage of Amul’s turnover comes from liquid milk sales and premium products like this is expected to increase the revenue for the dairy cooperative.
China dairy production down for the first time in 30-years
Dairy production in China fell for the first time in 2014 over the last three decades, said a Research and Markets report. Last year China produced 26.5 million tonnes of dairy products, down 1.23% year-on-year. Major regions such as Inner Mongolia, Heilongjiang and Shandong all reported a decline in production. The report said output showed signs of slowing down in 2009, when growth averaged 15-20% per year. Weak consumption growth resulted from high price and high cost of production; imports of cheap dairy products and frequent safety incidents lowered confidence of domestic dairy products. According to the statistics, 2.1 million tonnes of dairy products were imported into China in 2014, increasing 12.30% year-on-year.
Prabhat Dairy’s IPO fetches USD 45 million
The initial public offering of India’s Prabhat Dairy has fetched the company over USD 45 million, the company said in a statement. With this, Prabhat Dairy has successfully concluded the IPO despite a soft market. The proceeds from the fresh issue would be used for repayment of loans, capital expenditure and general corporate purpose. On the final day of the closure period, the integrated milk and dairy ingredients company lowered the price band to USD 1.72-1.88 a share from USD 2.09-2.20 and also extended the issue closure by three days amid tepid response from investors.
Fonterra opens first plant in Indonesia
Fonterra Brands Indonesia began operations at its USD 23.7 million blending and packing plant in Bekasi, east of Jakarta, recently in efforts to meet growing demand for milk and dairy products. The plant, which the company began building in March last year, is the New Zealand dairy cooperative’s first investment in Indonesia and its biggest in Southeast Asia in a decade. “Fonterra has supplied quality dairy-based nutrition to Indonesia for more than 30 years. The opening of the plant is an exciting step for the continuation of our relationship with Indonesia, as well as the local dairy industry,” said John Wilson, Fonterra Chairman. The plant can produce up to 87,000 packs of milk products daily.
Sahayog Dairy raises USD 1.6 million
Sahayog Dairy, a dairy start-up based in Madhya Pradesh state in India has raised USD 1.6 million from social venture capital investor Acumen. The firm will use the funds for expansion of its chilling and processing plant in Madhya Pradesh. The dairy sources its milk from 23,000 farmers in five districts in the state. It also operates 272 primary milk collection centres, where milk is tested and evaluated. “By bringing milk directly from dairy farmers, Sahayog Dairy creates a fair and transparent marketplace for rural farmers,” Ajit Mahadevan, Director, Acumen India said.
|Sujaya Group plans for modern pig slaughterhouse|
[17 September 2015] Indonesia’s Sujaya Group based in West Kalimantan plans to set up a pig slaughterhouse next year. Dede Slamet Ruchyadi, Advisory Board Member, told Asian Agribiz that the group’s subsidiary PT Fajar Semesta Indah involved in pig farming, has a total pig population of around 70,000 heads. “So it’s important to have a modern slaughterhouse to reduce our dependence on live pig markets,” he said. Mr Dede said the slaughterhouse, which will be located in Singkawang, will have an installed capacity of 500-1000 heads per day. Target markets of products (carcasses and portioned cuts) from the slaughterhouse are domestic markets, Singapore and Sarawak in East Malaysia.
|Itoham, Yonekyu jv to create largest ham and sausage vendor|
[17 September 2015] Japan’s second-largest meat processor Itoham Foods and seventh-ranked Yonekyu are planning an operational merger that will create the country’s biggest vendor of ham and sausage and position them for a push beyond a shrinking domestic market. Itoham President Mamoru Horio is expected to head the holding company. The combined entity will have USD 5.24 billion in revenue based on the units’ fiscal 2014 results.
|No spike in pork prices in Cambodia|
[17 September 2015] As Siem Reap battles porcine reproductive and respiratory syndrome (PRRS), consumers are staying away from pork. Several hotels in the province have replaced pork with fish, beef or chicken. Pork prices are reportedly stable and there are no reports of shortages. However, the country will observe the 15-day Pchum Ben festival in about a month’s time where respect is paid to ancestors. There are concerns that supply of pork may be in short supply then. Tan Phannara, chief of the Animal Health Office at the Agriculture Ministry, said the country will continue to import pork to stabilise prices. The country’s last severe outbreak of PRRS was in 2009, when more than 1000 pigs died.
|Vietnam police investigate pig farms amid drug overuse concerns|
[17 September 2015] Police in some southern provinces in Vietnam have launched investigations into local pig farms following allegations that they overused banned substances to produce more lean meat, reported Thanh Nien News. In Tien Giang, 32 of 50 samples recently taken from 12 big farms were tainted. So far only one farm owner admitted to drug overuse, while others blamed it on the feeds, said the news report. In Dong Nai, half of six newly inspected pig farms were using large quantities of the drug, some 556 times higher than the legal limit.
|Agco launches new plant in China|
[17 September 2015] Agco which manufactures and distributes agricultural equipment, has opened a manufacturing base in Changzhou, China investing USD 300 million in factories. “China is one of the world’s largest farm equipment markets,” said Martin Richenhagen, Chairman, President and Chief Executive Officer. “The opening of the new Changzhou location will enhance our r&d and manufacturing capacity in China, and is a critical step in the implementation of our development strategy for the Asia Pacific region.” Since entering China in 2001, the company has taken a series of measures to expand the business. The plant will serve both domestic as well as export markets. Established as a manufacturing and r&d base, the company said it aims is to promote the localisation of product manufacturing in China.
|McDonald’s India to double outlets |
[17 September 2015] McDonald's India is stepping up its operations in the western and southern parts of the country to double its outlets by investing USD 113 million in the next five years. 'We currently have 213 restaurants in India and are looking to add another 250 restaurants by 2020,” said Amit Jatia, Vice Chairman, Westlife Enterprise, the master franchise holder for McDonald's here. According to him, they have brought down the calorie content in its sauces by 60-70%, which has cut down the overall calories in the meal by 9%. “We also plan to increase our McCafe’s within our outlets from 45 to 140 in the next two years,” Mr Jatia added.
|Strong collaboration needed to control AI in Indonesia |
[17 September 2015] Highly Pathogenic Avian Influenza (HPAI) continues to present a threat to poultry health and production in Indonesia. Since 2006, the FAO Emergency Centre for Transboundary Animal Diseases (ECTAD) Program, in partnership with Indonesia’s Directorate General of Livestock and Animal Health Services, has provided capacity development and technical assistance to close to 3000 animal health officers in 31 provinces. James McGrane, FAO ECTAD Team leader, stressed the need for investing in further capacity development to ensure a sustainable HPAI prevention and control strategy. “The key to the positive progress made in HPAI prevention and control in Indonesia lies in the strong collaboration between the government, the private sector and grass-root communities,” he added.
|CPF honoured with DJSI selection|
[16 September 2015] Charoen Pokphand Foods Plc (CPF), the leading Thai food and agro-industry conglomerate has been officially selected to join the 2015 Dow Jones Sustainability Indices (DJSI) - Emerging Markets. CPF is the first Thai integrated agro-industrial conglomerate to be selected by DJSI. Adirek Sripratak, President and Chief Executive Officer said that joining DJSI reflects CPF’s strong commitment to sustainability throughout the business. Teerasak Urunanon, Executive Director of CPF told Asian Agribiz: “We will continue to upgrade our standards and move forward. This listing on DJSI reflects our credibility in the global market. It supports our strategy to become the Kitchen of the World”. CPF share increased more than 3% yesterday to close at THB 21.20 per share after the company’s listing on DJSI. The company is also expected to be selected to join the listing under Thailand Sustainability Investment (THSI) that will be announced on October 15.
|Cambodia dispatches 13,000 vets to help curb spread of PRRS virus|
[16 September 2015] Cambodia’s Ministry of Agriculture has called on the services of 13,000 veterinarians listed with the ministry to help eradicate the current outbreak of blue-ear disease, or porcine reproductive and respiratory syndrome virus (PRRS), in Siem Reap. The disease, first spotted on August 14, had killed more than 1200 animals and sickened more than 3000. Two districts in Siem Reap -- Sotr Nikum and Chi Kraeng -- have borne the brunt of the outbreak. According to one news report dead pigs in Siem Reap were either buried or sold to crocodile farms. “The Agriculture Ministry has about 13,000 veterinarians to inspect the transportation and trading of pigs, to ensure the use of antibacterial spray and injection of pigs, to cure sick pigs and educate local people to participate in inspections until early October,” Lor Reaksmey, spokesman for the ministry, said.
|Farmers told to seize opportunities with AEC|
[16 September 2015] Poultry and pig farmers in Malaysia were told to seize the opportunities that the Asean Economic Cooperation (AEC) will bring. “Stakeholders in the industry must understand how they can gain from the AEC,” Pushpanathan Sundram said. Mr Sundram, Managing Director Asia Pacific at EAS Strategies, was involved in the crafting of the AEC blueprint. He was speaking at a special seminar organised by the Federation of Livestock Farmers Association of Malaysia on the AEC. He said SMEs must be made aware of opportunities and risks that the AEC can bring and adjust, adapt and harness the opportunities. “Companies must develop regional strategies within Asean. They should tap on economies of scale and utilise dedicated industries or trade associations to shape policies and regulations in AEC.”
|Kupang aims to become beef cattle production hub|
[16 September 2015] The local government of Kupang in Indonesia’s East Nusa Tenggara plans to dedicate 400ha for a beef cattle ranch in an effort to become a beef cattle production hub over the next five years. The project is a collaboration between the government of Kupang, the government of Jakarta, and the Indonesian Institute of Sciences. “The land will be developed as a ranch, so that it will be easier to breed cattle and send the beef to Jakarta,” said Ayub Titu Eki, Kupang District Chief. If successful, an Australian investor has promised to help establish a meat-processing facility in the region," said Mr Ayub.
|Lay Hong names new exec chairman|
[16 September 2015] Malaysian egg producer Lay Hong Bhd has redesignated its Group Managing Director Yap Hoong Chai as its new Executive Chairman. Mr Yap, a founding member of the group, is also brother to two company directors Yeap Weng Hong and Yeap Fock Hoong, Lay Hong’s filing with Bursa Malaysia showed. Mr Yap was first appointed to the board of directors of Lay Hong in 1983. As at February this year he held a 1.18% direct stake, with a 42.79% indirect stake in the company. Mr Yap was previously the President of the Selangor Livestock Association’s egg division and is currently the Chairman, Layer Unit, of the Federation of Livestock Farmer’s Association of Malaysia.
|Indonesia receives Australian live cattle shipment|
[16 September 2015] The first shipment of Australian live cattle has arrived in Jakarta following a drastic import cut earlier this year. More than 2000 heads of cattle were unloaded on September 2, a far cry from 12,000 head per shipment at the peak of the trade. A massive 80% slash in Australian imports ordered by the Indonesian government in July saw local beef price shoot up on low supply. David Lamb, Head Stockman on board the first shipment, said he was not happy about the uncertainty and that there were more stable markets Australia should be concentrating on. "Shipping such a small number to Indonesia is not cost effective,” he said.
|QL sells its shares in Lay Hong|
[15 September 2015] Malaysia's QL Resources Bhd, which failed to get board representation on Lay Hong Bhd’s board, had divested its 38.6% stake for USD 14.04 million, reported The Star. The agri-food and poultry giant said last week it had sold the stake in a direct business deal. It explained that since it does not have any board representation in Lay Hong and was unable to influence its corporate direction, it decided to dispose of the shares and realise an investment gain. The disposal is expected to net in a total gain of USD 4.37 million, considering that its cumulative cost of investment in the poultry firm to date stood at USD 9.67 million. The identity of the buyer was not disclosed in the QL Resources announcement.
|GPPU estimates Indonesia’s broiler DOC production to reach 3.3b|
[15 September 2015] The Indonesian Poultry Breeders Association (GPPU) estimates a final total stock of 3.3 billion broiler DOC this year, while domestic demand stands at only 2.44 billion, an oversupply of 35%. At this stage, the listed poultry companies such as Charoen Pokphand, Japfa Comfeed and Malindo Feedmill are cutting DOC production by 15-20%. Michael W Setjoadi, Research Analyst of Bahana Securities, said many small breeding companies are going out of business. “We believe the government may intervene to help small breeders and broiler farmers.” Mr Michael said to stabilise the poultry market, the management of a leading poultry company has indicated the possibility of the government creating floor and ceiling prices or DOC production limits through GPS import quotas, which were cut by 8% year-on-year earlier this year.
|Chinese pork producers hoping to avoid price plunge|
[15 September 2015] Chinese pork producers are anxiously watching pork prices, which has levelled off in the last month after rising from March through early August. The average pork price was USD 3.95/kg in the first week of September, and the live pig price, also stable for the last month, was at USD 2.84/kg, according to government figures. Two producers who lost money in 2014 told Asian Agribiz that they have been booking profits since the price turned around a month after Chinese New Year. Pork consumption normally picks up in the fall and winter, but in 2013 and 2014 the price plunged from September to the New Year because of low demand and over production. Producers are hoping that severe herd culls over the last year have wrung the slack out of the market, allowing them to book profits this fall and winter.
|Cargill helps increase beef & milk production in Indonesia|
[15 September 2015] Indonesia’s government continues to strive to increase national beef and milk production through a cattle feed procurement program. One strategy of the program is through partnership with Cargill Feed & Nutrition Indonesia, a producer of quality beef & dairy cattle feed in the country. In addition to providing feed, Cargill also helps train the farmers on effective and efficient feeding management in order to achieve optimum production. Recently more than 500 tonnes of beef & dairy cattle feed were given to 25 groups of farmers in Jogjakarta. “We are happy to get the trust from the central and local governments to help them supply good quality beef & dairy cattle feed for farmers,” said John Miftah Ahmad, Cargill Sales Manager for Ruminants, in a release made available to Asian Agribiz. Cargill also cooperates with the local governments of West Bandung, Bandung, Sukabumi, Blitar, Banyuwangi and regencies in West Sumatera.
|Meat sale ban reduced to two days in Mumbai|
[15 September 2015] Following opposition from political parties and civil society, the meat sale ban imposed in India’s Mumbai city on account of a Jain religious festival was reduced to two days from four days. Instead of meat being banned on September 10, 13, 17 and 18, only September 10 and 17 have pushed through. The decision by the city's civic body came as the Bombay High Court described the ban as regressive. Shiv Sena, a political party in Maharastra state also protested the ban by announcing that it would defy the ban and ensure that meat is openly sold and eaten in the financial capital on the days of the ban.
Food ingredients Asia 2015 highlights progress
Onsite report by NITSARA THONGRUNG
[15 September 2015]
Food ingredients Asia 2015 held in Bangkok from September 9-11 showcased advanced products and technologies for food ingredients to meet demand from processors who are looking for innovations and product development. This year more than 650 companies from 40 countries participated in the exhibition. Around 15,000 visitors were expected to have attended the event, with Asean visitors increasing by around 30%.
DSM, BASF promote healthy additives
Major producers of food additives such as DSM Food Specialties and BASF exhibited innovative products at the event. DSM Food Specialties promoted MEG-3, sustainable, pure and trusted source of EPA/DHA omega-3 and Life's DHA, a vegetarian algal source of DHA omega-3 for brain and eye health. The products are suitable for many applications, providing product differentiation and added value to diary products and processed meat. BASF, offered innovative ideas with their Vitamin E product that can be used as an antioxidant to reduce rancidity in meat products.
Products for quality, healthy and effective cost
Okuno Auromex Food offers a range of food ingredients for meat that can extend shelf life of products like sausages and ham, improve texture and yield and enhance water and fat holding. These help increase meat product quality and cost saving. Meanwhile, NutritionSc Co promoted a yeast extract that enhances salty flavours so that producers can reduce the use of sodium and follow the low-sodium food trend without compromising on taste. The company also offered meat enhancers and other ingredients for improving texture and yield of ham and sausage products.
Thai sausage producer promotes brand
A Thai producer of Vietnamese-style sausages promoted its Wassana Porkroll brand at the show. Wassana Porkroll has been building its brand of the same name for two years but has been producing and supplying the products for more than 40 years. Owner, Ruamporn Sirapanichart told Asian Agribiz that the company invested in new technology from Handtmann and changed from traditional packaging using banana leaf to food-grade German imported plastic for cost effective and safety reasons. The company also uses food ingredients to achieve premium quality.
|QL Resources may divest stake in Lay Hong|
[14 September 2015] Malaysia's QL Resources Bhd’s Managing Director and Founder Dr Chia Song Kun brushed off speculation that it would make a renewed bid for Lay Hong at a higher price following the failed takeover bid last year. In a local daily, he noted that QL Resources was assessing its options, which may include selling off its 38% stake in Lay Hong because it has no board representation. Last September the company launched a voluntary takeover of Lay Hong, putting on the table an attractive USD0.80 a share, an almost 40% premium to the five-day weighted average price. This came after Lay Hong’s controlling shareholders decided not to re-elect QL Resources’ sole representative on the board.
|US companies plead guilty to mislabelling halal beef exports|
[14 September 2015] Two companies charged in a US court for conspiring to export misbranded beef products to Malaysia, Indonesia and other markets have pleaded guilty, said an Associated Press report. In a plea agreement, Midamar Corp and Islamic Services of America (ISA) pleaded guilty to one count of conspiracy to make false statements on export certificates, sell misbranded meat and commit wire fraud, among other offences. With the plea bargain, each company will be required to forfeit USD 600,000 in proceeds, on top of a possible probation term and an additional fine at sentencing. The two companies were hauled up before the federal court last December for selling at least USD 4.9 million worth of beef to Malaysia, Indonesia and other countries that were labelled halal despite flouting Islamic practices.
|Jinxinnong buys vet company to keep abreast of pig industry consolidation|
[14 September 2015] Shenzhen Jinxinnong, a major pigfeed producer based in southern China, has acquired a 51% stake in Wuhan Huayang Veterinary Medicine Co for USD 15.6 million, according to an announcement on the company website. Jinxinnong, also known as Golden New Agriculture, said the changing face of China’s pig industry was behind the purchase. The company said the growing scale of pig facilities and high efficiency production methods meant that the market for animal health products would also expand quickly over the next 15 years. The contract contains a repurchase agreement if Huayang is unable to hit profit benchmarks with the new investment.
|NZ fighting Indonesia beef trade curbs|
[14 September 2015] New Zealand is prepared to fight for the principles of trade in its beef battle with Indonesia. This year, New Zealand and the US requested that a World Trade Organisation dispute settlement panel assess the import restrictions that led to a collapse in Kiwi beef exports to Indonesia. The non-tariff barrier saw the value of New Zealand beef and offal exports slump to USD 48.8 million in 2012 from USD 185 million in 2010. “We’re prepared to fight for what we think are the principles of trade,” said Trevor Matheson, New Zealand’s Ambassador to Indonesia. “These are principles that Indonesia accepted by becoming a member of the WTO.”
|Mumbai abattoir to get bio-methanation plant|
[14 September 2015] Deonar abattoir in Mumbai city in India is set to install bio-methanation plant to get rid of solid waste generated by the slaughterhouse. The abattoir has a capacity to slaughter 4,000 animals a day and 1200 workers are employed in it. Brihanmumbai Municipal Corporation (BMC) also known as Municipal Corporation of Greater Mumbai recently approved the upgrade. The project will be undertaken at an estimated cost of USD 1 million. Earlier, a study undertaken by Maharashtra Pollution Control Board discovered that the abattoir was in urgent need of an environment friendly method to treat solid waste.
CLFMA addresses profitable livestock production
Onsite report by SM ARUN
[14 September 2015]
The 48th Annual General Meeting & 57th National Symposium of Compound Livestock Feed Manufacturers' Association (CLFMA) of India, was held in Jaipur on September 10 and 11. Attended by over 500 delegates, the meet focused on the sustainable and profitable growth of livestock agriculture in India.
Compound feed industry expected to grow 8% by 2020
The compound feed industry in India is expected to grow 8% to 40 million tonnes by 2020, according to Amit Saraogi, CLFMA Chairman said. In his address at the AGM, he said that 28 million tonnes of compound feed was produced in India in 2014-15 to support the growing livestock industry. “India’s livestock GDP is growing at 3.5% and the growth rate of the dairy industry and broiler meat industry are 6% and 8% respectively,” he said. According to him, one third of the total animal feed requirement of 80 million tonnes in India is in the form of compound feed.
Animal protein consumption expected to double
Factors like urbanisation and income growth will result in increase in animal protein consumption in India, according to Mangesh Wange, Deputy Chairman of CLFMA in his address. “In the next few years, the growing population in the country is expected to consume almost double the amount of animal protein,” he said. Mr Wange also pointed out that the industry requires R&D in scientific and technological innovation along with the right policy approach to face the challenges in enhancing and sustaining productivity.
Poultry industry has benefited from scientific advancements
The Indian poultry industry has benefited immensely from scientific advancements, according to GB Sundararajan, Managing Director of Suguna Foods Pvt Ltd. In his presentation on ‘Increasing consumption of animal protein’, he said that the Indian poultry industry has fully utilised the benefits of poultry genetics and other innovations in the feed industry. “The industry should sponsor studies to determine how the consumption of chicken meat has benefited consumers,” he said. He also said the level of antibiotic residue in chicken in India is way below the maximum residue level prescribed by the US and EU.
EW Nutrition concludes field trials for alternatives to AGPs
EW Nutrition has successfully completed field trials for alternatives to AGPs in India. Speaking to Asian Agribiz, Dr P Kowsigaraj, Zonal Business Manager of South India & Sri Lanka the field trials were undertaken over the last two years and trial data had shown excellent results. “Awareness on alternatives to AGPs among Indian poultry, aqua and dairy sector players has increased and acceptance for our range of alternative feed additives and secondary plant compound (SPC) products has gone up,” he said. According to him, their trial data has proved that increased performance is possible without AGPs.
NCDEX to launch forward trading contract in soybean meal
India’s National Commodity & Derivatives Exchange Limited (NCDEX), the country’s second largest commodity and derivatives trading platform is expected to launch forward trading in soybean meal by the end of September. NCDEX is already trading soybean and refined soy oil in forward transactions. “We are optimistic as the poultry industry in India is a major consumer of soybean meal,” an official with NCDEX told Asian Agribiz. According to him, NCDEX is expecting approval for trading soybean meal from its regulator Forward Markets Commission (FMC) shortly. “The forward trading contract for soybean meal will be in both non-transferable specific delivery and transferable specific delivery at fixed price,” he added.
Venky’s to distribute Delacon products in India
Phytogenic feed additives company Delacon has entered into a distribution agreement with Venkateshwara Hatcheries (VH) Group in India to distribute its products in the country. Revealing the development to Asian Agribiz, Dr Jeetendra Verma, Regional Manager, South Central Asia of Delacon said that Delacon products will be made available to its customers in Q3 of 2015-16. “Prior to the agreement, Mr Deepak Khosla, General Manager (Marketing) and Mr Sudhir Kulkarni, General Manager (Finance and new projects) visited our Performing Nature Research Center (PNRC) in Czech Republic to learn about our manufacturing and R&D facilities,” he said. Delacon has also done product training with Venky’s team at six different locations in India.
|Bullish outlook for poultry industry|
[11 September 2015] The outlook for the global poultry industry for late 2015 and 2016 is bullish, as feed prices are still expected to remain at low pricing levels, and global breeding stock supply will be very low in regions with AI-related import restrictions, such as China and Southeast Asia. According to Rabobank's latest Poultry Quarterly Q3 report, supply is balanced in most regions, beef prices are high, feed costs are low. Nan-Dirk Mulder, animal protein analyst at Rabobank said China is expected to face a shortage in poultry and pork supply next year and this could become a major swing factor for the global poultry industry. The AI situation in the US is a major wild card for the industry outlook in the second half of this year.
|Diversification a boon for QL Resources|
[11 September 2015] Diversification has helped QL Resources Bhd weather the ringgit’s current fall. The company said its diversified core businesses have provided a natural hedge for each other. The export of its surimi products is earning US dollars, which has helped offset adverse impact the company may have on the weaker ringgit such as the importing of feed for livestock farming. For Q1 ended June 30 the company posted a profit of USD 9.50 million, a 1.4% growth from the previous corresponding quarter. The company's integrated livestock business saw profit before tax fall by 30% year-on-year to USD 3.02 million, while revenue remained flat at USD 87.87 million.
|Meat ban in Mumbai provokes controversy|
[11 September 2015] The move by India’s Mumbai civic body to ban meat for four days has sparked controversy throughout the country as it would amount to imposing food habits on the people. Mohammed Ali Qureshi, President of Bombay Suburban Beef Dealers' Association said that the meat ban cannot be justified as 98% of the population in Mumbai will be affected. “The vegetarian Jain community forms just 2%,” he said. The move has come under sharp criticism as it will affect thousands of butchers and traders in Mumbai city. Manish Tewari, a political leader commented that the government cannot impose rules on what and when to eat.
|Indonesia’s smart fish feeder maker gets funding for expansion|
[11 September 2015] Indonesia based eFishery, a smart fish feeder manufacturer, has received funding from Aquaspark, a Netherlandsbased aquaculture investment fund, and Indonesian venture capital firm Ideosource. The funds will be used to broaden eFishery’s distribution network locally. Traditionally, fish feed forms between 50-80% of the fish farming overhead costs and overfeeding negatively impacts the environment in many ways. eFishery tackles this through an affordable, techbased solution in the form of an automatic smart feeder that uses sensors to measure fish appetite and appropriate feed amounts.
|Taiwan reports separate H5N8, H5N2 outbreaks|
[11 September 2015] Taiwan has had two new highly pathogenic avian flu outbreaks, one involving the H5N8 strain and one caused by the H5N2 virus, according to separate OIE reports. The H5N8 outbreak affected a farm of 7000 ducks in Chiayi County at the end of August. Meanwhile H5N2 struck a Yunlin County farm containing 23,240 native chickens. Taiwan has battled scores of H5N8 and H5N2 outbreaks this year, many in Chiayi and Yunlin counties. Control measure have been put in place in both areas, including disinfection, control of poultry movement, and enhanced surveillance for three months.
|Potential for mid-sized food companies to grow in Asean|
[10 September 2015] Asean’s economic integration is expected to take longer than anticipated due to numerous challenges and stages of growth that member countries have to contend with. Still, with a population of over 600 million and growing incomes, the region is expected to generate demand for high protein and convenient food products, said Pawan Kumar, Director Food and Agribusiness Research and Advisory, Rabobank. Mr Kumar told Asian Agribiz that mid-sized companies should grab the significant potential available to address this market though online sales.
|Thaifoods Group maintains September IPO plan |
[10 September 2015] Thaifoods Group will maintain its plan for an Initial Public Offering (IPO) in September as the market situation is favourable following a cabinet reshuffle. Economic stimulus measures were introduced and the prices of chicken and pork are rising, said Chairman of the Executive Committee and the Chief Executive Officer, Winai Teawsomboonkit. The company said in August following the bomb blast in central Bangkok that the IPO would be postponed due to the unfavourable investment sentiment. TFG expects to raise fund through the issuance of 1.4 billion ordinary shares.
|CCK sees higher turnover, earnings in Q2 2015|
[10 September 2015] CCK Consolidated Holdings Bhd (CCK) based in Kuching, Sarawak in East Malaysia reported higher turnover and earnings in Q2. The poultry products distributor told Bursa Malaysia that revenue in Q2 grew 5.7% year-on-year to USD 28.03 million while profit before tax in Q2 increased by 41% year-on-year to USD 0.98 million. CCK attributed the growth to increase in sale from the group’s expansion through increasing stores or outlets at strategic locations. Moving forward, CCK said the group will continue to look for opportunities to expand its network of outlets in both Malaysia and Indonesia.
|Meat sale banned in two cities in Maharashtra state|
[10 September 2015] India’s Brihanmumbai Municipal Corporation has banned the sale of meat in Mumbai for four days from September 10-18 on account of a Jain religious festival. “Slaughter houses in Mumbai will be shut on these days and sales will be prohibited after Mumbai’s vegetarian Jain community demanded the ban,” Rakesh Samrat, an official with Mumbai Corporation told Asian Agribiz. The ban covers slaughter of buffaloes, goats and hogs, but excludes fish and poultry. According to him, the four day ban has been in place for the past 10 years. Similarly, Mira-Bhayander Municipal Corporation in Maharashtra state has also banned the sale of meat for eight days during this period.
|Japan to set standards for beef aging|
[10 September 2015] Japan’s Agriculture, Forestry and Fisheries Ministry has begun considering setting standards for aging beef, a practice that has sparked an ongoing red meat boom. While the number of restaurants offering aged beef, prized for its deep flavour, has been rapidly increasing, the levels of quality and hygiene control differ among restaurants. By setting certain public standards, the ministry aims to provide reassurance to consumers and help the trend flourish. The ministry plans to add dry aging to the scope of the Japanese Agricultural Standards (JAS) and establish standards for production methods and the conditions of a completed product.
|Karnataka's food processing policy to raise farm income|
[10 September 2015] India’s Karnataka state is formulating a new food processing policy by exploring avenues to set up medium sized food processing units. Karnataka’s Industries Minister RV Deshpande said that the government is also planning to organise a Global Investors Meet this year for the development of this sector. “Food processing has the potential to raise farm incomes through value addition of agricultural produces,” he said during a recent meeting and added that potential for food processing sector is huge in Karnataka.
Asian Agribiz Layer Feed Quality Conference
[09 September 2015]
Asian Agribiz Conferences successfully conducted its inaugural Layer Feed Quality Conference in Jakarta, Indonesia on September 7. Attended by more than 160 participants from Indonesia, India, the Philippines and Sri Lanka, the conference saw 11 reputed professionals offer a dedicated focus on layer nutrition, management and feed production, which is important to build a sustainable flock.
DQY surpasses with egg branding strategy
Keynote speaker Han Zhaopeng, Vice Director R&D of Beijing DQY Agricultural Technology from China, shared his company’s strategies as a leading and innovative egg producer in China. Mr Zhaopeng said current challenges in the China egg industry include price fluctuation, food safety, complicated disease, poor marketing and the environment. To deal with these challenges, the company chose to brand its eggs to ensure quality, safety and traceability. “We differentiate our eggs and pack it well. And then we work hard to promote it,” he said. Currently DQY raises 3.6 million birds, and owns three grading facilities, three breaking plants, a further processing plant, two feedmills and biogas facilities. In future DQY plans to provide more product choices.
Improving nutrient retention for layers
Tools are available to improve nutrient retention for layers, according to Rosalina Angel, Associate Professor at the University of Maryland, the US. Tools such as feeding closer to requirements, ingredient selection and knowledge, particle size and feed additives, if used correctly can have a large impact on how well the animals use the nutrients that are in the diet for productive means. Focusing on calcium, Dr Angel recommended the participants select sources based on particle size and solubility to minimise bone mobilization, decrease incidence of cage layer fatigue and cracked or soft shelled eggs, and increase sellable eggs per hen.
Selecting fibre sources
Selecting the right fibre source is important, according to Ike Ng, Asia Pacific Manager for Animal Nutrition of J Rettenmaier & Soehne (JRS). He said traditional fibre sources, which contain significant amounts of soluble fibre, bear mycotoxin risk. Meanwhile, insoluble crude fibre concentrates based on lignocellulose don’t carry mycotoxin risk and are 100 % insoluble, “so this is a good fibre source for layer diets,” he remarked. Trials have shown that insoluble, non-fermentable crude fibre concentrates have a positive impact on pullets on weight gain and gizzard size and in the laying stage on wet litter, feather pecking/cannibalism and performance.
β-mannanase supplementation in layer diets
In recent years, better awareness of the negative effects of β-mannan and better understanding of the mode of action of β-mannanase has led to its increasing use in poultry including layers. Sarah Cervantes-Pahm, Elanco Nutrition Adviser for Asia Pacific, said recent research indicates that β-mannan-induced intestinal inflammation can be reduced through β-mannanase supplementation in the diet. “By reducing β-mannan-induced intestinal inflammation, we observed improvement in egg production or FCR, more grade-A eggs (cleaner eggs) and more XL eggs (larger eggs). These because of better intestinal integrity,” she explained.
Tryptophan’s role for layer production & performance
Maria Eloisa C Carpena, Evonik Technical Sales Manager, explained that tryptophan is the 4th or 5th limiting amino acid after the sulphur-containing amino acids, lysine and threonine for laying hens. It plays a significant role in reducing the dietary CP levels while optimising production and performance, and profitability of laying hen operations. According to her, increasing the ratio of digestible tryptophan:lysine from 19 to 24.5% positively affects laying hen performance such as feed consumption, egg production, egg weight and egg mass. However, the variation in the level of response of laying hens indicates that the optimum tryptophan requirement of laying hens is influenced by age, strain, diet design and composition and environmental conditions. The dietary concentration of large neutral amino acids also affects the dietary tryptophan requirement of laying hens.
Benefits of enzyme combination in layers
The benefits of exogenous enzymes in layer diets have not been fully realised, due to a number of reasons including over-formulation of main nutrients, inconsistency of enzyme products and producers’ inability to judge enzyme efficacy, according to Alex Wu, Regional Technical Manager Asia of Adisseo Asia Pacific. Dr Wu explained that enzyme synergy appears to exist between NSPase and phytase in layer feeding. And a more diversified NSP-degrading enzyme plus an effective phytase is proven to be effective in facilitating digestion of cell wall matrix and increase digestibility of major nutrients, which can contribute ME by 50-70 Kcal/kg, digestible amino acids by 1.5-2.0%, and compensate Ca/avP by 1.2/1.5 g/kg.
Split-feeding system for optimal nutrient utilisation
The requirements of layers for protein, energy, calcium and phosphorous vary throughout the day, within the circadian cycle, based on their physiological needs for formation of the various components of the egg. Feeding methods based on a diet with constant levels of nutrients may not result in optimal utilization of these nutrients. Felipe Sanchez, Nutreco Application & Solution Specialist Poultry & Technology Transfer, said Trouw Nutrition has developed the NutriOpt split-feeding system based on two diets with different nutrients levels in the morning and afternoon to meet the different requirements through the day. The system improves the quality of eggshell, increases the number of saleable eggs, improves the performance, and offers profitable & sustainable egg production.
Developments in gut health
With the removal of antibiotic growth promoters, rising feed costs, lower selling margins and the emphasis on improving efficiencies and sustainability, both academic and commercial poultry nutrition are now quiet focused on better understanding gut health. Specific to laying hens, Santiago Ramirez, Principal Consultant of Fractal Farming, said recent developments in gut health research and applications are being targeted to gain a better understanding of the functionalities of the crop and gizzard, the management of gut microbiome balance and the application of novel feed additive strategies to improve gut health. He added that commercially the application of new knowledge and experience should assist in improvements of laying performance through higher egg numbers and egg yields, better health and reduction in mortality.
Organic acids impact on layer health & performance
Organic acids have long been used in animal nutrition, usually to stabilise compound feed and enhance animal performance. The use of these valuable additives has been adopted by the layer industry. Christian Lückstädt, Technical Director Feed of Addcon, said the use of organic acid salts have a range of beneficial effects in layer production. The issue of biosecurity in the feed addressed effectively, by assisting the bird to avoid the negative health and productivity impacts of bacterial pathogens, and improvements in nutrient digestibility, especially minerals leads to better egg quality. He added that the use of organic acids, their salts – and especially dietary sodium diformate (NDF) is an effective and sustainable tool for performance enhancement, in terms of egg quality and gut microflora in laying hens under Asian conditions.
Ingredients assessment and mixing
Three aspects of feed manufacturing, namely ingredient evaluation, recipe optimisation and mixing are important components of manufacturing quality animal feed and directly relate to animal performance. A key aspect of producing quality feed is achieved by appropriate assessment of inbound ingredients. Ivan Ward, Director of Agri-Torque, said with the advances in NIR technology, the assessment of ingredients has become easier as the ingredients are assessed prior to receiving on-site. “The additional nutrient data from the NIR plays an important role in assisting nutritionists to correctly update nutrient levels in optimisation software, as well as improving the accuracy of recipes sent for manufacturing,” he said. Mixing is another important process in manufacturing quality feed. Poor mixing performance can lead to poor animal performance and therefore mixer performance needs to be routinely measured, Mr Ward said.
Impact of encapsulated Ca butyrate in layers
Butyric acid can promote the growth and health of an animal’s digestive system. Liong Kah Heng, Kemin Industries Marketing Director Animal Nutrition & Health for Asia Pacific, introduced encapsulated Ca butyrate that contains 45% butyric acid embedded in a matrix of vegetable oils and sugars to sustain its release in the gastrointestinal tract. A layer trial in Malaysia showed that the use of encapsulated Ca butyrate at a lower dose of 300 g/tonne will give a better performance as compared to sodium butyrate at 1.5 kg/tonne. Birds fed with the product during the 140-day trial had better egg production, lower pale coloured eggs and less dirty and cracked eggs.
|Navis considers sale of GFS|
[08 September 2015] The owner of Golden Foods Siam (GFS) is considering exiting the Thailand-based poultry group. Richard Foyston, Chairman of Navis Capital, the Malaysia-based private-equity firm that acquired it in 2009, said it is assessing what level of interest there could be in the business. “It may come to fruition in the next couple of months, or maybe not.” The Wall Street Journal quoted Mr Foyston as saying that falling feed prices could be an opportune time to sell. According to just-food, Golden Siam Food has attracted a lot of interest from the trade as it is one of the largest fully-integrated value added chicken producers in Thailand. Thailand is the global low-cost and largest producer of internationally-traded value added chicken, and Golden Siam Food is the only large company in the sector that is available to be acquired for the long-term foreseeable future.
|Pig farm owners reject growth promoters|
[08 September 2015] More than 300 Vietnamese pig-breeding households in Dong Nai province recently signed a commitment not to use banned chemical substances such as lean-meat agents that have harmful side-effects on humans. The use of lean-meat agents was banned in Vietnam in 2002. They include salbutamol, clenbuterol and ractopamine that stimulate growth and quickly develop lean meat. This follows the recent detection of banned lean-meat substances in pork in the province. The province has about 1.5 million pigs. In the first seven months of this year, 17 of the 84 samples taken by the department from breeding households tested positive for salbutamol.
|Japan to process tuna in Vietnam|
[08 September 2015] Japan’s Hokugan Ltd Company plans to build an 1800-tonne/month capacity plant for processing ocean tuna and other aquatic products in the Dong Tac fishing port in the province of Phu Yen. Phu Yen’s annual catch is 6000 tonnes of ocean tuna and 3000 tonnes of cuttlefish, said Vice Chairman of the provincial People’s Committee, Le Van Truc, adding that the output and quality would increase, thanks to modern Japanese technology. The Japanese company would provide fishing tools for locals and will send experts to offer technical knowhow to local fishermen.
|Canadian QSR chain to enter India|
[08 September 2015] Canadian sandwich maker Mr Sub, popular for its submarine sandwich is set to enter India. Arnav Saluja, Chairman, Beverly Food and Beverages, the master franchisee for Mr Sub in India said that they plan to start with an outlet in New Delhi. “We aim to establish 30 outlets by March next year and a total of 200 outlets across India by 2020,” he said. Mr Sub’s submarine sandwich will retail at about USD 2 for vegetarian and USD 3 for non-vegetarian sandwiches. “After Delhi, we will move to Mumbai, Hyderabad and Bangalore, with 65 outlets targeted by March 2017," he added.
|Food safety testing market expected to reach USD16.1b by 2020|
[08 September 2015] The global market for food safety testing is projected to reach a value of USD 16.1 billion by 2020, at a CAGR of 7.4% from 2015, according to MarketsandMarkets recent report. Asia Pacific is likely to be the fastest growing region, due to the rising demand for food safety. The most rapidly moving country in Asia Pacific is China. The Asia Pacific market is expected to grow due to the increase in agriculture produce trade supply. This is because food exports and imports have to be certified based on the food safety regulations of that particular country.
|Layer Feed Quality Conference in Jakarta today|
[07 September 2015] The inaugural Asian Agribiz Layer Feed Quality Conference opens in Jakarta, Indonesia today with the theme ‘Building a sustainable flock’. The intent is to make producers think about how they approach layer nutrition and management, and feed production. Leading layer industry experts will address topics such as opportunities for enriched eggs, nutrient retention and nutrient waste for layers, developments in gut health and novel split feeding systems. Watch this space for a brief tomorrow.
|Trouw Nutrition inaugurates new plant in East Java|
[07 September 2015] Trouw Nutrition International recently staged the grand opening of its second plant in Indonesia and fifth in Asia that is located in Pasuruan Industrial Estate, East Java. The plant, which cost the company around 6.5 million, has an installed capacity of 12,000 tonnes/2 shifts/year and has two dedicated production lines namely medicated and non-medicated lines. The plant will produce premixes, base-mixes and nutritional specialties for local and export markets. The new plant only has 20 staff to control the production. Knut Nesse, CEO of Nutreco, the holding group of Trouw Nutrition International, told Asian Agribiz that the new plant is the company’s commitment to support the development of the livestock industry in the country and to maintain the company’s leadership in the animal nutrition (premix & feed additives) market. Mr Nesse revealed that Nutreco also plans to drive its aqua feed agenda in Indonesia.
|Philippines seeks lower tariffs for poultry exports to Japan|
[07 September 2015] The Philippines is seeking lower tariffs for its poultry exports to Japan under a free trade agreement. Agriculture Undersecretary Jose C. Reaño said that the Department of Agriculture is currently negotiating with Tokyo to bring down the current tariff rate for yakitori chicken exports from 8.5% to 4.5%. However, Mr Reaño clarified to Asian Agribiz that dressed frozen chicken and cooked chicken are also included in the negotiations, although the Philippines are not yet exporting these products to Japan. “We are still reviving the [export of] fresh frozen chicken, while cooked chicken is being developed by Magnolia of San Miguel Pure Foods Co and Bounty Fresh Foods Inc.” The lowering of the tariff, he said, will level the playing field for the Philippines in Japan, pointing out that Thailand’s cooked chicken exports to the country is currently levied a 3% duty.
|Beef prices in Indonesia still high|
[07 September 2015] The Indonesian government’s apparent attempt to boost beef self-sufficiency by lowering cattle imports from Australia by 80% may backfire, as prices have spiked and sellers in Jakarta are going on strike in protest. Merchants at the Kramat Jati market in East Jakarta recently said that they would not sell beef for four days to express their frustration over the high prices. Endang, a beef seller, said sellers want prices to come down and that the Indonesian Association of Cattle and Beef Entrepreneurs had called for a strike. According to her, the price of beef at the traditional market has been USD 8.85/kg since before the end of the Muslim fasting month in mid July. “Beef sellers just want normal prices,” she said.
Asian Agribiz Poultry Feed Quality Conference
Bangkok, Thailand - September 3-4
[07 September 2015]
The 2015 Asian Agribiz Poultry Feed Quality Conference, held in Bangkok last week, was well received. Some 300 nutritionists, feed processors and poultry integrators from the region heard presentations from academia and the industry who spoke on four main themes over two days. Day one looked at New Thoughts on Energy and The Challenge of Producing Chicken without AGPs. Day two focused on Utilising Amino Acids and Harnessing Feed Technology.
Improving nutrient retention in broilers
The emphasis on regulation, a growing trend in Asia, is driving changes in how poultry integrators and nutritionists feed and manage animals on the farm. According to Dr Rosalina Angel, Assistant Professor, University of Maryland, US, tools are being developed to meet these challenges. “Knowledge of the ingredients available and how best to use them in diets as well as our feed manufacturing limits and needs for safety margins can substantially change the nutrients we formulate into the diet and diet costs,” she said. It is therefore important to understand the animals we are feeding and their nutrient needs, and digestive and absorptive limitations at different production stages. This, she said, is still not greatly understood. “But we have a plethora of tools available to better meet the goal of producing poultry products more efficiently and more cost effectively while reducing nutrient emissions to the environment.”
Are we meeting creatine requirements of poultry?
Creatine is an essential nutrient for high yield broilers. It is a compound formed in protein metabolism. It is involved in the supply of energy for muscular contraction. “In fast growing animal, creatine can’t be fully compensated by endogenous synthesis making it a necessary compound. Approximately two-thirds of the creatine requirements of broiler chickens are met endogenously, the remainder must be supplied by diets,” Dr Girish Channarayapatna, Director, Nutrition and Technical Sales Nutrition and Care, Evonik (SEA). In a paper that has been presented for the first time in Asia, Dr Channarayapatna introduced CreaAmino, a suitable feed additive that is affordable and chemically stable compared with pure creatine sources. He said its supplementation can successfully improve chicken performance both in full vegetable diets and diets containing animal protein sources. Inclusion of CreAmino at 0.1% to poultry breeder diets can improve the reproductive parameters and performance of progenies.
Roles of sulphur containing amino acids
The industry has a narrow understanding of synthetic amino acids and how they are only considered as protein building blocks. As such nutritionists have focused their work on balancing diets for digestible amino acids to ensure adequate supply of all essential amino acids at right levels and ratios to lysine in order to achieve desirable weight gain and feed conversion ratio. But new research is looking at the unseen benefits of methionine. Dr Kevin Lui, Vice President of Adisseo, Asia Pacific, said there is much to learn about the protein source. “Methionine not only increases performance but also influences birds in different ways. For instance, the biological functions of methionine are multiples, such as methyl donation, precursor of cysteine and further sulphur compounds implicated in redox homeostasis.”
Different ways of measuring moisture
In the session on harnessing feed technology, Ivan Ward, Director, Agri-Torque, Australia discussed ways in which moisture is measured in feed & ingredients, challenges with moisture analysis and opportunities during feed manufacturing to monitoring moisture content. Moisture content provides valuable information about feed quality as it impacts the nutrient concentration of feed ingredients as well as affecting the shelf life of feed, he said. The difficulty with moisture content assessment of feed is there are many types of equipment used, and to compound the issue, the same equipment can have many accredited methods for measuring moisture he added. For example, the two commonly accredited oven dried methods for moisture determination (103oC for three hours and 135oC for two hours) produce different results.
Real-time inline feed formula adjustment during batching
Moisture is an important diluent of the nutrients that comprise animal feed. Knowledge of the moisture content is essential for calculating nutrient density as well as the impact on operational efficiency, feed quality and associated economic losses. Yiannis Christodoulou, President of Agentis Innovations highlighted the latest technology that addresses this problem, which is based on microwave resonator technology (commercially known as M007). It is both highly accurate and can process thousands of measurements per second. It can not only measure in real time the moisture of the raw material before batching, but auto corrects the batching weight to correct for the true dry matter.
Steam conditioning to improve feed pellet efficiency & feeding value
Producers still face problems producing pelleted feeds stated Steven Goh, Regional Business Director, Delst Asia as they do not have the correct steam to cook raw starch granules effectively or have insufficient conditioning dwell time for steam/meal interaction. To maximise feed pelleting efficiency and feeding value, he suggested among others, working with the ideal steam conditioning temperature (70oC for pig feed/78 oC for poultry feed) and ensuring there is sufficient conditioning time (dwell time), with close to 60 seconds as the ideal.
Asian Agribiz Poultry Feed Quality Conference
Bangkok, Thailand - September 3-4
[04 September 2015]
The Asian Agribiz 2015 Poultry Feed Quality Conference opened yesterday at the Amari Watergate Bangkok Hotel. The program features 17 speakers from academia and industry who will present 21 papers over two days. Yesterday touched on two of the four relevant themes - New Thoughts on Energy and The Challenge of Producing Chicken without AGPs.
Consider the immune system in feeding strategies
Poultry producers and nutritionists at the conference learnt that moving on to a more complex feeding system, one that takes into consideration the chicken’s immune systems can enhance productivity. Key note speaker Dr Jan van Eys, Principal from Global Animal Nutrition Solutions said the current energy-protein feeding systems are geared towards healthy birds and maximum production. “In the future systems that incorporate immune challenges, environmental stress, essentially the fine-tuning of nutrients, can lead to better productivity,” he said. Individual nutrients such as glutamic acid, arginine, amino acids, omega 3 fatty acid, selenium and vitamin E can help with the immune response of the bird. “However, sick birds may not eat, but they will drink. If the farm has the facilities, adding these supplements to the drinking water may also enhance an immune response.”
Change in the way energy is supplied
Net energy (NE), which includes metabolised energy (ME), has the potential to save money and improve uniformity, but its implementation has been lacking. Meanwhile, the ME system works and is easy to use but “in growing chicks, the relative efficiency of energy utilisation for carbohydrate, fat and protein has been determined to be 100%, 113% and 78%, respectively,” Bob Swick, Industry Professor of Poultry Nutrition, University of New England, Australia, said, adding that it overvalues the productive energy value of protein meals and undervalues fat or ingredients with a high fat content. Adjustment of ME values for heat increment have the potential to improve profitability in poultry production. The magnitude of savings will depend on relative differences in protein, fat and carbohydrate between ingredients and price. Research currently underway at the University of New England has shown that broiler NE and heat increment can be predicted from chemical composition of feed.
β-mannanase enzyme can reduce intestinal enzymes
β-mannans induced corn-soybean meal diet can induce inflammation in the gut. According to Sarah Cervantes-Pahm, Advisor Animal Nutrition, Asia Pacific, Elanco Animal Health, adding β-mannanase supplement to the diet can reduce inflammation. “This can potentially reduce the net energy for maintenance, most importantly, the immune response of the birds, and potentially increase the net energy for body weight and egg gain, as whatever energy is used for net energy for maintenance will reduce net energy for gain ” she explained. β-mannanase, she further explained, may spare energy by preventing the available energy from unnecessarily being diverted away from growth, thus improving intestinal health and bird performance.
First feed have benefits over entire growout
Chick weight on day seven is usually a good indication of performance over the entire growout. Improving diet digestibility, increasing nutrient levels, or adding otherwise cost prohibitive additives may improve health and growth during the first week. If this sets the bird up for robust growth later, it may be economically justified and could be considered an investment. Dr Bob Swick, Professor of Poultry Nutrition, University of New England, Australia, in his presentation explored several ideas and presented some on recent experiments on amino acid levels, anti-nutritional factors and plasma proteins in starter feed. He said additional digestible amino acids were beneficial when provided at levels 10% above breeder recommendations for the first 10 days. The response to soy protein concentrate provided in starter feeds, meanwhile, varied by type of product provided. “The further processed soybean material was effective in increasing performance over the entire growout when only used in the starter feed. Spray dried plasma proteins were found to be effective in several experiments,” he said admitting that the limiting factor in the acceptance of these products is cost.
Nutritional concepts that boost the immune system
Producing chicken without the use of Antibiotic Growth Promotants (AGPs) was discussed extensively at the conference. Walter van Hofstraeten, Senior Consultant Poultry Nutrition, Schothorst Feed Research presented to the audience that the use of veterinary antibiotic use reduced by 50% in 2013 and is expected to drop a further in 70% in 2015 in the EU. He added that better farm management, climate control housing and hygiene and nutritional concepts play a great role to boost the immune system of the flock. Using feed additives in diet helps and it is good to use products that have different working mechanisms to avoid the interaction of products. “Also if you like to use products to stimulate the immune system, keep in mind that there is an optimal dose,” Mr van Hofstraeten advised.
European Experience on feed additives
Dr Heinrich Kleine Klausing, Head of Product Management and Production, EW Nutrition Germany said support of gut health and maintaining performance data is possible without the use of AGPs. He spoke about the new generation of alternative feed additives and secondary plant compound (SPC) products that offer potential replacement to AGPs such as the organic acids and enzymes that are used widely in Europe. However, a bundle of different actions in feed quality, feed processing and formulation concepts must be taken rather than a one measure-solution.
The role of pre and probiotics
Dr Jan van Eys said that AGPs are on their way out. In the wake of this, pre and probiotics offer a viable alternative and are also consumer friendly. However, the effectiveness of the products will differ with the type of the pre and probiotic and diet and the response on FCR reduction still needs some additional study. Dr van Eys pointed out that a better understanding and a more integrated approach is needed in cooperate with evaluating the combination of pre and probiotics to achieve an effective and economical alternative.
Hot trials – new developments in feed additives
At the conference, participants were presented with trial results using feed additives to replace AGPs. A Thai field presented by Dr Pathawit Ngamchapoen, Poultry Technical Advisor, Innovet Corporation, Thailand observed the effectiveness of Salmonella infection prevention by the targeted supplement. Dr Pierre-Andre Geraert – Director Innovation Marketing, Adisseo, France, addressed the structural complexity of non-starch polysaccharides. Tim Goossens, Business Development Manager, Digestive Performance, Nutriad International, Belgium, presented experiments that explored the potential of coated butyrate products which showed some potential effects of butyrate in the gut while R. Chanthirasekaran, Senior Global Product Manager, Kemin Industries, Singapore presented Clostat as an alternative to AGPs. Hans van der Waal, Market Development Manager for Bestmix software, Adifo N.V introduced the Formulation as a Service (FAAS) Platform for feed formulation and raw material management and equation.
|Science, trial data and solutions focus of conference|
[03 September 2015] The Poultry Feed Quality Conference organised annually by Asian Agribiz begins in Bangkok, Thailand today. The two-day conference which has ‘Science, trial data, solutions’ as its banner, has attracted about 300 participants from throughout the region. The program for this year's event is divided into four sessions - new thoughts on energy; utilising amino acids; producing chicken without AGPs; and harnessing feed technology. There will also be a hot trials session with short papers on the latest product-related research in Asia. More details in this space tomorrow.
|TGM target double digit growth in 2015|
[03 September 2015] Thailand’s veteran sausage and meat product producer Thai German Meat Product Co Ltd (TGM) is targeting a double digit growth this year with its new [second] plant up and doing trial runs. “Sales for the first seven months grew 10% and I hope the momentum continues and that we achieve a double digit growth for the whole year,” Chantana Puapattanakajorn, Managing Director, told Asian Agribiz. TGM generated sales of USD 42 million in 2014, up 8% from the earlier year. Ms Chantana said the company's new plant is conducting test runs and will run at full capacity in October, producing 50 tonnes of ham products while the old plant will be used for sausage products only. The new plant will facilitate TGM's plan of exporting to Japan, Ms Chantana said.
|High mycotoxin levels, weather dampen Philippine poultry performance|
[03 September 2015] High toxin levels in feed raw materials and the rainy weather are affecting animal production in the Philippines. Dr Miriam Alberto Tempra, Vice President of the Philippine Society of Animal Nutritionists told Asian Agribiz that there are many reported cases of mycotoxin-related problems in farms around the country. “We have high levels of aflatoxin, T2 and zearalenone in corn, soybean, copra and rice bran,” she said, adding that “the high toxin levels has reduced the immunity of animals. In broilers, this has led to slow growth and birds are more prone to diseases.” Egg production too has been affected. Atty Elias Jose Inciong, President of the United Broiler Raisers Association, confirmed with Asian Agribiz that the toxin problem has indeed led to increased disease incidence and has “significantly” affected broiler production for the third quarter, but did not offer figures.
|Vietnam reports H5N1, H5N6 outbreaks |
[03 September 2015] Vietnam confirmed two separate outbreaks involving H5N1 and H5N6 avian flu strains affecting more than 10,000 poultry, according to separate reports posted by the World Organization for Animal Health (OIE) on August 31. The H5N1 outbreak involved a backyard flock of 1,550 birds in Vinh Long province in the south while the H5N6 outbreak affected a backyard flock of 8,600 poultry in Quang Ngai province in central Vietnam. A total of 1,056 died from their infections, and the rest were destroyed as a containment measure.
|Malaysian Burger King franchise sold to Newscape Capital|
[03 September 2015] The Burger King franchise in Malaysia and Singapore has been sold to Newscape Capital Sdn Bhd – a company registered to supermarket chain 99SpeedMart founder Lee Thiam Wah and his business partner Datuk Chua Tai Guan. The sale by Ekuiti Nasional Bhd (Equinas) comes months after earlier plans to sell the fast food franchise to airline caterer Brahim’s Holdings Bhd fell through. The franchise was sold for USD 17.85 million. CEO Datuk Abdul Rahman Ahmad said: “This exercise has also enabled Ekuinas to successfully complete the restructuring of its f&b portfolio involving our exit from the QSR segment to fully focus and expand the core casual dining and beverage segments with brands such as Tony Roma’s, Manhattan Fish Market, New York Steak Shack, Coolblog and San Francisco Coffee.”
|Cargill to invest USD200m in the Philippines|
[02 September 2015] Cargill Inc is set this year to invest USD 200 million to put up integrated plants in the Philippines, particularly in Mindanao, a report by BusinessMirror said. The plants will include feed manufacturing and chicken growing stations, and are dubbed “feed to fork” because they will provide seeds to produce raw materials, produce the feeds, and raise chickens and process chicken products. Philippine Agriculture Undersecretary Jose Reaño said that Cargill’s investments will benefit Filipinos because the feed raw materials will come from local farmers while the workers in the plants will be Filipinos. Already Cargill has applied for membership to the United Broiler Raisers Association (UBRA). Atty Elias Jose Inciong, UBRA President, told Asian Agribiz that investments, whether multinational or domestic, would be positive for the industry.
|Japfa Indonesia to export hatching eggs to Myanmar|
[02 September 2015] Indonesia’s poultry integrator Japfa Comfeed Indonesia is preparing to export 348,905 broiler PS hatching eggs to its sister company Japfa Comfeed Myanmar this year. The export will mark the first shipment of the product abroad since the avian influenza (AI) outbreak in Indonesia in 2004. “We have got the import permit from Myanmar since our breeding and hatchery facilities are AI-free on the compartmentalization system, and this status is recognised and certified by Indonesia’s Ministry of Agriculture,” Fitri Nursanti Poernomo, Senior Manager Government Relations, told Asian Agribiz. Ms Fitri said the stocks will be divided into three shipments – in early September, mid-October and early December. The import permit is until 2017. In 2016 and 2017 the company plans to export 704,982 and 808,329 hatching eggs respectively.
|CP to collaborate with Aussie meat processor |
[02 September 2015] Charoen Pokphand Group (CP) has signed a memorandum of understanding with Australia’s Thomas Foods International Consolidated Pty Ltd, bringing together two leading food producers. Thailand-based CP and Thomas Foods said they are exploring a number of opportunities to collaborate across their respective markets, particularly in value-added meat processing and food business on the back of state-of-the-art technology and know-how from CP as well as the best quality raw materials from Thomas Foods and other sources in Australia. Thomas Foods is Australia’s largest 100% family-owned meat processing company. It processes 120,000 lambs and sheep and 5000 cattle per week while exporting to 80 countries.
Asian Agribiz NIRS Introduction Workshop, Bangkok
On-Site Report by CRAIGE ALLAN
[02 September 2015]
As part of Asian Agribiz’s Skills Development program, an Introductory NIRS workshop was held in Bangkok yesterday, prior to the Poultry Feed Quality Conference. The workshop, presented by Ivan Ward of Agri-Torque covered the importance of nutrient data, where nutrient data is used, nutrient data sources, how nutrients can be measured and NIR basics. Case studies where used to put the theory into practice.
Importance of nutrient data
To realise the opportunities from variation in nutrient data firstly you need to be able to measure it, and secondly to be able to react to it. Measurement of nutrient data can be used to improve animal performance, reduce feed costs, improve feed efficiency and improve profit. Nutrient data can be used in procurement to specify ingredients, identify preferred suppliers and to make claims on out of specification ingredients. Quality control can also use this data for inbound approval of raw materials. Measuring ingredients with an accurate NIR can conservatively save USD 15/tonne of feed in Australian conditions, and the potential savings in Asia are larger than in Australia due to higher nutrient variability, and these cost savings do not account for any improvements in animal performance, said Mr Ward.
Surprisingly, moisture is one of the hardest ingredients to accurately measure, whether you use wet chemistry or NIR. If you can conquer moisture, other nutrients such as fat and protein, will seem relatively easy commented Mr Ward. He explained that moisture analysis is difficult because of different equipment, drying methods, sample storage requirements and even the method used to calculate the results can differ. He advocates using oven drying at 103 degrees for three hours as the preferred method, since this gives good reproducibility and less volatiles are heated off than drying at 135 degrees for two hours. He also recommends that the difference in sample temperature before and after grinding should be as small as possible to reduce the amount of moisture leaving the sample.
According to Mr Ward the commercially reliable limit of detection is 0.5% or 5,000ppm, however, this limit depends on the accuracy of your wet chemistry. He added that this limit is above what is required for trace minerals for example. Therefore, he recommended that NIR is not suitable to predict trace minerals in raw materials or feed, and other methods should be used. NIRS is also not a suitable method for analysing non-homogenous compounds, such as mycotoxins.
What makes a good calibration?
To produce a good NIR calibration you need to exceed the nutrient component range that you are likely to encounter remarked Mr Ward. For global ingredients with many production regions, such as soybean meal, he suggested a minimum of 2,500+ samples with good regional representation across seasons, years and processing conditions. For ingredients that are sourced from a single region 200 samples is adequate, but 1,000+ would be better. If you receive ingredients that are outside of your calibration range, you will need to have these analysed by your laboratory reference method and added into the calibration.
NIR result verification
The accuracy of the NIR result depends on a number of factors, including the sample, NIRS hardware, environmental conditions, alarm and warning limits, and the calibration – samples, reference analysis and NIR and calibration validation. It is often overlooked that NIR instruments can take up to several hours to warm-up until the instrument is fully stable, therefore Mr Ward recommends the NIR be powered on continuously.
|CPF supports traceability for its 400 corn suppliers|
[01 September 2015] Bangkok Produce, a subsidiary of Charoen Pokphand Foods (CPF), which buys corn for livestock feed, announced that it has installed a traceability system for its 400 corn suppliers to identify the source of the crop in accordance with CPF’s sustainable corn policy. Paisarn Kruawongvanich, Executive Vice President of Bangkok Produce, said that extending the system to its suppliers would encourage them to improve corn planting practices. Corn plantations, especially in the north of Thailand, have been rapped for pollution due to improper post-harvest practices.
|Sierad takes control of Belfoods Indonesia|
[01 September 2015] Indonesia’s poultry integrator Sierad Produce and its subsidiary Transpacific Niagareksa recently signed a sale and purchase agreement with DK Intertrade ApS on the transfer of ownership of 33% of Belfoods Indonesia. With this, Sierad now indirectly owns 100% of Belfoods. In its official statement the company said the corporate action was in line with its strategy to expand its food division by strengthening the capital structure of its food-processing subsidiary (Belfoods). The company is also optimistic that this will improve its business performance.
|Ducks from Ireland popular in Singapore restaurants|
[01 September 2015] Ducks from Ireland are popular in restaurants in Singapore, despite being 30% more expensive than Malaysian ducks, because their high fat content makes the meat more tender and flavourful. It is distributed by Lee Kim Tah Holdings, which owns the restaurant Legendary Hong Kong, to a number of restaurants in Singapore. Originating from the family-owned Silver Hill Farm in Monaghan, north of Ireland, they are raised according to the specifications of the restaurants and are slaughtered at 42-45 days. These free-roaming ducks are fed a grain-based diet and raised in a calm environment. They are also defeathered by hand, which reduces bruising. Jarrod Seah, Director of Lee Kim Tah said he is in talks with three or four Chinese restaurant chains that want to use the ducks.
|Japan announces partial lifting of ban on US poultry products|
[01 September 2015] Japan's Farm Ministry partiality lifted a ban on imports of live poultry and poultry meat from the US and Canada last week, following an outbreak of bird flu. Imports from Oregon, Washington, Idaho, California, Kansas, Arkansas, Montana and Indiana, and Canadian Province of British Columbia will resume after restrictions were imposed for up to nearly nine months, the Ministry of Agriculture, Forestry and Fisheries said in a statement. However, restrictions on live poultry and poultry meat still remain for Minnesota, Iowa, Wisconsin, Missouri, North Dakota, South Dakota and Nebraska, and Canadian Province of Ontario, pending local checks by Japanese officials, a ministry official said.
Sneak preview of Asian Pork Magazine, September 2015
[01 September 2015]
Consistent supply supports Ana Swine Farm
A relatively young operation, Ana Swine Farm is now the biggest commercial pig farm in the Philippines’ Bicol Region. While a bit of luck and good timing were partly instrumental to the farm’s success, ISA Q TAN writes that what pushes the farm forward is its hardworking and very involved owner, and as the region continues to grow, so too does his farm.
Mavin Foods aims for Asean
Mavin Foods Joint Venture Company is ready to strengthen its position as Vietnam’s top food company with expansions in its processing plant. A strong and reliable upstream business, which includes pig rearing and breeding farms, will give the endeavour the thrust it needs to succeed, RACHAEL PHILIP writes.
Chilled meats gradually gain ground
Most Asians buy meat, particularly pork, either ‘hot’ or ‘warm’ but there is no denying that meat sold chilled is gaining ground. This is evident by the growing number modern meat shops across the region sell products in chilled formats. Who is mooting the change? Processors or consumers, and why? ARIEF FACHRUDIN and the ASIAN AGRIBIZ team find out.
Nutritional management of the modern sow – part 2
Just because you have hyper prolific genetics does not guarantee that the sow will perform in a hyper prolific manner in either the short or long term. MEGAN EDWARDS examines the findings of recent research into the nutritional management of modern sows with the objective of maximising reproduction and productivity. Part two of this two-part article will consider feeding from entry to the farrowing facility to the re-mating period.
Superdosing phytase: a cost-effective alternative to spray dried plasma?
Spray Dried Plasma (SPD) may help mitigate weaning stress and therefore it is often formulated into nursery diets at a minimum level with an added cost to the diet. Data taken from a larger study in the USA demonstrates superdosing with phytase may help replace SPD with soybean meal (SBM) in piglet diets without negatively affecting pig performance. CASEY BRADLEY and USAMA AFTAB report that coupled with significant feed cost savings, superdosing appeared to recover completely the lost performance when all of SDP was replaced with an extra 10% SBM in the nursery diets.
Evaluation of an innovative form of creatine for pigs
Creatine as a feed additive is costly, and not thermostable making it unsuitable for pelleting. Guanidinoacetic acid (GAA), a natural precursor of creatine (CREA) in the body may be a more suitable dietary source of CREA for pigs. The impact of feeding GAA on the growth performance and meat quality of pigs is reviewed by MARIA ELOISA CARPENA, GIRISH CHANNARAYAPATNA and MEIKE RADEMACHER. Dietary supplementation of GAA may contribute to the improvement of growth performance like weight gain and feed efficiency, and also to improve meat quality parameters such as drip loss and post mortem pH.
|Bangkok Ranch targets 5% sales growth |
[28 August 2015] Bangkok Ranch, Thailand’s leading duck meat producer, has maintained its sales growth target at 5% with better profit despite a deficit in the first half of the year following a slow global economy. The company reported a 10% drop in sales in Q2. The company expects sales in the second half of the year, normally the high season especially the last quarter, will outpace 27,200 tonnes in the first half. The company is also negotiating an alliance in Indonesia for a joint venture for a duck integrated business. Progress is expected in Q4 this year. Bangkok Ranch is also looking for business opportunities in China and Vietnam.
|Pakistan seeks preferential trade agreement with Russia|
[28 August 2015] Pakistan is seeking a Preferential Trade Agreement with Russia to achieve easy access to the Russian market, which is importing food items worth USD 35 billion from around the world. A statement from the country’s Commerce Ministry said that a delegation led by Trade Development Authority of Pakistan (TDAP) will visit Russia to define a strategy to enhance Pakistan’s export of agriculture products to Russia. “Pakistan is looking to benefit from the vast opportunities that has surfaced recently,” according to Federal Minister for Commerce Khurram Dastagir Khan.
|Linde Group to invest USD200m in seafood processing in India|
[28 August 2015] Germany’s Linde Group, experts in cryogenic freezing, has expressed interest in supporting India’s seafood processing sector in Andhra Pradesh state. “We want to help add value to exports. We are looking to invest over USD 200 million,” Chief Executive Officer Wolfgang Buchele said. According to him, the company is also interested in setting up a laboratory and an academy to train personnel required for supporting food processing. Andhra Pradesh is a major player in India’s aquaculture sector contributing about 46% of India’s seafood exports in 2014-15.
12th Southeast Asia USACC 2015, Siem Reap, Cambodia
Onsite report by ARIEF FACHRUDIN
[28 August 2015]
Innovation, quality & safety standards vital in AEC
The Asean Economic Community (AEC) 2015 will be a huge and interesting market, not just for Asean member countries but also for foreign countries like the US and EU. Sara Aparicio Hill, Partner of Singapore-based Food Compliance International, said however that building blocks such as tariffs, non-tariff barriers and uniform application and enforcement need to be addressed. With AEC especially in the agro-food sector, Ms Hill underlined that countries with good innovation, quality and safety standards, and low production costs will benefit.
Asian poultry industry needs to develop innovation-based solutions
Population growth and GDP increase will drive demand for animal protein in Asia. According to Dr Jan van Eys, Principal of Global Animal Nutrition Solutions Inc, Asian countries recorded positive growth in poultry and egg production in 2014. However, he said feed cost, will continue to increase and then put pressure on margins. Besides, the industry is also facing significant challenges such as health, biosecurity and consumer demand. “To address the challenges, the industry needs to continue to develop solutions through innovation,” Mr van Eys said.
US DDGS exports to Asia
In 2014 the US exported around 12 million tonnes of DDGS. Of the figure, according to Justin Cauley, US-based CHS Export Commodity Manager, 39% was exported to China, 6% to South Korea, 6% to Vietnam and 4% to Japan. From January to May 2015, China’s share of US DDGS exports increased to 52%. Mr Cauley said the supply of US DDGS is stable, but cheap oil, cheaper global fat/protein competition, restrictive government policies abroad, high USD and mycotoxins could be the future threats.
Asian ports are busiest in the world
Of the 10 busiest ports in the world, nine are in Asia. Of the top 10, six are on the Chinese mainland. The port of Shanghai is number one, followed by Singapore. These two ports are larger than all North American ports combined. According to John Vickerman, Principal of US-based Vickerman & Associates. The facts represent the growing Asian import trade. On shipping routes, he said while the Panama and Suez canals are important, alternatives for both are in progress. In 2012 Hong Kong-based HKND Group signed a USD 40 billion contract with Nicaragua to establish a rival to the Panama Canal.
12th Southeast Asia USACC 2015, Siem Reap, Cambodia
Onsite report by ARIEF FACHRUDIN
[27 August 2015]
The 12th Southeast Asia US Agricultural Cooperators Conference which opened yesterday, drew 170 participants. With the theme of ‘Opportunities for an industry in transition’, the conference aims to highlight the changes and challenges faced by agribusinesses today. With the Asean Economic Community coming together at the end of this year, coupled with record supplies and a lacklustre Chinese economy, production and supply chains may have to make fundamental adjustments to meet this new market environment. The conference is organised annually by the US Grains Council (USGC), US Soybean Export Council (USSEC) and US Department of Agriculture (USDA).
Biotech soybeans increase profitability, sustainability
Jim Call, past Chairman of United Soybean Board, shared information about his soybean farm located in Minnesota, USA and how he and his family deal with the issue of sustainability. “Our business has to be profitable first,” said Mr Call who grows biotech soybeans which not only increase profitability, but also enhance sustainability. “With biotech soybeans, we have improved weed control and allows increased use of no-till and direct drilling into the crop stubble,” he said. Jim Miller, USSEC Vice Chairman, concurred and said biotechnology has reduced the amount of crop protection agents used.
Southeast Asia excellent market for US soymeal
Southeast Asia is an excellent market for the US. “Politically and economically Southeast Asia is stable and market-driven. Countries in the region are quick to adopt new technologies and management systems. In addition, biotech acceptance is not a major issue,” said Thomas Hammer, President of the US’ National Oilseed Processors Association. US soymeal has a 17% market share in Southeast Asia. The export value increased 214% in 2014 from 2009 to equal USD 1.12 billion. Soymeal consumption in Southeast Asia is forecast to reach 18.95 million tonnes in 2015/16.
Global oilseeds overview
John Baize, President of John C. Baize & Associates, said in 2014/15 global soybean production and consumption reached 319 million tonnes and 296 million tonnes, respectively. In 2015/16 USDA forecasts production will remain the same, but consumption may increase to 306 million tonnes. He said China will be the world’s largest soybean importer with a predicted figure of 77.5 million tonnes. Global soymeal consumption in 2014/15 was 198.6 million tonnes, while in 2015/16 USDA forecast the consumption to reach 208.6 million tonnes. Mr Baize predicted that in 2015/16 Southeast Asian countries will be among the five soymeal importers. Indonesia is predicted to import 4.7 million tonnes, followed by Vietnam at 4.25 million tonnes, Thailand at 3.05 million tonnes, the Philippines at 2.65 million tonnes and Malaysia at 1.5 million tonnes.
Global ag markets over the next decade
Global economic growth and the rise of the middle class in developing countries will impact global agricultural markets over the next decade, according to Michael Dwyer, USGC Chief Economist. “The middle class in developing countries is projected to increase 92% by 2023. The impact on global food demand will be significant due to higher income,” Mr Dwyer said. “China and India will dominate the outlook.” He added that global agricultural trade is projected to reach nearly USD 1.2 trillion. Likewise, global coarse grain imports are projected to reach nearly 180 million tonnes, mainly from developing markets.
India’s soy dynamics
Vijay Anand spoke about soy dynamics in the Asian Sub-continent region, particularly India. He said constraints there are reducing exports from India to other regions and there is no significant growth in soy production to meet growing demand. “India’s soy meal production too has remained flat for about 5 years forcing other countries to cover their raw material requirements from other sources. However, a growing internal demand in the region and increased interests in crushing are positive signs.” He continued that an encouraging move in the relaxation of the trade policy in India is possibly in the offing to help the industry use external supply sources of soy if the industry thinks it’s economical to do so.
|Tainted feed in Vietnam |
[27 August 2015] Prohibited substances have been found in animal feed and veterinary medicine sold in Ho Chi Minh City and Dong Nai provinces in Vietnam, an official from the Ministry of Agriculture and Rural Development (Mard) said. According to Vietnam News, a report from Ho Chi Minh City’s Veterinary Medicine Bureau showed that beta agonist was found in urine samples taken at slaughterhouses. An inter-branch inspection, found workers at Khoa Nguyen Company in Ho Chi Minh City packing beta agonist. Police said the spot check was carried out several days after they had traced the origin of the substance in the slaughterhouse. Some of the chemical packages had labels from China and others had no labels of origin.
|Wuhan Chia Tai projects 150,000t of aqua feed annually|
[27 August 2015] Wuhan Chia Tai Group Aquatic Products Co Ltd (CP Group) in China, which began production on April 2015, can produce 150,000 tonnes of aquafeed annually. The USD 2.4 million project consists of an extrusion line, two pelleting lines for shrimp and crab feed, two hard pellet fish feed lines and an extra extrusion line. The plant features a central batching system and an efficient inventory management tool that ensures the scheduled production to be carried out for timely delivery.
|Micky Pant is Yum Brands’ CEO for China |
[27 August 2015] Yum Brands Inc’s China division will have Muktesh ‘Micky’ Pant as its new CEO replacing retiring Sam Su. Mr Su, who has been with Yum for 26 years, was instrumental in making Yum the biggest Western restaurant chain in China. He will serve as executive adviser through February 2016 and remain on Yum’s board to assist with the transition. The company also announced that Joey Wat, 44, was promoted to CEO of KFC China. She was previously President of KFC China. Yum spokesman Jonathan Blum declined to comment on growing speculation that the company would spin off its China operations.
|QL Indonesia targets 1 million DOC a month|
[26 August 2015] QL Group Indonesia produces around 2.4 million DOC/month both at its own farms and at contract farm spread in many regions in the province. Cecep Muhammad Wahyudin, Director, told Asian Agribiz that this year the company targets the chick-in at its own farms to reach 1 million DOC/month to support its growing chicken processing business. Mr Cecep also informed that this year the company plans to add the Indian River strain to its breeding operation. “There are farmers who want to raise a different strain. From our trials, we found that Indian River has good performance at breeding level and has a high carcass yield,” he said.
|China boosts EU pork exports|
[26 August 2015] Strong demand from China helped boost EU pigmeat exports in June this year. Exports rose 21% over the previous year's level to reach almost 139,000 tonnes, the UK's Agriculture and Horticulture Development Board (AHDB) said in a web report. China took in 38,200 tonnes or about 27% of the total. For H1 2015, EU pork meat exports stood at 765,600 tonnes, up 49% year-on-year, with China again accounting for more than a quarter of the total. South Korea also imported 24% more pork meat from the EU in the first six months of this year at 104,800 tonnes. However, export volumes to Japan, Hong Kong and the Philippines were down by 20%, 34% and 4%, respectively. Altogether, these Asian markets accounted for about 66% of total EU pigmeat exports.
|Vietnamese farmer sees success with mallard farming|
[26 August 2015] Two farms in Bac Giang Province in northern Vietnam are successfully raising mallards, a species of wild ducks that are difficult to keep as they fly off regularly, reported Tuoitre News. Its meat is favoured in Vietnam and is expensive by local standards at around USD 11/kg on farm or USD 27/kg in restaurants. At five months, an adult mallard weighs between 0.8 and 1kg. One farmer, Nguyen Dang Cuong said the secret is in getting them to fly back twice a day for their feed. “I give them sufficient food, making them too lazy to fly.” He currently rears 40,000 mallards. He hopes to rear 100,000 and increase his productivity so that price per kg of mallards can drop by 2018, and the meat will become more affordable.
Sneak preview of Asian Poultry Magazine, September 2015
[26 August 2015]
Seahisun Group: Taking advantage of an industry slump
The Chinese consumer’s seemingly insatiable demand for poultry meat hit a pause recently, but Jin Jun, Chairman, Seahisun Group, is undismayed and believes his company can take advantage of the situation, writes RICH HERZFELDER.
Soonthorn reaps benefits from good waste management
Soonthorn Farm achieved a milestone this year when it expanded its capacity to 250,000-270,000 layer birds from 120,000 earlier, producing around 230,000 eggs at present from 90,000 previously. Yet another significant step was the inauguration of the waste recycling system that endorses its environmental management and good farm as well as revenue performance, writes NITSARA THONGRUNG.
Pronic grows with probiotic chicken demand
With current production of 10,000 carcasses per month, Pronic Indonesia is not able to meet demand for its probiotic chicken. It plans to triple production to 30,000 carcasses, writes ARIEF FACHRUDIN.
Record keeping raises productivity at Lendes Farm
Lendes Poultry Farm is now the largest layer farm in the Philippines’ Bicol region. ISA Q TAN reports on what brought success to this family owned operation and where it is headed.
Synbiotic proven effective AGP replacement in broilers
Since the advent of the complete ban on antibiotic growth promoters (AGPs) as feed additives in livestock feed in the European Union (EU) in 2006, poultry producers struggled to search for proven effective alternatives to help them produce broilers. RANDY PAYAWAL and JUSTIN TAN report on a university trial from Taiwan where a multi-strain synbiotic product successfully replaced AGPs.
Nutrition of intensively-farmed modern meat-type ducks
In the second part of this four part article DAVID J FARRELL reviews recent advances in the nutrition of meat-type ducks. Historically, many feed formulators relied on the U.S. National Research Council’s Nutrient Requirements of Poultry, last revised in 1994, but these are mostly not now relevant to the modern genotypes.
Salmonella live vaccination
Biological measures including vaccination will necessarily form a major part of a holistic approach to infection control of Salmonella. PAUL BAROW discusses the importance of limited excretion of the vaccine strains and the role of secretory IgA and cell immunity after administration of live Salmonella vaccines.
Improving broiler flock uniformity
Getting broilers off to a good start is important in achieving excellent performance and flock uniformity is one of the essential components. BRUCE ZHOU discusses recommendations to help achieve improved flock uniformity. When the birds are uniform, all birds respond evenly and management decisions are made much easier, and profits are increased.
|Thaifoods Group defers IPO plan|
[25 August 2015] Thaifoods Group has deferred its plan for an Initial Public Offering (IPO) to raise funds for expansion due to unfavourable investment sentiment following the recent bomb blasts in Bangkok. Winai Teawsomboonkit, Chairman of the Executive Committee and the Chief Executive Officer, said the company has decided to differ the IPO which was scheduled for September. However, the IPO will happen this year, he confirmed. TFG plans to issue 1.4 billion ordinary shares to raise funds for its investment plan over the next three years, worth USD 77 million. This includes the expansion of its chicken processing business, sausage production and pig farming.
|China's pork production declines, imports afoot|
[25 August 2015] In the last 18 months, China’s pork industry has experienced one of the largest culls on record—the effects of which are just now being felt globally, according to Rabobank Animal Protein Analyst William Sawyer. The decline of nearly 100 million head in China’s hog herd and 10 million in its breeding herd is equivalent to the US, Canadian and Mexican pork sectors all disappearing from global supply in a span of less than two years. “For 2015, Rabobank expects China’s pork production to decline by 6.5%, the third-largest decline in production in the last 40 years. This will be supported by a 600,000 tonne increase in imports – primarily from the EU, the US and Canada– in the second half of 2015,” said Mr Sawyer.
|GPMT seeks government help to secure local corn|
[25 August 2015] Following the government’s import ban on corn that has left corn-related industries scrambling for supplies, the Indonesian Feed Millers Association (GPMT) has approached the Agriculture Ministry for help in sourcing corn from the country’s corn producing centres. “We have talked about [high] logistics costs and our efforts to secure local supply,” said Sudirman FX, GPMT Chairman. According to him, the government has committed to easing the industries’ access to local supply and reducing logistics costs. The government has banned corn imports to maintain an average of USD 0.20/kg for local farmers.
|Vietnam reports H5N6 outbreak |
[25 August 2015] Animal health officials in Vietnam said a highly pathogenic H5N6 outbreak has been detected in backyard poultry in Lao Cai province, located in the northern part of the country, according to a report from the World Organization for Animal Health (OIE).The outbreak began on August 18. Of 700 susceptible birds, the virus killed 200, and the rest were culled. Vietnam reported its first outbreak of H5N6, then described as a new strain, in August 2014, and since then it has reported sporadic events involving the strain.
|India to organise international seafood show|
[25 August 2015] India’s Ministry of Commerce and Industry plans to stage the India International Seafood Show in Vishakhapatnam in Andhra Pradesh state, said Minister of Commerce and Industry Nirmala Sitharaman. It is scheduled for January 2016. She said the ministry is extending its support to facilitate seafood exports through the Marine Products Exports Development Authority. Mrs Sitharaman added that once established, the Export Inspection Council facility at Vishakhapatnam with state of the art laboratory infrastructure will help meet the analytical requirements of the seafood industry.
|Partnership to build safe pork supply chain in HCMC|
[24 August 2015] Vietnam Meat Industries Limited Company (Vissan), De Heus Ltd and Fresh Studio Innovations Asia have signed a cooperation agreement to build a safe pork supply chain in Ho Chi Minh City. Director General of De Heus Gabor Fluit said his company together with Fresh Studio Innovations Asia will organise courses for about 200 pig farm owners in Dong Nai about breeding pigs, feed and Dutch farming technology application. The Dutch Government will assist the companies and provide experts for farming technique consultancy. Pork quality will be supervised from farming, slaughtering to distribution for clear origin, permissible level of antibiotic residue and no bacterial contamination.
|Government, GPMT form corn team to control supply-demand|
[24 August 2015] Indonesia’s Ministry of Agriculture and the Indonesian Feed Millers Association (GPMT) recently agreed to form a special team to control the supply and demand of corn for animal feed. The two parties also agreed to prioritise local corn as the main supply. This agreement came after the ministry suddenly suspended corn imports. Agriculture Minister Amran Sulaiman said the team, which consists of the Agriculture Ministry, Trade Ministry, state logistics agency Bulog and GPMT officials, will facilitate better communication between the government and businesses. “Besides focusing on problems related to supply and demand data, the team will also map corn production centres in the country and its potential,” said Mr Amran.
|Pakistan to import soybean from US and Brazil|
[24 August 2015] Pakistani importers are negotiating the purchase of about 66,000 tonnes of soy from the United States or Brazil, according to traders. Pakistan has been a big buyer of soy this year as import duties and local sales taxes have imports for local crushing more attractive than soymeal imports. “The country has already purchased over 700,000 tonnes of soy since the end of February this year and Pakistani processors are crushing over 75,000 tonnes each month,” said a trader. According to USDA forecast, Pakistan’s soybean imports will rise from 450,000 tonnes in the 2014-15 season to about 1 million tonnes in 2015-16.
|Korean food producers target solo diners |
[24 August 2015] South Korean food producers and retailers are expanding their ready-to-eat meal products to cater to the country’s rapidly growing single households who opt to eat in, partly to save time and money, said market watchers. CJ Cheiljedang, one of the country’s biggest food producers, is targeting the market with cooked rice and assorted toppings packed in a cup. “Consumers now want a meal that is fast and good,” the company said, adding it has sold more than 2 million cup rice products since their launch in April. E-Mart Inc, the country’s biggest discount grocer, is also moving to bolster its foothold in the market by teaming up with its hotel affiliate and targeting consumers looking for quality ready-to-eat meals. The company said it plans to increase the current 600 products to 1000 by 2019.
|Hot weather pulls down fisheries production in the Philippines|
[24 August 2015] The Philippine fisheries subsector recorded a 1.53% dip in production during the second quarter this year, with 'intense heat' being the main culprit, the Philippine Statistics Authority (PSA) said. Milkfish, tilapia, roundscad and skipjack production all posted declines, although tiger prawn and yellowfin tuna production posted double digit growths of 10.68% and 19.08% respectively. However, total gross earnings of the subsector topped USD 1.38 billion, up 0.56% from the same period in 2014, as average farm gate prices in the subsector rose by 2.12%.
|McDonald’s Japan posts loss in H1|
[24 August 2015] McDonald’s Holdings Company (Japan) Ltd, reported a nett loss for the first half of 2015 of around USD 211 million against a profit of USD 15 million a year ago as a slew of food safety scandals keep consumers away. This is reportedly the biggest loss the company has incurred since the listing of McDonald’s Holdings in 2001. The overall downside reflects weak demand as a result of a food safety scandal in China in July 2014 that has been hurting consumers’ confidence. Moreover, a series of other food contamination scandals like vinyl and teeth being reportedly found in some products further worsened the situation.
|CP Vietnam to grow processed food business |
[21 August 2015] CP Group is placing its bets on the processed food business in Vietnam boosted by the country's 6.2% GDP growth this year. Montri Suwanposri, Vice President of CP Vietnam Corporation said that food consumption in Vietnam is forecast to grow faster in the second half and Vietnamese consumers trust the quality and safety of products from Thailand. “We will continue to expand our business in Vietnam with a focus on processed foods, traceability and food safety,” said Mr Montri. This year, he said CP Vietnam will double the numbers of Five Stars grilled and fried chicken stalls to 1200 branches across the country while CP Fresh Mart will be increased to 20 outlets from 10 currently.
|US AI outbreaks officially resolved|
[21 August 2015] The World Organization for Animal Health (OIE) and the US Department of Agriculture (USDA) have announced closure to its follow-up to H5N8 avian flu outbreaks and noted that 11 states—because of measures taken after H5N2 outbreaks—are now free to move poultry domestically and internationally. In the first Aug 17 OIE report, the USDA noted that the last highly pathogenic avian influenza (HPAI) H5N8 detection was on May 10, and that all H5N8-related control areas have been released and H5N8 outbreaks closed. The USDA said that H5N2 events in all affected states except Iowa and Minnesota, the two hardest-hit states, are now resolved. The USDA said states that have not been released are making good progress. Experts anticipate that outbreaks of both H5N8 and H5N2 may resume in the fall as wild birds again migrate.
|Vietnam produces less pangasius |
[21 August 2015] In the first half of 2015, the pangasius farming area in Vietnam’s Mekong Delta stood at 5795 ha, down 3.7% year-on-year. According to the Ministry of Agriculture and Rural Development, in Q1 and Q2 of 2015, pangasius production was affected by a decline in exports and unstable prices. Disease due to higher temperatures maintained over many days, was also a factor that discouraged farmers to rear the fish. Pangasius production, in the first half of 2015, in Mekong Delta was 533,500 tonnes.
Striking a balance with beef in Indonesia
[21 August 2015]
The beef trade is a ‘hot’ discussion topic in Indonesia. The price usually declines gradually after Ramadhan and Eid Fitr as demand slumps. However, this year prices have remained high rising to USD 9.5-10/kg this week. Limited supply and high prices has caused traders in traditional markets to stop trade activities. In Q2 the government released import permit for only 50,000 head of cattle, confident that the national stock can meet the demand for Q3. But to stabilise the price now, the government plans to import 50,000 tonnes of beef and add on an import allocation in Q3 of 50,000 heads. Australia, the largest exporter of beef and cattle to Indonesia, wants Indonesia to change its beef and cattle calculation based on yearly rather than quarterly calculations.
New Trade Minister weighing beef imports
Indonesia’s new Trade Minister Thomas Lembong is ready to flood the markets with imported beef to bring down the price, but only if it’s necessary. Mr Thomas met President Joko Widodo on Wednesday to discuss the beef price spike that resulted after his predecessor slashed permits for Australian live cattle imports. Mr Thomas said he will watch the market before issuing permits for between 200,000 and 300,000 heads of cattle in the last quarter of the year. “If the price goes down by itself, why must we import? Even though I’m ready to flood the market with imports if necessary, to stabilise the price, I also agree that it’s the last option,” he told Skynews. He predicts that the beef price would ease in the coming three months.
Berdikari to set up cattle breeding farm and slaughterhouse in 2016
State-owned PT Berdikari that is involved in the integrated beef cattle business, is waiting for approval from the House of Representatives to get state investment capital of around USD 29.6 million. Majority of this will be used to develop a beef cattle breeding farm in Sidrap, South Sulawesi. Syukur Iwantoro, President Commissioner, said the company will also use the capital to set up cattle slaughterhouses in several regions where the company’s feedlots are located such as in Kupang, Bima, Lampung, Bali and Jember. “So far we sell live cattle to Jabodetabek, but with the slaughterhouses we plan to sell frozen beef to the market,” he said.
Indonesia assessing quarantine islands for imported cattle
The government plans to set up quarantine islands as it looks to import cattle from countries not entirely free of foot and mouth disease (FMD). The Indonesian Parliament passed legislation last year to allow for the importation of beef and live cattle from FMD free-zones of countries such as Brazil and India. The use of islands would allow Indonesia to closely monitor livestock imported from FMD free-zones and prevent the potential spread of disease. Islands being assessed include Naduk Island in the Bangka-Belitung province and Pulo Simuang Island in South Sulawesi. Muladno, Director General of Livestock & Animal Health, said that expanding import sources would be necessary to provide the country with affordable livestock and meat prices.
NT breeder cattle exported to Indonesia
Australia’s Northern Territory (NT) breeder cattle are starting to head to Indonesia, following the government's announcement that it wants to import two million breeders by 2018 to bolster the size of its domestic herd and decrease the country’s reliance on imports. Stocks from Hayfield Station were recently sold to clients in Indonesia as breeder cattle. The station’s Justin Dyer said the order of breeder heifers was organised before the announcement of the lower than expected live export permits for Indonesia. “I think it is just business as usual for this order. It is a good order and we are happy to supply them with these good breeder heifers,” he said.
Beef sellers stop trade due to skyrocketing price
Beef sellers in traditional markets in Jabodetabek, Bandung and Serang in Indonesia stopped selling beef to prevent further losses as the price of beef has reached USD 9.5/kg. “With the high price, consumer demand has dropped by 30%. This has affected our profits,” said Endang Mubarok, a member of the Indonesian Beef Sellers Association. To stabilise the high price, the National Logistics Agency (Bulog) is selling beef at USD 6.6/kg. Wahyu, Bulog Director, said: “We have prepared around 250 tonnes of beef for this. Plus, we have additional supply from Berdikari’s slaughterhouse in Cibitung that slaughters around 15-20 cattle per day.”
KPPU investigates possible beef cartel
Indonesia’s Business Competition Supervisory Commission (KPPU) is investigating the possibility of a cartel being involved in the drop in beef supplies and the increase in its price. “We are investigating whether there has been a conspiracy to withhold beef supplies,” said KPPU Head, Syarkawi Rauf. According to him, such an act would be considered a criminal violation of business competition laws. As a solution, the KPPU suggested that the government implement consistent and thorough trade regulations. Preferably whenever stock is limited, the government can intervene by, among other measures, allowing consumers to set the price and always maintaining the availability of products on the market.
Two Indonesian feedlots sealed due to stock withhold
Two cattle feedlots in Tangerang are being investigated for withholding stock amid Indonesia’s beef shortage. Indonesia’s National Police sealed the two Tangerang feedlots after discovering about 4000 slaughter-ready cattle. Beef prices soared after Indonesia’s decision to cut live cattle imports from Australia last month. However, officials suspect importers and feedlots of manipulating prices by holding back supply.
|Slower exports dent GPFT's profits|
[20 August 2015] Bangkok-based Bualuang Securities has advised investors to hold shares of GFPT, as lower chicken exports has resulted in reduced profit in Q2. The securities house said GFPT’s net profit fell 58% y-o-y to total USD 5.62 million due to lower exports to the EU and Malaysia and loss of domestic sales where price decreased. Chicken exports in Q2 dropped 24% from the same period last year to total 5300 tonnes. Brazil is a competitive rival as real depreciation has boosted its price competitive edge and some orders have been switched to Brazil. Bualuang Security forecast GFPT’s net profit for the Q3 at USD 8.98 million, a drop of 37% from the same period last year.
|Indonesia to run out of Australian beef in 6 weeks|
[20 August 2015] Indonesia is set to run out of Australian beef within six weeks, according to Australian cattle exporters who say Indonesia’s plan to combat rising meat prices and public protests has come too late. Last week Indonesian authorities issued import permits to state logistics agency Bulog for an extra 50,000 heads of slaughter-ready cattle. Stuart Kemp, Chief Executive of Australia’s Northern Territory Livestock Exporters Association, said Australian cattle producers would struggle to meet Indonesia’s new quota. Mr Kemp said most slaughter cattle had been sent to other overseas markets in the first half of the year, and dry conditions in Queensland would make the extra 50,000 difficult to source.
|Philippines livestock and poultry production up in Q2|
[20 August 2015] The livestock and poultry sector were the bright spots in Philippine agricultural production in Q2 this year, both showing growth, while other sectors declined. Data from the Philippine Statistics Authority (PSA) showed that output of the livestock grew by 5.2% year-on-year (yoy) on the back of a 5.6% growth by the hog industry, which reached 511,420 thousand tonnes. Gross value for the subsector also grew 1.6% yoy to reach over USD 1.3 billion for the period, with the pig subsector accounting for over 81% of the total. The PSA report also showed the poultry subsector growing by 4.71% in Q2 as chicken production rose to 403,380 tonnes and egg production grew to 107,850 tonnes for the period. However, total value for the subsector reached USD 989.5 million, down about 0.89% yoy. The PSA said the hog, chicken and chicken egg subsectors experienced declines of 4.7%, 6.9% and 0.56% in average farm prices, respectively.
|Vietnam shrimp exports to US decline 50% |
[20 August 2015] Vietnamese shrimp exports to the US faced a sharp decline in the first half of the year due to the low demand. Analysts said sales which generated only USD 262.7 million, were also affected by the US dollar appreciation against other currencies, which encouraged shrimp exporters from several countries to boost their shipments to the US leading to a price depreciation of 18.3%, from USD 14.50/kg. Meanwhile, Thailand and Indonesia increased exports to the US while sales from India and Ecuador decreased. The Vietnam Association of Seafood Exporters and Producers predicts that although exports to the US will fall by 40% this year to USD 638 million, increase in demand is expected thanks to lower anti-dumping taxes and low supply from India, Thailand, and Ecuador due to diseases, rising cost of farming and lower export prices.
|Bangladesh strengthens network of animal quarantine stations |
[20 August 2015] Bangladesh is strengthening its network of animal quarantine stations in ports to stop transboundary animal disease transmission. The Ministry of Fisheries and Livestock will set up these stations in six land ports and an airport to prevent diseases like foot and mouth disease, avian influenza, mad cow disease and anthrax. Project Director Dr Shafiqul Islam said the government has already established 17 quarantine stations in various land and sea ports. The project estimated to cost USD 7 million is expected to be completed in another two years.
|Cargill to enter salmon feed market with purchase of Ewos|
[20 August 2015] Cargill has agreed to acquire Ewos, a global leader in salmon nutrition, for USD 1.49 billion, giving the company an entry into the growing aquaculture industry, and specifically the salmon market. This is also the second aquaculture purchase the company has announced indicative of a ‘strategic investment’ in its long-term growth, said David MacLennan, Cargill President and CEO. “Adding Ewos’ will be transformational for our aquaculture nutrition business,” said Sarena Lin, President of Cargill’s Feed and Nutrition business. As part of the transaction, Cargill will acquire seven feedmills, three in Norway, and one each in Chile, Canada, Scotland and Vietnam, as well as two r&d centres located in Norway and Chile. Ewos produces more than 1.2 million tonnes of salmon feed for the biggest salmon producers in the world.
|Masan Group appoints new CFO|
[19 August 2015] Vietnam’s Masan Group’s deputy CEO Michael Hung Nguyen has been promoted to Chief Financial Officer. He will hold this title in addition to his role as deputy CEO and head of business development. At Masan Group, he assisted the CEO in executing the transformation of the company from a food firm into a leading private sector group. The establishment of the animal feed unit has helped Masan Group’s sales in the first quarter increase by 52% year-on-year to USD 480 million. Its profit after tax reached USD 30 million, while in the same period of 2014, it reported a loss of USD 1.2 million.
|Pakistan aims for slice of global halal meat trade|
[19 August 2015] Pakistan has introduced ‘The Pakistan Halal Authority Bill, 2015’ to promote halal meat exports and secure a share of the international halal business, which is now mainly supplied by non-Muslim countries. With the introduction of this bill, Pakistan will establish an authority at the national level to deal with the requirements of the halal sector. According to government sources, the Pakistan Halal Authority will be established soon. Apart from promoting halal trade, the bill also seeks to prevent imported food that is not halal certified.
|India second largest market for Domino’s Pizza |
[19 August 2015] India has emerged as the second largest market for Domino’s Pizza after the US, according to the 2014-15 annual report of the Indian franchisee Jubilant FoodWorks. The pizza major’s store count in India more than doubled in 2014-15 to 876 from just 378 in 2010-11. The report pointed out that though there is a huge difference between the Indian and US markets (US has more than 5,000 stores), India is still ahead of the UK, Australia and Canada. Interestingly, much of this growth came against the backdrop of a marked slowdown in discretionary spending.
|Dairy prices to recover|
[19 August 2015] In a new report, Dairy Industry Note - Riding out the storm, Rabobank says, while the dairy sector is currently experiencing a severe cyclical downturn, the mechanisms that will turn the market around have now been triggered and a substantial improvement in prices is expected by mid-2016. "Contrary to some recent analysis and commentary on the New Zealand dairy sector, Rabobank's view is the current price trough is part of an extended negative phase of the commodity cycle and not a structural, permanent change to supply and demand dynamics," said Rabobank New Zealand CEO Ben Russell. "We feel prices will recover to more sustainable levels over the medium term. Current market conditions are not the 'new normal', but a highly abnormal part of a difficult cycle."
|Poultry sector to propel amino acids market in India|
[19 August 2015] Growth in domestic compound feed in the Indian poultry sector is set to propel the amino acids market in India, according to Tech Sci research report. In India, amino acids find major application in the compound feed market for broiler and cattle feed. “Need for high end compound feed with amino acids has increased over the last few years due to integrated farming,” the report pointed out. The amino acids market in India which grew at 7.1% from 2010-14 is projected to account for revenues worth USD 471 million in 2020. High quality amino acids along with other feed ingredients are expected to increase the productivity of poultry.
Layer Feed Quality Conference - registrations close today
September 7, Jakarta, Indonesia
[18 August 2015]
Building on the success of the annual Poultry Feed Quality Conference, Asian Agribiz's inaugural Layer Feed Quality Conference has “Building a Sustainable Flock” as its theme. It will offer a dedicated focus on layer nutrition, management and feed production and will feature 11 presentations from renowned speakers, some of which are listed below. More details and registration form can be viewed here. Registrations close today.
Enzymes for layers: have we maximised the benefits?
The benefits of exogenous enzymes in layer diets have not been fully realized, due to a number of reasons including over-formulation of main nutrients, inconsistency of enzyme products and producers’ inability to judge enzyme efficacy. Dr Alex Wu, Adisseo will present new studies showing that a quality enzyme combination can significantly benefit the egg producers by contributing ME 50-65 kcal/kg, digestible amino acids 1.5-2.5%, calcium 1.2 g/kg and available phosphorus 1.5 g/kg, resulting in significant cost-savings and possibility to use wider-range of ingredients.
Impact of dietary organic acids on health and performance in layers
The presence of bacterial pathogens in the feed and environment of layer units can have serious consequences for bird health and productivity, especially in Asia, where higher environmental temperatures and humidity produce conditions where pathogens thrive. Dr Christian Lückstädt, Addcon will present data to demonstrate that the use of organic acid salts have a range of beneficial effects in layer production. The issue of biosecurity in the feed addressed effectively, by assisting the bird to avoid the negative health and productivity impacts of bacterial pathogens, and improvements in nutrient digestibility, especially minerals leads to better egg quality.
Developments in gut health
Santiago Ramirez, Fractal Farming will focus on the description of the recent developments in gut health by focusing on three areas of influence: the physical aspects of the digestive system, microbiome of the digestive system and further nutritional strategies for optimizing gut health. He also provides a practical summary for the application of these concepts on farm in the different stages of the laying cycle.
Split feeding systems for sustainable egg production
The requirements of laying hens for protein, energy, calcium and phosphorous do not remain constant, but vary throughout the day, within the circadian cycle, based on their physiological needs for formation of the various components of the egg. Felipe Sánchez Trouw Nutrition will present the NutriOpt split-feeding system based on the concept of feeding hens two diets with different nutrients levels during the morning and the afternoon to meet the different requirements through the day.
Insoluble fibre, an “essential nutrient” for layers?
Insoluble fibre is an important component in layer nutrition. Traditional fibre sources bear a mycotoxin risk and the most traditional fibre sources contain significant amounts of soluble fibres. A good solution are the so called insoluble crude fibre concentrates based on lignocellulose. The do not carry mycotoxin risk and they are 100 % insoluble. Dr Luke Ing, J Rettenmaier & Soehne will present University and field trials that demonstrate that these insoluble, non-fermentable crude fibre concentrates have a positive impact in pullets one weight gain and gizzard size and in the laying stage on wet litter, feather pecking/cannibalism and performance.
|Thai food exports stable despite slow global economy|
[18 August 2015] Food exports from Thailand is forecast to reach USD 27.02 billion, below the earlier target of USD 28.14 billion due to contraction of the global economy, said Boonpeng Santiwattanatham, Chairman of the Food Processing Industry Club at the Federation of the Thai Industries. The sluggish world economy has resulted in delays in orders and lower import volume while fluctuating currencies has put more pressures on Thai food exports. The Yuan's depreciation is of concern as China is a rival exporter for products such as chicken meat and processed foods in markets like the European Union. However, Mr Boonpeng claimed that Thai products have a competitive edge in terms of trust.
|Carl’s Jr enters QSR market in India|
[18 August 2015] California based Carl’s Jr, one of America’s favourite burger chains has entered the quick service restaurant (QSR) market in India with the opening of its first restaurant in New Delhi. Carl’s Jr is known globally for its famous chargrilled burgers, hand breaded chicken tenders and hand scooped ice cream shakes. “India represents a tremendous market opportunity and we see the potential for more than 1,000 restaurants over time,” Ned Lyerly, President, International of CKE Restaurants, parent company of Carl’s Jr said. The restaurant will feature a special Indian palate menu that will include vegetarian options.
|Price of eggs up in Singapore|
[18 August 2015] The price of eggs in Singapore has risen slightly as supply from Malaysia is being diverted to Hong Kong, the Chairman of the Eggs Import/Export Trading Association Mr Tan Lau Huah told the Straits Times. Importers say prices have gone up by about 2 Singapore cents an egg, and Mr Tan foresees further increases. Hong Kong's supply of eggs from China has been disrupted due to heavy rains and Typhoon Soudelor. Mr Tan said the price may rise further as the farms in South China have been severely affected. Not all retailers are raising prices just yet but one supplier said in some places a tray of 30 eggs is now going for USD 3.65 instead of USD 3.22.
Poultry Feed Quality Conference registrations close tomorrow
September 3-4, Bangkok, Thailand
[17 August 2015]
The annual Asian Agribiz Poultry Feed Quality Conference is one of Asia’s leading conferences and scientific forums for poultry and feed industry professionals to update their knowledge and network with industry peers. The two-day conference has a strong technical program, led by internationally renowned speakers from academia and industry. Briefs of some of the papers are listed below. More details and registration form can be viewed here. Registrations close 18th August 2015.
Incorporating the immune system in feeding strategies
In the keynote presentation, Dr Jan van Eys, Global Animal Nutrition Solutions will focus on the demand for energy and protein (amino acids) of the immune system as a basis for enhancing effective nutritional intervention; be this at the immune systems “maintenance level” or during the instances of an increased demand for nutrients during specific challenges.
Rethinking the first load of feed
The first week post-hatch represents 20% of the life of a modern broiler; however it only consumes about 5% of the total amount of feed during this time. Relative cost is therefore less an issue in this early period. Chick weight on day 7 is usually a good indication of performance over the entire growout. Improving diet digestibility, increasing nutrient levels, or adding otherwise cost prohibitive additives might improve health and growth during the first week. If this sets the bird up for robust growth later, it may be economically justified and could be considered an investment. Dr Bob Swick, University of New England will explore several ideas and present some on recent experiments.
Are we meeting the creatine requirements of poultry?
The endogenous supply of creatine is not sufficient to support the optimal production and performance of modern broilers and breeders, therefore it can be classified as a conditionally essential nutrient for poultry as the demand cannot fully be compensated by de-novo synthesis. Dr Girish Channarayapatna, Evonik SEA will review trials that show that supplementation of broiler and poultry breeder diets with guanidinoacetic acid (GAA), a natural precursor of creatine can successfully improve chicken performance and profitability, both in full vegetable diets and diets containing animal protein sources.
Beyond xylanases; the role of auxiliary enzymes
Not all xylanases possess the same efficacy against the large variation of plant substrates. According to Dr Pierre-André Geraert, Adisseo France SAS, numerous complementary enzymes are needed to maximize the breaking down of plant cell walls and enhance the feed value. He will address the structural complexity of NSP’s, such as the chain length, degree of substitution and the importance of debranching enzymes on the efficacy of NSPases.
Producing chicken without AGPs - what are the roles of pre and probiotics?
AGPs in animal feed are banned in some countries, while other countries are in the process of introducing similar restrictions. Consequently, the inclusion of either or both pro and prebiotics is now a routine procedure in many diets for a wide range of livestock species. It is reasonable to expect that the use of “natural” alternatives in animal production as replacement for “synthetic” molecules will increase. Dr Jan van Eys, Global Animal Nutrition Solutions will present that this change needs to be based on sound science and scientific process assuring improvements in animal health and/or well-being at a reasonable cost.
Hydrothermal refinement of carbohydrate-rich feedstuffs for use in poultry diets
Dr Heinrich Kleine Klausing, EW Nutrition GmbH will discuss actual results and experiences in Europe using pressurised hydrothermal processes in the refining of proteinaceous raw materials with a higher proportion of crude fibre – i.e. a higher content of structured carbohydrates – such as rapeseed extraction meal and sunflower extraction meal, as well as very high-fibre raw materials, such as soybean hulls. The objective is to increase the physical properties (swelling capacity) of the products, to make the enzymatic digestion of cell wall associated protein more accessible and to make the structured carbohydrates more fermentable for the intestinal bacterial flora.
|Trade blocs detrimental to Vietnam’s pig and poultry industries|
[17 August 2015] Vietnam’s livestock and poultry industries could lose out when trade blocs are formed, said Vietnam Institute for Economic and Policy Research. The research, conducted under the University of Economics and Business, highlighted the local livestock and poultry industries as unsustainable, uncompetitive and vulnerable, and could suffer when the Trans-Pacific Partnership and the Asean Economic Community (AEC) are realised. The country’s mostly small-scale farms, dependence on imported breeds, common diseases and limited slaughtering hygiene among others make it disadvantageous, said the research.
|New hybrid corn seed production lines by Dupont Indonesia |
[17 August 2015] Dupont Indonesia plans to add new hybrid corn seed production lines at its facilities in Sidoarjo and Pasuruan in East Java this year. George Hadi Santoso, Country Managing Director, said the expansion is important since their existing lines are now running at full capacity. According to him, the expansion was in respond the growing use of hybrid corn seeds in Indonesia. In addition, the company will also launch two new hybrid corn seeds, P35 and P32, that are resistant to weeds and for highlands, respectively. The new seeds are both for local and export markets, said Mr George.
|India introduces 10% import duty on wheat|
[17 August 2015] India’s Ministry of Finance has imposed a basic custom duty of 10% on imports of wheat till March 31, 2016. The move is aimed at offloading the government's wheat stocks and making cheaper wheat from Australia, France and Russia unviable. According to reports, traders have contracted to import over 600,000 tonnes of wheat, mostly from Australia this year. “The levy will result in a revenue gain of about USD 14 million in the remaining part of the current fiscal year,” Union Minister of Finance Arun Jaitley said.
|Hong Kong bans chicken meat, eggs from Vietnam|
[17 August 2015] Hong Kong’s Centre for Food Safety (CFS) said that in view of a notification from the World Organisation for Animal Health (OIE) about an outbreak of highly pathogenic H5N1 avian influenza in Tra Vinh Province, Vietnam, it has banned the import of poultry meat and products, including eggs. The centre has established a protocol with Vietnam for import of salted duck eggs but not for poultry meat. Due to the outbreaks, import of salted duck eggs from designated egg processing plants in infected regions has also been suspended. “The CFS will closely monitor information issued by the OIE on avian influenza outbreaks in the country,” the spokesman said.
Introductory and advanced NIRS workshops
Bangkok, September 1 & 2
[14 August 2015]
The Near Infra-Red Spectroscopy (NIRS) workshops to be held prior to the Asian Agribiz Poultry Feed Quality Conference in Bangkok will appeal to two levels of professionals. For further details click here or contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org). Registration closes 18 August.
Significant savings with NIR
According to workshop presenter, Ivan Ward of Agri-Torque measuring ingredients with an accurate NIR one can conservatively save USD 15/tonne of feed in Australian conditions, and that the potential savings in Asia are larger than in Australia due to higher nutrient variability, and these cost savings do not include improvements in animal performance.
Introductory NIRS workshop (1 September)
This workshop will be of interest to nutritionists, ingredient procurement and management who want to explore the different ways NIR can be used in their feed milling operations to save money, and improve feed quality and animal performance. Topics include
• Importance of nutrient data
• Where is nutrient data used
• Nutrient data sources
• How can nutrients be measured
• NIR basics
• Accuracy of NIR results
• NIR calibration process and
• Result validation.
Advanced NIRS workshop (2 September)
The NIRS Advanced Workshop will be of interest to technicians and nutritionists who want to understand more about NIR accuracy and using NIR data to capture opportunities. Topics include:
• NIR accuracy and calibration process
• NIR networks
• Using NIR data to build ingredient matrix, and
• Using NIR data to identify opportunities.
|Vietnam reaches FTA with EU |
[14 August 2015] The Vietnam EU Free Trade Agreement (EVFTA) that was endorsed recently gives both parties more accesses to each other’s markets. Frozen beef, dairy products, frozen pork and poultry from EU to Vietnam will enjoy zero tariffs after three, five, seven and 10 years respectively. According to EU’s Union of Producers and Employers of Meat Industry (Upemi), within the three quarters of 2014, EU’s beef and pork exports to Vietnam reached USD 3.3 million. Vietnam is a potential market of 90 million people for pork and beef products and is targeted by Upemi. Currently there are 100 meat exporters from EU that are allowed to export their products to Vietnam.
|Bulog guarantees sufficient corn |
[14 August 2015] Indonesia’s State Logistics Agency (Bulog) has guaranteed sufficient supply of corn for the animal feed industry despite the government’s import ban. The commitment was stipulated in an MoU signed by Bulog and 31 players in the feedmill industry recently as it aims to secure the industry’s commitment to absorb national corn production. Bulog will buy the corn from farmers and provide a buffer stock as well as distribute it to feed manufacturers. In exchange, feed millers have agreed to buy from Bulog, as well as from the farmers. “We are ready to absorb local corn production but the price should not burden the feed millers. We will look for the right price,” said, Djarot Kusumayakti, Bulog Director.
|India retains top spot in beef exports|
[14 August 2015] India has retained its top spot as the world’s largest exporter of beef with 2.4 million tonnes exported in 2014-15 financial year, according to data from the US Department of Agriculture, USDA. India’s beef exports have been growing at an average of nearly 14% each year since 2011 and fetching as much as USD 4.8 billion in 2014. About 80% of India’s beef exports go to Asian countries and 15% to Africa, with Vietnam being the largest recipient at 45%. Brazil and Australia were other top beef exporting countries in 2014-15 with 2 million tonnes and 1.5 million tonnes respectively.
|Chicken and egg prices surge in Pakistan|
[14 August 2015] Chicken and egg prices in Pakistan have seen sharp increases with live chicken prices touching USD 1.8/kg and eggs being sold at about USD 1.00/dozen. Pakistan Poultry Association Chairman Ahmed Waseem said that the sharp increase in prices is due to the severe heat wave that persisted for a longer period. “High mortality rate in poultry caused a gap in supply,” he said. Apart from this, energy shortage and rise of feed and medicine prices caused prices to rise further.
|Kerala plans for modern slaughterhouse in Kochi|
[13 August 2015] India's Kerala state government plans to build a modern slaughterhouse in Kochi city via a public private partnership. “The estimated cost for setting up the slaughterhouse is USD 2.5 million and the private agency operating the facility will share its revenue with the Kochi city corporation,” TK Ashraf, Kochi Corporation Chairman told Asian Agribiz. According to him, the modern slaughterhouse will meet all the safety guidelines issued by the Food Safety and Standards Authority of India.
|QL raises farmed shrimp output|
[13 August 2015] Malaysian agribusiness firm QL Resources aims to expand its farmed shrimp output and build a new processing plant, reported The Star, cutting a note from CIMB Equities Research. The brokerage stated that QL is looking to double its output in FY16 as more ponds are built. QL had just completed the construction of its hatcheries and nurseries to reduce the mortality rate of post larvae and building a shrimp processing plant, noted CIMB. It is also planning to expand the Kembang Subur Sdn Bhd’s farm capacity by 60%. CIMB said QL continued to see strong demand for surimi-based products, prompting the company to buy a parcel of land nearby to build an additional chilled surimi-based product plant in the later part of FY16.
|Corn import ban troubles Indonesian feed millers |
[13 August 2015] Indonesia’s recent move to temporarily ban corn imports has left vessels carrying 480,000 tonnes of imported corn stranded at domestic ports, forcing additional charges on importers. Desianto Budi Utomo, Secretary General of the Indonesian Feed Millers Association, said the vessels, which were supposed to dock at ports in Medan (North Sumatra), Jakarta and Surabaya (East Java), had yet to acquire permits to unload the shipments. He estimated that feed millers had to pay a daily fee amounting to USD 13,000 to the vessel owners for the extended use of the vessels. He added that the industry was not given enough time to adjust following the government’s sudden ban.
|Vietnam aims for import-export balance |
[13 August 2015] Vietnam is planning to restructure its animal husbandry industry to help the country find a balance in import-export, which is currently biased on imports. According to the Department of Animal Husbandry, in the first five months of this year, Vietnam imported 2032 tonnes of pork valued at USD 4 million, or up 46.6% in quantity and 59.5% in value. Chicken meat imports, meanwhile, increased to 56,917 tonnes valued at USD 52.7 million, or up 54.5% in quantity and 31.3% in value. Cao Duc Phat, Minister of Agriculture and Rural Development, said: “This restructuring also includes changing the perspective and increasing competitiveness in terms of quality and value.”
|KFC Thailand on expansion drive|
[13 August 2015] KFC plans to spend around USD 51 million for expansion and to upgrade its services in Thailand. Waewkanee Assoratgoon, Country General Manager for KFC at Yum! Restaurants International (Thailand), the operator of KFC in Thailand, said they expect to open 40 new restaurants this year including 10 drive-through outlets, to total 535 stores nationwide. “Despite the economic challenges, we see a trend towards convenience and urbanisation and this has spurred our growth in Thailand,” Ms Waewkanee said. KFC is also introducing the ‘Speed Up Order Process’ (SOP) for faster deliveries. It doubles the number of customers served per hour. It will install this new system at all outlets this year.
|AB Vista opens office in India |
[13 August 2015] AB Vista has opened its first office in India following extensive growth in the region over the past eight years, said a company statement. Located in Pune, the office will serve as a base for sales, technical, finance and supply chain functions. “We have a number of long term plans for the market and are committed to the Indian feed sector,” Dr Dinesh Bhosale, Regional Sales Director for AB Vista South Asia said. Ari Kiviniemi, Global Sales Director said that the company’s rapid growth in India has exceeded expectations and the new office is a milestone in that journey.
|US beef industry seeks better access to Indonesia|
[12 August 2015] The US Meat Export Federation (USMEF) and related associations recently filed comments with the US Trade Representative USTR highlighting a number of requirements that are inconsistent with Indonesia’s international trade obligations. “This is a market with excellent potential for US beef – from high-end cuts for the hotel and restaurant sector, to variety meats used for processing," said Thad Lively, USMEF Senior Vice President for Trade Access. "But the business climate must be more stable and reliable. We’re hopeful that the dispute settlement process allows us to re-establish the presence of US beef in Indonesia.” In 2011, the US beef industry shipped nearly 18,000 tonnes of product to Indonesia, valued at more than USD 28 million. However, exports declined in 2012 to 1,646 tonnes valued at USD 8.5 million.
|Esso to increase Burger King stores |
[12 August 2015] Oil Company Esso (Thailand) plans to expand the number of Burger King restaurants at its gas stations in Thailand after the first store in the eastern part of Bangkok received good patronage. Mongkolnimit Auacherdkul, Esso (Thailand)’s Director, said the company will accelerate its expansion this year and will focus on suburban areas around Bangkok. Apart from Burger King, Esso is also looking for possible partnerships with other food chains such as KFC, McDonalds, Lawson and Family Mart convenient stores as well as local coffee shops.
|Soy acreage hits record in India|
[12 August 2015] Total area sown under soybean in India has crossed record 11.18 million hectares this monsoon season, the highest in recent years. Executive Director of Soybean Processors Association of India (SOPA) DN Pathak said there has been a shift from paddy to soy in some parts of Madhya Pradesh and Rajasthan states as farmers saw better returns with soy. “Farmers were encouraged to shift to oilseed crops because of the good returns with soy, groundnut and sesame in the last season,” he said. Madhya Pradesh and Maharashtra are the leading soybean growing states in India.
|Cargill blames weak markets for poor results|
[12 August 2015] Cargill reported that earnings for the fiscal year dropped 13% to USD 1.58 billion from a year ago, due to sluggish economies in many emerging markets. In its press release it revealed that revenues decreased 11% to USD 120.4 billion. Fourth-quarter revenues were USD 28.4 billion, compared with USD 36.2 billion in the year-ago period. “While several Cargill businesses generated strong earnings in 2015, we lagged results from the prior year and did not meet our own expectations,” said David MacLennan, Cargill’s President and Chief Executive Officer. “The economic environment remains sluggish in many emerging markets where we have invested significantly over the past several years. Even so, we aim for growth and profitability through these cycles.”
Asian Agribiz regional dairy update
[12 August 2015]
Vinamilk kicks off construction of dairy farm network
Vietnam Dairy Products Joint Stock Company (Vinamilk) this week (Aug 10) broke ground for the construction of a high-quality dairy farm network at Yen Dinh district, Thanh Hoa province. It is the biggest agricultural project in the locality to date. The network will group four farms covering a total area of 2500ha. Built with a capital of USD 73.3 million, it can hold 16,000 cows imported from Australia and the US. This will be increased to 24,000 head in phase II. The network is set to apply modern dairy farming technology to ensure environmental hygiene with the system farming, grass warehouse, agricultural cultivation area for milk processing and supporting works. Once operational in 2017 the farms are set to produce 36 million litres of milk annually.
Muthoot group to enter dairy business
Muthoot Group in India’s Kerala state, a diversified business conglomerate has announced plans to enter the dairy business with a pilot project in Kerala. “The USD 0.18 million project will start in six months at Kozhippara, near Walayar in Kerala state,” Thomas Muthoot, Executive Director of the company said. The group will initially process 6,000-8,000 litres of milk sourced from within a 30-40 km radius and plans to scale up the project. According to him, Muthoot’s microfinance division has around 50,000 small dairy farmers among its customers and the business opportunity was noted after studying the financials of marginal dairy farmers.
Philippine dairy imports down
The Philippines imported less dairy products in 2014, just above 1740 tonnes, or down 10.57% from the previous year, the Philippine Statistics Authority said. The value however, is up 2.2% to USD 876 million from USD 857 million in 2013. The US and New Zealand led the list of dairy exporters together accounting for about 58% of the total. Milk and cream made up the bulk, or 92%, of the total, with butter and cheese making up the rest. Meanwhile local milk production inched up by 1% to 19,728 litres (L) from 19,526L in 2013. The Philippines, which currently imports more than 98% of its total milk requirements, is trying to boost its dairy industry through various programs including the improvement of its local animals and the development of more dairy zones in the country.
India extends ban on Chinese dairy
The Food Safety and Standards Authority of India has extended its ban on products containing dairy from China for another year till June 2016. The ban was first imposed in 2008 due to melamine contamination and was extended year-on-year on the basis of annual review. Rakesh Chandra Sharma, Director of FSSAI said that the ban would be removed only if China gives credible information that milk and milk products are safe for human consumption. According to the notification, safety of products containing Chinese dairy could not be assumed unless it is substantiated.
|Lifting Cambodia’s food standards from farm to table|
[11 August 2015] Some farms and food production establishments in Cambodia are working towards raising the quality of the local food supply chain, said a report in the Phnom Penh Post. Using quality feed ingredients such as soybean and broken rice, for instance, has helped La Ferme de Bassac pig farm in Kandal province in Phnom Penh, produce safe meat that is flavourful and has a healthy white hue, said Thierry Pradalet, Executive Director. Its 700 pigs live on a healthy diet and do not use growth-inducing hormones or disease-preventative antibiotics. The 1ha farm sells its meat at about USD 2.75 per kg, roughly USD 0.50 more than the price in wet markets. These good practices allows the five-year-old farm to also supply meat to some of Phnom Penh’s better known up-market establishments.
|CP Prima reports increase in shrimp, feed sales|
[11 August 2015] Central Proteinaprima (CP Prima), the largest shrimp processor in Indonesia, reported strong sales and operating profits for H1 2015. The company’s feed sales were USD 192,000, up 12.58% y-o-y, while shrimp sales increased 10.48% y-o-y to USD 113,000. Despite this, the company – which generates the biggest chunk of its sales from feed production, followed by shrimp – saw its first half net loss widen, due to foreign exchange losses. CP Prima incurred foreign exchange losses on bonds of USD 16.06 million, compared to gains of USD 1.4 million in H1 2014. However the turnover for CP Prima increased 10.78% year-on-year, to USD 341.88 million.
|India, US working on compliance date in WTO poultry case|
[11 August 2015] India and the US have begun deliberations to agree on a deadline, to comply with the WTO decision that faulted India’s ban of US poultry. If both the countries cannot come to an agreement, an arbitration panel will craft a reasonable time period for India to bring its import rules into compliance. India announced its intent to comply with the WTO's panel and Appellate Body rulings last month and promptly informed the US and other members that it would need a reasonable period of time for compliance.
|Indonesia’s corn exports reach 400,000t|
[11 August 2015] Indonesia’s Ministry of Agriculture claimed that until July the country has exported around 400,000 tonnes of corn. Amran Sulaiman, Minister of Agriculture, said the corn was from Gorontalo, South Sulawesi, Dompu, Bima and Sumbawa. “We are optimistic that next year we will be able to export around 700,000 tonnes,” he said. Desianto Budi Utomo, Secretary General of the Indonesian Feed Millers Association, commented that corn producers prefer to sell their produce to the Philippines as they get a better price there.
|US restores GSP to Indian exporters |
[11 August 2015] The US has renewed its generalised system of preferences (GSP) under which Indian exports will see tariff benefits. Federation of Indian Export Organisations (FIEO) President SC Ralhan said that it will increase competitiveness of Indian goods covered under GSP in the US market. Ever since the GSP program expired in 2013, Indian exporters were demanding renewal. It has now been renewed with retroactive effect from August 1, 2013 and will be in place until December 31, 2017. The US Customs and Border Protection will again accept claims for GSP from July 29, 2015.
|Beef price up in Kerala due to low supply|
[10 August 2015] Beef price in India’s Kerala state has increased by around 10% to USD 5/kg as cattle supplies from neighbouring Tamil Nadu has been disrupted. K Mohammed, Joint Secretary of the Kerala State Meat Workers Congress told Asian Agribiz that the disruption was because cattle suppliers in Tamil Nadu were under attack by those opposing beef. “The state is facing a beef shortage and our demand for beef is largely met by supplies from other states as cattle raised within Kerala can meet only a fraction of the demand,” he said.
|Suspension of corn imports will raise poultry prices|
[10 August 2015] Indonesia’s recent move to suspend imports of corn for animal feed will cause wholesale poultry and egg prices to rise at least 6% over the next month, according to the Indonesian Poultry Farmers Association (Pinsar Indonesia). Indonesia, which imports corn mainly from Argentina and Brazil, stopped issuing import permits for corn in July as it made a broader push for food self-sufficiency. “The policy has good intentions but it was too sudden,” Hartono, Pinsar Indonesia Chairman, commented. “The import of 3mt of corn per year can provide jobs for so many people here,” he added, referring to the volume of grain that had been slated for import this year. He also informed that after the announcement of the suspension, corn traders had raised prices by 10%.
|Canadian seafood gains ground in Asia|
[10 August 2015] Canada’s seafood industry is making a comeback thanks largely to growing exports to Asia, and China in particular. Trade numbers released by Statistics Canada showed that exports of seafood products jumped nearly 130% in June from May. “Prepared and packaged seafood products … comprised almost 30% of the growth in the consumer goods section,” said Nita Boushey, an analyst at Statistics Canada. A good chunk of those exports have been heading to Asia. Data provided by the Department of Fisheries and Oceans showed lobster exports to Asia, specifically to China, have nearly doubled in recent years, rising to 4700 tonnes of product valued at USD 76 million in 2014. That compared with 2700 tonnes of product worth USD 42 million in 2013.
|Sierad Produce reduces feed production by 50%|
[10 August 2015] The weak purchasing power in Indonesia, currency depreciation, broiler DOC oversupply and low chicken prices have led Sierad Produce to reduce its (poultry) feed production by 50% to prevent more losses. Its current feed production is around 20,000 tonnes/month, as reported by Kontan daily. “From our total corn need, we import around 40% from Argentina and Brazil. And the currency depreciation has raised import costs,” said FX Awi Tantra, Director.
|Corn prices continue uptrend in India, says USGC|
[10 August 2015] Corn prices in India continue to move up as supplies have diminished and requirements for the next three months have to be met through the stocks, according to the US Grains Council. USGC India Representative Amit Sachdev said that the 4.5 mt needed for August to October, has to be met with stocks from the 2014-15 crop. “There was an increase of almost USD 24 tonnes in 15 days,” he said. According to him, spot market prices continue to move up and the new crop for this season will start arriving only in October.
|Introductory and advanced NIRS workshops|
[07 August 2015] The Near Infra-Red Spectroscopy (NIRS) workshops to be held prior to Asian Agribiz Poultry Feed Quality Conference in Bangkok and Layer Feed Quality Conference in Jakarta will appeal to two levels of professionals. The NIRS Introductory Workshop will be of interest to nutritionists, ingredient procurement and management who want to explore the different ways NIR can be used in their feed milling operations to save money, and improve feed quality and animal performance. The NIRS Advanced Workshop will be of interest to technicians and nutritionists who want to understand more about NIR accuracy and using NIR data to capture opportunities. For further details click here or contact Omthong Tjoa or Sutasinee Lake (email@example.com). Registration closes 18 August.
|TFMA expects Thai feed demand to grow|
[07 August 2015] The Thai Feed Mill Association (TFMA) expects overall feed demand to increase to around 18 million tonnes in 2015, up 7% from last year. This reflects growing boiler production which is expected to rise by 10%, driven by anticipated chicken meat exports which are forecast to increase by 5% this year, particularly in the second half of the year as South Korea is anticipated to lift the ban on Thai frozen chicken meat. While broiler feed demand accounts for around 40% of total feed demand, swine feed production, which accounts for around 30%, will likely grow 3%. Layer feed production which accounts for 20% is expected to grow by 5%.
|Bangladesh considers formal cattle trade with India|
[07 August 2015] In the backdrop of India putting an end to cattle smuggling into Bangladesh over security concerns, Bangladesh is mulling a formal cattle trade with India. India’s action has resulted in spiralling of beef prices in Bangladesh and an acute shortage of the meat. Bangladesh's Ministry of Commerce will consider the opinion of the Ministry of Foreign Affairs before putting the proposal across to India. A spokesperson of Ministry told Asian Agribiz that Bangladesh fears a further spike in prices if cattle cannot enter Bangladesh from India. As per estimates, around 170,000 cattle were smuggled to Bangladesh from India in 2014.
|Price decline affects Indonesia’s shrimp performance|
[07 August 2015] Indonesia’s Fisheries and Marine Affairs recorded a decline in shrimp price on August 3 to USD 5.1/kg from USD 5.6/kg. Saut P Hutagalung, Director General of Fish Processing and Marketing, said international shrimp prices have been declining since Q3 2014. Thomas Darmawan, Chairman of the Indonesian Fish Processors and Exporters Association, said weak demand in the US contributed to the decline. “Our exports to the US are also declining since India offers a lower prices.” Meanwhile Iwan Sutanto, Chairman of the Indonesian Shrimp Club (SCI), said the price decline will lead to lower margins or even losses to shrimp farmers. In H1, SCI produced around 200,000 tonnes of shrimp, while in H2 the association targets to produce around 300,000 tonnes.
|Philippine pizza chain to expand in the UAE|
[07 August 2015] Max’s Group Inc (MGI), a large casual dining restaurant company in the Philippines, announced that it will bring Yellow Cab Pizza, a popular homegrown Philippine pizza chain to the United Arab Emirates (UAE). MGI said it has signed a development agreement with Middle East-based Cartoon Fashion Group to build 10 Yellow Cab Pizza outlets in the UAE within the next five years. MGI President and CE Robert Trota said the move is in line with the company’s thrust to expand its international presence into new markets. Yellow Cab, best known for its New York-style pizza, already has six branches in Qatar.
|Fast Food Indonesia plans for 20 new KFC outlets|
[07 August 2015] Fast Food Indonesia, the operator of KFC in Indonesia, plans to renovate its existing outlets and open new outlets during the second half of this year. The company will renovate 40 outlets that will cost around USD 2 million. “This is aimed at attracting more consumers,” said Justinus Dalimin Juwono, Director. Meanwhile 20 new outlets are planned for Jakarta, Kalimantan and Sulawesi. This expansion will cost the company around USD 6 million, according to Mr Justinus. At the moment the company operates 510 KFC outlets throughout the country.
|Early bird and team registrations close tomorrow|
[06 August 2015] The 2015 Poultry Feed Quality Conference organized by Asian Agribiz and which will be held on 3-4 September at the Amari Watergate Hotel in Bangkok has a strong science-based technical program with carefully selected papers containing relevant trial data and practical solutions for Asia. Register here by August 7, to enjoy the early bird and team registration discounts. Contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org) for any queries.
|China looks for consistent beef supply|
[06 August 2015] Rabobank believes that Chinese investors will play an influential role in the global beef market over the next decade. According to its latest report, ‘Moving Globally: What role will China play in the global beef market?’, China's beef demand will grow an additional 2.2 million tonnes by 2025. "Beef companies face the challenge of where to source consistent beef supply, but they also need to develop, and even create, new markets by delivering new products and addressing the needs for convenience, tailor-made value-added products," said Pan Chenjun, senior analyst from Rabobank. To cope with the challenge, Chinese beef companies aim to participate in the whole supply chain--from farming to processing--in order to not only secure resources such as grassland, but also to take a strategic step to integrate the whole value chain.
|Tesco Lotus cuts prices in Thailand|
[06 August 2015] Tesco Lotus, the UK hypermart chain in Thailand, has announced a major slashing of retail prices of various food items to levels equivalent to wholesale prices. Chief Commercial Officer Sompong Rungniratttisai said Tesco Lotus spent around USD 17.1 million to reduce prices of fresh foods such as farm produce, meat, eggs and seafood by 15% from normal prices to help customers save on living costs amidst a difficult economy. This campaign is the largest in 20 years of the chain’s operation in Thailand.
|Japfa Indonesia hit hard by rupiah, rising costs|
[06 August 2015] Japfa Comfeed Indonesia continued to suffer net losses in the first half of this year due to foreign exchange volatility and the rising cost of goods sold. The company ended the first six months of this year with around USD 20.2 million in net losses compared to around USD 24 million in net profit in the same period last year. Net sales dropped to around USD 899.6 million in the first half from around USD 902.5 million over last year. Japfa slashed its capital expenditure this year to around USD 55.5 million from USD 133.3 million. This will be used for breeding farm and feedmill expansion and production facilities maintenance. According to Bambang Budi Hendarto, Vice President Director, the company cannot aggressively expand its business this year due to low demand.
|Lite Bite Foods enters travel food retail |
[06 August 2015] Indian food & beverage retail company Lite Bite Foods is cooperating with HMSHost, the world’s largest provider of food & beverage services for travellers to expand its presence in the travel food retail industry. Lite Bite Foods Chairman Amit Burman said that the 49:51 joint venture with HMSHost aims to acquire rights to launch and operate outlets at airports in India and neighbouring countries. “We plan to enhance our brand presence at strategic locations,” he said. The company has strong brands like Punjab Grill, Fresc Co, Subways and Baker Street under its umbrella in India.
|Anna Creek Station is up for sale|
[06 August 2015] The world’s largest cattle ranch, Anna Creek Station in South Australia, is up for sale. Owner S Kidman & Co has put up 11 million ha of land up for sale including working units in Western Australia, Queensland and the Northern Territory. This includes 10 cattle stations, 185,000 cattle as well as a bull breeding stud farm and a feedlot. Headquartered in Adelaide, the company turns out an average 15,000 tonnes of carcass beef annually, supplying 1.3% of Australia’s boxed beef exports. It is believed that more than half of the prospective buyers are Australian, with other bidders from China, Indonesia, Britain, the US, Canada, South America and Switzerland.
|Learn how to use NIRS to improve feed quality and save costs|
[05 August 2015] Following the success of its Near Infra-Red Spectroscopy (NIRS) workshops in Bangkok, Thailand at the 2014 Poultry Feed Quality Conference, Asian Agribiz will hold two, one-day NIRS workshops in Bangkok prior to the 2015 event and one prior to the inaugural Layer Feed Quality Conference in Jakarta. The workshops will be presented by Australian NIRS expert, Ivan Ward of Agri-Torque Pty Ltd. Ivan has extensive practical experience implementing NIRS systems, in particular with Australia’s largest feed miller. For further details click here or contact Omthong Tjoa or Sutasinee Lake. Registration closes on 18 August.
|Philippines, Vietnam cooperate in tuna industry|
[05 August 2015] Vietnam plans to send a working group to the Philippines to learn about tuna fishing and processing technologies, said Deputy Minister of Agriculture and Rural Development Vu Van Tam. He said Vietnam and the Philippines have signed a fishery cooperation agreement and set up a hotline to deal with issues related to fishing at sea. He added that the Philippines wants to learn aquaculture and fish processing technology from Vietnam while Vietnam should study tuna fishing and processing technology from the Philippines.
|Pakistan offers tax holiday for meat processing sector|
[05 August 2015] Pakistan’s meat processing sector is set to grow at a faster pace as the Federal Government has offered a four-year tax holiday for new entrants. Meat processing facilities established by December this year and with Halal certificates will be eligible for the tax reprieve. Industry sources said the country’s meat processing sector has been doing reasonably well and the tax holiday will help draw new companies. Meat exports from Pakistan have grown in the last decade and raised USD 240 million in 2014-15 financial year.
|Bulog to get exclusive corn import permit|
[05 August 2015] Indonesia’s government plans to give an exclusive permit to the National Logistics Agency (Bulog) to import corn for animal feed. Muladno, Director General of Livestock and Animal Health, said this is in anticipation of a corn shortage, as well as to stabilise the price. He denied that the move is aimed to compete with corn importers. The government has currently suspended corn imports as the national corn supply verification process is ongoing.
|HPAI outbreaks in Vietnam, Taiwan|
[05 August 2015] Veterinary officials in Vietnam and Taiwan have reported highly pathogenic avian influenza outbreaks from different strains - H5N6 in Vietnam and H3N2 in Taiwan. In Vietnam, the virus struck village birds in Quang Ngai province, on the country's central coast, according to a report to the World Organization for Animal Health (OIE) yesterday. The virus killed 115 of 1,200 susceptible birds, and the remaining 1,085 were culled to control the spread of the virus. Meanwhile, Taiwan authorities reported four more H5N2 outbreaks in Changhua and two in nearby Yunlin. Taiwan has been battling both low-pathogenic and highly pathogenic H5N2 outbreaks over the past several months, in addition to several involving highly pathogenic H5N8.
|Black Sea feed wheat flooding Asian market|
[05 August 2015] Black Sea feed wheat is flooding the Asian market as feed millers snap up cheap supplies, booking shipments right up to December as they replace corn in animal rations. South Korea, the Philippines and Thailand have booked close to 3 million tonnes for shipment between July and December, worth about USD 600 million. A jump in Asia’s feed wheat consumption could reduce the region’s dependence on corn imports from the US and South America, weighing on prices of the feed grain. “In the past few weeks’ Brazilian corn has been a little more expensive than feed quality wheat coming from Ukraine,” said a Singapore-based trader told Reuters. “Millers have booked several (wheat) cargoes. We expect some importers to buy feed wheat on a regular basis.”
|Thaifoods plans for IPO|
[04 August 2015] Thaifoods Group is planning for an Initial Public Offering (IPO) of up to 1.4 billion ordinary shares to raise fund for the expansion of its poultry and pig farming and processing business. The company has submitted the filing to the Stock Exchange of Thailand and expects to conduct the book building in August and commence share trading in September. Winai Teawsomboonkit, Chairman of the Executive Committee and the Chief Executive Officer, said the company will use the funds of up to USD 77 million over the next three years for a chicken sausage plant, expanding poultry processing, intensifying commercial pig farming capacity and upgrading machinery at the existing feed mills and building a new feedmill.
|Sierad ventures into beef sector|
[04 August 2015] With its recent acquisition of cattle feedlotter Great Giant Livestock in Lampung earlier this year, Indonesia’s poultry integrator Sierad Produce will extend to the domestic beef market. “We are targeting the fast food sector,” said Director FX Awi Tantra. At the moment Sierad is trying to supply its beef to McDonald’s Indonesia. Mr Awi said: “The beef still needs to be certified by the fast food chain’s international laboratory. After granting certification, discussions of pricing, volume and distribution can proceed. With the certification we can also talk about the possibility of exporting to McDonalds in Malaysia or even Singapore.”
|Japan, US discuss TPP beef, pork safeguards|
[04 August 2015] Japan and the US are in the final stage of talks on criteria for invoking safeguard measures to limit imports of US beef and pork as part of the proposed Trans-Pacific Partnership (TPP) trade pact, reported the Japan Times. Presuming a final agreement is reached, the two countries are planning to put safeguard measures for beef in motion 15 years after the resulting trade accord takes effect, if the total amount of beef imports exceeds around 739,000 tonnes, and for low-priced pork in 10 years if total imports exceed 150,000 tonnes. Tokyo called for safeguard measures to protect domestic farmers. Japan-US differences over the TPP have been one of the thorniest issues in the negotiations.
|Japfa’s Q2 earnings plunge to USD2.96m|
[04 August 2015] Singapore-based agrifood company Japfa Ltd reported an 86% year-on-year slide in net profit to USD 2.96 million for the second quarter ended June 30, 2015, due in part to lower revenue as well as the absence of a one-off gain from an asset disposal in the corresponding quarter a year ago. Revenue declined 8% to USD 704.25 million mainly due to the Indonesian operations in the animal protein and consumer food segments that saw continued decline in consumer demand. For the six-month period, net profit dropped 71% to USD 9.96 million, while revenue slid 5% to USD 1.38 billion. “As we navigate the headwinds in Indonesia, we will continue to leverage our track record in replicating our industrialised and scalable business, to build our three key business pillars - dairy in China, poultry in Indonesia, and poultry and swine in Indochina,” said CEO Tan Yong Nang.
|Philippines ban poultry from UK|
[04 August 2015] The Philippines has placed a temporary ban on poultry imports from the UK after the UK’s Department of Environment, Food and Rural Affairs (Defra) confirmed an outbreak of highly pathogenic avian influenza (HPAI) serotype H7N7 among free range and house-laying hens in Lancashire, England. Defra reported the outbreak on July 14. The ban includes domestic and wild birds, poultry meat, day-old chicks, eggs and semen however, frozen poultry meat that was slaughtered or processed 21 days prior to the HPAI outbreak will be allowed entry, subject to compliance to veterinary quarantine rules and regulations. The Philippines has been strictly monitoring its borders to keep AI at bay.
|Good prospects for India’s summer crops |
[04 August 2015] Due to good rainfall during the recent monsoon in India, prospects of summer crops like rice, pulses and oilseeds are good in most parts of the country. As per latest data from Union Agriculture Ministry more than 50% of sowing of summer crops has been completed and farmers have taken up pulses, oilseeds and coarse cereals in a big way. Area under these crop categories has increased signalling record production of these crops. India Meteorological Department Director General Laxman Singh Rathore said that except for Maharashtra, Andhra Pradesh, Telangana and Karnataka, which received lower rainfall, the crop situation in rest of the country is good.
|QL Indonesia sells more eggs to modern market|
[03 August 2015] In less than five years QL has become a major quality egg producer in Indonesia. QL eggs are produced in a modern layer farm in Cianjur, West Java. The closed house farm is equipped with modern technology including washing, grading and packing machines. “At the moment we have a population of 1.6 million birds. Our egg production per day reaches 800,000 eggs, or around 50 tonnes,” Cecep Muhammad Wahyudin, Director of QL Group Indonesia, told Asian Agribiz. Around 48% of the total egg production is sold to the modern market in the Jabodetabek region. QL also supplies eggs to all outlets of McDonald’s in the country. Its eggs packed in 10's is retailed under the ‘QL NutriFresh’ and ‘QL Fresh Egg’ brands.
|NZ to ban antibiotics by 2030|
[03 August 2015] By 2030, New Zealand Veterinary Association (NZVA) said, the country will not need antibiotics for the maintenance of animal health and wellness. Dr Steve Merchant, NZVA President, said this is a significant undertaking, requiring considerable teamwork and commitment from the veterinary profession, working with the medical, scientific, government and relevant primary industry sectors. Scientific adviser on the project Eric Hillerton said New Zealand animals were among the healthiest in the world. Dairy cows need a third of the antibiotics that they need in the US, and sheep are rarely given drugs. Mr Hillerton said there was already zero use of antibiotics in aquaculture, and the country’s grass-based farm management systems were healthier ways of raising livestock than intensive systems.
|Thailuxe expects 40% revenue growth|
[03 August 2015] Thailuxe Enterprises, a producer of aqua feed and frozen food, expects revenue to grow by around 40% this year thanks to the recovery of the shrimp market and a new plant, Anurot Seneepakonkai, Chairman, said. The company produces, sells and exports feed for fish, shrimp and pets and also frozen food, and does fish farming. Mr Anurot said Thailuxe’s feed business contributes 70% to revenue, followed by frozen food with 20% and fish farming 10%. To reduce the effects of the shrimp market slowdown, the company plans to reduce shrimp feed contribution to less than 15% and up pet food to more than 25%. Recently Thailuxe opened a new plant in Songkhla province. It can produce around 13,000 tonnes per year of fish, shrimp, and pet feed.
|Upsurge in India's egg price |
[03 August 2015] Wholesale price of eggs in India has increased by USD 0.0028 at 0.051 per egg and is expected to increase in the coming days due to high demand. P Selvaraj, Chairman National Egg Coordination Committee, Namakkal zone said that egg production had dropped due to heavy rains in many parts of India. “This led to a drop in supply while demand in Delhi and Uttar Pradesh and the NECC Zones has grown,” he said.
|Meat imports pose challenge for Vietnam|
[03 August 2015] Over the past three years, the volume of frozen pork imported from the EU has increased 7.5 times to 6100 tonnes, and that of beef jumped six-fold to 1000 tonnes, The Viet Nam Trade Promotion Agency reported. Nguyen Van Trong, Deputy Head of the Livestock Department, said the meat industry has developed over the last few years but is likely to face challenges. Backyard farms are the major producers in the local livestock industry, however, this farming system does not see farmers coming together as part of a production chain. Food producers too have not been able to integrate backyard farmers into their operations.
|11 presentations at Layer Feed Quality Conference in Jakarta|
[31 July 2015] The program for Asian Agribiz's Layer Feed Quality Conference in Jakarta, Indonesia on September 7 will feature 11 presentations including From egg to plate - opportunities for enriched eggs by Han Zhaopeng, Vice Director of Beijing DQY – the largest egg producer in Asia; Nutrient retention and nutrient waste for layers by Dr Rosalina Angel, Assistant Professor, University of Maryland, US; Developments in gut health by Santiago Ramirez, Principal Consultant and Nutritionist with Fractal Farming, Australia; while Felipe Sanchez, Application & Solution Specialist with Nutreco, Spain will explain the latest developments in time-based split feeding systems. More details here or contact Omthong Tjoa or Sutasinee Lake (email@example.com).
|Vietnam livestock producers challenged by imports|
[31 July 2015] Imports of meat is putting pressure on the growth of Vietnam’s livestock industry. According to the Livestock Department, Ministry of Agriculture and Rural Development, Vietnam imported 2432 tonnes of pork and 68,100 tonnes of chicken in the first half of this year, a year-on-year increase of 47% and 54.5%, respectively. Imports saw a surge after the ministry permitted 106 eligible firms to import all types of meat in mid-May. Some 100 exporters from the EU have been granted certificates to export meat to Vietnam.
|South Korea reports 110 H5N8 outbreaks |
[31 July 2015] South Korea this week reported 110 outbreaks of H5N8 avian flu affecting more than 3 million poultry, with some events dating back to last fall, according to a report posted by the World Organization for Animal Health (OIE). The outbreaks involved ducks and chickens in the western and southern parts of the country. Only 236 bird deaths were reported across all the outbreaks, and some involved no H5N8 cases, but all involved positive tests. Dates of outbreak onset range from September 2014 to June 2015. South Korea had previously reported 52 H5N8 outbreaks in the country last fall through early March.
Sneak preview of Asian Pork Magazine, August 2015
[31 July 2015]
Quickgrow Genetics aims for more productive breeders
The Philippines hosts some leading global pig genetics companies and well-respected local breeding companies. Yet for many small and medium size raisers, access to quality pigs remains an obstacle. One rising genetics company in Northern Philippines has taken the task to hand, writes ISA Q TAN, and is now building up its operations to bring quality pigs to those who most need them.
Fine Foods leads with high quality pork in India
A new entrant in India’s infant pork sector, Fine Foods International is determined to provide high quality products to consumers in northern India. While it only started pig farming in Haryana state last year, the company has received good response from consumers who prefer hygienic pork, writes SM ARUN.
VPF Group runs healthy farm for quality pork
VPF Group, an integrated pig farming and processing operator based in Chiang Mai, Thailand, adopts the concept of ‘healthy farm, happy pig’ to ensure the quality pigmeat they produce. With efficient farm management, meticulous breed line selection and competent disease control and vaccinating practices, the company thrives on wholesome pig health and profitable performance, thus benefitting expansion plans for its downstream business, writes NITSARA THONGRUNG.
Biotransformation of deoxynivalenol to a non-toxic metabolite
SHU GUAN, SIMONE SCHAUMBERGER, and CHRISTINA SCHWAB report a kinetic study that confirmed by biomarker the efficacy of Biomin BBSH 797 (the microorganism component of Mycofix that biotransforms trichothecenes) to detoxify Deoxynivalenol (DON) to the non-toxic metabolite de-epoxy-deoxynivalenol (DOM-1) in the gastrointestinal tract of pigs. DON and DOM-1, measured in serum of pigs, are important biomarkers to demonstrate the efficacy of DON-deactivating products in vivo.
Feeding sows to get more piglets born alive
Chromium (Cr) supplementation to sow diets has been shown to improve the performance of sows and their progeny. CHINNADURAI SUGUMAR, BRIAN KREMER and EDWIN CHOW report on a trial, where supplementation with chromium propionate in gestation and lactation feeds resulted in improved sow and piglet performance in two consecutive reproductive cycles. The sows produced and weaned more piglets - key performance criteria for commercial swine herds.
MCFA as an alternative to antibiotic growth promotants
The use of antibiotics as growth promotants (AGP) was not only banned in the EU in 2006, but also the use of therapeutic antibiotics is more and more under pressure. An expansion of this policy can undoubtedly be expected in Asia sooner rather than later. With a continuous focus on improving sow fertility and better growth rate and feed conversion in piglets and fattening pigs, pressure on gut health becomes immense. Several non-antibiotic, plant-derived antimicrobial substances have been proposed as promising alternatives for AGP. WOUTER NAEYAERT reviews the use of medium chain fatty acids (MCFA) as potential alternatives to AGP.
|QL Indonesia ventures into value-added eggs |
[30 July 2015] QL Group Indonesia recently launched Omega eggs that contain Omega 3 plus DHA and vitamin E. “This premium egg is special because the chickens are fed with special feed containing fish oil imported from Peru. The fish oil is made of quality salmon,” Cecep Muhammad Wahyudin, Director, told Asian Agribiz. “We want to provide Omega eggs at an affordable price. We think that the eggs don’t have to be expensive so it can be affordable for all consumer levels,” said Mr Cecep. QL has partnered with a major minimarket chain Indomaret to sell the Omega eggs.
|VRK to commission poultry biogas facility|
[30 July 2015] Pune based VRK Nutritional Solutions in India is set to commission its poultry biogas facility by the end of 2015. Director of the company Dr VR Kulkarni told Asian Agribiz that the project also includes production of 20 tonnes/day of bio fertiliser apart from the main 1000kg/day of compressed bio methane production. “We are not going to stop with producing electricity but will also go into purifying and converting raw biogas to 92% bio methane and then bottling it in CNG cylinders,” he said. According to him, even at the trial stage they had a surplus of electricity and now they are in talks with state electricity board to add the surplus power to the grid.
|CJ Vietnam opens USD20m feedmill|
[30 July 2015] CJ Vina Agri recently celebrated the opening of its fourth feedmill in Dau Giay industrial park (Dong Nai province). The plant worth USD 20million occupies an area of 8.3ha and has a capacity of 390,000 tonnes/year. The company is set to build the fifth plant in the North, the sixth plant in the central region and the seventh plant in the Mekong Delta.
|S. Khonkaen starts operation at new seafood processing line|
[30 July 2015] Thailand's S. Khonkean Foods Plc commenced operation at its new seafood processing line that will focus on fish balls and cephalopod balls for the domestic and export markets, said CEO Charoen Rujirasopon. S. Khonkaen invested around USD 10.03 million to increase production capacity to 15,000 tonnes per year from 9000 tonnes earlier. The new processing line is equipped with the most advance machines including fish head cutter and fish meat separator that can help reduce labour by 30%, Mr Charoen added. S. Khoankaen is also preparing for a test run at its new halal meat snack factory that will produce fish and chicken meat snacks for domestic sales and export to countries in the Middle East and Asean.
|Premium Japanese meat to debut in Vietnam|
[30 July 2015] Japanese Hida beef, slaughtered from the famous black-haired cattle raised in the Japanese prefecture of Gifu, will debut in Vietnam in early August. The specialty product won the top prize at the Kinki Tokai Hokuriku Beef Cattle Exhibition in Japan fetching around USD 145/kg in its home market, the region’s Governor, Furuta Hazime, told Tuoi Tre. This makes Hida beef costlier than Kobe beef. Regular beef is retails at USD 12/kg at most in Vietnam. Hida beef will be distributed to luxury Japanese restaurants in Vietnam to serve the growing number of middle-class consumers in the country, Mr Hazime said. Hida-gyu is known as one of the finest varieties of beef, with quality marbling, lustre, colour, texture and smell.
|Thailand’s CPF to buy Russian poultry integrator |
[29 July 2015] Thailand’s Charoen Pokphand Foods Plc (CPF) will proceed with plans to buy a leading poultry integrator in Russia for USF 680 million said CPF’s President and CEO Adrirek Sripratak said. The shares will be acquired from Agro-Invest Brinky BV in CJSC Poultry Production Severnaya (S) and CJSC Poultry Parent Stock Production Woyskovitsy (W). CPF’s Board of Directors approved the acquisition of 80% of the Russian poultry integrator’s shares by CPF Netherlands B.V. with the remaining 20% to be secured in 2018. “This investment will foster CPF’s potential and opportunity and support our food business in the Russian market where meat consumption rate is high,” said Mr Adirek. CPF will use the Russian poultry company as a production base for domestic sales and exports to markets in nearby regions.
|Cambodia ready for first slaughterhouse |
[29 July 2015] Cambodia’s first slaughterhouse in Preah Sihanouk province and built by SLN Meat Supply, is expected to be fully operational by year end. Initially, SLN is aiming to process about 1700 head of Australian cattle per day, with 1000 destined for Vietnam and the remainder for local consumption. The firm is also negotiating with Chinese buyers and hopes that it will be able to export 2000 head of cattle per day as soon as Chinese safety standards have been met. But it is Vietnam’s demand for Australian beef that will give SLN the kick-start it needs. Cambodian beef imports were valued at about USD 722,000 last year, according to government figures.
|Sierad Produce books losses in Q1|
[29 July 2015] Indonesia’s Sierad Produce has reported a loss of around USD 8.7 million in Q1 2015, compared to a recorded a profit of USD 116,000 in the same period last year. Income for the period decreased by 26.21% from USD 49 million. Poultry and processed food sales contributed around USD 29.5 million and USD 6.5 million, respectively to the income. Eko Putro Sandjojo, Vice President Director, pointed production cost increase and low chicken price as reasons for the loss. Mr Eko revealed that this year the company plans to venture into beef processing by acquiring PT Great Giant Livestock.
|Potential of blue LEDs to deactivate bacteria|
[29 July 2015] A team of scientists from the National University of Singapore (NUS) has found that blue light emitting diodes (LEDs) have strong antibacterial effect on major foodborne pathogens, and are most effective when in temperatures of between 4-15°C, and mildly acidic conditions of around pH 4.5. “Acidic foods such as fresh-cut fruits and ready-to-eat meat can be preserved under blue LEDs in combination with chilling temperatures without requiring further chemical treatments that are commonly needed for food preservation,” said a press release from the National University of Singapore. “Taken together, our studies point to a potential for preserving acidic foods in combination with chilling temperatures without chemical treatments. This could meet the increasing demand for natural or minimally-processed foods without relying on chemicals such as acidulants and artificial preservatives to preserve food products,” said Asst Prof Yuk Hyun-Gyun, from the Food Science and Technology Program.
|Gina Rinehart increases ag exposure to Asia|
[29 July 2015] Australia’s richest person, Gina Rinehart, has beaten fellow billionaires Andrew Forrest and Kerry Stokes in a race to buy Kimberley cattle station Fossil Downs in a deal that increases her exposure to Asia’s growing demand for Australian beef. Mrs Rinehart paid about USD 30 million to buy the 400,000ha property under an agreement finalised just days after Australia signed a historic deal for live cattle exports to China. She was able to convince Fossil Downs’s long-term owners, John and Annette Henwood, to sell her the station on the basis she would maintain it as a major export operation. Fossil Downsboasts 15,000 head of cattle.
|Austfeed Vietnam to break ground for new feedmill|
[28 July 2015] Austfeed Vietnam Corporation, based in the northern province of Hung Yen in Vietnam, will start work on a new feedmill in the Nghe An province in the third quarter of this year. The feedmill, which will be commissioned in July 2016, will cost the company USD 15 million and will have a capacity of 300,000 tonnes a year, Dao Manh Luong, Austfeed’s CEO, told Asian Agribiz after signing an investment licence for the construction. The new plant will produce swine and poultry feeds, especially for its contract farms, and sow and grower-finisher farms in the area. “It will be our fourth feedmill. We hope to build a fifth mill in the Mekong region at the end of this year,” he said.
|India’s seafood exports cross USD 5.5 billion|
[28 July 2015] Seafood exports from India has crossed USD 5.5 billion in 2014-15 despite a sharp fall in shrimp prices in the last quarter (January-March 2015), Marine Products Export Development Authority (MPEDA) said. Leena Nair, Chairman of the seafood export promotion agency said that volume of exports crossed record one million tonnes for the first time during the 2014-15 fiscal year. “Compared to 2013-14, seafood exports recorded a growth of 6.86 % in volume and 10.05 % in value,” she said. Frozen shrimp continued to be the major export item in terms of quantity and value accounting for 34.01% in quantity and 67.19% in earnings, data from MPEDA revealed.
|Sierad Produce to build more commercial farms|
[28 July 2015] Indonesian poultry integrator Sierad Produce plans to expand its commercial broiler farms this year. FX Awi Tantra, Corporate Secretary and Finance Director, said the company will build more commercial farms in West Java with closed-house system. “The commercial farms will support our growing food business. With the modern farms we can control the quality of our food products,” he said. The company has invested around USD 2 million for this.
Sneak preview of Asian Poultry Magazine, August 2015
[28 July 2015]
Althea Farm tips the scale with good management
Raising broilers in the Philippines is regularly difficult, but raising poor quality chicks presents even more challenges. However, for one farm in Compostela Valley, good management turns what would have been rejects into marketable birds, reports ISA Q TAN.
Jadeed bids for larger share in DOC market
Jadeed Group of Companies in Pakistan started raising Ross GP from Aviagen in 2013. After introducing this DOC to local poultry operators, it clinched a good number of transactions. Thanks to good performance at its GP farm, the company’s Chief Executive Mian JM Javaid told NITSARA THONGRUNG that he believes his company will be able to grow its market share for DOC, PS & broilers
Menara’s win-win with quail breeding
By cooperating with groups of quail farmers, Mentari Nusantara (Menara) Feedmill successfully grew its feed business by 50% in the last two years. The company told ARIEF FACHRUDIN that it also ventured into quail breeding to provide farmers with quality DOQ in addition to quality feeds.
Growing potential for probiotics in poultry feed
Antibiotics, once a boon for the livestock industry, is now being seen as a blight even to producers. The search is on for viable alternatives. According to Principal Scientist and Director of Singapore-based Otemchi Biotechnologies Pte Ltd, Chia Tet Fatt, probiotics is the future but farmers must be able to look beyond costs and understand the benefits of using the product on their chicken, RACHAEL PHILIP writes
Comparing organic selenium sources
There is a growing interest in using selenium (Se) based products as an antioxidant, not only for breeding stock, but also for commercial animals. A wide range of products is available. The question is how to choose the most efficient one? Chemical analysis does not appear sufficient to appreciate the bioavailability of the large range of dietary sources of selenium available for animal feeding. Tissue Se deposition is a reliable criteria to evaluate the bio-efficacy of various Se sources write PIERRE-ANDRE GERAERT, MICKAËL BRIENS, YVES MERCIER and Y.G. LIU.
Recent advances in the production & management of ducks
In the first of a four-part article DAVID J FARRELL* reviews recommendations for the production and management of meat and egg hybrid domestic ducks kept mainly under intensive management systems.
Impact of heat stress on the amino acid needs of broilers – part 2
The nutritional strategies often considered to overcome the adverse effects of heat stress are to reduce dietary intact protein levels to minimize the metabolic heat production or to increase dietary amino acid levels to account for decreasing feed intake. Unfortunately, previous research does not clearly indicate which of these strategies is correct. In the second of this two-part article, GIRISH CHANNARAYAPATNA and ROB PAYNE* write that recent research indicates that the amino acid needs of broilers raised in heat-stress situations are likely higher than for those reared at thermal neutral temperatures.
Dietary fibre: pros and cons in poultry feeding and nutrition – part 1
In the first of this two-part article GONZALO MATEOS* writes that traditionally dietary fibre has been considered as a diluent and an anti-nutritional factor. Recent research, however, indicates that this may not be the case. The inclusion of moderate levels of insoluble fibre improves gastrointestinal function.
|Focused technical meetings for broiler and layer producers|
[27 July 2015] The Layer Feed Quality Conference is an off shoot of Asian Agribiz's Poultry Feed Quality Conference, a broiler focused technical meeting that has been growing in size and stature over the last six years and now attracts more than 300 nutritionists from throughout Asia. The 2015 Poultry Feed Quality Conference will be held in Bangkok from 3-4 September. Both conferences feature strong science-based technical programs with carefully selected papers containing relevant trial data and practical solutions for Asian broiler and layer producers. More details here and here or contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org).
|USDA's new H5N2 vaccine works well |
[27 July 2015] A vaccine that the US Department of Agriculture (USDA) developed for H5N2 avian influenza has tested "100% effective" in chickens and is now being tested in turkeys, according to the Associated Press (AP). If the vaccine also works well in turkeys, the USDA plans to license it for production, Agriculture Secretary Tom Vilsack told the House Agriculture Committee. The H5N2 virus led to the destruction of 48 million poultry during the spring and early summer, mostly in Iowa and Minnesota. No more outbreaks have been reported since mid-June, but experts are concerned that the virus may return in the fall, when migratory birds head south.
|Fairfax India acquires National Collateral in USD 126 million deal|
[27 July 2015] Fairfax India Holdings Corporation, an investment holding company traded on Canada’s Toronto Stock Exchange has agreed to acquire 74% of National Collateral Management Services Limited, a leading private sector agricultural commodities storage company in India for USD 126 million. According to a Fairfax India press release, the transaction is expected to be completed later in 2015. National Collateral has operated for over 10 years and is now preparing to expand to take advantage of the significant market potential in India’s underdeveloped agricultural storage industry. “National Collateral will continue to operate independently under the leadership of its present CEO Sanjay Kaul to build on its position as India’s largest private sector agricultural warehouse and grain collateral storage company,” Chairman of Fairfax India Prem Watsa said.
|Feed additives market in Vietnam forecast CAGR 4.7% |
[27 July 2015] The Vietnam animal feed additives market (antibiotics, vitamins, antioxidants, amino acids, enzymes and feed acidifiers, for poultry, pigs and cattle) was valued at USD 112.4 million in 2014 (up 4.1% in 2013), and is expected to reach USD 160.5 million by 2022 growing at a CAGR of 4.7% from 2015 to 2022, according to Grand View Research. Increasing per capita meat consumption is expected to be a major factor driving the market over the next seven years. Antibiotics emerged as the leading product segment and accounted for over 36% of the total market revenue in 2014.
|KFC partners with Indian Railways |
[27 July 2015] KFC has partnered with Indian Railways to offer meals on board to people travelling in trains under the e-catering service. The facility is now available on 12 trains passing through New Delhi railway station and will be expanded to Vishakhapatnam, Hyderabad and Bangalore railway stations over the next 10 days, KFC said in a statement. Consumers will have to visit Indian Railways website or call a toll-free number to place their order. “We think this initiative gives us a great opportunity to bring the taste and quality of KFC to our fans,” KFC India Chief Marketing Officer Dhruv Kaul said.
|Layers - how to build a sustainable flock|
[24 July 2015] The inaugural Layer Feed Quality Conference by Asian Agribiz will address the theme ‘Building a sustainable flock’. The intent is to make producers think about how they approach layer nutrition and management, and feed production. Leading layer industry experts will address topics such as opportunities for enriched eggs, nutrient retention and nutrient waste for layers, developments in gut health and novel split feeding systems. More details here or contact Omthong Tjoa or Sutasinee Lake (email@example.com).
|US raises dispute over Indonesia’s pork imports|
[24 July 2015] The US is raising a dispute with the World Trade Organisation (WTO) against Indonesia for violating agreements on pork imports. Although Indonesia is a predominantly Muslim country, there is significant potential demand for pork products in the Horeca industry, as well as among minority populations, said The US National Pork Producers Council (NPPC). In the NPPC’s view, Indonesia’s import permit system violates numerous provisions of the WTO Agreement on Import Licensing Procedures. Indonesia currently allows imports from only five US slaughter and processing plants, limiting the supply of US pork to the Indonesian market. According to the USDA Foreign Agricultural Service office in Jakarta, the Indonesian government is making “little effort” to approve additional plants.
|Sufi Group ventures into further processing|
[24 July 2015] Pakistan’s Sufi Group, a top producer of fast moving consumer goods in the country, has started to produce a variety of further processed poultry products under the ‘Simply Sufi’ brand. The focus of the group has now turned to the processing of broilers both as input for its further processing plant and to provide customers with the best possible natural products. Hamza Foods, a wholly owned Sufi company, has chosen Marel Stork Poultry Processing’s technology to enable high quality processing. The initial capacity of the new plant near Lahore will be 3000 birds/hour and this can be doubled.
|Vietnam's pig production up in first half|
[24 July 2015] According to the General Statistics Office, Vietnam currently has about 27.2 million pigs on farms (up 2.9% from last year). Production reached 2.05 million tonnes of pork in the first 6 months of 2015, an increase of 3.9% compared to the same period in 2014. The Ministry of Agriculture forecasts an increase in output this year of 2.4% to 3.37 million tonnes.
|SNC to invest in West Sumatera|
[24 July 2015] Indonesia has opened around 2000ha of agriculture land in West Pasaman, West Sumatera to attract more investors to the agro industry. The Ministry of Agriculture said Australia-based SNC has shown interest to invest in an integrated cattle operation starting from breeding to processing in the region. The investment is estimated to reach around USD 2.2 billion, as quoted by Investor Daily. Erinaldi, Head of the Animal Husbandry Agency in the province, said the local government has also improved infrastructure and transportation. Yusni Emilia Harahap from the Directorate General of Agro Processing and Marketing of the Ministry of Agriculture added that Japan has also shown interest to invest in integrated cattle operations in West Pasaman.
|Malaysia’s CAB Cakaran hopes for double digit growth|
[23 July 2015] CAB Cakaran Corp Bhd expects the financial performance of its nine-month period ended June 30 to improve by a double-digit percentage over the previous year’s corresponding period. Group Managing Director Chris Chuah said its Tong Huat Poultry Processing Factory in Singapore had started to contribute positively to the company’s bottom-line and revenue in the last four months, reported the StarBiz. He said the Singapore operations is expected to generate about 10% of the company’s revenue for this financial year ending in September. “The stability in poultry prices has also contributed to the performance of the group in the nine months, which has boosted sales,” Mr Chuah said. The company has also completed the acquisition of the 68ha broiler farm in Johor. It produces 1 million birds per month for the Singapore and Johor markets.
|Sojitz starts cold chain logistics business in Myanmar|
[23 July 2015] Sojitz Corp and Sojitz Logistics Corp have established a tie up with Premium Distribution Co, Ltd, a foods and consumer goods wholesaler. Called Premium Sojitz Logistics the deal will provide cold-chain logistics services from three temperature logistics warehouses to be built in Yangon City. Premium Distribution handles food wholesale for City Mart Group. The group has 20 supermarkets, seven hypermarkets, and 45 convenience stores in the country, as well as food and consumer goods wholesale businesses in major Myanmar cities. Sojitz Corp, in a press release, said demand for refrigerated and frozen food products in Myanmar is on the rise.
|Pioneerindo to expand with satellite CFC outlets|
[23 July 2015] To grow its business this year, Indonesia's Pioneerindo Gourmet International, the operator of California Fried Chicken, will establish satellite outlets that are smaller than its regular outlets. Kristanto Cendra, Finance Director, said with the new concept can save investment costs and be more productive. “The outlets will only sell ready-to-eat products. While the processing and cooking will be done in our central kitchen. Each satellite outlet will need two operators only,” he said, adding that the investment for one satellite outlet is only around USD 11,200. Mr Kristanto revealed that by end of this year the company plans to open 50 new satellite CFC outlets in Jabodetabek.
|Minh Phu primed for investment|
[23 July 2015] Minh Phu Seafood, Vietnam’s largest shrimp exporter, has reported its plan to the Ministry of Agriculture and Rural Development (MARD) for a USD467.3 million project to raise shrimp and African carp nationwide, according to Vietnam Breaking News. This project will be deployed in an integrated production chain, which involves the participation of millions of farmers. The project plans to produce 140,000 tonnes of shrimp and 50,000 tonnes of African carp by 2020, when the total revenue is projected to hit USD 2.5 billion USD, and 200,000 tonnes of shrimp and 100,000 tonnes of African carp by 2025, when the total revenue is expected to reach USD3.5 billion. The project will include the construction of sub-projects, including a research institute, a shrimp breeding centre, animal feed and medicine factories, aquatic product processing factories, a logistics and distribution company, and market expansion.
|Ban on poultry products from Kerala state lifted|
[23 July 2015] South Indian state of Tamil Nadu has lifted the ban on entry of poultry products from neighbouring Kerala state following a notification from the Central government. The ban was imposed in November 2014 after avian influenza was reported among ducks. Tamil Nadu State Animal Husbandry official Dr Vishnugurubaran told Asian Agribiz that the Central government has certified that Kerala had brought the disease under control. “However, importers of poultry products from Kerala must still produce a certificate from animal husbandry department certifying that the products are free of pathogenic influenza,” he added.
|Countries ban imports from the UK |
[23 July 2015] Singapore and Japan have imposed restrictions on the importation of poultry and poultry products from the UK after an outbreak of H7N7 Highly Pathogenic Avian Influenza (HPAI) was reported in a poultry farm in Lancashire. Singapore’s Agrifood and Veterinary Authority said heat processed poultry products, which meet the requirements for heat inactivation of AI virus, will not be affected. Hong Kong’s Centre for Food Safety (CFS), has also imposed a ban. A CFS spokesman said about 18,000 tonnes of chilled and frozen poultry meat and about 7.2 million poultry eggs were imported into Hong Kong from Britain last year.
Preview of Asian Agribiz 2015 Layer Feed Quality Conference
Jakarta, Indonesia, September 7, 2015
[22 July 2015]
Building on the success of the annual Poultry Feed Quality Conference, Asian Agribiz will launch the inaugural Layer Feed Quality Conference this September. With the theme “Building A Sustainable Flock” the Layer Feed Quality Conference will offer a dedicated focus on layer nutrition, management and feed production and will feature 11 presentations from regionally and internationally renowned speakers. More details and registration form can be viewed here or contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org). Early bird and group registrations close August 4.
From egg to plate – opportunities for enriched eggs
Han Zhaopeng, Vice Director r&d for Beijing DQY Agricultural Technology Co Ltd, China, the largest egg producer in Asia, will present the conference keynote paper and discuss marketing innovations in the Chinese egg industry.
Nutrient retention and nutrient waste for layers
Associate Professor Rosalina Angel, University of Maryland, will focus on improving nutrient retention and reducing nutrient waste in laying hens through the use of feed additives, feed nutrient changes, and proper selection of ingredients.
Fibre in layer diets – choosing the right source
The use of crude fibre in layer feed formulations is controversial. Breeding companies consider crude fibre an essential component in layer feed, while nutritionists often try to avoid the use of fibre, as most sources do not deliver energy for monogastrics. Ike Ng, JSR will present that insoluble, non-fermentable fibres should be the first choice fibre source for poultry as there are lots of positive effects on health and performance, such as an improved litter quality and reduced incidence of feather pecking as well as a bigger gizzard and better growth rate in pullets.
Split feeding systems for more sustainable egg production
The requirements of laying hens for amino acids, energy, calcium and phosphorous vary during the day, depending on the hen’s physiological needs for the formation of the albumen and shell components of the egg. Felipe Sanchez, Application & Solution Specialist Poultry Technology Transfer, Nutreco will consider how split feeding with morning and afternoon diets better meets the bird’s physiological requirements, improving egg shell quality, and is a more sustainable feeding system because nitrogen and phosphorous excretion are reduced.
Developments in gut health
Santiago Ramirez, Consultant, Fractal Farming will review practical strategies for improving gut health at farm level, using husbandry practices such as hygiene, ventilation and ammonia control. He will also consider feeding strategies such as enzymes, vitamins and mineral nutrition and other feed additives and will focus on the effects of gizzard development.
|Imported sausages threaten Indonesian meat processors|
[22 July 2015] Indonesian meat processors are worried about the import surge of Malaysian processed meat over the last three years. Ishana Mahisa, Chairman of the National Meat Processors Association, said that in the long run this condition could endanger the survival of the domestic industry. Mr Ishana said the average price of sausages imported from Malaysia is USD 2.29/kg while the price of locally made sausages of the same quality is around USD 4.50/kg. According to Indonesia’s Statistics Agency data, the import value of processed meat with the harmonised system code of 1601 (sausages and other processed meat) has increased by 18 times from 2012’s USD 305,612 to USD 5.6 million in 2014. By volume, meanwhile, the imports in 2012 were 244.63 tonnes, and then jumped to 2420 tonnes in 2014. Of the total volume in 2014, around 2000 tonnes were from Malaysia.
|China to boost global pork trade in 2H|
[22 July 2015] Things are looking up for the global pork industry in the second half of 2015, with growth in China’s pork imports expected to boost global trade towards the end of Q3 and into Q4, Rabobank said in its latest Pork Quarterly Report. China’s pork supply has been tight due to its current low sow inventory, but rising piglet and hog prices indicates that the supply/demand situation in the country is rapidly changing, “which supports rising imports into Q4” and possible into 2016. The report also noted that prices are on the rise in almost all major exporting and importing countries as the supply and demand balance improve across the globe. According to Rabobank animal protein analyst Albert Vernooij, “the main questions are when Chinese import growth will start, how much volume growth there will be and what the support for pork prices will be across the globe.”
|USDA projects higher poultry production in Asia |
[22 July 2015] Based on USDA’s 2015 long-term projections to 2024, poultry production in China is expected to increase to 16,925 kmt (‘000 tonnes) at a compound annual growth rate (CAGR) of 3.0%. Poultry production projections for 2024 and CAGRs for other Asian countries are; India 6,818 kmt (6.4%), Indonesia 1,961 kmt (2.1%), Japan 1,456 kmt (0.8%), Malaysia 1,772 kmt (2.2%), Pakistan 1,492 kmt (11.3%), Philippines 1,189 kmt (3.0%), South Korea 1,772 kmt (2.7%), Taiwan 468 kmt (-0.2%), Thailand 2,198 kmt (3.3%) and Vietnam 1,091 kmt (3.4%). Production for all countries and regions modelled is expected to increase to 125,363 kmt (2.3%) to 2024.
|QL Indonesia to double production by 2020|
[21 July 2015] QL Group Indonesia targets to double production by 2020 for all of its business lines to meet consumption increase of animal protein in the country. Cecep Muhammad Wahyudin, Director, told Asian Agribiz that of the double production, 80% is targeted for sale in modern markets. The company targets 80% of its broiler production to be absorbed for internal use for value added products. “To realise this we will implement an integrated business model and focus on quality improvement and branding,” said Mr Cecep. 'From 2010 until now QL has invested around USD 120 million in Indonesia. By 2020 our total investment could reach USD 300 million.” The group operates through two subsidiaries. QL Agrofood is involved in layer farming and feed production, while QL Trimitra operates an integrated broiler business.
|Philippines looks to Efta for food products|
[21 July 2015] The Philippines is seeking to export processed food and fishery products to member countries of the European Free Trade Association (Efta), said Philippine Agriculture Undersecretary Segfredo Serrano. He said the Philippines began free trade negotiations with Efta, which includes Iceland, Norway, Liechtenstein and Switzerland, in March this year and negotiations will continue in September and November, as they hope to finalise an agreement prior to the end of the current administration’s term in 2016.
|New challenges require livestock overhaul in Vietnam|
[21 July 2015] Vietnam’s livestock sector must restructure to produce competitive, high-quality products for the global market, said the Minister of Agriculture and Rural Development, Cao Duc Phat, at a meeting of Government officials and experts. Although meat production has increased by about 4% since 2013, many obstacles remain unresolved. The biggest are productivity and cost of meat which is higher than other countries reported Vietnamnews.vn. “We have the second largest number of farm ducks in the world and the fifth biggest number of pigs, yet productivity is nowhere close to the international average,” Minister Phat said. "When trade agreements take effect and tariffs are reduced imported meat will flood our market. The husbandry sector will have to be competitive in quality and price,” said Chairman of the Vietnam Animal Feed Association, Le Ba Lich added.
|Soybean meal export from India at historic low|
[21 July 2015] Soybean meal exports from India was at a historic low this June at just 2098 tonnes the Solvent Extractors' Association of India said in a member statement made available to Asian Agribiz. According to export data, soybean meal exports stood at 18,017 tonnes in April and 14,046 tonnes in May before sliding. “Adding to the woes of the industry, domestic demand for oilmeals has also reduced,” Dr BV Mehta, Executive Director of the association said in the statement. Overall export of oilmeals in June was reported at 137,571 tonnes or 34% lower than June 2014.
|Myanmar approves Brazilian poultry and beef|
[21 July 2015] The Myanmar government has approved imports of Brazilian poultry and beef, Brazil’s Minister for Agriculture, Livestock and Supply Katia Abreu announced recently. The industry expects poultry exports of 12,000-15,000 tonnes/year valued at USD 36-45 million. For cattle, the estimate is 10,000 tonnes/year, valued at USD 42 million. Brazil will be the first country to export beef to the Southeast Asian nation. When the new market has opened, companies interested in exporting to Myanmar may submit a request for qualification. “Myanmar government technicians were presented with our Agricultural Management Platform. They know the models of international certificates,” said Ms Abreu.
|India's aqua feed demand to reach 7mt|
[21 July 2015] India’s aquaculture feed demand is to touch 7 million tonnes by 2017-18 according to a report by Yes Bank. India has around 26 aqua feedmills with a total production capacity of 1.25 million tonnes. But in 2013-14 only about 43.4% was utilised. The feed demand only from shrimp and fresh water shrimp is around 1 million tonnes. India currently has 13 feedmills that can produce modern feed for the shrimp sector with a production capacity of 1.33 million tonnes. On fish feed, the current installed capacity is 1.55 million tonnes. The total feed production for shrimp and fish stands at 572,000 tonnes and 684,000 tonnes respectively, the report added.
|Science, trial data and solutions focus of conference|
[20 July 2015] The Poultry Feed Quality Conference organised annually by Asian Agribiz has ‘Science, trial data, solutions’ as its banner. The program for this year's event to be held in Bangkok, Thailand on September 3 and 4 is divided into four sessions - new thoughts on energy; utilising amino acids; producing chicken without AGPs; and harnessing feed technology. There will also be a hot trials session with short papers on the latest product-related research in Asia. More details here and here or contact Omthong Tjoa or Sutasinee Lake (email@example.com).
|Drought, low fish supply boost egg price |
[20 July 2015] Egg prices in Thailand have increased slightly boosted by the severe drought and growing consumption as consumers are switching to egg as a substitute amid tighter seafood supply, President of the Egg Farmers Association Annop Akaranithiyanont said. Demand for eggs has increased as many fishing boats are not able to go out due to a new regulation. Farm gate egg price has risen by THB 0.10 to THB 2.70 per egg [USD 0.08]. However, the price is still lower than production cost of THB 3/egg [USD 0.09]. “Farmers have been generating losses for 10 consecutive months already,” he said. The Department of Livestock at the Ministry of Agriculture and Cooperatives hopes to increase consumption from 200 eggs per person per year in 2012 to 300 by 2018.
|Jember government inaugurates new chicken processing plant|
[20 July 2015] The government of Indonesia’s Jember regency in East Java recently inaugurated a new 1000 birds/hour chicken processing plant. According to Sugiarto, Secretary of the regency government, the processing plant complex, which cost around USD 165,000, is equipped with a 2-tonne cold storage facility and waste treatment facility. Mahfud Afandi, Head of Livestock Agency in the regency, said the plant will be operated by a professional private party, and “the plant will support chicken producers in the region to have better quality and hygiene processing for their chickens.”
|KFC China reports lower Q2 sales|
[20 July 2015] KFC’s problems in China continued in the second quarter of 2015, with same-store restaurant sales down 12%, according to parent company Yum Brands. KFC sales have suffered in China since July 2014, when one of its former suppliers was accused of improper food handling practices. The company’s overall China Division sales, which include Pizza Hut and Little Sheep restaurants, were down only 4% due to added sales from newly opened units. The company said it was encouraged that operating margins remained relatively high at 14.6%, and that it still expected substantial same-store sales and profit growth in the second half of the year.
|Apfindo looks for local cattle|
[20 July 2015] With the limited cattle import quota (only 50,000 heads) for Q3 released by Indonesia’s Ministry of Trade, the Indonesian Feedlotters Association (Apfindo) is now looking for local cattle. Chairman Jhony Liano said: “At the moment our feedlot capacity is around 350,000 heads for around 2-3 months. It’s not easy to fulfil demand as supply of local cattle is also limited and scattered in many rural regions. So the cost to collect the cattle and then transport them to Jakarta is high.” Based on Apfindo’s calculations, this year Indonesia needs around 3.4 million cattle, and local supply can only meet around 2.4 million of the total. “We still have to import around 1 million cattle to fill the gap,” said Mr Johny.
|McDonald opts for free-range eggs in New Zealand|
[20 July 2015] McDonalds has announced that its restaurants in New Zealand would switch to free-range eggs by the end of 2016, Quartz of New Zealand reported. The fast food giant serves around 13 million eggs per year in its menus including Egg McMuffins at 164 outlets in the country. Free-range egg in this case will be eggs from cage-free chicken and New Zealand producers can supply this to McDonalds.
|Manipulating prestarter and starter feed|
[16 July 2015] At Asian Agribiz's Poultry Feed Quality Conference in Bangkok this September, Bob Swick, Industry Professor of Poultry Nutrition at the University of New England, Australia, will challenge participants to rethink what can be done to manipulate prestarter/starter feed to make a difference at the end of the grow-out. This year, in addition to the main conference, Asian Agribiz will also stage a satellite, inaugural Layer Feed Quality Conference in Jakarta on 7 September 2015. Click here and here for more details on both conferences or contact Omthong Tjoa or Sutasinee Lake (firstname.lastname@example.org).
|Sneha Farms to commission two new feed plants by 2016|
[16 July 2015] Hyderabad based poultry major Sneha Farms Pvt Ltd in India will commission two new feedmills by 2016, D Varun Reddy, Director of Sneha Farms said. “We are developing two new Greenfield feed projects, one at Rajahmundry in Andhra Pradesh state and the other at Gangawati in Karnataka state, each attracting an investment of around USD 8 million,” he told Asian Agribiz. Both these plants will have an installed capacity of 400 tonnes per day with an option to double its output. According to him, they are yet to finalise the equipment for the new feedmill projects.
|Indonesia slashes cattle import quota to 50k in Q3|
[16 July 2015] Indonesia has issued permits to import 50,000 heads of cattle in the third quarter, a trade official said, less than one-fifth of what was allowed in the previous quarter. Lower purchases by Indonesia could hurt the cattle industry in Australia, the world’s third-largest beef exporter, whose farmers last year supplied around 40% of the beef consumed in Indonesia. “It is based on demand but we are also aware of our local farmers. If we need more, we will add (to the quota),” said Partogi Pangaribuan, Director of the Foreign Trade Ministry. Indonesia initially issued permits to import 250,000 cattle in the second quarter and later issued permits for an additional 29,000 head for the three-month period.
Asian Agribiz dairy update
[16 July 2015]
JD.com invests in Murray Goulburn
Chinese billionaire Richard Liu has invested about USD 15 million on a stake in Australia's Murray Goulburn's (MG) new unit trust or 4.6% of the dairy co-operative's trust, which was listed on the Australian stock exchange recently. This makes Mr Liu's e-commerce company, JD.com, the sixth-biggest holder in the trust behind Chinese food processing and purchasing company China Resources Ng Fung, which owns 4.9%. JD.com launched an online 'Australian Mall' this month. "Launching Australian Mall gave us a tremendous opportunity to engage with local brands and evaluate partnerships and investments," a JD.com spokesman said. The website sells Murray Goulburn's Devondale-branded products at a significant premium.
Sebi clears Prabhat Dairy’s IPO plans
Indian capital markets regulator Securities and Exchange Board of India (Sebi) gave the green light for Prabhat Dairy to raise at least USD 47 million through an initial public offer. The integrated milk and dairy products company plans to raise the amount by issuing fresh shares and offer for sale of up to 14 million equity scrips. Proceeds of the issue would be used for the payment of loans, to meet capital expenditure and for other general corporate purposes. The company had earlier filed a draft of its red herring prospectus with the regulator through its lead merchant banker Edelweiss Financial Services in March.
Friesland Campina opens diary zone
Friesland Campina Vietnam officially held the inauguration ceremony for their sustainable dairy zone in the northern province of Ha Nam on June 24, following nearly one year of construction. The 66 Ha dairy zone in Moc Bac commune, Duy Tien district, is projected to become a typical model dairy zone in Ha Nam province. As planned, eight more dairy farms will be established in this 66-hectare dairy zone through 2017. Each farm will include a dairy herd of 50 to 80 head and have at least 30 lactating cows. According to the scope of the project, it is expected that by December, 2018 the specialised dairy zone will be made up of 50 dairy farms and produce at least 7,000 tonnes of fresh milk per year.
Prabhat Dairy creates cheese, yoghurt production lines
India’s integrated milk and dairy products company Prabhat Dairy has set up new lines of production for value-added products such as cheese, cottage cheese and yogurt at its Shrirampur facility in Maharashtra. The plant is expected to commence commercial production of these products next year, according to a press release by the company. The dairy major has a processing capacity of 1.5 million litre/day. The new unit at Shrirampur has automated production facilities. “We intend to continue to invest in increasing our capacity for our existing dairy products and also develop manufacturing capabilities for new products,” Vivek Nirmal, Joint Managing Director of Prabhat Dairy said.
Mobile app for dairy farmers
The National Dairy Development Board in India has launched a mobile app named ‘Pashu Poshan’ that will recommend a balanced diet for cows and buffaloes. “This will help boost dairy farmers’ income by raising milk yield and cutting feed cost,” Union Agriculture Minister Radha Mohan Singh said after the launch. The application will be available on both web and android platforms. To use the application, farmers have to provide a complete animal profile such as breed, age, milk production, fat content in milk and current feeding pattern. “Farmers will then get information about balanced rations for their cows and buffaloes,” Mr Singh added.
Orissa dairy to collaborate with Amul
Orissa State Cooperative Milk Producers Federation (OMFED) in India has announced that it is planning to collaborate with Amul to scale up its operations. Bishnupada Sethi, Chairman and Managing Director of Omfed said that Amul has agreed to receive surplus milk from the federation at its plant in Kolkata. “Amul will also help us improve our quality standards and market our products,” he said. Apart from this, Amul will also help Omfed in doubling the ice cream manufacturing capacity at Bhubaneshwar dairy by sharing its expertise. Omfed’s milk procurement from farmers has touched 600,000 litres/day against the 2014-2015 average of 445,000 litres/day.
|QL Group’s new mill in Bekasi in operation|
[15 July 2015] QL Group Indonesia, through its subsidiary QL Agrofood, has put a new feedmill in Bekasi, West Java into operation. The plant has an installed capacity of 20,000 tonnes/month and is equipped with 10 silos with a total capacity of 36,000 tonnes to store corn. “In May we ran test production and field trials for the feed at our own farms. The results were satisfying,” Cecep Muhammad Wahyudin, QL Group Indonesia Director, told Asian Agribiz. “At the moment we still produce for our internal needs that reach around 8000 tonnes/month. But we plan to launch the feeds for commercial purpose in the third quarter of this year,” said Mr Cecep. Around 80% of the total corn required is sourced from farmers in Tasik, Garut and Majalengka in West Java.
|Suguna to grow retail through franchise|
[15 July 2015] South Indian poultry major Suguna Foods Private Limited is looking to expand its retail outlets Suguna Daily Fressh through the franchise model. GB Sundararajan, Managing Director of Suguna Foods said that they will take the store count to 500 in the next three years. Suguna Daily Fressh offers a range of fresh chilled chicken apart from ready to eat chicken products and value added eggs. “We are looking at individual entrepreneurs who are passionate about this business and can invest between USD 6,000-10,000 to start a Suguna Daily Fressh store,” he said.
|Taiwan battles H5N2 again|
[15 July 2015] Taiwan has had three more in a long series of highly pathogenic H5N2 outbreaks that began in January, authorities told the World Organization for Animal Health (OIE) on July 13.The outbreaks were identified at a chicken farm in Changhua county and a turkey farm in Yunlin county, both in the west-central part of the island, and a goose farm in the south-western city of Kaohsiung, the report said. The virus killed 5,527 of 25,640 birds on the three farms, and the rest have been culled to prevent any further spread. The farms have been cleaned and disinfected, and other farms within 3km will be under special surveillance for three months.
|Gorontalo exports 2000t of corn to Philippines|
[15 July 2015] Indonesia’s Gorontalo province has resumed corn exports, sending off a 2000-tonne shipment, this time to the Philippines. Mulyadi Mario, Gorontalo Agricultural Food Crops and Horticulture Office Head said the total export volume of corn has reached 95,967 tonnes as of July this year, or valued at about USD 426 million. “The volume excludes the total inter-island corn consignments worth about USD 32 million. In other words, around USD 73.5 million has been spent purchasing corn from farmers in Gorontalo,” said Mr Mulyadi. The Gorontalo Central Statistics Agency recorded an accumulated export value of 7.5 million tonnes of corn passing through the port in Gorontalo from January to April this year.
|Organic minerals the better option|
[15 July 2015] Studies have shown that over-fortification with inorganic trace minerals is wasteful and poses dangers to the environment, yet they remain the main option for mineral fortification in the animal production industry. At Alltech Philippines’ Rebelation held yesterday in Manila, Steven Elliot, Global Director of Alltech Mineral Management Division, told participants that organic minerals are the viable and better option because they not only lead to better performance at “significantly lower inclusion rates” but also to less heavy metal excretion, less pollution and less risks to the food chain. He enumerated three options that producers can apply organic minerals, including: adding “on top” of current program; partial “displacement”; and total replacement of inorganic trace minerals.
|MPEDA launches mobile app for global shrimp prices|
[15 July 2015] India's Marine Products Export Development Authority (MPEDA), a nodal agency for promotion of marine exports from India has launched a mobile app to help farmers get global prices on shrimp. Information on the global price of shrimp for different grades in major markets like Japan, US and EU will be provided by SMS on a missed call to +918590100800 or +918590200800. The prices are obtained from published data of Infofish (an intergovernmental organisation of the FAO). The agency has also introduced a new facility to provide Certificate of Registration online to seafood exporters.
|Japfa sets up new hatchery in Tangerang|
[14 July 2015] Japfa Comfeed Indonesia is expanding its hatchery network in Indonesia with a new facility in Tangerang, West Java. The new hatchery will be equipped with SmartPro single stage incubators from Pas Reform. A SmartCenter hatchery information system will monitor and record each incubation cycle. “Our adoption of modern technology, together with our focus on biosecurity and food safety, puts Japfa in an excellent position to deliver premium quality broilers that have had an excellent start, with high uniformity throughout the integration to achieve a superior retail product,” said Akhyar, Japfa Head of Hatchery West Area.
|Adhi Farm improves genetics, nutrition|
[14 July 2015] For Indonesia’s Adhi Farm based in Solo, Central Java, sustainable improvement in genetics and nutrition is key to its pig farming business. “We cannot control the market, but we can improve our genetics and nutrition for better production, efficiency and profit,” Alexander Kasim, owner, told Asian Agribiz. At the moment Adhi Farm, which has 200 sows, is running a breeding program to produce GGP of Landrace, Duroc and Yorkshire breeds with frozen semen imported from the US. On nutrition, raw material quality is monitored while knowledge on feed formulation is being upgraded. Every day Adhi Farm mixes around 5 tonnes of feed/day for its 2000 pigs.
|Sneha Farms expands capacity at existing feedmills|
[14 July 2015] Sneha Farms Pvt Ltd in India recently embarked on capacity expansion at two of its feedmills in Jadcherla in Telangana and Hanuman Junction in Andhra Pradesh. “We installed two 600 tonnes per day lines from Switzerland’s Buhler Group at these feedmills,” Mr Varun Reddy, Director of Sneha Farms told Asian Agribiz. Sneha Farms has six feedmills located across Telangana, Andhra Pradesh and Karnataka states in India with a total capacity of 4400 tonnes of poultry feed per day. The company also has dedicated lines at its Hanuman Junction facility to produce 350 tonnes per day of fish feed.
|Food Empire sells 40% stake in frozen seafood processor|
[14 July 2015] Singapore-based Food Empire said its wholly-owned subsidiary, Future Investment Holdings, has disposed of its entire stake in PT Marindo Makmur Usahajaya to PT Kelola Mina Laut and Mohammad Nadjikh, for USD 667,000. “The divestment is because the investment has not managed to fully deliver the value the group had hoped to reap,” the company said. The transaction is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the group for the current financial year, its filing added.
|Japan calls on US to expand beef imports|
[14 July 2015] Japan wants the US to expand imports of Japanese beef under a low-tariff quota to 2000 tonnes from the current level of 200 tonnes annually, as part of the terms for the proposed Trans-Pacific Partnership (TPP), negotiation sources said. Japan exported a total of 1251 tonnes of beef in 2014, of which 153 tonnes was for the US. Tokyo plans to boost total beef exports to 4000 tonnes by 2020. If the TPP comes into being, Japan would incrementally cut its 38.5% tariff on imports of US beef to as low as 9% over 15 years. The higher export volume could help alleviate the negative impact on local farmers and allow them to gain global recognition for wagyu beef.
Preview of Asian Agribiz 2015 Poultry Feed Quality Conference
September 3-4, Bangkok, Thailand
[13 July 2015]
The annual Asian Agribiz Poultry Feed Quality Conference is one of Asia’s leading conferences and scientific forums for poultry and feed industry professionals to update their knowledge and network with industry peers. The two-day conference has a strong technical program, in which internationally renowned speakers from academia and industry will present new, innovative, and regionally relevant research and trial data to provide useable information, with practical results that turns science into solutions and profit. Four chaired discussion forums will offer opportunities for these experts to answer questions and engage in a lively discussion. More details and registration form can be viewed here. Early bird and group registrations close on August 4.
The challenge of producing chickens with AGPs
To help Asian broiler producers address the evolving challenges of growing broilers without AGPs, specialists will share their experiences and offer insights on solutions to the production, disease, welfare and sustainability issues of managing AGP-free flocks. This session features experts - Walter van Hofstraeten, Senior Consultant Poultry Nutrition, Schothorst Feed Research, Netherlands, Heinrich Kleine Klausing, Head of Product Management & Production, EW Nutrition, Germany, Jan van Eys, Principal Global Animal Nutrition Solutions, USA and Pathawit Ngamchapoen, Poultry technical Adviser, Innovet Corporation Thailand
Emerging tools – epigenetics to improve feed nutrient use
The central concept behind the promising exciting new field of study of epigenetics is that environmental forces can affect gene behaviour, either turning genes on or off. Professor Roselina Angel, University of Maryland, will detail research on how neonatal conditioning, resulting in epigenetic changes, shows great promise in terms of improving phosphorus utilisation, with the goal of reducing environmental impact as well as improving production efficiency and costs of production. By applying a moderate phosphorus deficiency in young chicks, the bird is conditioned to utilise phosphorus more efficiently throughout its life. The timing of the conditioning is critical and requires a clear understanding of skeletal growth, the main driver of calcium and phosphorus requirements.
Energy sparing mode of action of ß-mannanase enzyme
Dr Sarah Cervantes-Pahm, Nutrition Adviser Asia Pacific region, Elanco Animal Health will show that by acting on feed, ß-mannanase helps reduce wasteful energy losses caused by the bird’s innate immune response to beta-mannans (ß-galactomannans) found in soybean meal and other feedstuffs. With fewer ß-mannans, there is a lower need for a feed-induced immune response, allowing the bird to direct more energy to growth and performance.
NIR and moisture management in feed
Ivan Ward, Agri-Torque will consider ways moisture is measured in feed and ingredients, challenges with moisture analysis and opportunities during feed manufacturing to monitoring moisture content. Monitoring the moisture levels of ingredients coming into the site is an important step in managing feed quality and limiting microbial growth. Water activity, not water content, determines the lower limit of available water for microbial growth. While temperature and pH can influence whether an organism will grow in a product and the rate of growth, water activity is the most important factor.
Practical application of the latest in-line moisture system in determining feed quality
Yiannis Christodoulou, Agentis Innovations will present practical applications of the latest technology in-line moisture management based on microwave resonator technology which is both highly accurate and also can process up to 3,000 measurements per second, making it particularly well suited for measurements of fast flowing ingredients. The technology now provides the feed industry with a solution that allows for real time moisture measurement and automated process control of moisture for the benefit of feed quality, stock control and process efficiency.
|Robby’s layer farm enjoys benefits of biosecurity|
[13 July 2015] Robby Susanto, a layer farmer in Solo, Central Java, Indonesia, is enjoying the results of good biosecurity. His farm was chosen as a pilot project farm for FAO’s layer biosecurity program. Mr Robby told Asian Agribiz that now the farm has better production, lower mortality rates, lower medication costs and better income. However, he said the main challenge of implementing the biosecurity program lies with labour. “Making it a habit for our farm operators is a challenge. We need to give examples, not just instructions and advice.” Mr Robby now raises around 100,000 birds of Lohmann Brown in open sided houses. Every day he sells around 4-5 tonnes of eggs to middlemen and directly to markets in the region. He also produces herbal eggs for a niche market.
|Vietnam surimi exports to Japan touch USD14m |
[13 July 2015] Some 12.4% of Vietnam’s total surimi output is exported to Japan, its third largest export market, after South Korea and Asean. In the first five months of the year Vietnamese companies earned USD 13.9 million from surimi exported to Japan, up 11.5% year-on-year, reported Vietnam Association of Seafood Exporters and Producers (Vasep). Vietnam has 7% of Japan’s market share. In this market, pollock surimi is higher priced than tropical surimi. However, as the exchange rate of the yen against the dollar fluctuates, pollock surimi will rise in price and Japan is likely to switch to tropical surimi, said Vasep.
|Corn project will boost Bisi International’s performance|
[13 July 2015] The new initiative from Indonesia’s government to boost corn production in 101 regions has is a blessing for Bisi International, a subsidiary of Charoen Pokphand Indonesia involved in seed production. It is predicted that the company may increase its corn seed sales by 30% this year. The company plans to distribute 10,000 tonnes of hybrid corn seed for the project. Jemmy Eka Putra, President Director, said the project has had a positive impact for the company. “We expect our income to reach USD 112 million this year,” he said.
|Conference to tackle feeding strategies that boost immunity|
[10 July 2015] Feeding strategies that can boost the immune system of a broiler will be the lead presentation by Jan van Eys, of US-based consultancy Global Animal Nutrition Solutions, at the 2015 Poultry Feed Quality Conference to be held in Bangkok from 3-4 September. The conference, staged by Asian Agribiz, aims to build industry capacity and update industry professionals on research based developments in the broiler feed sector. More details here or contact Omthong Tjoa or Sutasinee Lake (email@example.com).
|Low rubber prices affect FSI’s pig sales|
[10 July 2015] The low price of rubber in the West Kalimantan market and neighbouring regions has affected the sale of finisher pigs of Indonesia’s Fajar Semesta Indah (FSI). FSI is a subsidiary of integrated livestock company Sujaya Group based in Singkawang, West Kalimantan. Nawa Subianto, FSI Farm Manager, told Asian Agribiz that the live pigs market in the province is unique. “Since the majority of people here are rubber and oil palm farmers, the consumption of pork is heavily affected by the price of the two agri commodities.” According to Dr Nawa, the current (July 3) price of live pigs in the province is around USD 2.25/kg. With this price, the profit margin for the company and pig farmers in the region is small since most of feed raw materials such as corn, pollard and wheat brand have to be imported from other regions. “As a result, we control our sow population at 5000 heads since our main market is still in the province,” Dr Nawa said.
|Shrimp die en masse in Soc Trang|
[10 July 2015] Soc Trang Province in the Mekong Delta continues to be a hot spot for shrimp diseases. Until end June shrimp from nearly 5500ha have seen die offs. This accounts for 29% of the total shrimp breeding area in the province. Disease outbreaks could spread to many areas in the province, an official said. The effects of prolonged hot weather and changes in the environment have led to heavy losses. According to a report from a veterinary station, 70% of shrimp in farms were affected by liver disease and 20% by environmental changes, while the remaining died of other causes. The province will implement disease prevention measures, especially in localities that have been seriously affected.
|North Sulawesi ships tuna to the Netherland|
[10 July 2015] Indonesia’s North Sulawesi exported 8.9 tonnes of frozen & canned fish, mainly tuna, to the Netherlands in late June, according to T Hasudungan Siregar, Head of Foreign Trade Department of Industries in the province. The value was around USD 64,343. Mr Siregar said demand for frozen tuna from the Netherlands is quite high. Besides, the country is also interested to import frozen skipjack. “Looking at the export potential, we will support fish processors and exporters to develop their business and venture into value added products,” Mr Siregar added.
|Volac, Wilmar create global animal feed fats business|
[10 July 2015] Volac International Ltd and Wilmar International Ltd announced the creation of a joint venture group to develop their value-added animal feed fat business around the world. Volac Wilmar Feed Ingredients combines the nutritional reputation, global brand and sales network of Volac with the operational raw material logistics and scale of Wilmar, the companies said. The jv will market an expanded ‘Mega’ branded range of feed fat products that are responsibly sourced through a leading sustainability approach and by maximising operational efficiency. “Volac believes that responsibly-sourced feed fats will play a key role in sustainable livestock nutrition in the future. The jv with Wilmar will supply fat nutrition ingredients that will help improve the productivity of livestock production across world markets,” said David Neville, Managing Director of Volac Animal Nutrition.
|Philippine pork supply remains tight|
[09 July 2015] Despite claims by the Philippine Department of Agriculture that a robust local demand for pork is encouraging pig producers to increase production, local pork supply remains tight. However, Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that demand is also down so prices have remained relatively stable over the past few months. However, he said there is an oversupply of imported pork meat in cold storages. As of end-June, National Meat Inspection records showed there are over 10,111 tonnes of pork meat in storage, 91% of which are imported.
|CP Indonesia to expand its pig station in Sulawesi|
[09 July 2015] Charoen Pokphand Indonesia this year plans to expand its pig station located in Manado, North Sulawesi, according to Phaithoon N Na Ayudhaya, Business Development Advisor. He told Asian Agribiz that the company plans to increase the number of sows at the pig station by 300 sows. This station raises Landrace, Yorkshire and Duroc breeds. However with the popularity of black pig breed in the country, Mr Phaithoon said the company will consider setting up a special station for black pig breed. “In addition, we also want to set up a pig station in Toraja, South Sulawesi to cater to the growing demand in the region.”
|Manhattan Fish Market opens first restaurant in India|
[09 July 2015] Malaysian seafood restaurant The Manhattan Fish Market has entered the Indian market with its first outlet in Chennai with the help of its master franchisee Jumbo Seafoods Pvt Ltd. Shafraz Anees, Managing Director of the seafood restaurant chain in Sri Lanka and India said that there is a large market in India to cover and they have plans to open at least 10 restaurants through sub franchising. “We want to position ourselves as an affordable seafood chain offering good quality seafood,” he said. The restaurant brand known for its American style seafood entered Sri Lanka in 2013 and has two outlets in the country.
|Vissan opens food processing plant |
[09 July 2015] Vietnam Meat Industries Limited Company (Vissan) recently inaugurated a food processing plant in Tien Son Industrial Zone in the northern province of Bac Ninh. The plant costing USD 3 million has a capacity of 20,000 tonnes of processed food per year. Van Duc Muoi, CEO of Vissan, said the North of Vietnam has a population of more than 32 million people, with the launching of its plant in Bac Ninh Province, Vissan will be able to produce various products that fit each locality’s palate. The plant is a part of Vissan’s development strategy for 2015-2020 in Vietnam in general and in the northern market in particular, aiming to improve its food supply capacity.
|Judge in Smithfield suit blocks “inflammatory” references to China |
[09 July 2015] A US judge has ruled that the plaintiffs in a lawsuit against a Smithfield Farms subsidiary may not mention the Chinese Communist Party, the Chinese army or the Chinese government. In a ruling last week in North Carolina, Judge W. Earl Britt said the references were 'inflammatory’, ‘highly prejudicial' and irrelevant to the lawsuit, which alleges that hog waste lagoons maintained by Murphy-Brown LLC, a Smithfield subsidiary, are affecting local health and property values. Lawyers for Smithfield had accused the plaintiffs of trying to rouse anti-Chinese prejudice among potential jurors. Judge Britt refused, however, to strike references to the fact that Smithfield is controlled by WH Group, a Chinese company, to Chinese pork demand, and to the potential for exports to China, since they "address a potential source of the alleged nuisance and provide potentially useful contextual information.”
|Huge potential for Australia’s breeder cattle |
[09 July 2015] The Indonesian government is looking to import 2 million head of breeder cattle by 2018 to increase the size of the domestic herd and improve the country's ability to be self-sufficient in beef. The government is providing financial support to its eastern provinces to import breeding stock from Australia. The East Kalimantan, provincial government plans to import an initial 11,000 head reported ABC Rural.
|Poultry feed conferences to tackle feeding strategies |
[08 July 2015] Asian Agribiz's Poultry Feed Quality Conference has been growing in size and stature over the last six years and now attracts more than 300 nutritionists from throughout Asia. This year, in addition to the main conference in Bangkok, Thailand from September 3-4, Asian Agribiz will also stage a satellite, inaugural Layer Feed Quality Conference in Jakarta, Indonesia on 7 September 2015.Both conferences feature strong science-based technical programs with carefully selected papers containing relevant trial data and practical solutions for Asian broiler and layer producers. More details and registration form can be viewed here and here.
India's vaccination challenges and developments
[08 July 2015]
As an emerging producer and consumer of animal protein, India is fast becoming a lucrative market for veterinary vaccines. In this special web report SM ARUN reviews the latest developments in the Indian animal vaccines industry and the contributions of local vaccine manufacturers.
Development of bird flu vaccine in progress
The National Institute of High Security Animal Diseases (NIHSAD) in Bhopal is developing a bird flu vaccine, which it targets to be more effective than the one developed in 2006. The externally funded project aims at development and evaluation of neuraminidase DIVA marker (Differentiating Infected from Vaccinated Animals) vaccines against highly pathogenic H5N1 avian influenza viruses in chickens. A spokesperson of NIHSAD told Asian Agribiz that the vaccine against highly pathogenic avian influenza, lab generated H5N2 is ready for validation.
AIV vaccine dropped by government
In 2006 when avian influenza first hit India, the country’s then High Security Animal Diseases Laboratory (HSADL) in Bhopal developed and tested an AIV vaccine. However, the Union Government later decided not to adopt vaccination policy in the country. According to the National Institute of Agricultural Sciences, the decision was taken as the indigenously developed vaccine was a homologous one. “Vaccines incorporating the homologous strain is not advisable as it does not differentiate whether the AIV antibodies are due to vaccination or due to infection,” a government policy paper noted.
IIL to set up USD 47 million vaccine plant
Hyderabad based vaccine manufacturer Indian Immunologicals Ltd (IIL), a subsidiary of National Dairy Development Board (NDDB) is setting up a new vaccine manufacturing facility in Pondicherry in south India with an investment of USD 47 million. “The facility is part of the Union Government’s strategy to meet the anticipated doubling of demand for veterinary vaccines,” NDDB Chairman T Nanda Kumar said. According to him, the demand for veterinary vaccines in India is estimated to reach 600 million doses over the next 3-4 years from around 300 million doses now. “Decision on whether to manufacture new vaccines or expand the existing portfolio is yet to be taken,” he added. Once set up, this will be the fourth facility for IIL.
India opposed to vaccination for valid reasons, FAO
Even though India is aware of the benefits of vaccination, they refrain from using it as part of their control and prevention strategy for a range of valid reasons, a report by the UN Food and Agricultural Organisation, FAO said. “The reasons include practical issues related to the administration of the vaccine and the nature of the poultry production sector,” the Animal Production and Health Paper titled ‘Approaches to controlling, preventing and eliminating H5N1 Highly Pathogenic Avian Influenza in endemic countries’ said. The report also added that technical and cost effectiveness issues have also influenced the decision not to vaccinate.
First pig vaccine for cysticercosis
Indian Immunologicals Limited (IIL) has partnered with Scotland-based GALVmed and the University of Melbourne to launch the world’s first pig vaccine for procine cysticercosis on an industrial scale by the end of 2015. Classified as a neglected tropical disease by WHO, cysticercosis is a parasitic infection that can cause brain disorders like epilepsy or seizures in humans. The disease spreads from pigs infected by tapeworms called Taenia solium to humans upon eating raw or undercooked pork and vice-versa to pigs in contact with human faeces. The vaccine works by eliminating the parasite’s ability to transmit. The vaccine will be based on antigen TSOL-18, which was identified and tested on pigs with the help of researchers at the University of Melbourne.
Goat plague vaccine to be produced in Kerala
Institute for Animal Health and Veterinary Biologicals is set to produce a vaccine against goat plague to combat the fast spreading virus that affects goats and sheep. A highly contagious viral disease, 'Peste des petits ruminants' (PPR) or goat plague carries a mortality rate of 50%. Director of the institute Dr NN Sasi said that initial production capacity will be 500,000 vials per year and could be scaled up according to demand. The dehydrated and freeze dried PPR vaccine has a shelf life of up to one year under refrigeration. “As many as 50 animals can be immunized using one vial of vaccine,” Dr Sasi added. According to FAO, goat plague impoverishes millions of small farmers across Africa and Asia but awareness to eradicate the disease has been low so far.
IIL is world’s largest producer of FMD vaccine
Hyderabad based Indian Immunologicals Limited (IIL) has emerged as the world’s largest manufacturer of foot and mouth disease (FMD) vaccine with a capacity to deliver 360 million doses per year. General Manager of IIL NSN Bhargav said that Merial of Brazil is the second largest producer of FMD vaccine with an installed capacity of 300 million doses a year. IIL recently opened a new, fully automated FMD vaccine manufacturing block, which conforms to stringent regulatory norms by developed countries. IIL currently meets the bulk of the requirement for the FMD Control programme in India besides exporting the vaccines to West Asia and CIS (Commonwealth of Independent States) countries.
|Myanmar delegation explores opportunities with Japfa Indonesia|
[07 July 2015] A delegation from Myanmar consisting of the government officials and livestock industry players recently visited the head office of Japfa Comfeed Indonesia in Jakarta to explore business opportunities and partnerships. In a press release made available to Asian Agribiz, A Harwanto, Executive Vice President – Head of Feed Division of Japfa, said the delegation has shown their interest to buy Japfa’s quality DOC. According to the release, most of the company’s breeding & commercial farms have been certified with avian influenza-free certification. Led by Myanmar’s Deputy Minister of Livestock, Fisheries and Rural Development, Aung Myat Oo, the delegation also got the opportunity to visit the vaccine producing plant of Japfa’s subsidiary Vaksindo in Bogor, West Java.
|Boost for India's crop production |
[07 July 2015] With the onset of southwest monsoon in India having recorded above normal monsoon rains this year, crop sowing has received a much needed boost and fears of deficient rainfall allayed. According to the India Meteorological Department (IMD), the country has received 28% above normal rainfall this monsoon. Oilseeds witnessed an over fivefold rise in coverage followed by an almost twofold rise in the area under pulses. In India, around 60% of the country’s farmland is rain fed and the above normal rainfall would not just boost prospects of the farm sector growth but is also expected to bring down food inflation.
|Bali farmers suffer losses due to oversupply|
[07 July 2015] Pig farmers in Bali, Indonesia are suffering losses due to the low price of live pigs due to oversupply. I Ketut Hari Suyasa, Chairman of the Bali Pig Farmers Association, told Asian Agribiz that as of July 2 the price of live pigs was around USD 1.65/kg. “Over the past six months we enjoyed a good price of around USD 2.62/kg,” he said, and this led farmers to increase their herds. “We feel that the output increase at contract farms affiliated with a big company is too high, while the output by our members who are mainly backyard and small-scale farmers has less impact on the market,” Mr Suyasa explained.
|Indian animal feed industry to double in five years|
[07 July 2015] The Indian animal feed industry, which is currently valued at USD 15 billion is poised to double and touch USD 30 billion in the next five years to cater to the growing protein requirements of the country, according to a report published by Yes Bank. The report stated that with changing income levels and more people eating fish, meat and chicken there will be a higher requirement of processed dairy, aqua and poultry products, which in turn will result in higher feed requirement.
|AACo wants to become Asia’s premium butcher|
[07 July 2015] Australia’s leading beef producer and exporter Australian Agricultural Company (AACo) is keen on becoming the world’s finest beef producer, according to Cye Travers, General Manager for Branded Beef. He said Australia doesn’t have the production capacity to become Asia’s food bowl, but could become its delicatessen and AACo its premium butcher. Asia’s growing middle class offers the Australian farm sector an unprecedented opportunity. AACo has rapidly lifted sales of premium boxed beef and is now the world’s biggest producer of Wagyu.
|CP Indonesia to develop pig business in East Nusa Tenggara|
[06 July 2015] Charoen Pokphand Indonesia this year plans to develop its pig business in East Nusa Tenggara, according to Phaithoon N Na Ayudhaya, Business Development Advisor. Mr Phaithoon told Asian Agribiz that the company already has a good business in Kupang, and now plans to develop business in Flores. “We are bullish about the potential in this region. Pork consumption is around 10 kg/capita. Meanwhile the average price of live pigs is around USD 3/kg and is relatively stable and not affected by prices in Jakarta, Solo or Bali,” said Mr Phaithoon. To develop its business in Flores, CP Indonesia will support pig breeders and farmers in the region with good quality feed, breeds and technical management. “We also plan to set up a pig station there with a population of 100 black sows,” said Mr Phaithoon.
|Indian poultry industry seeks imports of soy meal|
[06 July 2015] Against the backdrop of India losing the poultry ban case against the US, the Indian poultry industry is lobbying the government to allow import of US soy meal, which is cost effective compared to Indian soymeal. The poultry industry here believes this will help the industry to get cheaper raw material and reduce its cost of production so that it can compete with impending US chicken imports in India. Mr Amit Saraogi, Chairman of the Compound Feed Manufacturers Association of India said that while the cost of processed chicken in India is USD 3/kg, cost of imported chicken legs from the US will be just USD 1/kg.
|Dharma Samudera records positive Q1 growth|
[06 July 2015] Indonesia’s seafood processor and exporter Dharma Samudera Fishing Industry recorded good business growth in Q1 of this year. The company produced 1848 tonnes of fish valued at USD 10.2 million. In the same period last year it produced 1727 tonnes valued at USD 7.8 million. J Sarsito, President Director, said the company this year targets to produce 8200 tonnes of fish valued at USD 38.6 million, with 6450 tonnes targeted for export. To achieve the targets, Dharma Samudera will strengthen its partnership with fishermen in Java and Sulawesi to ensure continuous supply to its 25 tonnes/day fish processing plant. It also plans to extend its reach to Japan, Australia, the US and EU. At the moment, 41% of Dharma Samudera’s production is tuna, followed by fish fillet, octopus and king fish.
|Higher price of chicken in Malaysia|
[06 July 2015] The Agriculture and Agro-based Ministry is confident Malaysia will have sufficient chicken supply during the Eid festival this month. Minister Datuk Seri Ismail Sabri Yaakob said the country produces 125% and exports chicken. But poultry traders at supermarkets and wet markets are reportedly bracing themselves for rising broiler prices due to the higher cost of chicken feed as well as increased demand for chicken amid low supply, The Star reported. Perak poultry association Chairman Datuk Ding Thong Chow said chicken price had increased to USD 1.32/kg from USD 1.27/kg last month. Mr Ding said besides shortage broilers were also experiencing stunted growth. He blamed the poor quality of dried maize imported from Argentina.
|US Golden Chicken to enter Pakistan|
[06 July 2015] Golden Chick Restaurant, a Texas-based US fried chicken chain is all set to enter Pakistan, and will initially open three restaurants this year and aims to raise the number to 30 joints in subsequent years. The company signed a ‘letter of intent’ with Crescent Star Foods (Pvt) Limited (CSF), a wholly-owned subsidiary of the Crescent Star Insurance Limited this month. According to Dawn, a flagship restaurant would be set up in Lahore while two others would be set up in Karachi and a smaller town. Golden Chick would also introduce roasted chicken (charga), while other players that serve either grilled or fried chicken.
|Banks in Bangladesh to open agri credit divisions |
[06 July 2015] Bangladesh Bank, the central bank of Bangladesh, has asked the scheduled banks in the country to open agriculture credit divisions by July 7. According to a circular from the central bank, the move aims to put agriculture loan disbursement, realisation and other related activities under intensive monitoring. “At least one officer must be assigned to every branch to carry out the agriculture loan related activities,” it added. The circular has been sent to the chief executives of all 39 private and nine foreign banks operating in Bangladesh. The new division of each bank will conduct activities such as selection of clients, preparation and evaluation of loan proposals, approval, disbursement, supervision and collection of credit.
|Rains force early shrimp harvest in India|
[06 July 2015] Heavy rains in the state of Andhra Pradesh, the heart of India’s shrimp farming region, have forced farmers to harvest early, causing farm-gate prices for all sizes of whiteleg shrimp to drop, except for 90 and 100 count/kg whole shrimp reported Marine Shrimps. Indian processors are dropping export prices for customers in the US because Indonesian processors are offering lower prices. US buyers have been holding back on making big commitments and only buying to cover holes in their inventories.