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23 February 2017
|Malindo installs new corn dryers, silos|
[23 February 2017] Malindo Feedmill, one of the largest poultry integrators in Indonesia, said that it will add new silos with a capacity of 50,000 tonnes, plus new corn dryers with a total capacity of 2000 tonnes/day in Makassar, Grobogan, Gresik and Lampung this year. In a press release received by Asian Agribiz, Rewin Hanrahan, Director said the addition of new silos and corn dryers is in response to the government’s request to feedmillers to absorb local corn. He explained that a new corn dryer has been installed at the Makassar plant, while a new silo for this plant is still under installation and will be completed in May. A new corn dryer at the Grobogan plant will come on stream this February. Installations of new corn dryers and silos at the Gresik and Lampung plants are expected to come on stream by early next year.
|Malaysia to bring in 166,000 tonnes of corn|
[23 February 2017] Malaysia is due to receive about three to four shipments of US corn this month. A Malaysian-based trader told Asian Agribiz that this is rare because Malaysia has a preference for South American corn. Brazil made the decision last year to slash to half its export of corn to deal with a shortage. “The US has officially shipped 166,000 tonnes of corn to Malaysia this crop year, with another 64,000 tonnes on the books,” Kevin Roepke, Regional Director, US Grains Council, told Asian Agribiz. He added that “this year’s crop quality is excellent, and various challenges in logistics, production and price have led to Malaysian buyers turning back to US origin, as it is consistent and a reliable supplier of corn”.
|New Hope Liuhe's 2016 feed sales up 5%|
[23 February 2017] China’s New Hope Liuhe Co said its sales volume of feed products rose about 5% last year. Of this, sales to the poultry and pig segments rose 7% and 5% respectively, while ruminant feed sales jumped more than 10%. However, the company’s aquafeed sales were down about 8% due to heavy floods in south China. In 2015, New Hope’s total feed sales shrank 7.7% to 14.5 million tonnes. Looking ahead, the company expects its pig feed sales to grow faster in 2017 as China’s pig stock is expected to be higher than last year. “Our own pig production is expected to double this year, which will also contribute to the feed sales,” spokesman Bai Xubo said, adding that New Hope’s live pig sales exceeded 1.1 million heads in 2016.
|Horizon sets up chicken processing plant|
[23 February 2017] Indonesia’s Horizon Investment has allocated USD 2.2 million to set up a chicken processing plant in Bogor, West Java. Construction started early this month. “The construction will take about seven months,” said Resul Akkus, Director. Horizon’s main business is in wheat seed processing. In 2015, the company ventured into broiler farming. With the existence of the processing plant, the company aims to increase its broiler production to 450,000 birds per cycle (40 days). Meanwhile, in 2020 the company targets to produce 1 million broilers per cycle. In another development, Mr Akkus revealed that the company plans to venture into layer farming next year.
|South Korea imposes quarantine checks for imported frozen shrimp|
[23 February 2017] Frozen shrimp exported to South Korea from member countries of the World Trade Organisation (WTO), including Vietnam, must undergo quarantine checks before export, Vietnam News Agency reported. This was stated in the new regulations under the country’s law on fishery disease management. South Korea’s embassy in Vietnam made an announcement on the new regulations issued by the country’s Ministry of Oceans and Fisheries. South Korea has added frozen shrimp products to the list of seafood products that must undergo quarantine checks before entering the country from April 1, this year. South Korea has recognised six centres in Vietnam that qualify to undertake quarantine checks on seafood products exported to the country.
|Big Dutchman acquires livestock building business from Betco|
[23 February 2017] Big Dutchman has acquired Qingdao Betco Asia Co Ltd (Betco Qingdao), the livestock building business of Betco Inc. Betco Qingdao is a leading suppliers of steel structure buildings for pig and poultry management worldwide, particularly in Asia-Pacific. Big Dutchman CEO Bernd Meerpohl said the acquisition is “an important step to strengthen the building know-how of our brand Agricon and to further our strategy of becoming the most competitive supplier of turnkey solutions.”
|Thailand’s DLD says there is no bird flu in poultry sector|
[22 February 2017] Amidst bird flu outbreaks in many countries across the world, Thailand’s Department of Livestock Development (DLD) said the country has remained bird flu-free for nine consecutive years due to strict monitoring and implementation of biosecurity measures. Apai Suttisunk, Director General of DLD said DLD, the Ministry of Public Health and the Ministry of Natural Resources and Environment have stayed alert and have closely monitored the situation. “Thailand has successfully kept avian influenza out because farmers and companies in the industry, along with the DLD and Department of Disease Control have together implemented preventive measures,” he said. Still, Mr Apai urged farmers to tighten their biosecurity measures and to strictly prevent the entry of diseases onto their farms.
|Japfa celebrates great harvest of corn in Lampung|
[22 February 2017] Indonesia’s Japfa Comfeed Indonesia recently celebrated a great corn harvest in Lampung together with its partner farmers, endorsing its commitment to the Ministry of Agriculture to absorb local corn. According to a press-release received by Asian Agribiz, the company partners with Vasham Kosa Sejahtera and academicians from the University of Lampung. “This great harvest proves the success of the partnerships,” said Rachmat Indrajaya, Japfa External Relations Director. As of now, Vasham, which focuses on food crops partnership, has partnered with 6460 corn farmers. Mid last year, Vasham set up a 400 tonne/day corn drying facility, as well as warehouses with a total capacity of 24,000 tonnes in three different locations in Lampung. “What farmers need is post-harvest technology. This will increase their harvest quality,” said Irvan Kolonas, Vasham CEO.
|CPF to buy additional stake in Ningbo Chia Tai Agriculture |
[22 February 2017] Chia Tai (China) Investment Co (CTI), a subsidiary of Charoen Pokphand Foods (CPF), said it will acquire a 15% equity interest in Ningbo Chia Tai Agriculture Co (Ningbo CT) from, Ningbo City Beilun Economic Construction Investment Co, in a deal valued at USD 3.33 million. With the acquisition, CTI will increase its equity interest in Ningbo CT from 70% to 85%. Ningbo CT is engaged in the production and sale of animal feed in China. The acquisition is expected to be completed within 45 days from the execution of the share transfer agreement, which was signed on February 17. Meanwhile, CTI is a wholly-owned subsidiary of CP China Investment Limited. The latter is a wholly-owned subsidiary of C.P. Pokphand Co (CPP). CPF holds a total of 50.43% stake in CPP through both direct and indirect shareholding.
|Housefly maggots to replace fishmeal in fish feed|
[22 February 2017] Diminishing catch due to overfishing and climate change has led to price increases of fishmeal. Takeshi Miura, Professor of Fish Reproductive Physiology at Ehime University in Japan, has been studying how to farm fish by feeding them insect-derived products since 2008. “Today, many fisheries use fishmeal as fish feed, but there is a chance that it could place a greater burden on precious marine resources. I believe the use of houseflies will help, said Prof Miura as reported by The Asahi Shimbun. According to his studies, farmed sea bream and yellowtail that were fed the maggots and pupae boasted a glossy coat similar to those found in the wild, unlike those that were fed fishmeal. He also found that flies are a better choice than other insects, as all maggots need to grow are waste products. Ten kg of manure acquired from pig farms can be turned into 1kg of larvae and 3kg of fertilizer, meaning the pig manure requires no waste treatment.
China’s pork imports expected to remain high in 2017
[22 February 2017]
China recorded high pork imports in 2016 amidst a domestic drop in pork production due to stricter environment polices. The sector is still struggling to recover this year, leaving the much-cheaper imports to fill the demand gap again, though the import rise will be curbed with slightly lower Chinese pork prices, writes ALLEN SHU.
China’s 2016 pork imports exceed 3mt
China’s imports of pig products totaled 3.11 million tonnes valued at USD 5.81 billion in 2016, up 95.1% and 111.4% respectively, said the Ministry of Agriculture, citing China Customs. Chilled/frozen pork imports rose 108.4% to 1.62 million tonnes, while imports of pig offal were up 82.5% at 1.49 million tonnes, with the US, Germany, Spain, Denmark and Canada being the major sources. Monthly imports peaked in June and swung back to growth in December, in line with the movement of domestic pork prices during the year. In addition, “the import volume of chilled/frozen pork has been more than pig offal since August 2015,” noted Pan Qiaolian, Analyst with Chinese agribusiness consultancy Boyar.
The US continues leadership in pork exports
Although the US were losing market share in Asia over the last two years to European pork, US pork exporters ‘had a good year’ in 2016, with total exports to China and Hong Kong reaching 544,943 tonnes valued at USD 1.08 billion, according to the US Meat Export Federation (USMEF). “For this year, we see Chinese pork prices to be slightly lower than 2016, which will affect imports from all sources,” Joel Haggard, Senior Vice President for Asia Pacific, told Asian Agribiz. On the other hand, he said, more US companies are switching to China-compliant production methods, which will expand capacity of the US pork industry to meet Chinese demands. "Also, as European prices rise, the US will find itself more competitive from a price standpoint as US pork production is set to increase again this year."
More pork import channels are available in China
According to Boyar’s Ms Pan, China accelerated approvals on ports for meat imports in 2016, expanding the number of designated ports to more than 50 and covering most provinces in the country. “This will clearly facilitate more imports,” she said. Meanwhile, China Customs said the domestic market would feel more pressure as the nation started rail imports of European pork in December 2016, which saves more than 30 days compared to ocean shipping, thus reducing trading costs and pushing the trade up. “Domestic traders are also keen to expand pork imports due to the significant price gap,” China Customs said in an analytical note. China’s pork prices stood at about USD 4.3/kg last year, almost double that of imported products.
Ministry worries about pig farming bans, imports
Ma Youxiang, Director General of Animal Husbandry Division under China’s Ministry of Agriculture, said the expanded farming bans and surging pork imports are the major challenges for the Chinese pig sector, particularly as many local governments were discouraged amid higher requirements on environment preservation. “Some regions even oversimplified the environment policy to free-pig status. The non-market-oriented regulations have led to a continued decline in China’s sow stock,” said Mr Ma. Data from the ministry shows that as of December 2016, the nation’s stock of sows and commercial pigs were down 3.6% and 4.2% respectively from a year earlier. Last year, China’s pork output was down 3.4% at 52.99 million tonnes.
Chinese producers see little impact of pork imports
Unlike the ministry’s concerns, major Chinese pig producers are more optimistic about the sector and are understanding of the rising pork imports. “We expect pig prices and farming profits to remain high in 2017, buoyed by a still low sow stock and stricter environment policies,” said New Hope Liuhe Co, China’s top feedmiller that is also aggressively expanding its pig farming and processing operations. “There is an uptrend for pork imports in China, but it is supplementary and accounts for little in domestic supply,” it noted. China’s top pig producer Guangdong Wens Group also sees little impact, as 'Chinese consumers prefer fresh meat rather than imported frozen pork'.
|Indonesia suspends Indian buffalo meat imports|
[21 February 2017] The Indonesian government has suspended import of Indian buffalo meat following a ruling by the nation’s Constitutional Court, but there are many who believe the ban will not last. Recently the court ruled that meat from countries prone to foot and mouth disease (FMD) could only be imported under emergency circumstances. Ross Ainsworth, a veterinary consultant said: “The website of the World Organisation for Animal Health clearly states that India is not FMD free according to the rules. There are concerns that it is possible to transmit the virus through frozen meat.” Dr Ainsworth told ABC Rural. On the other hand, Teguh Boediaya, Chairman of Indonesia’s National Livestock Council told Asian Agribiz that 'emergency circumstances' according to law is confusing as there is no definition and explanation.
|Vietnam plans to become global shrimp production base|
[21 February 2017] Prime Minister Nguyen Xuan Phuc said Vietnam should aim to become the shrimp production centre of the world. He said in Vietnam Net that exporting USD 10 billion worth of shrimp products by 2025 is feasible. He said the Ministry of Agriculture and Rural Development’s USD 10 billion a year target by 2030 was too low. Mr Phuc said if Minh Phu Seafood JSC targets exporting USD 2 billion worth of shrimp by 2021, the entire Ca Mau province would be able to export USD 4 billion worth of shrimp. The remaining USD 6 billion can be reached by other provinces and cities. This means that the USD 10 billion target by 2020 can be achieved.
|Taiwan bans transportation of poultry due to AI|
[21 February 2017] Taiwan banned the transportation of poultry for seven days starting February 17 as part of ongoing efforts to contain the spread of avian influenza (AI), the Council of Agriculture said. The ban will not apply to DOC or chickens raised indoors and sent directly to slaughterhouses, said Lin Tsung-hsien, Council Minister. Eggs that have been washed or sanitised and certified by council-contracted veterinarians can also be transported for sale, he added. Since last week, six farms in Hualien, Chiayi and Yunlin counties, as well as Tainan, have been confirmed as having been infected with the H5N6 flu virus, the Bureau of Animal and Plant Health Inspection and Quarantine said. The outbreak has put authorities on high alert, because the virus is both highly contagious and transmittable to humans, reported the Taipei Times.
|Demand for meat grows in Cambodia|
[21 February 2017] Cambodia’s growing population, urbanisation, economic growth and changing consumption patterns have created opportunities for the growth of the livestock sector in the country, reported the Khmer Times quoting the Ministry of Agriculture, Forestry and Fisheries’ (MAFF) annual report. “With an estimated population growth rate of 1.8%, projected meat demand in Cambodia from 2016 to 2024 is anticipated to increase from about 280,000 tonnes to 328,085 tonnes a year,” stated the report. Some 1.35 million domesticated animals were slaughtered for meat throughout the country, to meet growing demand. “Throughout the year, some 55,292 cows, 1155 buffaloes, 299,871 pigs, and 994,454 chickens were slaughtered for local meat consumption,” the report stated.
|India’s meat production increases by 9%|
[21 February 2017] India’s meat production registered an increase of nearly 9% in the 2016-17 monsoon over the previous year. According to government data, total meat production rose to 2.43 million tonnes between July-October 2016-17, against 2.24 million tonnes for the same period in 2015-16. The central government had set a target of 7.37 million tonnes of meat production for 2016-17, of which, 63.28% has been achieved in the past eight months. “Nearly 47.86% of meat production is contributed by poultry and 20.11% from buffaloes,” said the government’s report. Uttar Pradesh tops the list of highest meat producing states, followed by Maharashtra, West Bengal, Andhra Pradesh and Telangana, reported the The Deccan Herald.
|UAE allows import of poultry products from Pakistan|
[21 February 2017] Pakistan’s Ministry of Commerce has said that the United Arab Emirates (UAE) has given permission to Pakistan to export poultry products, The Nation reported. The UAE has granted permission to import DOC and hatching eggs from companies that are certified for export with attached health certificates, and permission to import poultry meat and its products from slaughterhouses that are certified for export. Commerce Minister Engineer Khurram Dastgir Khan said: “Pakistan appreciates the lifting of the ban.” The UAE annually imports more than USD 700 million worth of poultry products, a market from which Pakistan was barred for eight years.
|CP Indonesia educates corn farmers about post-harvest|
[20 February 2017] As Indonesia has stopped corn imports for feed, Charoen Pokphand (CP) Indonesia will educate corn farmers in the country about post-harvest management this year. Santo Kadarusman, Public Relations & Marketing Event Manager said through the program, the company hopes the farmers can meet quality standards of corn required by the company’s feedmills. “They can get a better price if they can meet our standards. So this program is also aimed at improving their earnings,” said Mr Kadarusman. The program has been introduced in North Sumatera and South Sulawesi, and will be introduced in other corn producing regions in the country.
|Japanese feedmillers tap into country’s emergency corn stockpiles|
[20 February 2017] Japan’s feed millers are expected to tap into the country’s emergency stockpiles of corn as inventories decline to critically low levels due to a delay in shipments from the US. Japan’s Ministry of Agriculture, Forestry and Fisheries plans to approve the measure after heavy storms in the northwestern US caused lengthy delays to grain loadings. Japan, the world’s top corn importer, is projected by USDA to import 15 million tonnes in the 2016/17 crop year. “We have received a request from one Japanese feedmaker to use a few thousand tonnes of corn in emergency stockpiles from the end of February due to the recent delays in shipment,” Takanari Ishibashi, Deputy Director of Feed Department told Reuters. Japan’s feed millers are required to hold emergency stocks of 850,000 tonnes of feed grains, mainly corn, which is equivalent to about one-month’s local demand. The companies need to seek approval from the government to use them in an emergency.
|Cambodia must develop breeding programs to raise productivity|
[20 February 2017] The United Nation’s Food and Agricultural Organisation (FAO) in a study on Cambodia said the country’s livestock sector cannot meet the current and growing demand for animal protein particularly pork and chicken as most livestock are raised by smallholders. Because of this, the FAO said, pork and chicken are still imported from Vietnam and Thailand. The FAO research also pointed out that livestock productivity in Cambodia lags behind that of its neighbours partly due to the 'low genetic merit' of Cambodian livestock. “Research is needed to devise breeding programs that will improve the productivity of… pigs and poultry, to increase the supply of high quality and safe animal source foods to match consumer demand,” said FAO.
|Canada aggressively pursues pork market in Asia|
[20 February 2017] Last year China imported 144% more Canadian pork. Some 12,500 forty-foot containers carried 312,000 tonnes of Canadian pork across the Pacific to China. The USD 445 million in sales of Canadian pork to China is an increase of 157%, said the Canadian Pork Council (CPC) in a press release. Japan continued as a high valued market worth USD 820 million for Canadian pork. The council said it takes an aggressive strategy towards reducing trade barriers and trade-distorting subsidies, and finding new markets. “Pork producers understand that market access is of paramount importance to the sustainability of the country and the hog industry,” stated CPC Chair Rick Bergmann.
|KFC’s Chizza sees overwhelming response in Singapore|
[20 February 2017] Mash up is a food trend catching on quickly, and KFC shows us how it is done. It rolled out the Chizza – a combination of fried chicken fillet layered with pizza toppings like pizza sauce, chicken ham, pineapple chunks, mozzarella cheese and cheese sauce – recently at outlets in Singapore. Juliana Lim, KFC Senior Marketing Director, told Asian Agribiz: “Demand exceeded our projected number of servings per store.” She said the company is working closely with its ingredient suppliers to accelerate supply and meet their stock requirements. “We hope our customers will bear with us while we strive to improve our operations and service standards in meeting this overwhelming demand.”
|Vietnam urges Australia to remove shrimp import ban|
[20 February 2017] Vietnam’s Ministry of Industry and Trade (MOIT) has requested that Australia relaxes or issue alternative measures for the ban the latter has imposed on shrimp from Vietnam. The ban took effect on January 9, following the detection of white spot syndrome virus (WSSV) in farmed and wild prawns in Queensland since early December 2016. Shrimp shipments from Vietnam, which departed the exporting country on or after January 9, 2017, according to the ban, will be re-exported or destroyed. Vietnam has remained the biggest supplier of processed shrimp to Australia over the past five years, accounting for more than 33% of the country’s total imports. Meanwhile, Australia ranks seventh among buyers of Vietnam shrimps, making up 3.3% of Vietnam’s total shrimp exports.
|Three major themes for 2017 PigFeed QC|
[17 February 2017] Participants to this year’s Pig Feed Quality Conference will receive updates on three themes important to Asia’s pig industries: feeding for heavier bodyweights without sacrificing carcass quality, reducing the use of in-feed antibiotics, and managing low crude protein diets. The annual conference organised by Asian Agribiz for April 25-26 in Ho Chi Minh City, will have 18 presentations by 14 world class experts, with much data presented in Asia for the first time. Visit Pig FeedQC 2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Bangkok Ranch to set up new JV and subsidiary in Vietnam, Cambodia |
[17 February 2017] Thailand’s Bangkok Ranch (BR) said it will set up new joint ventures with its Vietnamese partners, aiming to expand its food business in Vietnam. Asia Pacific International Trading Joint Stock Company, with a registered capital of USD 100,000, will engage in trading, import, export of consumable goods and food products. BR will hold 49% of the new JV, while its Vietnamese partners will hold 51% of the company. Meanwhile, BR will also establish its new subsidiary, M&M food service company limited, in Cambodia. The new subsidiary will engage in food production and restaurants in Cambodia. BR will hold 99% of M&M food service, which will have a registered capital of USD 100,000. BR said its new JV and subsidiary will support the company’s new business and growth.
|AVA culls free-range chickens in a bid to control bird flu|
[17 February 2017] Singapore’s Agri-Food and Veterinary Authority (AVA) was in the limelight recently when it said it would ‘manage the free-ranging chicken population’ on the island by culling them. Dr Yap Him Hoo, Director-General, AVA, clarified that the move was to control bird flu at source and not because of the complaints of noise from these birds. “That is not the case,” he said. “AVA’s concern is… about public health and safety. The noise issue only served to bring our attention to the high number of free-roaming chickens in certain areas, which in turn raise the exposure risk to bird flu there.” He said the risk is real and significant as Singapore is one of the stopover nodes for migratory wild birds.
|US beef exports to Asia maintain momentum|
[17 February 2017] Total US beef and by-product exports to Japan, Korea and Taiwan maintained their momentum through the end of 2016, with volumes up 26%, 42% and 25% respectively, according to the US Meat Export Federation (USMEF). In addition, exports to Indonesia ended the year at 10,783 tonnes, up from only 1,536 tonnes in 2015 and 6,559 tonnes in 2014. Exports to Vietnam also maintained a higher pace throughout the year, up 47% at 6,211 tonnes. For 2017, the US remains hopeful to regain access to China’s beef market. “Buying interest is intense, but we are trying to manage expectations as we expect China’s import conditions will require us to establish a special cattle and beef production supply chain unique for Chinese customers,” Joel Haggard, Senior Vice President for Asia Pacific, told Asian Agribiz. This will require additional US government certification and verification that will add costs to the product, he added.
|Malindo allocates USD50m for business expansion|
[17 February 2017] Indonesia’s poultry integrator Malindo Feedmill has said that it plans to allocate around USD 50 million for capital expenditure (capex) this year, or 30% higher than the previous year’s capex. Rudi Hartono Husin, Finance Director said the company will use the capex to set up feedmills, poultry farms, and warehouses including corn dryers. This expansion will be located in Java and Sumatera. Mr Husin also said that the company targets its total income this year to grow by 10-15%. Sales of feed and DOC are still expected as the main contributor for the income. Meanwhile, its food business so far only contributes around 5%. “The country’s increasing animal protein consumption will still be the main driver for our growth this year. Plus, the government has made efforts to solve problems in the poultry industry,” said Rewin Hanrahan, Director.
|Vietnam targets USD10b in shrimp exports by 2025|
[17 February 2017] Vietnamese Prime Minister Nguyen Xuan Phuc wants the shrimp industry to target USD 10 billion in export value by 2025. Vietnam is the world’s third largest shrimp exporter and the world’s leading exporter of giant tiger prawn. Shrimp exports accounted for nearly half of the total seafood exports. In 2014 export value reached its peak at USD 4 billion. Mr Phuc said the industry should work to account for 10% of the country’s GDP. He asked the State Bank of Vietnam to instruct commercial banks to provide capital for the industry, especially for high-tech breeding, and reminded exporters to diversify export markets to avoid risks stemming from reliance on a single market. He also pledged government support for the industry.
|Indo PD Mandiri plans for duck processing plant|
[16 February 2017] Indonesia’s Indo PD Mandiri, the owner of a duck meat-based restaurant chain Bebek Goreng Pak Ndut, is now setting up a 5000-bird/day duck processing plant in Sukoharjo, Central Java province, which will support its expansion in both domestic and foreign countries. Currently the company has 54 outlets in Indonesia, three of them are directly managed by the company while the rest are franchised. The company also operates two franchised outlets in Singapore. Agus Ahmadi, Managing Director said: “This year we plan to add three new franchise outlets per month. And we are targeting regions in eastern Indonesia such as Maluku and Papua.” In addition, this year the company also wants to expand to Saudi Arabia, Germany and Malaysia, through a franchise system. The chain which sources its ducks from farmers in Central and East Java, offers different menus of duck such as Sangan duck and black pepper duck. Per portion is sold for USD 1.50-2.25.
|Thailand’s DOA destroys GMO soybean seeds|
[16 February 2017] Thailand’s Department of Agriculture (DOA) recently selected SCI Eco Services Co to manage the burning of 14.4 tonnes of imported soybean seeds from Brazil, which were tainted with genetically modified soybean seeds. Suwit Chaikiattiyos, Director General of the DOA said there were two groups of seeds, which were 7.2 tonnes of BRS Sambaiba seeds and 7.2 tonnes of BRS Tracaja seeds, Thairath reported. SCI Eco Services Co used a closed-system incinerator to burn those seeds. The seeds were totally destroyed and it will not slip into farm crops, he said. “Complying with the Plant Quarantine Act, the DOA has tightened control and regulation over import of 33 controlled seeds, especially those with GMO-tainted risks such as corn, soybean, cotton and papaya,” Mr Suwit said.
|Sunner to buy food processing assets for USD218m|
[16 February 2017] Shenzhen-listed Fujian Sunner Development Co, the largest white broiler producer in China, said it is planning to buy assets in the food processing segment for no less than USD 218 million. Details of the deal are still being discussed and intermediaries are not decided yet, the company said. There were rumors that Sunner Food Co, the further processing arm of Sunner Group, would be part of the listed subsidiary. In an exclusive interview with Asian Agribiz, Sunner Food Chairwoman Fu Fenfang said the company’s 2016 overseas sales are estimated at about USD 43.6 million, or 20% of its total revenue during the year.
|US-based genetic shrimp company to build hatchery in Japan|
[16 February 2017] Texas-based genetics shrimp hatchery Sea Products Development, subsidiary of Global Blue Technologies, plans to invest USD 20 million on simultaneous expansions in the US and Japan as demand for brood stock and post larvae shrimp intensifies. “We decided… to expand our current facility and put up a satellite hatchery in Japan that is owned by us. Then Japan can serve the Asian market, and the Texas hatchery can serve the North American, Central American and South American markets,” said Tim Aberson who spearheads the Global Blue Technologies investment division. “We’re fast becoming a global brand,” he said. “Soon we will be selling to Canada, Mexico, Belize, Vietnam, the Philippines, Indonesia, Malaysia, Thailand, Myanmar, and Sri Lanka.”
|Ayamkarkas.com’s business gains traction|
[16 February 2017] Indonesia’s online platform selling chicken carcase, ayamkarkas.com, is gaining traction. Founded in 2013 by Angga Andhikka and Yurnia Indriasari, the online platform partners with dozens of chicken processing plants in Java. “At the moment we sell around 30-50 tonnes per month. And we already have three warehouses with a total capacity of 100 tonnes,” said Mr Andhikka. “Potential of this business is big, because if we also serve orders with due payments, we will be able to sell 40 tonnes a day. We maintain this system because we want a healthy cash-flow.” Customers of ayamkarkas.com are diverse, from end-consumers to food stalls, fried chicken-based stalls, cafes, caterers and hotels. Products offered include carcase, portioned cuts and offal, but in future the company wants to add marinated and cooked products to their product range. Mr Andhikka revealed that the company plans to have its own processing plant and to partner with farmers to supply broilers.
|Vietnam’s Ho chicken is trademarked and protected|
[16 February 2017] Vietnam’s Bac Ninh native chicken breed has been trademarked as Ho Chickens - Thuan Thanh, Bac Ninh, and granted a protection certificate by the National Office of Intellectual Property of Vietnam, said Nguyen Tuan Anh, Deputy Director of Department of Science and Technology. The move will preserve and develop the chickens’ gene pool and promote the product to consumers. An adult Ho chicken has an average weight of 4-6kg and its meat is pink, fragrant and highly nutritious. Due to its slow growth and low success rate of incubated eggs, the number of the poultry raised is limited. Roughly around 100 households in Lac Tho raise 1500 chickens. The market receives about 10,000 chicks yearly.
|Translating nutrition research into practice|
[15 February 2017] With various nutrition research on pig production, how do pig and feed producers determine which is best for their requirements. At the Asian Agribiz 2017 Pig Feed Quality Conference to be held on April 25-26, 2017 in Ho Chi Minh City, a special session titled ‘Translating pig nutrition research into practice’ will update participants on recent research and advances in pig nutrition and provide practical insights into the latest science supported by relevant trial data that can be applied into their daily operations. Contact Sutasinee Lake at email@example.com or visit Pig Feed QC2017 for further information and to register.
|Bebek Bengil grows with demand for duck|
[15 February 2017] Indonesia’s duck meat-based resto chain Bebek Bengil, or popularly known as Dirty Duck Diner, which was founded in 1990 in Bali continues to expand to big cities in Indonesia. Currently the resto chain operates nine outlets in Bali and Greater Jakarta. Anak Agung Raka Sueni, owner said duck meat menus in the country are now gaining popularity, “that’s why we continue to open new outlets.” Bebek Bengil imports 1-kg frozen duck carcases from Java. Its store in Ubud, Bali alone needs a stock (for less than one week) of around 10,000 carcasses. Crispy duck is its best-selling menu, priced at USD 9.38 per portion of whole duck. On weekends, the resto sells no less than 1500 portions of crispy duck per day.
|Vietnam wheat imports grows 70% year-on year|
[15 February 2017] Vietnam’s wheat imports for marketing year ending June 2017 is estimated to surge 67.4% year-on-year to 5 million tonnes, largely on strong feed demand, according to the US Department of Agriculture. USDA’s projection for Vietnam’s wheat import is also seen to rise sharply from its estimate of 3.6 million tonnes for January. Hellenic Shipping News reported that strong demand from the feed industry, particularly from the aquaculture industry, such as shrimp, helped boost demand for feed wheat. Feed wheat accounted for about 25% of the imported wheat in Vietnam. Australian wheat will continue to dominate Vietnam’s wheat market, although its market share has fallen from 70% in 2015 to about 40% in 2016, said the report.
|Singapore’s Michelin-star chicken outlet expands to Taipei|
[15 February 2017] Singapore’s Michelin-star soy sauce chicken outlet is making its mark overseas with Taipei as its first stop. Slated for opening in H1 of 2017 at Hoyii North Station, the Taipei outlet will be a quick service restaurant like Hawker Chan, which opened along Smith Street, Singpaore, last November, reported AsiaOne. Last July, Mr Chan’s signature soy sauce chicken dish earned a one-star rating in the inaugural Singapore Michelin Guide. His hawker stall at Chinatown Food Complex is also touted as the cheapest Michelin-star food establishment in the world, with its award-winning soy sauce chicken noodles selling at only USD 2.50. If the Taipei branch takes off, Mr Chan hopes to expand into Malaysia next.
|Demand for free range pork in Bali is increasing|
[15 February 2017] East Bali Cashew based in Bali, Indonesia has diversified its business into pig farming and processing. Recently the company bought two boars and three gilts from Bioceleng Farm for breeding, Romeo Alfonso, owner of Bioceleng Farm told Asian Agribiz. “They want to upgrade the genetic quality of their pigs,” Mr Alfonso said. Having a total of 300 pigs, East Bali Cashew raises its pigs under a free-range farming concept. The company processes its pork into sausages and bacon, then supplies them to restaurants in Bali. Mr Alfonso, who raises his pigs under a semi free-range farming concept, said demand for pork produced from free-range or organic farms in Bali is increasing.
|H7N9 cases detected in Beijing and Shanghai|
[15 February 2017] An early, brisk spike in H7N9 avian flu infections in China, which is in its fifth wave of activity, has now reached at least 347 cases, passing the record 319 of infections seen in the second wave during the winter of 2013-14, just months after the first human cases were detected, reports the Centre for Infectious Disease Research and Policy, CIDRAP. According to Hong Kong's Centre for Health Protection (CHP), new infections were detected in two of the country's biggest cities: Beijing and Shanghai. The CHP pointed out that cases exported from Guangdong province have also been reported this season in Hong Kong, Macao, and Taiwan. China's Centre for Disease Control and Prevention has said 90% of the patients have reported exposure to poultry, especially at live-poultry markets, the CHP said.
|Malaysia’s Leong Hup plans for relisting |
[14 February 2017] Malaysia-based integrator Leong Hup International, with businesses in Indonesia, Vietnam, Singapore and the Philippines, is planning to relist on the Malaysian market and/or other bourses in the region to raise funds for expansion, acquisition, and r&d, reported The Star. The Lau family took the business private in 2012 after its share price persistently remained below the value of its net tangible asset. “We have plans for listing of the whole group within one to three years. It can be in or outside Malaysia – but most probably here. We will act when market conditions improve. It could be 2019 or 2020, when our annual turnover is expected to hit USD 1.58 – 1.8 billion,” said Tan Sri Francis Lau, Executive Chairman of Leong Hup (Malaysia) Sdn Bhd.
|CP Indonesia commits to renovate broiler houses in West Java |
[14 February 2017] Indonesia’s largest poultry integrator Charoen Pokphand (CP) Indonesia has signed a partnership agreement with the Livestock Agency of West Java province to renovate broiler farming houses in the region. Under the program which is called ‘Bedah Kandang’, the company commits to renovate 100 houses in the region this year, according to Santo Kadarusman, Public Relations & Marketing Event Manager. Through the program, which aims to increase broiler performance and farmer’ welfare, the company will provide better poultry equipment including brooding, feeding, drinking and air circulation systems, as well as technical guidance for free. Hamam Wahyu Triwibowo, Head of Customer Care & Technical Development said pilot projects of the program have shown good progress. On average the broiler performance index increased 30% after the renovation.
|Masan rides on 3F model’s success|
[14 February 2017] The success of Vietnam's Masan Group's 3F (Feed-Farm-Food) integrated model transformation has resulted in a 41.4% increase in their bottom line and contributed 50% of the group’s earnings and profits in 2016. According to its annual report, Masan’s net profit in 2016 hit a record high at USD 171.4 million. During the period, the group announced it had accomplished its 3F integrated model, which helped it access the meat and processed meat industry. The group embarked on meat production in 2015 by merging with Saigon NutriFood and establishing a subsidiary called Nutri-Science, then becoming a strategic partner of Vietnam leading meat producer Vissan in June 2016, and establishing a hi-tech swine farm in Nghe An province in November 2016.
|Indonesia’s aquaculture production to decline due to high rainfall|
[14 February 2017] Due to high rainfall during the first half of this year, Indonesia’s Ministry of Fisheries & Marine Affairs estimates that aquaculture production may decline by around 5-10%. With the anticipated high rainfall, Slamet Soebjakto, Director General of Aquaculture said the ministry will focus more on developing tilapia and catfish as they are more resistant to high rainfall. This year the ministry expects the country’s aquaculture production to reach 21.5 million tonnes, with a value of around USD 7.5 billion, and with seaweed, shrimp, snapper, tilapia and catfish as the main commodities.
|Godrej to set up aqua lab at Nellore|
[14 February 2017] Godrej Agrovet Limited launched a dedicated lab on aqua diagnostic services in Nellore, Hyderabad. This will help aqua farmers identify predisposing factors well in time and allow them to take preventive measures. The lab conducts tests on salinity, pH, ammonia, nitrite, alkalinity, hardness, iron, hydrogen sulphide, and also farmers can seek periodical water, microbial tests for better management of water tanks. Balram Yadav, MD, Godrej Agrovet Limited, said the launch of Aqua Lab will benefit about 10% of farmers in a particular area. “Considering the large number of farmers with expertise in agriculture and aquaculture we have decided to set up our lab here,” he said.
|Thailand’s DLD tightens use of antibiotics |
[13 February 2017] Thailand’s Department of Livestock Development (DLD) recently told livestock and related associations including the Swine Raisers Association of Thailand, Veterinary Practitioner Association of Thailand and Veterinary Council of Thailand that they should control and reduce the use of antibiotics in animals, especially Colistin antibiotic. The therapeutic use of Colistin should be the last option, Dr Sorravis Thaneto, Deputy Director General of DLD said. There has been concerns in recent months over the improper use of Colistin in pig farms, which could lead to drug resistant bacteria. Dr Sorravis said “antibiotics are one of the necessary tools to control and cure diseases in both humans and animals but we have to tighten quality-control standards over the use of antibiotics.”
|Indonesia faces uptrend in layer DOC price |
[13 February 2017] The price of layer DOC in Indonesia has skyrocketed in the last few months, according to the National Layer Farmers Forum. “At the moment, the average price of layer DOC is USD 0.60 per chick while the normal price is around USD 0.37-0.45,” said Ki Musbar, Coordinator of the forum. “Layer farmers complain that the price of eggs fell to around USD 1.11-1.24 per kg.” Mr Musbar said that the ideal price of eggs is USD 1.31/kg if the prices of corn and DOC are USD 0.24 per kg and USD 0.37 per chick, respectively. However, the average prices of corn and DOC now are USD 0.30 per kg and USD 0.60 per chick. “With these input prices, the ideal price of eggs should be USD 1.45 per kg,” he said. Increasing imports of processed eggs from China only worsens the situation. “The import value has reached around USD 2 million per month. The government should stop the import as it negatively impacts the national layer farming industry,” Mr Musbar added.
|Singapore brings in premium UK beef brand |
[13 February 2017] Premium meat importer ADirect Singapore Pte Ltd confirmed with Asian Agribiz that it has brought in the first shipment of Celtic Pride Welsh Beef. The brand is a collaboration between The Welsh Livestock Company, Wynnstay Group and Castell Howell Foods. On a monthly basis it is expected that prime cuts from between 10 and 20 cattle will be shipped to Singapore and into top restaurants. It was reported that Singapore has selected certain breeds including the Welsh Black, Hereford, Angus, Highland and Dexter. Prior to shipping, the cutting plants were inspected and approved by the Singapore Agri-food and Veterinary Authority.
|China 2016 meat output down 1.1%|
[13 February 2017] China’s animal protein sector was 'generally stable' last year, with total meat output down 1.1% at 83.64 million tonnes, said the National Bureau of Statistics. Pork output fell 3.4% to 52.99 million tonnes, while beef and mutton rose 2.4% and 4.2%, respectively, to 7.17 million and 4.59 million tonnes. The output of poultry meat was also up 3.4% at 18.88 million tonnes. In addition, the bureau said the nation’s poultry egg production grew 3.2% to 30.95 million tonnes, while milk output shrank by 4.1% to 36.02 million tonnes.
|Australia relaxes shrimp import suspension|
[13 February 2017] The Australian Department of Agriculture and Water Resources has relaxed its suspension of the import of uncooked prawns and related products. The department’s Director of Biosecurity has agreed to exempt certain goods from the January 9 suspension order including dried prawns and shelf-stable prawn-based food products; irradiated bait for aquatic use; pet fish food and aquaculture feed; and uncooked prawns sourced from Australia’s exclusive economic zone. Australian-caught prawns are not exempt if they have been exported to another country for processing, said the notice. The suspension was initiated after an outbreak of white spot disease was detected in five aquaculture sites on Logan River, southeast Queensland, as well as in live shrimp, last December.
|PigFeed QC puts focus on performance, quality & profitability|
[10 February 2017] Developments in genetics, management and nutrition, as well as changing consumer demands, have made tremendous impact among Asian pig producers, affecting both productivity and profitability. The 2017 Pig Feed Quality Conference, Asian Agribiz’s annual conference and scientific forum for pig and industry professionals, will run a strong technical program that addresses fundamental themes to enhance performance, quality and profitability of pig and feed production. The conference is scheduled on April 25-26, 2017 in Ho Chi Minh City, Vietnam. For details and to register, visit Pig Feed QC 2017 or contact Sutasinee Lake at firstname.lastname@example.org.
|US producers push for trade deals with Japan|
[10 February 2017] Business groups representing the pork and beef industries have urged the Trump administration to start trade negotiations with Japan. The National Pork Producers Council together with the National Cattlemen’s Beef Association recently sent a letter to President Trump calling for a bilateral deal that would lower tariffs and reduce barriers for their products. Japan is the biggest market for US pork and beef exports. “We realise that our competitors are doing their best to secure preferential trade agreements in many of these markets, and we are concerned that if we do not act soon, we will fall further behind our competitors in these important market,” the letter said.
|Ciomas to set up new chicken processing plants|
[10 February 2017] Indonesia’s poultry company Ciomas Adisatwa, a subsidiary of Japfa Comfeed Indonesia, plans to set up new chicken processing plants this year. Currently it already operates 10 plants throughout the country. “We will set up three new chicken processing plants equipped with modern processing technology, blast freezers, cold storage facilities and waste-treatment installations. Each plant will have a capacity of 2000-4000 birds per hour, and will cost around USD 3.7-5.2 million,” Tommy Kuncoro, Senior Vice President Director told Asian Agribiz. Mr Kuncoro said Ciomas adds one to three new chicken processing plants every year as the company continues to strengthen its distribution network and provide fresh, quality chicken meat to consumers. “In coming years, we will focus on new regions including Kalimantan, Sulawesi and Sumatera,” he added.
|Avanti Feeds expands its shrimp processing business|
[10 February 2017] India’s Avanti Feeds is going to commission its new shrimp processing plant in the first quarter of this year. Right now, the company’s shrimp processing capacity is 25 tonnes per day, while the new plant will have a capacity of 75 tonnes per day, as reported by The Economic Times. “We are going for the higher value added products. The new plant is built to produce value added products for end-consumers to boost the value of our sales,” said A Indra Kumar, Chief Managing Director.
|Japan aims to resume beef exports to Australia|
[10 February 2017] Japan aims to resume beef exports to Australia by year-end, hoping to overturn a ban on Japanese beef in place since 2001 after the discovery of mad cow disease or bovine spongiform encephalopathy. Japan has been in talks with BSE-free Australia since 2004 to resume exports of its gourmet wagyu beef. Regulator Food Standards Australia New Zealand found in 2015 that beef and beef products imported from Japan are safe for human consumption, and the Australian government is likely to issue a final draft report that would support lifting the ban later this year, an official with Japan’s Ministry of Agriculture, Forestry and Fisheries said. Australian officials could then inspect Japanese facilities around September-November before resuming imports, the official said. Japan’s global beef exports hit a record USD 118 million in 2016, the official said as quoted by Reuters.
|China’s 2016 frozen chicken imports up 44.3%|
[10 February 2017] China’s imports of frozen chicken totalled 569,132 tonnes valued at USD 1.2 billion in 2016, up 44.3% and 36.8% respectively, according to China Customs. Beef imports were up 22.4% at 579,836 tonnes, though the value grew only 8.4% to USD 2.5 billion. Mutton imports were 220,063 tonnes valued at USD 574 million during the year, down 1.3% and 21.4% respectively. However, China’s surging demand for pork drove the category’s prices up, with the import volume and value rising 108.4% and 120.1%, respectively, to 1.6 million tonnes and USD 3.2 billion last year.
|KFC to shift to franchise-only business model in Thailand|
[09 February 2017] Yum Restaurants International (Thailand), the operator of the KFC fast food chain, said recently that it is seeking to sell its last 244 KFC outlets in Thailand as it will shift to a franchise-only business model. Waewkanee Assoratgoon, General Manager of KFC at Yum Restaurants International (Thailand) said Yum will restructure its Bangkok support centre to focus on franchisee support, brand innovation and reinforcement of global operating standards, the Nation reported. Thailand has 586 KFC outlets nationwide, of which 244 belong to Yum, 219 are operated by CRG and 123 are operated by Restaurant Development Company Ltd. Meanwhile, Yum sold 130 KFC branches to RDCL in August last year as part of its strategy for the franchise-only business model. It aims to have 800 KFC outlets in Thailand by 2020.
|Myanmar reports first HPAI outbreak from chickens imported from China|
[09 February 2017] Myanmar reported its first highly pathogenic H5N6 avian influenza (HPAI) outbreak in poultry, confirmed in chickens imported from China. This comes just days after Taiwan noted its first H5N6 finding, signifying increasing spread of the virus in Asia. In a report to the World Organization for Animal Health (OIE), Myanmar said that in the wake of H7N9 outbreaks in China in 2013 it stepped up screening in chickens and ducks and their environments at live-bird markets and poultry collecting points. The fifth round of active surveillance turned up H5N6 in chickens and their environments in Monglar in Shan state in the east, on the border with China. Chickens that tested positive for the virus were from live markets, and were imported from China. The report said H5N6 was also found in ducks imported from China.
|China pork imports to determine start of seasonal price rise|
[09 February 2017] The level to which China imports pork after the Lunar New Year will determine the start of the seasonal increase of the Rabobank Five-Nation Hog Price Index, Rabobank said in its Pork Quarterly Q1 report, as its Animal Protein analyst Albert Vernooij noted that “[a] lower-than-expected decline in imports will support prices in key exporting countries, while exchange rates remain the other important variable influencing prices.” He added that the slow increase in global supply, supported by growing productivity and rising sow numbers” will also affect global prices.
|Russia looks for new export markets as grain production rises|
[09 February 2017] While Russia harvested 119 million tonnes of grain, a sharp increase from the year before, it is also seeing a decrease in exports. Last December exports dropped by 21% because of the rouble’s appreciation and weather disruptions. Bangladesh and South Korea slashed imports of wheat and corn respectively from Russia. The country is now intensifying its search for new export markets. Agricultural consulting agency SovEcon said Russia needs to find new markets and accelerate its suppliers abroad otherwise excessive stocks may significantly cut grain prices. To avoid carrying large stocks into the spring, Russia needs to sell 2.8 million tonnes of grain monthly until June 2017.
|Majority of Vietnamese still prefer warm meat|
[09 February 2017] Vietnam is still not ready for the National Standard for Food Markets being drafted by the Ministry of Industry and Trade, which regulates processing, buying and selling live poultry and livestock in traditional wet markets, as the country still leans heavily on warm meat. “This is a good idea that puts wet markets into order and protects consumers. However, it is not appropriate at this time, as 80-90% of Vietnamese consumers’ still favour warm meat,” said Vu Vinh Phu, Chairman of Hanoi Supermarkets Association. “We can see clearly that pre-packed chilled, frozen poultry products in supermarket are less attractive to consumers.” The transition is slow due to the high cost of industrially produced meat products, according to Mr Phu.
|New Indonesian breeder cattle protocol creates challenges|
[09 February 2017] The introduction of Indonesia’s breeder cattle protocol, which requires one animal imported for breeding purposes for every five animals for feedlotting, is a challenging prospect for Consolidated Pastoral Company (CPC), Australia’s second largest cattle producer, and its feedlot operations in Sumatera, as well as other Australian companies, according to Troy Setter, CPC Chief Executive. “The specification for breeders is tight and limits the number of breeder cattle that can be brought into Indonesia. It’s expensive to run breeders in a feedlot, it’s not economically viable,” he explained as quoted by ABC Rural.
|Nutritional strategies to reduce AGPs|
[08 February 2017] Amid increasing calls to reduce the use of antibiotic growth promoters (AGPs) in pig diets, improving animal health status and performance will need a holistic approach that includes better management, biosecurity measures, vaccination programs, diagnostics and feeding. At Asian Agribiz’s 2017 Pig Feed Quality to be held on April 25-26, 2017 in Ho Chi Minh City, Vietnam, nutritional strategies for maintaining good health and performance to stimulate gut development and health that can improve growth performance, while minimising the use of AGPs, will be discussed. Visit PigFeedQC2017 or contact Sutasinee Lake at email@example.com for more information and to register.
|Avian influenza spreads further in Asia, Europe|
[08 February 2017] Taiwan has reported its first highly pathogenic H5N6 avian influenza detection, signalling further spread of the virus into Asia. Tests on a dead goose found near Yuli Township in Hualien County were positive for H5N6, and authorities will be stepping up monitoring of migratory birds and surveillance at local poultry farms. In other Taiwan developments, officials reported seven more highly pathogenic H5N2 outbreaks to the OIE, all affecting poultry farms. Elsewhere, Japan reported a new H5 outbreak in Saga prefecture, the sixth to be affected in recent months. H5N6 had earlier been reported in Chinese poultry flocks, and since 2014 the virus has been linked to 17 infections in humans, all of them in China. Meanwhile in Europe, Germany, France, Italy, Slovakia and the United Kingdom have reported more avian influenza outbreaks.
|Ciomas to start meat shop project|
[08 February 2017] In its fresh meats sector report, Asian Agribiz has seen meat producers in the region setting up meat shops to retail meat from their farms. This trend will continue in the next five years. Recently met by Asian Agribiz in Jakarta, Tommy Kuncoro, Senior Vice President Director of Ciomas Adisatwa, a leading poultry integrator in Indonesia revealed that the company plans to set up meat shops. “The concept will be different from existing meat shops run by our competitors. We want a simpler meat shop. We don't want to have a too luxurious image so as to attract maids and housewives,” he explained. He added that the company may start the project this year with some pilot meat shops in Greater Jakarta.
|Delisi to set up central kitchen JV with Shanghai retail group|
[08 February 2017] Chinese pork processor Shandong Delisi Food Co said it has signed an agreement with Bailian Group, a Shanghai-based retail giant, to set up a 51:49 central kitchen joint venture. Total investment will be around USD 19 million. According to Delisi, Bailian operates more than 4700 stores nationwide, serving over 1 billion people a year. It generated revenue of USD 12.4 billion in 2016, ranking the first among Chinese retail groups. “We will also cooperate in market development, cold chain logistics, as well as capital integration based on this JV,” Delisi said in a statement.
|Vietnam reaches for chicken exports |
[08 February 2017] Vietnam is working towards capturing choice markets to export its chicken products. According to a report in Vietnam Net, Dong Nai provincial authorities sent a delegation to Hanoi to work with the Ministry of Agriculture and Rural Development’s Animal Husbandry Department and its agencies to export chicken to Japan. The Binh Phuoc provincial authorities meanwhile have also been organising trade activities to export chicken, targeting the Japanese, the EU and some Asian markets. The report said Vietnam is expected to export its first consignments of chicken to markets such as the EU and Japan in 2017.
|CPC ships 1200 cattle to Indonesia|
[08 February 2017] Australia’s second largest cattle producer, Consolidated Pastoral Company (CPC), has shipped its first load of cattle for 2017 to Indonesia. Around 1200 heads were exported out of Townsville to CPC’s feedlot in Lampung. Troy Setter, Chief Executive said it marked the start of what CPC hoped would be a strong year, for not only its 18 cattle stations, but two feedlots in Indonesia. “It's been a much easier process to get [import] permits in Indonesia this year,” he said as quoted by ABC Rural. “There’s talk of widening the specification of cattle into Indonesia, which we see as a positive move. There’s work being done to lift the 350kg weight average [of cattle to Indonesia] up to a reported 450kg average, which would allow us to put more weight on cattle and make them more cost-competitive for freight and easier on logistics.”
|Philippine broiler output could hit record levels in 2017|
[07 February 2017] Barring extreme weather conditions, the Philippines could see its broiler production rise to a record 1.4 billion heads this year. In a report by Business Mirror, United Broiler Raisers Association President Elias Jose Inciong said the projection is based on breeder placements and does not yet include other factors such as mortality, diseases and weather. The bulk of the growth, he told Asian Agribiz, will still be in Luzon, where there has been an oversupply. Ronald Mascariñas, President of Bounty Agro-Ventures Inc, the country’s second biggest poultry integrator, told Asian Agribiz that the industry could be in for the “biggest production in history” and that “2017 will be a rough ride for industry players.”
|No negative impact of US withdrawal from TPP on Indonesia’s seafood industry |
[07 February 2017] The US' withdrawal from the Trans-Pacific Partnership (TPP) will not negatively impact the Indonesian seafood industry, according to Budhi Wibowo, Chairman of the Indonesian Fishery Products Processing and Marketing Association. “As of now there are no tariff barriers for Indonesian seafood product exports to the US. So, if TPP continues or not, it will not impact our exports,” he told Asian Agribiz. “But we hope the new US administration will not impose any tariff barriers to our seafood products.”
|S Foods’ wagyu beef finds ground in Vietnam|
[07 February 2017] Japan-based S Foods’ wagyu beef has been available in the Vietnam market since January this year, as a result of an agreement between the company and Vietnam’s Biofarm Investment JSC. Wagyu Master is one of S Foods’ major brands for high-grade Japanese cattle raised through a special farming program. In Vietnam, the beef is retailed via a traditional retail channel at Biofarm’s store in Hanoi, and via home-delivery services. “We are not just delivering wagyu beef, but also sharing a related food culture of how to enjoy this premium meat. We are confident that the meat will be appreciated by Vietnamese consumers,” said Phan Bich Ha, Biofarm Chairwoman.
|Ukraine ships more than half of grain exports to Asia|
[07 February 2017] In 2016, more than half of Ukraine’s grain exports were sent to Asian countries, namely China, India, Indonesia and Thailand, according to the Institute of Agrarian Economics (IAE) Deputy Director Mykola Puhachov. “A distinctive feature of the year 2016 in Ukrainian grain exports was further strengthening of the Asian vector. Countries of this region took nine positions in the Top 10 main importers of Ukrainian cereals with a total share of 54.3%,” the report states. Indonesia’s grain imports increased by 2.1 times to USD 331 million, and its share reached 5.4%. Thailand’s grain imports increased to USD 301 million with a share of 4.9%. China’s share in Ukraine’s total exports came to 7.6%, the IAE said.
|Pork prices bottom-out in Cambodia|
[07 February 2017] Cambodia’s Agriculture Minister Veng Sakhon reported that demand for pork has climbed 23% in the last five years, and vendors said prices have soared 10-15%. But farmers are not enjoying this growth. According to The Cambodia Daily, a crackdown on illegal pig exports from Vietnam into China has created an oversupply that is flowing into Cambodia, depressing prices. “The price is at rock bottom,” said Mong Rotha, son of Mong Reththy, a businessman whose group operates a pig farm with about 10,000 sows near Sihanoukville. Pork had been at USD 1.75/kg for three months, he said, down about 30% and the lowest he has seen it go.
|CPF to export frozen chicken to South Korea, Singapore |
[06 February 2017] Thailand’s Charoen Pokphand Foods (CPF) said it will export around 6000 tonnes of frozen chicken and 10,000 tonnes of cooked chicken meat to South Korea and Singapore in 2017, Chatchawan Thrupmonchai, Vice President at CP Merchandising said. “We see a good opportunity in bird flu-stricken South Korea because some countries, which had exported its chicken products to South Korea, are having avian flu problems,” he said. Still, Mr Chatchawan sees intense competition in South Korea’s chicken market, which is a price-sensitive market amid strong competition from Brazil, US and EU. CPF has differentiated itself from competitors by exporting special and portioned cuts to South Korea. In all, CPF aims to increase its chicken exports by 20% in both value and volume terms in 2017, up from 120,000 tonnes last year.
|KIP expands its broiler GP operation|
[06 February 2017] Karya Indah Pertiwi (KIP), an Indonesian poultry company based in Tasikmalaya, West Java province, is expanding its broiler GP operation with the genetics from Hubbard of France. KIP currently produces around 2.6 million DOC per week for both internal needs and commercial purpose. Its sales to the free market increased rapidly lately, pushing it to increase its production capacity. Suryo Suryanta, Hubbard Regional Technical & Sales Manager told Asian Agribiz that the company may import around 80,000 (D-Line) GP hatching eggs (HE) this year to cater to its growing external sales. In 2015, KIP imported 30,000 GP HE from Hubbard.
|Vietnam among top 15 feed producers in the world|
[06 February 2017] The 2017 Alltech Global Feed Survey revealed that Vietnam feed production grew 21% over the past year and that the country moved into the top 15 countries list for the first time, specifically led by increased production of pig and broiler feed. The top 30 countries, ranked by production output, are home to 82% of the world’s feedmills and produce 86% of the world’s total feed. China remained the top feed producer with 187.20 million tonnes. Asia continues to be one of the most expensive locations in the world to raise animals, as Japan’s feed prices are among the highest in the world and China’s prices are double that of most of the top 10 producing countries.
Regional Dairy update
[06 February 2017]
Indonesia’s dairy cattle farmers ask for better milk price
The Indonesian government is expected to intervene in the selling price of (fresh) milk. According to Heru Prabowo, Vice Chairman of the Indonesian Dairy Cattle Farmers Association, the low selling price of milk has not motivated farmers to develop their business. “The price of milk now is around USD 0.37 per litre, while to reach break-even point the price should be USD 0.45,” he said. As a result, national milk production only meets 18% of the total milk demand from the milk processing industry.
Aavin’s expanded cattle feed plant is on trial run
India’s Tamil Nadu Cooperative Milk Producers Federation, popularly known as Aavin, has started the trial run at its expanded cattle feed plant in Erode. The capacity of the plant has been increased from 100 to 250 tonnes/day at a total cost of USD 3 million, as reported by The Hindu. In a year when the state is facing a drought, more cattle feed will help farmers, said the cooperative. “Even if a cow produces four litres of milk a day, the solids in the milk have to be replenished and cattle feed plays an important role in this. We have been trying to encourage more farmers to use the feed since nutrition plays a key role in animal productivity and fertility. It helps in increasing milk yield and quality. Similarly, mineral mixture too is given a thrust as maintaining animal health is important,” said a spoke person of the cooperative.
Fonterra Indonesia to sell yoghurt, cheese products
Fonterra Brands Indonesia, a subsidiary of New Zealand’s Fonterra Group, plans to sell yoghurt and cheese products in modern markets in the country in the near future. To support this business plan, the company will set up a new plant plus a warehouse. According to Tria Septariana, Head of Consumer Insight & Marketing Research, the company will sell different kinds of yoghurt and cheese products. For yoghurt, they are considering products like yoghurt drink, thick yoghurt and prebiotics. Meanwhile for cheese, cheese slices, smear cheese and cheese snacks are being considered. According to the company’s internal data, yoghurt and cheese consumption in Indonesia in 2016 increased 32% and 8.1%, respectively, compared to the previous year.
Pakistan’s antitrust watchdog fines three dairy companies
Pakistan’s antitrust watchdog has imposed a fine on three milk manufacturing companies for deceptive marketing practices. The Competition Commission of Pakistan (CCP) has passed an order imposing fines of USD 594,000 on Engro Foods Limited, USD 19,000 on Noon Pakistan Limited (NPL) and USD 4700 on Shakarganj Foods Products Limited (SFP) for violating Section 10 of the Competition Act, 2010, as reported by The Express Tribune. The order disposes off the show cause notices issued to these companies after an inquiry conducted by CCP found that they were deceiving consumers by marketing and selling tea whiteners and dairy drinks including SFP’s product Qudrat (liquid tea whitener), NPL’s product Dairy Rozana (dairy drink) and Engro Foods’ Dairy Omung (dairy drink) as milk.
|Managing low crude protein diets |
[03 February 2017] Feeding pig diets low in crude protein but balanced in essential amino acids brings a lot of benefits to both pigs and pig producers. These benefits include reduced heat increment, manure output, nitrogen excretion and ammonia emissions while maintaining performance of pigs and lowering feed costs. How to manage low crude protein diets is one of the main topics at Asian Agribiz’s 2017 Pig Feed Quality which will take place April 25-26, 2017 in Ho Chi Minh City, Vietnam. Other advantages such as increased net energy and less nitrogen in the hindgut on the pig, will also be discussed. Contact Sutasinee Lake at firstname.lastname@example.org or visit PigFeedQC2017 to register and get more details.
|Philippines should look at bilateral and regional trade agreements|
[03 February 2017] Following the US’ withdrawal from the TPP, the Philippines is on a wait-and-see attitude as to its effects on local industries. However, Edwin Chen, President of the Pork Producers Federation of the Philippines, told Asian Agribiz that the US decision is “a major shift from free trade to protectionist policies, so definitely this would have an effect.” Meanwhile, Imelda Madarang, CEO of Fisher Farms Inc, which exports processed seafood products to the US among others, told Asian Agribiz that the Philippines should look at bilateral and trade agreements that are more relevant and suited to its situation. “There seems to be a changing perspective on multilateral trade agreements which to some is still dominated by big economies and therefore still not fair and laden with vested interests.” The real issue, she pointed out, is competitiveness. “A good product is a good product. We have to work doubly hard to achieve efficiencies and maintain quality to be really competitive.”
|Bioceleng Farm develops its pork processing|
[03 February 2017] Bioceleng Farm based in Bali, Indonesia is set to be less dependent on live pig sales. Since last year, the farm that applies a semi free range concept has been selling its pork to restaurants and hotels around Ubud in Bali. Romeo Alfonso, owner said this year the farm aims to improve its cold chain system. “We are now setting up a 4-tonne cold storage facility which costs around USD 40,000. After this, we will buy a mini reefer truck to distribute the meat quickly,” he told Asian Agribiz. Bioceleng Farm has also been selling portioned cuts. Since demand of the portioned cuts continues to pick up, the farm plans to buy better equipment for portioning, and a slicer to produce bacon. “We will brand the products with ‘Bioceleng Farm Pork’ brand. We will also buy a vacuum packaging machine to pack the products,” he said. Last but not least, Mr Alfonso also plans to set up a pork shop in Ubud in the near future, with an Italian investor.
|Thai Union secures long-term financing for Red Lobster deal |
[03 February 2017] Thailand’s Thai Union (TU) said recently that it has successfully completed the book building for USD 340.34 million in new debentures to secure long-term financing for its investment in Red Lobster Seafood Co. It has also secured USD 354.52 million in long-term loans. “The robust participation of investors in our book building reflects the confidence they have in Thai Union,” said Thiraphong Chansiri, CEO of Thai Union Group. “The result, which is important in ensuring we have the necessary long-term financing for our strategic investment in Red Lobster, also indicates that the market supports our strategy for growth and expansion.” TU will use the proceeds from both the bonds and the long-term loans mostly to finance the USD 575 million investment in Red Lobster, the world’s largest seafood restaurant company.
|Avian influenza causes slight decrease in global feed production|
[03 February 2017] The 2017 Alltech Global Feed Survey showed that the poultry industry represented 44% of the total global feed production, a slight decrease from last year. This could be a result of avian influenza, industry consolidation and more efficient feed conversion, said the report. Positive growth was observed in pig feed production, particularly in Asia as Vietnam and Thailand are now among the top 10 pig-producing countries. China represents over a quarter of the world’s pig feed production, but sow numbers have decreased by almost 40% over the past three years. Global dairy feed production remained flat, while the US and India reinforced their position as the top two producers with increases of 12 and 14%, respectively.
|San Ha differentiates with herbal chicken|
[03 February 2017] Vietnam's SanHa Foods Co Ltd is expanding its production of herbal chicken to 30,000 birds per month, priced at USD 5.32 per kg, about 30% higher than commercial white chicken. "We are competent with herbal chicken and are working closely with our partner to raise farm output," said Pham Thi Ngoc Ha, Director of SanHa Foods. SanHa's partner - Phu Ngoc cooperative, is raising more than 100,000 herbal chickens in a VietGAP certified farm in Dong Nai province. Herbal chickens, explained Ms Ha, are raised as free range birds in a large clean environment and fed with a special formula. One of the ingredients is a special herb imported from Taiwan used as an alternative to antibiotics and antibiotic growth promoter (AGP) and gives SanHa's chicken meat an exotic herbal aroma.
|Dabaco wins over Southern farmers with new coloured chicken breeds|
[02 February 2017] While chicken growers in the North of Vietnam favour red feather chicken, growers in the South prefer black feather hens. Seeing this divide, Dabaco Breeding Chicken Company Limited has introduced a package of three special breeds - blackish purple fowl, black-striped fowl and yellow-legs fowl to the Southern market and has received good feedback from farmers. Dinh Van Dong - the owner of one of the largest chicken farms in the Central Highlands said: "Dabaco's hens after 100 - 105 days, weigh 1.8 - 1.9 kg and roosters weigh 2.2 - 2.3 kg, about 300-500g higher than local breeds. That's why I have increased the number to 20,000 chickens," said Mr Dong.
|Cofco Meat's net profit swells 460% in 2016|
[02 February 2017] Chinese pig integrator Cofco Meat Holdings Ltd said its 2016 net profit will be no less than USD 123.6 million, representing a year-on-year growth of no less than 460%. The company attributed the growth to the increase in pig prices, reflecting “the decrease of China’s sow stock that was still at a low level at the end of 2016”. Cofco Meat also saw its sales of fresh pork and processed products up during the year. It’s scheduled to release its annual results in late March. Earlier, the fourth largest pig producer in China said its annual capacity is expected to exceed 3.5 million heads in 2016, up from 2.3 million at the end of 2015.
|Surabaya discontinues live pig imports from Bali|
[02 February 2017] Pig farmers in Bali, Indonesia have to find solutions if there is an oversupply of live pigs as the local government of Surabaya in East Java has decided to discontinue live pig imports from Bali. “We see that the local government wants to protect their local farmers because the market for pigs in Surabaya is not that big. So if we see there are pigs from Bali now in Surabaya, those must be illegal,” Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. Based on Mr Phaithoon’s data, in the last decade, live pig supply from Bali accounted for 25% of total market demand in Surabaya.
|H5N1 strikes Cambodian farm|
[02 February 2017] Cambodia's H5N1 outbreak, its first since May 2016, struck backyard birds in Svay Rieng in the country's southeast, on the border with Vietnam, the agriculture ministry said in a report early this week to the OIE. The poultry owner reported poultry illnesses and deaths beginning on January 25, which triggered testing and an investigation. The virus killed 68 of 390 birds, with the remaining ones destroyed as a response step. Authorities also imposed movement controls and disinfected the affected area.
|Ceylon Grain Elevators records lower net profit|
[02 February 2017] Sri Lankan poultry and feed milling group Ceylon Grain Elevators said its net profit for the December 2016 quarter fell nearly 5% to USD 2.44 million from a year ago. The firm, part of Singapore’s Prima group, said in a stock exchange filing that December 2016 quarter sales fell 3% to USD 24.48 million. Finance costs fell 35% and the firm also benefitted from a sharply lower tax charge, according to interim results filed with the stock exchange. A note accompanying the accounts said the company had to grapple with higher cost of raw materials but that its bottom line was strengthened by lower finance expenses through effective cash flow management.
|Grow heavier pigs without sacrificing carcass quality|
[01 February 2017] In raising pigs, market weight influences both meat quality and profit, since cost of production goes down as market weight increases. At Asian Agribiz’s 2017 Pig Feed Quality to be held on April 25-26, in Ho Chi Minh City, Vietnam, practical nutritional strategies to maximise the lean gain potential of heavier bodyweight pigs while maintaining carcass quality will be reviewed. Dr Tony Edwards of ACE Livestock Consulting, who will discuss how to optimise carcass weight in pigs without compromising carcass quality, and David Hennan of Rivalea Australia, who will talk about feeding to maximise carcass weight and quality, are just two of the experts scheduled to speak at the conference. For more information and to register, visit Pig Feed QC 2017 or contact Sutasinee Lake at email@example.com.
|Ciomas expands its QSR franchise|
[01 February 2017] Ciomas Adisatwa, Indonesia’s leading poultry producer and a subsidiary of Japfa Comfeed Indonesia, has successfully developed a chicken-based QSR. The first C’Bezt_fried chicken outlet targeting the middle-low income consumers was set up in 2011. Currently the chain has 106 30-seat outlets, 10 take-away outlets and 1700 cart-style outlets spread throughout the country. Tommy Kuncoro, Senior Vice President Director told Asian Agribiz that the company will continue to increase the number of outlets, but did not reveal a target for this year. “In coming years we will partner with more good franchisees, look for more prospective areas for expansion, and improve our service to our franchisees.” The chain offers different kinds of chicken-based menus such as fried chickens, cordon bleu, katsu, stick, burger, teriyaki, as well as grilled sausages. The menu comes in a package with rice/French fries and soft drink. On average a pack is priced at USD 1.12.
|Malaysia’s CAB Cakaran to increase broiler production capacity|
[01 February 2017] Malaysia’s Farm’s Best Food Industries Sdn Bhd, a subsidiary of CAB Cakaran Corp Bhd, plans to buy 26 broiler poultry farms from Farm’s Best Bhd for USD 13.21 million. According to the company the move is a key step in the growth of its broiler farm assets. It will increase its broiler production capacity and enhance its market presence. “CAB Cakaran can also achieve cost efficiency in its poultry supply chain in terms of logistics cost and pooling of resources such as labour and information, given that the breeder and broiler farms are located within the same vicinity of Malacca, Negeri Sembilan and Johor,” said CAB Cakaran.
Asian producers cautious after US TPP withdrawal
[01 February 2017]
On January 23, the American Feed Industry Association (AFIA) came out strongly against President Donald Trump's executive action to withdraw from the Trans-Pacific Partnership (TPP) trade agreement. 'While the USeconomy generally deals with a trade deficit, agriculture is the one segment where our country enjoys a strong trade surplus,' said AFIA President and CEO Joel G. Newman. US agriculture exports, including commercial feed, are increasing despite a global slowdown in overall trade, said AFIA. Trade agreements, such as TPP, allow US producers to exploit growing overseas demand. Much of this growing demand is in the Asia-Pacific region. The Asian Agribiz team sought feedback from the industry.
Thailand’s livestock industry still cautious after Trump abandons TPP
Although Thailand’s livestock industry came out against TPP, it is still cautious about the consequences of the US withdrawal from the the TPP. “The US National Pork Producers Council will not stop pursuing its interests and it will push for bilateral trade deals,” Wiwat Pongwiwatchai, Chairman of Ratchaburi Livestock Cooperative Ltd told Asian Agribiz. The US pork producers have several advantages, including cheap livestock feed and low production costs, over Thai producers, he said. “I think America First policy will see the US takes a much tougher trade stance with other countries,” Mr Wiwat added.
No direct impact to Indonesia’s poultry industry
The US withdrawal from TPP will have no direct impact on the Indonesian poultry industry as Indonesia does not export poultry products to the US, according to Desianto Budi Utomo, Chairman of the Indonesian Feed Producers Association. However, Dr Utomo told Asian Agribiz that the exchange rate will be an indirect impact of the US’ decision. “As we know, 93% of the total feed consumption in Indonesia is for poultry. And 100% of protein sources for poultry feed, especially soybean meal, is still imported either from the US or Latin America. So if the rupiah depreciates, our feed production cost will escalate quite significantly,” he explained. On the other hand, since the US will focus on increasing bilateral cooperation, “we need to be more concerned about chicken meat imports. The US eyes Indonesia as a good market for its chicken leg quarters,” he added.
Malaysia may experience only slight impact
Malaysia’s animal protein industry may only see a small dent with the TPPA being scrapped. According to Dato' Lim Tai Soon, President, Malaysia Animal Health and Nutrition Industries Association, most input to the industry are free of import duties or tariffs. He said the Malaysian government has been supporting the industry for many years by imposing zero duties on animal feed, equipment, animal health products and such. Meanwhile several existing FTAs, see chicken, beef and pork imports with zero import duty. “Despite this the local industry has mostly remained competitive and profitable,” he told Asian Agribiz.
Vietnam feed producer sees glass half full
TPP was seen as a good thing for Vietnam. Its targets were for exports such as pangasius and other seafood products to flourish. That may not be the case now but Dao Manh Luong, Austfeed Vietnam Corporation CEO, told Asian Agribiz that some industries such as the local poultry and pig businesses are happy the agreement is off. “For us, as a company focused on livestock and the fresh water fish, we see many opportunities with TPP off the table. We can further strengthen our business in Vietnam,” he said, but added that “in the long run, I think the Vietnamese government will look for other trade agreements such as Regional Comprehensive Economic Partnership to promote our economy”.
Indonesia will benefit
US President Donald Trump’s decision to withdraw the country from TPP will be positive for Indonesia, according Rosan Roeslani, Chairman of the Indonesian Trade Chamber and Industry. “Without TPP, we can compete competitively with Vietnam in the US market in some industries,” he said. He also thought that the US withdrawal presents an opportunity for Asean countries to increase trade and investments within the region. To Asian Agribiz, Budi Tangendjaja, Scientist at Indonesia’s Livestock Research Agency said Indonesia’s decision to scrap its plan to join TPP is a good step. “So it’s a good opportunity for the livestock industry, to improve and step up within the Asean Economic Community,” Prof Tangendjaja said.
Indonesia scraps its plan to join TPP
Indonesia will not join the Trans-Pacific Partnership (TPP) after the US withdrew from the trade pact. Indonesia expressed interest to join TPP after President Joko Widodo visited the US in February 2016, and he has already ordered a study on the scheme. “Indonesia was interested to join TPP, but since the US is no longer in TPP, the plan will not proceed,” said Dewi Fortuna Anwar, Indonesia’s Vice President’s Deputy Secretary for Government Policy Support. She continued that Indonesia hails the US’ intention to be more focused on increasing bilateral cooperation especially in the fields that are given national priority, such as food self-sufficiency.
|Thailand to export pasteurized eggs to bird flu-stricken South Korea|
[31 January 2017] Bird flu-hit South Korea has temporarily allowed imports of Thai pasteurized eggs and processed eggs for six months and it has also agreed to remove import duties for these egg products under the quota system. Sopat Chavalkul, Director of Sub-Division of Livestock Product Inspection, Department of Livestock Development (DLD) told Asian Agribiz that three Thai companies, Charoen Pokphand Foods (CPF), Kasemchaifood and Ovo Foodtech, are negotiating terms and conditions with South Korea’s trader. Thailand is waiting for South Korea to issue a health certificate for pasteurized eggs and processed eggs. Meanwhile, South Korea’s Animal and Plant Quarantine Agency (QIA) will evaluate information about Thai fresh eggs. Dr Sorravis Thaneto, Deputy Director General of DLD said: “I think the process won’t take long because South Korea needs the products now.”
|Live pig price in Manado is still weak|
[31 January 2017] Although other live pig markets like Greater Jakarta, Surabaya and Bali have seen an uptrend in prices since early January, the market in Manado in North Sulawesi, Indonesia is still grappling with low price. “During the Christmas and New Year period, the price of live pigs was below production costs and this has persisted,” Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. “I think there is still an oversupply in the province. In addition, pork has to compete with other animal protein sources like seafood.” The North Sulawesi Pig Farmers Association (APB Sulut) admitted that the market of for pork is limited. The association is now working with the local animal husbandry agency to get the hog cholera free status. Once this is successful, pig farmers in the province will be able to export to neighbouring and potential markets such as Papua.
|Alltech says global feed production has exceeded 1b tonnes|
[31 January 2017] The 2017 Alltech Global Feed Survey estimates that international feed tonnage has exceeded 1 billion tonnes, a 3.7% increase over last year and a 19% growth since the inaugural survey in 2012, despite a 7% decrease in the number of feedmills. “This year demonstrates the growing efficiency and consolidation of the feed industry,” said Aidan Connolly, Chief Innovation Officer and Vice President of corporate accounts for Alltech. “Not only has total feed production exceeded 1 billion tonnes for the first time but it has done so with fewer facilities, which means greater efficiencies and a decreased environmental footprint.” The sixth annual survey is the most comprehensive ever, now covering 141 countries and more than 30,000 feedmills.
|McDonald’s Indonesia to open 10-15 new outlets|
[31 January 2017] McDonald’s Indonesia has said that it plans to open 10-15 new outlets this year in Java. Sutji Lantyaka, Associate Director of Communication said raw material distribution is still their main concern for new outlets beyond Java. “As a franchisee, we need to follow all standards from McDonald’s from the US. And not all local raw materials meet their standards. So that’s why until now we don't have an outlet for example in Papua due to the raw materials distribution limitation,” she explained. McDonald’s Indonesia currently operates 171 outlets in the country.
|KFC Korea to be back on sale in March|
[31 January 2017] KFC Korea is likely to be back on sale two years after it was purchased by a Hong Kong-based private equity fund. According to investment bank sources, CVC Capital Partners, the largest shareholder of KFC Korea, is attempting to sell its stake in the American franchise unit in Korea. Invitations will be handed out in March. Operating profit of KFC Korea which was USD 9.87 million in 2013 plummeted to USD 5.8 million in 2014 and to USD 945,000 in 2015 as popularity of the American fried chicken franchise has waned in Korea. The company has been promoting various low-priced menu items and increased discount rates to bolster sales, as reported by Pulse News.
|2017 Pig Feed Quality Conference returns in April|
[27 January 2017] Asian Agribiz’s annual Pig Feed Quality Conference (PFQC), Asia’s leading conference and scientific forum for pig and feed industry professionals to update their knowledge and network with industry peers, is set for April 25-26 in Ho Chi Minh City, Vietnam. Working within the framework of ‘science, trial data & application’, the 2017 PFQC will cover three topics that include feeding for heavier bodyweights without sacrificing carcass quality, managing low protein diets, and reducing the use of infeed antibiotics. Visit Pig Feed QC 2017 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Disease still a problem for pig farmers in Bali|
[27 January 2017] Diseases like PED and PRRS will remain a problem of pig farming in Bali, Indonesia this year. “PED was serious last year and resulted in a shortage of live pig supply to several markets in Bali. This is still the case today,” Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. Because of that, “this year farmers have to strengthen their farm biosecurity and improve farm management. For PED, they can apply an autoimmune program at their farms,” he said. “The good news for PED in Bali is that the local government will coordinate with the central government to produce PED vaccine from local master seed.”
|Wellhope to build pig slaughterhouse in northeast China|
[27 January 2017] Chinese feed miller Wellhope Agri-Tech, in which Royal De Heus of the Netherlands holds a 9.63% stake, said it has signed an agreement with a local government in northeast China to build a pig slaughterhouse with an annual capacity of 1 million heads. The company will also develop 500 contract farms in the Dongzhou District of Fushun, Liaoning province to produce 500,000 pigs a year. Total investment will be about USD 145 million, and the project is expected to be completed in 3-5 years. Wellhope started an integrated broiler business in 2007 and ventured into pig farming last year, when it bought a 35% stake in a pig integrator in north China’s Hebei province.
|Thailand’s feed wheat imports to slow down due to government restrictions |
[27 January 2017] Thailand’s corn production in marketing year 2016/2017 is likely to increase to 5.2 mmt, up 11% from the previous year, according to the USDA's GAIN report. Farm-gate price of corn is hovering around USD 0.17 per kg currently. This is a 24% reduction compared to the same period last year in part due to competition from other feed ingredients. Feed wheat imports have been acting as a substitute for domestic corn in compound feed for poultry due to its relatively cheaper price. The downward pressure on domestic corn prices has led the government to impose import restrictions on feed wheat and to pursue more stringent import measures on alternative feed ingredients. In the first five months of marketing year 2016/2017, wheat imports totalled 2.3 mmt, but feed wheat imports are likely to slow down in the second half in response to new government restrictions.
|Perindo to set up aqua feed plant in Subang|
[27 January 2017] Indonesia’s state-owned fishery company, Perikanan Indonesia (Perindo) will soon set up an aqua feed plant in Subang, West Java province. The company will partner with two other state-owned companies namely PT Hutama Karya which will be responsible for the construction and PT Sang Hyang Seri which will provide 4ha of land for the project. Syahril Japarin, Perindo's President Director said the plant will have an installed capacity of 10 tonnes/hour and will cost the company around USD 12.4 million. Mr Japarin added that the existence of the new plant will give cheaper choices of fish & shrimp feeds for aquaculture farmers in the region.
|Bangladesh reports H5N1 outbreak in poultry farm|
[27 January 2017] Bangladesh reported an outbreak of the highly contagious H5N1 bird flu virus at a poultry farm in Dhamrai, Dhaka, said the World Organisation for Animal Health (OIE) on January 23. Of 3000 Sonali type poultry at risk from the outbreak, 732 died from the virus and the rest were slaughtered. Different strains of bird flu have been spreading across Europe and Asia since late last year, leading to mass culling of poultry in certain countries and some human deaths in China. This prompted OIE to call on all countries to monitor closely outbreaks of the deadly virus in birds and poultry and to report promptly any human cases that could signal the start of a flu pandemic.
|Indonesia confident of 24mt corn harvest|
[26 January 2017] Indonesia’s Agriculture Ministry has ensured that the country will stop corn importation for feed millers this year as the ministry strongly believes that the country can produce 24 million tonnes of corn. Andi Amran Sulaiman, Agriculture Minister said: “From March to May this year, we will harvest around 12-15 million tonnes of corn. This is more than enough for the feed millers. In the same period of last year, we were able to produce 10 million tonnes.” Regions contributing to the expected harvest include Gorontalo, North Sulawesi, West Nusa Tenggara, East Java, Lampung and South Sulawesi.
|Thailand’s Sea Value in talks to acquire another plant in France|
[26 January 2017] Thailand’s Sea Value Group, one of the world’s leading tuna manufacturers, is currently in talks to purchase another tuna-processing plant in France, the Nation reported. Chanintr Chalisarapong, Senior Vice President of Sea Value, said if the deal does not proceed, it will double the production capacity of its French subsidiary Sea Value Atlantic, which it acquired in October 2015. Sea Value Atlantic produces premium tuna, salmon and some other seafood in both pasteurized and sterilized plastic bags. Sea Value was established in March 2004 by a group of strategic partners who have long experience in tuna and seafood businesses, including Thai seafood processors Wales Group and PTN Group, marine raw materials sourcing and traders Itochu and F.C.F. Group and US-based Bumble Bee.
|Ceylon Grain Elevators to buy poultry processing plant|
[26 January 2017] Sri Lanka’s top poultry producer, Ceylon Grain Elevators Plc, plans to buy a poultry processing plant and sub-lease a piece of land from Ceylon Agro-Industries for USD 1.81 million. The Daily Mirror reported that both companies are related through four individuals who sit on the board of both companies. Sri Lanka’s Related Party Transactions Review Committee found the deal consistent with commercial terms and is not prejudiced to the interests of Ceylon Grain Elevators and its minority shareholders. Ceylon Grain Elevators is Sri Lanka’s largest listed poultry producer in terms of revenue and profits, while its subsidiary Three Acre Farms Plc is the fourth largest.
|CJ CheilJedang eyes top position in world dumpling market|
[26 January 2017] South Korea’s CJ CheilJedang has announced plans to be the global lead in the frozen dumpling market with USD 856 million in sales of its Bibigo dumpling products. “We intend to achieve USD 856 million in sales of Bibigo dumplings by 2020, with 70% of that coming from overseas markets,” the company was quoted by The Hankyoreh. The world dumpling market, which totalled USD 4.9 billion last year, is currently led by companies in South Korea, China and Japan. CJ CheilJedang occupies one of the top five positions for market share, after three Chinese companies (Wanchai Ferry, Sanquan and Shinian) and Japan’s Ajinomoto. “The Chinese businesses all focus on the domestic market, while Ajinomoto’s overseas sales are minimal,” said the company. “Given Bibigo’s current growth, we’re expecting it won’t be difficult reaching our sales target by 2020.”
USGC seminar addresses current trends with DDGS
Report by RACHAEL PHILIP
[26 January 2017]
US Grain Council held its US DDGS in Poultry and Swine Nutrition seminar in Kuala Lumpur last week. The event attracted feedmillers, nutritionists as well as grain traders. Prior to Kuala Lumpur the seminar visited six cities in Southeast Asia.
US DDGS price seen to be less volatile
China’s decision to subject US Distiller’s Dried Grains with Soluble (DDGS) to anti-dumping and countervailing duties is seeing the top importer cutting its import of the product from 6.46 million tonnes in 2015, to 2.31 million tonnes in January-November 2016. “This will mean less volatility in the price of DDGS. We prefer to have a stable market environment to operate in,” Matt Thibodeaux, Director of Grains Commercial Operations, Valero Marketing and Supply Company, told Asian Agribiz. He said the market will now be driven by DDGS nutritive values and not policy. The excess DDGS could be taken up by countries like Japan and Korea, existing markets for the US, “that are sometimes squeezed out because of high prices”.
Historical low prices for DDGS
It was noted at the seminar that in January the price of DDGS was at a 'historical low' at roughly 85-90% of the price of corn. In comparison prices peaked in 2013 when it was 130-140% of corn. The price of corn is also on a downward trend. Dr Budi Tangendjaja, Technical Consultant for the USGC, said it was a good time to buy DDGS. According to grains.org DDGS reference prices for 40ft containers to countries in the region on January 21 2016 for February 2016 was between USD 222 and USD 229 per tonne. The figures on January 12, 2017 for February 2017 was USD 176 and USD 181 per tonne.
Countries taking advantage of low DDGS prices
Some countries are taking advantage of the attractive price of DDGS. Cambodia, for instance, imported 23,500 tonnes from January to October 2016, much more than Myanmar (18,200 tonnes), where the council held a number of promotional activities for the product last year, Dr Budi Tangendjaja, told Asian Agribiz. “Cambodia is opening up its market, and there are a number of new multinational feedmills in the country.” The Council’s effort in Myanmar has also paid off. From January to November 2016, the country imported 19,594 tonnes, an almost 500% increase, compared to 3388 tonnes in the same period last year.
US corn harvest quality report
The 2016/2017 Corn Harvest Quality Report showed that 35.1 million ha of corn is projected to be harvest for 2016, an increase from 2015’s 32.7 million ha. Dr Budi Tangendjaja, said there is “ample supply of US corn and the price has become competitive. Moisture at harvest is low at 16%. This has led to less mycotoxin. There is less broken and stress cracks. This would be good for both wet and dry milling. The chemical composition of the harvest is steady, with slightly higher in protein content at 8.6% and fat content at 4% but less in starch content (72.5%). Its chemical composition and grade should be translated to better metabolised energy,” he said.
|JBT sees automation, traceability as key trends in meat processing equipment|
[25 January 2017] John Bean Technologies (JBT), a leading supplier of integrated food processing solutions, said it is optimistic about its growth prospects in Asia due to the region’s high economic growth, rising middle class and increasing demand for convenience food products, said, Tom Borup Managing Director, Protein Sales & Business Development, JBT Asia Pacific. The company is eyeing growth in China, India, Southeast Asia and Australia-New Zealand. “These are our four major areas and they have different food trends,” Mr Borup told Asian Agribiz, adding JBT’s machine can be tailor-made to different needs. “We believe in tailor making our machine for Asian needs in term of features and benefits,” he said. Meanwhile, automation, traceability, documentation, visibility will be among key features of food processing equipment.
|Feed millers setting up warehouses for local corn|
[25 January 2017] Responding to the Indonesian government’s rule on stopping corn imports, the Indonesian Feed Producers Association (APPI) said its members are currently setting up warehouses and corn dryers to absorb local corn. “Our concern is only about our inability to absorb all corn during the harvesting period. Another concern is on stock management as the harvesting period is not every month and we can’t accurately predict the production per region,” said Desianto Budi Utomo, APPI Chairman. Dr Utomo said it is estimated that the feed milling industry this year will need around 8.4 million tonnes of corn.
|Bairaha to add USD 1.59m to its ongoing feedmill project|
[25 January 2017] Sri Lanka’s Bairaha Farms PLC said it would invest an additional USD 1.59 million to the ongoing works of its feedmill and storage facility. The project, a jv with Farm’s Pride Limited was budgeted at USD 9.6 million in 2014. Work on the facility started last June but cost overruns such as civil works, land development, additional machinery and other costs amounting to USD 759,000 were incurred. Another USD 833,000 was incurred for corn and soy meal silos. The company said the additional costs will come from Bairaha, Farm’s Pride and Fortune Agro Industries Pvt Ltd, the jv feedmill company or from Fortune G-P Farms Lanka Ltd, the jv grandparent farms and hatchery company.
|No pig supply from West Kalimantan to Greater Jakarta |
[25 January 2017] The Greater Jakarta market in Indonesia will not receive live pigs from West Kalimantan. An industry player told Asian Agribiz that Sujaya Group, the largest pig producer in the province that usually sends live pigs to Greater Jakarta, has been facing some challenges in the last two years. “So it may take some time for them to get back to normal. But, this is a good news for live pig suppliers from Central Java,” he said. “It’s also the right time for small-medium scale pig farmers in West Kalimantan to increase their pig population.” In 2014 Asian Agribiz visited the pig farming facilities of Sujaya Group. At that time, the group had more than 70,000 pigs and was converting all its open houses to closed houses, while planning for a pig slaughterhouse.
|TCRS expects 19% sales growth this year|
[25 January 2017] Malaysia’s TCRS Restaurants Sdn Bhd expects to see 19% growth in sales this year compared to the year before. The company, which operates The Chicken Rice Shop outlets in Malaysia, recorded sales of USD 22.4 million in 2016. TCRS is also expanding its outlets to Myanmar, where a local franchise holder there is expected to launch five outlets by year end. In total, TCRS owns 88 outlets in Malaysia and two in Singapore, and has franchised an outlet at KLIA as well as one in Brunei. CEO Wong Kah Lin unveiled Ayam Ranggup Berapi in conjunction with the upcoming Chinese New Year, which marks the onset of the year of the Fire Rooster cycle.
|Philippine hog production up 3.8% in Q4|
[25 January 2017] Philippine hog output topped 632,300 tonnes in Q4 2016, 3.8% higher than the same period the year before, the Philippine Statistics Authority (PSA) said in its latest Performance of Philippine Agriculture report. The agency attributed the growth to an increase in the number of hogs sold during the period and also the expansion of commercial farms reported in Northern Luzon and in the Davao Region. This brings the industry’s total production to over 2.23 million tonnes for the year, up 5.2% from the previous year.
|US withdraws from TPP|
[24 January 2017] US President Donald Trump has withdrawn from the Trans-Pacific Partnership which included 11 countries in the Pacific Rim. Condeming the move, American Feed Industry Associations (AFIA) President and CEO Joel G. Newman said : "TPP, and agreements like it, are key to setting the terms and rules for future trade relationships, creating higher standards and expectations than previous trade deals. While the US economy generally deals with a trade deficit, agriculture is the one segment where our country enjoys a strong trade surplus." In a press release, AFIA added that US agriculture exports, including commercial feed, are increasing despite a global slowdown in overall trade. US feed industry jobs are created and supported by overseas demand for American products. Lookout for Asian Agribiz's coverage on industry reaction.
|Live pig prices in Greater Jakarta up before Lunar New Year |
[24 January 2017] With the Chinese Lunar New Year just days away, the price of live pigs in Greater Jakarta, Indonesia has increased to USD 2.54 per kg. “This has positively impacted the farm gate price of live pigs in supplying regions such as Central Java, East Java and Bali. In Bali for instance, the price is USD 2.16 per kg and continues to escalate,” said Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia. However, he hopes PT Indotirta Suaka of Salim Group, the largest pig producer and exporter in the country, will not flood the Greater Jakarta market with their pigsas this will cause a price slump, he told Asian Agribiz.
|USGC disappointed with China’s DDGS anti-dumping duties|
[24 January 2017] The US Grain Council is disappointed with China’s move to subject US distiller’s dried grains with solubles to anti-dumping and countervailing duties (AD/CVD). According to USGC President and CEO Tom Sleight, the decision is not supported by evidence and raises questions on China’s compliance with standard AD/CVD procedures and with its international obligations. “While painful and damaging to the US DDGS industry, the biggest negative impact will be on China’s feed and livestock industries, which risk losing access to an important and cost-effective feed ingredient, and on millions of Chinese households that will likely face greater food price inflation and less access to affordable, wholesome pork, poultry and dairy products,” he said in a statement posted on the council’s website.
|Chicken production up, egg output down in Q4|
[24 January 2017] Philippine chicken production inched up 1.7% to 455,730 tonnes in the last three months of 2016 thanks to higher demand, the Philippine Statistics Authority (PSA) said in its latest Performance of Philippine Agriculture report. The agency also noted the additional production from newly opened broiler farms of key integrators San Miguel Corp and Bounty Fresh in Western Visayas. On the other hand, egg production tumbled slightly to reach only 116,210 tonnes in Q4, down 0.89% from the previous year. The PSA said the lower production was due to a drop in laying flock inventory due to tight supply of ready-to-lay pullets and lower egg-laying efficiency ratio.
|KPS plans to develop pig processing business|
[24 January 2017] Karya Prospek Satwa (KPS), a close partner of Charoen Pokphand Indonesia, has successfully developed pig contract farming in Bali, Indonesia. Phaithoon N Na Ayudhaya, Pig Specialist of CP Indonesia, told Asian Agribiz that in the next decade the company will focus more on developing frozen pork products. “We plan to set up a pig processing plant and a cold chain facility. By having the facilities, we will supply frozen pork to many cities in the country. This is our commitment to the local government of Bali,” he said. On Kurobuta pigs, Mr Phaithoon said the company continues to educate consumers in Bali about the exclusiveness of pork from Kurobuta pigs. “It will take time, because it’s something new for them.”
|Vietnam implements band aid measures for pig woes|
[24 January 2017] As prices of pigs remain depressed in the country, Vietnam’s Ministry of Agriculture and Rural Development has implemented some stopgap measures to help the local pig industry alleviate the situation. The ministry has instructed People’s committees in provinces to control pig herd expansion 'by all means' and called on relevant authorities to review pig population and build a pig development plan that matches market demand and in accordance with the provinces' capacity. The Department of Animal Production reported that farm price of pigs across the country has remained at USD 1.20-1.46/kg against a production cost of USD 1.68-1.77/kg.
|Bali will see demand for organic pork says supermarket operator|
[23 January 2017] Bali is the most famous place of interest in Indonesia. According to Ketut Rai Sunaka, Store Manager of Bintang Supermarket, more foreign tourists, especially from Japan, demand organic agri-products such as organic vegetables, sugar, rice and milk. “Looking at this trend, I believe in the near future we will also receive demand for organic pork,” he told Asian Agribiz. Mr Sunaka said fresh chilled pork is an important item for Bintang Supermarket as it is one of the bestselling meats. Its store in Ubud, for instance, sells around 30-40 kg of pork a day. The supermarket sells different kinds of pork slabs namely belly, loin, leg and rib, and has its own butchers to cut the slabs according to customers’ preference. It also sells ground pork, which is a best seller in all its stores. The pork is both from local supplies and imports.
|CPF China sales to exceed Thailand sales in 5 years|
[23 January 2017] Thailand’s Charoen Pokphand Foods (CPF) said its total sales in China will likely surpass its sales in Thailand in the next 5 years, Adirek Sripratak, CEO of CPF said recently. “Our sales in China will grow faster than in Thailand because the population size of China is much bigger than Thailand,” he said. CPF’s main revenue streams in China come from its feed business, followed by its food business. “We built two large food factories in Qingdao and Qinhuangdao and acquired stakes in Chinese firms in 2016 including broiler, food and animal vaccine businesses,” he added. CPF China's sales now contribute 24% to its total sales, while its Thailand sales (produced and sold locally, excluding exports) contributes 32-33% to its total sales. CPF has allocated an investment budget of USD 565 million for 2017, excluding mergers and acquisitions.
|KPS to improve pig genetic quality in North Sulawesi|
[23 January 2017] Genetic quality is one of the main problems hampering the growth of pig farming in North Sulawesi, Indonesia. To solve this problem, Karya Prospek Satwa (KPS), a partner of Charoen Pokphand Indonesia, imported 50 boxes of frozen semen of commercial pigs like Duroc, Yorkshire and Landrace from Swine Genetics International of the US last year. “We used the semen for breeding at our farms in the province. It will take about one year to get the F1. So in early 2018, we will be ready to commercialise the pigs for farmers. They will get the best genetics,” Phaithoon N Na Ayudhaya, Pig Specialist of CP Indonesia, told Asian Agribiz. In North Sulawesi, KPS has two pig breeding farms selling parent stocks (male & female) to farmers in the province.
|Australia sends first shipment of brown eggs to South Korea|
[23 January 2017] Australian egg farmers have sent the first shipment of eggs to South Korea, to help ease a major shortage caused by an avian influenza outbreak. Approximately 30 million birds have been culled to stem the spread of the disease, causing a shortfall according to ABC Rural. Prices of eggs and other poultry products have soared as a result, with retail egg prices rising by around 21.5% to USD 1.87 for 10 eggs. But at the farm gate, farmers have raised the price of eggs they are selling by 50% to USD 1.31. Huge shipments of white eggs are already arriving from the US, but Koreans have a preference for brown eggs, and that is where Australian farmers are stepping in. “Eggs are an important product to South Koreans, hence the sense of crisis and the need to act quickly,” said Rowan McMonnies, Managing Director of the Australian Egg Corporation Limited.
|India’s WestCoast Group launches online sales of seafood |
[23 January 2017] WestCoast Group, a fully integrated seafood company in India, has launched an online portal cambaytiger.com with the aim to be the largest player in the seafood e-commerce space by delivering quality seafood to customers in Mumbai. The company also plans to expand its e-commerce service to other cities such as Delhi, Bengaluru and Chennai, as reported by India Retailing. Shivam Gupta, Director of WestCoast Fine Foods said: “In a first of its kind in the country, we will provide two unique services to our customers. Firstly, customers will be able to order prawns and tilapia straight from our farms, giving them a true farm-to-fork experience with guaranteed traceability. Secondly, there is also an option to order live tilapia to their homes.” Cambaytiger.com serves live, raw, ready-to-cook and frozen seafood. Live seafood will initially include tilapia and mud crabs.
|WTO ruling to increase US beef exports to Indonesia|
[20 January 2017] The recent World Trade Organization’s decision could provide further momentum for US beef exports to Indonesia. Feedstuffs quoted Joel Haggard, US Meat Export Federation (USMEF) Senior Vice President for the Asia-Pacific, as saying: “Indonesia has been heavily regulated in terms of the way it controls its importers - what they can import, when they can import, how they can import it. They began to loosen some of those restrictions early in the spring, but the commercial effects really came into place late last year.” Mr Haggard added that: “Some of those cuts would be items like knuckles and some of those hind-quarter cuts, plus some offal items. Liver and heart are now eligible. Those items were previously not allowed to be imported, and now they are.”
|CP China to build 3m layer complex in Kunming|
[20 January 2017] CP China said it has signed with the local government to build a three-million-layer complex in Kunming in southwestern Yunnan province. The facility will comprise of a feedmill, layer farms, egg packaging and processing plants, as well as a crocodile farm and an organic fertilizer factory. Total investment will be around USD 73 million, according to the Kunming Daily. “The complex will serve Yunnan and its neighbouring provinces, as well as Southeast Asia,” CP said in a press release. As early as 2012, CP launched a three-million-layer complex in Beijing, making it the largest layer farm in Asia. Now the company is said to be planning for 20 such complexes in China.
|US exports shell eggs to South Korea|
[20 January 2017] South Korea has opened its market for the first time for shell eggs from the United States, following the culling of over 30 million birds due to Highly Pathogenic Avian Influenza (HPAI) outbreaks. The first US exports of shell eggs arrived in Korea on January 12. USDA continues to work with the Korean government to open the market for US liquid egg products, liquid egg white, salted eggs and pidan. As a result of HPAI, egg prices jumped more than 50% between December 12 and January 6. This is the first time that the Korean shell egg market has been open to the US, reported the USDA in its GAINreport.
|India’s Odisha sees low poultry demand over AI outbreak|
[20 January 2017] Already reeling from demonetisation, the outbreak of avian influenza (AI) has added to the woes of poultry farmers in India’s Odisha state. They claim the sale of poultry products has dropped by 60-70% in the peak season while prices have also fallen by USD 0.29 a kg. Cashing in on the crisis, mutton and fish vendors have raised prices, according to The Times Of India. Market sources said the price of chicken has dropped from USD 2.05 to USD 1.76 a kg in a month. Similarly, the price of eggs per dozen has reduced from USD 0.80 to USD 0.73. Poultry traders said hotels, restaurants and fast food centres have also reduced their intake as public consumption has gone down.
|Hong Kong bans poultry imports from Uganda, Germany, India, Japan|
[20 January 2017] Hong Kong’s Centre for Food Safety (CFS) announced on January 17 that in view of notifications from the World Organisation for Animal Health (OIE) about outbreaks of H5N8 avian influenza (AI) in the state of Bavaria in Germany and Kottayam district in Kerala State of India, and an outbreak of H5 AI in Uganda and a notification from the Japanese authorities about an outbreak of AI in Gifu prefecture, the CFS has banned the import of poultry meat and products including eggs from the mentioned places. In the first 11 months of last year, Hong Kong imported about 9300 tonnes of frozen poultry meat and 2 million eggs from Germany, and about 6800 tonnes of frozen poultry meat and 45 million eggs from Japan, said a CFS spokesman as quoted by Sat PR News.
|Russia doubles grain exports to Asean|
[19 January 2017] Russian grain exports to Asean doubled in 2016-17 compared to the previous agricultural year, Rosselkhoznadzor, the Federal Service for Veterinary and Phytosanitary Surveillance, said recently. “The preliminary analysis of Russian grain exports in 2016-17 has already shown a two-fold growth in volumes,” Rosselkhoznadzor said. It said Russia delivered about 587,000 tonnes of grain to the region, including 467,000 tonnes of wheat. Rosselkhoznadzor said the forecast of grain imports by Asean increased to 38 million tonnes. Russia’s Agricultural Minister Alexander Tkachev said the country is forecast to export 35 million tonnes of grain from a 2016 harvest that exceeded 119 million tonnes. In 2015, Russia harvested 104.8 million tonnes and exported 33.9 million in 2015-16.
|China in its fifth wave of H7N9 activity|
[19 January 2017] Eleven more H7N9 infections have been reported from four Chinese provinces, according to official sources, and a World Health Organization (WHO) update provided an epidemiologic snapshot of a surge in infections, which includes two case clusters. China is in its fifth wave of H7N9 activity, and earlier this month the fast pace of newly reported illnesses had already topped last season's total. According to a case list maintained by FluTrackers, 140 cases have already been reported this season, including four in Hong Kong and two in Macau.
|Indonesia to import cattle from Mexico|
[19 January 2017] Indonesia is gearing up to start importing cattle from Mexico as negotiation on a similar deal with its neighbour and largest cattle supplier Australia remains in limbo. Indonesia’s Trade Ministry is communicating with Mexico to import of 4000 cattle as soon as next month. “We have issued a recommendation for the deal and the Ministry of Trade seems to be on board with the plan. This will secure the supply of beef at least until Idul Fitri,” said I Ketut Diarmita, Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture. Indonesia will have to rely on imports to meet 40% of its demand for beef this year, which is estimated to top out at 720,225 tonnes.
|China increases punitive tariffs on US DDGS|
[19 January 2017] China has increased punitive tariffs on imports of US DDGS from levels first proposed last year. The ruling is a major victory for China’s fledgling ethanol industry, which has complained the US industry was unfairly benefiting from subsidies, and followed a year-long government probe, according to a Reuters report. In a final ruling, China’s Commerce Ministry said anti-dumping duties would range from 42.2-53.7%, up from 33.8% in its preliminary decision in September. Anti-subsidy tariffs will range from 11.2-12%, up from 10-10.7%. Shipments in October and November last year fell to 135,000 tonnes and 163,000 tonnes respectively, about a third of the total in August before the first ruling. The new rates took effect in early January, and will be in force for five years.
|Australia urges Indonesia to relax cattle import restriction|
[19 January 2017] Australia is demanding that Indonesia loosen an import restriction that requires imported cattle to weigh at least 350kg and be 30 months old when it arrives in the archipelago. The requirement limits cattle options that Australia can supply to Indonesia. Indonesia has asked in return that Australia cut the price of its cattle by around USD 0.75/kg. “Adjusting the requirement would make it easier to import from Australia. If Australia can commit to the price cut, we will relax the requirement,” said I Ketut Diarmita, Director General of Livestock and Animal Health. Trade Minister Eggartiasto Lukita had said earlier that he has been in intense communication with his Australian counterpart to close the deal.
Animal Protein in Asia 2022, Bangkok, Thailand
Onsite reports by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[18 January 2017]
On the second day of Asian Agribiz's Animal Protein in Asia 2022 conference, two stream were addressed namely 'Regional meat opportunities' and 'Developing the next big meat product'.
The economic consequences of Trump's presidency
Michael Every, Head of Financial Markets Research, Asia Pacific, Rabobank said Donald Trump's incoming administration will try for trade deals that favour the US in terms of trade balance. Mr Trump will also invest hugely in key US infrastructure, while emphasizing on products made in the US and that’s one way he can jumpstart the US economy. “All of this is going to have a huge effect on the Asia region,” he said. Although USD dominates the globe, this stance could see a tightening of trade with the US. “There could be a massive USD squeeze in every emerging market,” Mr Every added.
Considering the potential for meat products in the halal sector
The size of the market for halal-certified food was estimated at USD 415 billion in 2015, with a compounded annual growth rate of 9%. In Singapore, growth of halal food is backed by growing awareness and demand, growing Muslim middle-class, savvy consumers making a more well-informed choice in dietary requirements and government support, said Khairul Ruzaini, Business Development Manager at Umairah Halal Food. However, global halal standards remains the key challenge for the halal sector. “Unified global halal standard is still an issue and we have differing certifications from various Halal authorities,” Mr Ruzaini said. Also, integrity throughout the Halal supply chain has become a major concern for Muslim consumers, with fraudulent Halal certifications and physical contamination of food products on the rise.
Origin fingerprint to prevent food fraud
Food fraud is costly. It damages brand image from poor consumer experience, impacts reputation significantly, and costs of adulteration is between 2-15% of annual revenue. According to Todd Gordon, Marketing & New Market Development of Oritain, adding value by reducing business risk and protecting brands is important. Oritain has been developing Scientific Traceability to prove a food product’s origin using a method of traceability. Citing a case study, Mr Gordon said the company partnered with Australia’s Farm Pride to ensure that the provenance of the farm’s free range eggs is protected. “Using our technology, we tested egg samples from various free range farms and created an origin fingerprint of the eggs that represent the eggs true origin. This fingerprint reduces the risk of fraud or eggs being substituted with lower grade eggs,” he said.
Potential developments in meat processing technology
A wealthier world with a rising middle class in Asia, choosy consumers and transformative technologies are mega trends mentioned by Paul Heskens, Vice President Asia Pacific of Provisur Technologies. Provisur sees potential developments in meat processing technology in the midst of the mega trends. The company, a leading supplier of grinding, mixing, separating, forming and slicing machines, has responded to the mega trends by developing higher capacity machines with wider line, more efficient machinery, balanced flow and integrated downstream equipment. The machines are also energy efficint with technologies including VFD & servo drives, energy monitoring, adaptive power controls and waste heat recycling. In addition, the company also develops machines with less labour and enhanced food safety features.
Key trends for fresh meat in Asia
In the last three years Asian Agribiz had seen positive developments in the fresh meat sector in Asia. According to Arief Fachrudin, Editor Asian Meat Magazine: “Demand for fresh chilled meat in the region is gaining ground due to food safety awareness. We are also seeing demand for portioned cuts increasing because consumers find it simple, practical, more convenient and less time consuming for meal preparation. In line with the two trends, slaughterhouses in the region are gaining traction.” He believes in the next five years the market for chilled meat iwill grow and the region will also see more investments in supermarkets, meat shops, slaughterhouses and cold chain facilities.
Animal Protein in Asia 2022, Bangkok, Thailand
Onsite reports by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[17 January 2017]
Delegates gain knowledge on trends and online shopping at AP2022
The Animal Protein in Asia 2022 conference which opened in Bangkok, Thailand yesterday, saw delegates gaining much insight into online sales models and consumer trends. The two-day conference by Asian Agribiz and its Asian Meat magazine continues today with more presentations today on regional meat opportunities and developing the next bug meat product.
The rise of online shopping hurts traditional supermarkets
Alternative retail formats such as Amazon and Alibaba are completely outperforming traditional supermarkets, said David Hughes, Conference Director and Emeritus Professor of Food Marketing at Imperial College London. In the UK in the next 4-5 years, growth will come from online, discounters and convenience sector, not from hypermarkets and supermarkets. “Traditional supermarkets are losing market share and sales to dotcoms. I think that’s the same situation in many countries including the US,” he added. In the UK, fresh fish has seen the biggest growth in fresh & chilled subcategories in online platforms followed by a strong performance of whole head produce, while fresh poultry and game also perform well. For the future of retailing, Prof Hughes said winning retailers will be those who work out best how to operate dotcom, big and small stores, metro stores and to maximize efficiency across the value chain.
Kee Song’s B2C and B2B e-commerce platform
Known for its Mozart-listening and antibiotic-free broilers, Singapore’s Kee Song Brothers Poultry Industries has launched keesong.com to solve customer's pain points including peak hour congestion, long queues and long working hours. The e-commerce platform has offered Kee Song’s range of frozen uncooked chicken, RTC and RTE chicken and other products. James Sim, Group Marketing Manager, said the company’s website has expanded its scope from B2C (Business to Customer) to B2B (Business to Business), addressing home delivery and drawing repeat purchase through a number of promotional activities. Mr Sim said the company has used the program to analyses buying behaviour and then it can tailor its offerings to different consumer groups.
Selling perishables online using the on-demand model
Collaborative economy, which removes excessive resources and capacity, leads to an on-demand model, said Khairul Ruzaini, Partnerships and Marketing Executive of HonestBee Pte Ltd. Consumers are shifting towards on-demand services because they are looking at speed and convenience. Meanwhile, US consumers are spending USD 57.6 billion annually in the on-demand economy including online marketplace, transportation, food/grocery delivery and other services. HonestBee, Asia’s online grocery and delivery service company, partners with supermarket brands and specialty stores and crowdsource their workforce. Mr Ruzaini said the company defies the notion that for fresh items, customers would like to see and touch the items before buying. HonestBee’s business model also reduces overheads by adopting the light-asset model (no inventory) while bridging between demand and excess resources.
Launching an online sales platform for processed fish products
Sidarta Sidik, Director of Food Product Marketing, PT Central Proteina Prima Tbk (CP Prima), said Indonesia’s e-commerce is growing but it still is in the early phase and logistics and online payment are big challenges in Indonesia as only 40% of the population has bank accounts and only 4.5% have credit cards. CP Prima became the first company in Indonesia to venture into e-commerce in the frozen seafood category by launching belanjaseafood.com. The site is an online store for fiesta seafood and champ seafood and a one stop solution for frozen seafood needs. “We have to control of the delivery system because our products are quite sensitive. The company coordinates thematic promotions with its e-commerce partners.
Common strategies from four poultry giants
Leading global poultry companies, including Tyson, JBS, CPF and BRF, have common strategies including spreading the risk geographically, creating product diversity, getting closer to the consumer and moving up the value chain, said Gordon Butland, Director, G&S Agriconsultants Co Ltd. “If you have only one product or one protein and you are in one country, you have serious risks including product and disease problems,” he said. Meanwhile, although breeding companies are confident that they can deliver consistent annual improvements in feed conversion, chick numbers and yields, they cannot guarantee yet that they can eliminate the disasters of diseases such as Avian Influenza and Newcastle, Mr Butland added.
Key food trends in Southeast Asia in 2017
Functional consumption or eating for specific purposes such as health and wellness will be the top food trend in the Southeast Asian region this year, according to Arpapat Boonrod, CEO Thailand Consumer Insights of Kantar, a leading market research company. Another important trend is food on demand, this trend is linked with the digital world which is changing the food landscape in the region. Responding to this, Kantar has seen some animal protein companies in the region selling their products online. For instance, Vietnam’s Vinamilk which sell its milk products through its e-commerce platform. Last but not least, according to Ms Arpapat, consumers in the region are more curious about the impact of companies to society, the environment, food safety and local community development.
Better packaging will play a key role in meat products
Urbanisation, product segmentation, health & wellness, convenience and internet of everything are some key trends impacting animal protein consumption, especially meat, in Asia. These trends, according to Christophe Gottar, Executive Director Global Poultry of Sealed Air, also impacts the packaging sector where meat producers and retailers will focus on food safety, shelf-life extension, operational efficiency and brand building through packaging technologies. “The first thing in packaging is you need to ensure food safety. Next is shelf life where in perishable food it is responsible for over 50% of food loss,” he said. Sealed Air has been developing innovative packaging technologies for fresh red meat, poultry and seafood.
Doing business in China
Meat industry in China continues to grow. It can be said that the government intervenes in the pork industry, but the yellow and white feather and beef industries are relatively left behind. However, beyond that, food safety reform has been at the top of the country’s political agenda. Doing business in the meat industry in China, according to Arron Hoyle, Principal of Black Dragon Advisors Ltd, is about learning to unlearn or to eat or be eaten. Sharing his experience in the country, Mr Hoyle said: “We need to have liquidity or cash in the meat business. We have also to be aware of policies of the government. And don't operate where you are truly not committed or focused,” he said. He also recommends not managing the business with executives that are a ‘1000 miles away’ with no understanding of the market, and “ownership has to understand the business and let those who know it, run it.”
|China to levy five-year anti-dumping, anti-subsidy duties on US DDGS|
[16 January 2017] China’s Ministry of Commerce said it has decided to impose both anti-dumping and anti-subsidy duties on imports of US distiller's dried grains (DDGs) for five years, effective Jan 12. The anti-dumping duties are mostly set at 50.0%, with anti-subsidy duties at about 11.2%. The levies follow an investigation launched in early 2016 and preliminary rulings from September when importers were required to place deposits with Chinese customs at 33.8% and over 10.0% respectively of the import value. Data from China’s Ministry of Agriculture shows that the nation imported 3 million tonnes of DDGS in the first 11 months of 2016, down 53.2% from a year earlier.
|Indonesia releases import recommendation for more than 150k feeder cattle |
[16 January 2017] Indonesia’s Ministry of Agriculture has released a recommendation to import 155,950 heads of feeder cattle for this year. I Ketut Diarmita, Director General of Livestock & Animal Health said the imported stock is to help anticipate the surging demand of beef during Ramadhan and Eid Fitr. “We have calculated that we will need around 300,000 ready-to-slaughter cattle during the festivals,” he said. Meanwhile on local stock, Mr Diarmita said the country has 391,828 heads of ready-to-slaughter cattle for the period of January-May 2017. The figure is equivalent to 78,366 tonnes of beef.
|5 more Kenny Rogers outlets to open in Malaysia|
[16 January 2017] Berjaya Roasters (M) Sdn Bhd, a subsidiary of Berjaya Corp Bhd (BCorp), plans to open five Kenny Rogers Roasters (KRR) outlets in Klang Valley, Malaysia this year, said Deputy General Manager Esther Woo. Berjaya Roasters is the franchise holder for KRR, reported The Star. “We have seen steady increase in our customer base since September last year. Given this trend, BCorp plans to open up five outlets in the Klang Valley,” Mr Woo said after launching KRR’s new loyalty card. Diners can now enjoy more rewards with the loyalty card called Timeless Treasure KRR for their birthdays, weekly treats and several other promotions. KRR positions itself as a restaurant selling healthy rotisserie roasted chicken meals.
[16 January 2017]
Phase feeding popular for performance, profitability
Animal protein producers in the region are taking advantage of the phase feeding system on their farms. They have adopted three, four or even weekly phases for optimum performance and profitability. Somboon Watcharapongphan, Secretary, Thai Broiler Association, told Asian Agribiz that phase feeding is popular among broiler farms as it helps better performance. Broiler farms observe three phases, with the first phase focusing on protein and less on energy, and the third phase focusing on energy. His farm, Mitrthamkankased, contracted by Betagro, raises some 500,000-600,000 broilers. They reach an average of 2.7kg in 40 days, with an FCR of around 1.6.
Philippine pig farmers are slow to adopt multiphase feeding system
While phase feeding in the Philippines is more accepted on poultry farms, pigs producers are still hesitant to implement it. Nutrition consultant Amie Galban told Asian Agribiz farms still prefer the conventional method because they think phase feeding is tedious and complicated, as it would mean a change in feeds almost every two weeks. “Farm hands are usually the ones complaining about this,” she said. She added that the buildings are not designed for phase feeding systems. “Many are too big that farm workers only want to have one feed type per building. The age of the pigs inside can vary by two to three weeks. They get confused when there are different feed types in one building.”
Farmers in Indonesia need better understanding of system
Many independent farmers in Indonesia still apply only one phase, the starter feed, or two phases, pre-starter and starter. “They find it complicated. Some others said it increases their costs,” Syahrir Akil, General Manager, Bintang Sejahtera Bersama, a subsidiary of Charoen Pokphand (CP) Indonesia, said. Some farmers avoid the multiphase system because they choose to harvest early at day 28 to meet market demand for small birds. Where broiler contract farming is concerned, many companies want their farmers to apply the system. Layers generally practice pre-starter, starter, grower, pre-layer, layer 1 and layer 2 feeds, said Dr Akil, however, “it’s hard to find farmers who apply this completely”.
Fine tuning feed for better meat quality
Phase feeding is common in China. According to William Wang, Technical Sales Manager, Lallemand Animal Nutrition, a France-based manufacturer of yeast and bacteria products, as more producers venture into vertically integrated businesses, they switch their focus from feed conversion ratio to improved meat quality and food safety with phase feeding. Some producers may have more specific phases in their production. Feed millers and additives suppliers provide customised solutions for them. Fujian Sunner Group, the largest white-feather broiler integrator in China, also offers four phases for breeders, commercials and chicks. Breeders receive more protein when brooding and calcium supplement when laying.
Feedmills forge ahead with variety feed products despite challenges
Phang Yuen Fun, Technical Service for Asia, Merial, said farmers in Malaysia understand that phase feeding is profitable as it is adjusted to body weight and nutrient requirement. However, feedmills see it as a challenge. One of the bigger challenges is at the feedmill. Broilers start with crumble and move on to pellets. In the intermediate stage, however, the short pellet is introduced. “Producing the short pellet can take up a whole production cycle in their plant, resulting in some losses in productivity, but they do it anyway because there is demand from farmers,” said Dr Phang. “Farmers can see consumption and good daily weight gain, and are willing to pay extra for the product.”
|Sri Lanka’s Pussalla modernises to maintain top spot|
[13 January 2017] Pussalla Meat Producers Pvt Ltd produced 170,000 parent DOC for the local market and 180,000 for export last year. “We hope to increase our total breeder DOC production to 450,000 chicks this year,” Managing Director Dilshan Wewita told Asian Agribiz. It will soon complete its hatchery expansion, enabling it to produce up to 3 million broiler DOC by Q1 2017. “To support this we have already completed two new all-in all-out grower farms and a new laying unit,” he said. Pussalla has eight PS farms for both growers and layers, totalling 300,000 birds, and producing 3 million DOC/month, making it the market leader in the country. The company also rears 16,000 D-line grandparents.
|Thai Union sets up wholly owned subsidiary in China|
[13 January 2017] Thai Union Manufacturing has divested 50% of its shares in Century (Shanghai) Trading to Century Pacific Food Inc and received USD 623,594 in December 2016. After selling the shares, TU set up a wholly owned subsidiary, Tai Wan Sheng Aquatic Trading (China), which will import and sell TU’s complete portfolio of seafood brands and products in China. It will also develop new products as required by the Chinese market. TU said that its new subsidiary will “participate in growing the market for frozen, chilled and premium ambient seafood and will develop an organic presence in China.” It will also build a platform for growth and help the company reach its long-term revenue target of USD 8 billion by 2020.
|Monsanto Indonesia targets 7000t of corn seed production|
[13 January 2017] Monsanto Indonesia targets to produce 7000 tonnes of corn seed this year. Of the figure, 5000 tonnes will be for the domestic market, while the rest is scheduled for export to the Philippines and Vietnam. Ganesh Pamugar Satyagraha, President Director said weather anomaly will persist this year, but the company is optimistic that its corn seed production and sales for domestic market will be much better than last year. Monsanto Indonesia produces different types of hybrid corn seeds, as well as biotech corn seeds. Last year the company targeted to produce 1000 tonnes of biotech corn seeds.
|China reports more cases of H7N9 avian flu|
[13 January 2017] China reported four new human cases of H7N9 avian influenza, including one in a child from Hong Kong who had recently travelled to Guangdong province. On Wednesday, the Shanghai Municipal Health and Family Planning Commission said a 50 year-old man was being treated for H7N9 infection, while a Chinese media report said there was a new case of the disease in a 41 year-old man from the city of Foshan in Guangdong province. The Food and Agriculture Organisation revealed that since 2013, there have been 931 cases and 355 deaths from avian flu. Since January 4, there have been 106 cases reported. The update said that poultry markets in Jiangsu province reported a high contamination rate in December, with 15.79% of environmental specimens testing positive for H7.
|Multivac acquires 49.9% share of TVI|
[13 January 2017] Multivac has acquired a 49.9% share in TVI, the market leader in meat-portioning machines and complete portioning lines. By acquiring the share, Multivac is taking a strategically important step in being able to offer in future complete production lines from one source. In future TVI will use Multivac's strong sales and service network and thereby develop new sales markets. TVI and Multivac are convinced that they can be even better partners to their mutual customers. Particular focus will be placed on driving forward the integration and linking of TVI's products and Multivac's packaging machines into complete lines with the highest possible level of automation, efficiency and machine availability.
|Thailand’s pork prices expected to increase slightly in Q1 |
[12 January 2017] Farmgate price of live pigs is expected to rise marginally to USD 1.66-1.82/kg in Q1 in Thailand, compared to USD 1.54-1.74/kg in Q4 of last year, thanks in part to government measures to spur consumer spending, Surachai Sutthitham, President of the Swine Raisers Association of Thailand, told Asian Agribiz. Pork prices have been on a downward trajectory in the second half of 2016 due to oversupply of pork and slowing consumer demand amid low agricultural prices. Some pig farmers also decided to postpone raising pigs last year in the face of continued lower pork prices, Mr Surachai added. “Thailand will see a slight oversupply of pork in Q1 this year and pork consumption will grow slightly or will be stable,” he said. Meanwhile, the association is finding ways to export more live pigs to southern China and Cambodia, Mr Surachai said.
|Vietnam seeks official pig trade with China |
[12 January 2017] With the downtrend in live pig prices in Vietnam due to oversupply that allegedly resulted after Chinese traders stopped buying pigs from Vietnam. The Ministry of Industry and Trade, in cooperation with the Ministry of Agriculture and Rural Development (MARD), has proposed a visit to China to negotiate with their counterparts so that Vietnam can officially export pork to China. MARD Minister Nguyen Xuan Cuong said that if an agreement can be signed, Vietnam can legally export some 1-1.5 million tonnes of pork to the country. Vietnam’s Department of Livestock Production said that in 2016, the country shipped some 600,000 tonnes of live pigs illegally to China.
|Indonesia records decreased fishmeal imports|
[12 January 2017] Indonesia’s Ministry of Fisheries & Marine Affairs has announced that fishmeal imports from January-September 2016 was only 4.1 million tonnes, which is far below the 29.9 million tonnes during the same period a year earlier. Slamet Soebjakto, Director General of Aquaculture said: “Our program to combat illegal fishing has been successful so far. We have a huge supply of raw material for fishmeal.” Mr Soebjakto also said that during the period, independent fish feed production by farmer groups reached 1.1 million tonnes, over 966,137 tonnes a year earlier.
[12 January 2017]
Wet markets remain the norm, but processing is growing in Asia
Although wet markets remain the norm in most Asian countries, there is a significant growth in modern retail trade in Asia, signalling a growing market for primary and further processing. Still, most Asians still prefer to shop in wet markets, even in urban areas where supermarkets and meat shops are on the rise. The Asian Agribiz team sought out why.
Serving different segments
In Thailand and Indonesia, supermarkets and wet markets serve different market segments, thus modern trade has not had much effect on meat sales in traditional markets. Tongchai Louharuangchaiyos, owner of Jae Kim pork shop at Bangkok’s Yingcharoen market told Asian Agribiz his buyers are mostly retail merchants, who buy pork and cook it for sale. On the other hand, modern retail trade targets mostly individual consumers, who buy pork for their own consumption. Similarly in Bali, the biggest pork market in Indonesia, the expansion of supermarket chains do not have much impact on pork sellers in wet markets, whose buyers are made up mostly of caterers and people who runs food stalls.
Although wet markets still dominate in most Asian markets, retailers there understand the growing competition from modern retail, and they are adjusting by offering more products and services. In addition to fresh pork, it is common to find value added products like ready to cook marinated meats, sausages and cured meats in wet markets today. Others now offer additional butchering services and serve cut ups and portions. Wet market vendors are also increasingly focusing on product quality. In Kunming, China for example, Zhou Xiaoli has turned to getting her pork from a modern slaughterhouse that results in better meat in terms of appearance and texture. Since free-range pigs are normally the native breeds with black hair, some retailers keep a little hair on the skin of pork to demonstrate that their products are ‘premium.’
Warm meat still preferred over chilled
Notwithstanding the growing calls for food safety, many Asian consumers continue to prefer ‘warm’ meat over chilled and frozen meat, and this is true especially of pork meat. Leonardo Manrique, who runs a meat stall in a wet market in Quezon City, Philippines, told Asian Agribiz that many consumers still believe that ‘warm’ fresh meat sold in wet markets is ‘fresher’ than chilled and frozen meat, which many think has been slaughtered and stored for some time before being sold. Nevertheless, as calls for food safety gain ground, some wet markets and even vendors are now installing storage facilities like freezers to help minimise meat spoilage. Mr Manrique noted however that most vendors sell the meat they have daily.
Lower prices continue to draw consumers
The cost factor is why many Asian consumers still buy their meat from wet markets. According to Leonardo Manrique, meat prices at supermarkets is normally 25-50% higher, and sometimes even more, than in wet markets. “That is a significant amount,” he told Asian Agribiz. Romeo Alfonso, a pig producer and pork seller in Ubud, Bali, Indonesia said consumers prefer to buy at wet markets because they can bargain on the prices. Meanwhile, wet market consumers prefer to touch and smell the meat they buy and they can do this is wet markets, Zhou Xiaoli, owner of a free-range pork stall in the largest wet market in Kunming, China told Asian Agribiz. In markets like Vietnam, where many consumers still shop for their food daily, wet markets remain the shop of choice.
|Singapore allows more frozen chicken exports from Thailand |
[11 January 2017] Singapore's Agri-Food and Veterinary Authority has allowed 20 Thai chicken factories to export frozen chicken to the island republic. Anan Sirimongkolkasem, President of Thai Broiler Processing Exporters Association, said the new permission reflects growing confidence in Thai poultry standards. Meanwhile, Gen Chatchai Sarikulya, Minister of Agriculture and Cooperatives said Thailand is expected to export at least 5,000 tonnes of frozen chicken to Singapore in 2017, valued at USD 11.2 million. Thailand exported 16,000 tonnes of livestock products to the island republic in 2016, including cooked chicken meat and chilled and frozen chicken. In all, Thailand is projected to export 750,000 tonnes of chicken meat in 2017, valued at USD 2.69 billion.
|Indonesia’s Ag Ministry says no corn imports in 2017|
[11 January 2017] Indonesia’s Agriculture Ministry will stop corn imports this year. Triastuti Andajani, Head of Feed Ingredients of the Directorate General of Livestock & Animal Health said to meet demand for animal feed, the ministry will increase the corn planting area in the country by as much as 2 million ha, and partner with feed millers to absorb all the harvest. The Indonesian Feed Producer Association estimated animal feed consumption this year to reach 18.5 million tonnes. “We need around 9.25 million tonnes of corn for feed. Home-mixers need around 3.6 million tonnes. So the total is around 1.1 million tonnes per month,” Ms Andajani explained. Last year corn imports dropped to 884,679 tonnes, or a 68% decrease from 2015.
|CITIC takes controlling stake in McDonald's China and Hong Kong franchises|
[11 January 2017] CITIC Ltd, CITIC Capital Holdings, The Carlyle Group and McDonald's Corp have formed a new company that will act as the master franchisee for McDonald's in mainland China and Hong Kong for 20 years. The newco will acquire the business for USD 2.08 billion, giving CITIC and CITIC Capital, units of China's state-owned conglomerate CITIC Group, a controlling stake of 52% in the entity, with Carlyle and McDonald's taking 28% and 20%, respectively. The deal is expected to close in mid-2017, when McDonald's will have more than 1750 company-owned stores in China and Hong Kong refranchised. It currently has 2640 restaurants in the region, and the new franchisee intends to add more than 1500 outlets over the next five years.
|Financial toll from outbreak of bird flu in Korea reaches USD30m|
[11 January 2017] South Korea said the financial toll from the slaughtering of more than 30 million birds nationwide since November from the worst-ever bird flu outbreak is almost USD 830 million. Until the first week of January, the culled count came to 30 million, including 25.82 million chickens and 2.33 million ducks, the Agricultural Ministry said. That represents 18.3% of the total poultry raised domestically. The number of culled layers reached 32.1% of the total, causing the price of eggs to rise sharply. Early December, the price for a 30-egg pack reached USD 4.78, surpassing the five-year average price of USD 4.75 for the first time. Eggs have become a rarity and any left on the shelf is sold at USD 7.05.
|Carabeef commands high price in Indonesia|
[11 January 2017] Carabeef or buffalo meat imported from India is set to be sold in markets in Greater Jakarta in Indonesia for USD 4.87-5.25 per kg. However, the meat is being sold by meat sellers at around USD 6.00-7.50 per kg. “This should not happen,” said Amran Sulaiman, Agriculture Minister. “We imported the meat to offer a cheaper meat alternative.” Aan, a meat seller in Senen market in Central Jakarta said that he sells carabeef at USD 6.45 per kg if it is fat-free. “We can sell the meat at USD 4.87 per kg, but consumers don't want to buy it as the fat is still included. That’s why we separate the fat, sell the lean meat at a better price and sell the fat at USD 1.50 per kg,” Mr Aan said.
|Cambodia cautious over bird flu|
[11 January 2017] Cambodia’s Health Ministry urged people to be vigilant over H5N6, H7N9 and H5N1 avian influenza viruses in light of recent outbreaks in some Asian countries, China’s Xinhua news agency reported. “Currently, H5N6 and H7N9 avian influenza viruses have not been found in Cambodia, but the country had detected 56 cases of H5N1 virus that left 37 people dead between 2005 and 2014,” the Ministry said in a statement. The ministry said travellers to areas affected by avian flu viruses should avoid poultry farms, contact with animals in live-bird markets, poultry-slaughtering areas, and contact with surfaces that appear to be contaminated with bird or other animal faeces.
|Indonesia regulates broiler supply & demand|
[10 January 2017] Indonesia’s Agriculture Ministry has released the revision of the regulation of chicken supply, distribution and monitoring, which is expected to protect independent farmers from unfair competition. Local production of breeding and commercial chicken and imports of breeding stock will be calculated based on the national production plan. Of the total commercial broiler DOC production, 50% has to be allocated for independent producers/farmers. The quality of the DOC has to be certified by a product certification agency (LSPro) appointed by the Agriculture Ministry. Finally, a producer of more than 300,000 birds/week has to set up a processing plant and a cold chain facility. Sigit Prabowo, Chairman of the National Poultry Farmers Association (PPUN) said: “We appreciate the revised regulation and we will monitor the implementation.”
|Sri Lanka to produce 88% of broiler parent production in 2016|
[10 January 2017] Sri Lanka is working towards self-sufficiency in broiler parent production. Last year the country expected to supply 88% of the total parent bird requirement, up three percentage points from the year before. Parent imports, meanwhile, dropped 22% between 2014 and 2015 to 176,674. This was expected to further drop to 144,181 in 2016, according to estimates from the Department of Animal Production and Health. In addition to this, the island is HPAI-free, a pre-requisite for exporting live birds. Broiler DOC exports jumped 120% from 2014 to 330,000 in 2015. A spokesperson from the department told Asian Agribiz that its 2016 poultry sector report is due in March 2017.
|Guangdong Wens 2016 pig sales up 38%|
[10 January 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said it sold 17.13 million finisher pigs valued at USD 5.26 billion in 2016, up 11.57% and 37.74%, respectively, from a year earlier. Average sales price stood at USD 2.67/kg during the year, up 20.26%. In December alone, the average price was USD 2.45/kg, up 2.49% from the previous month and ending a consecutive decline from June. Wens targets to produce 27.50 million pigs a year by 2019.
|Competition in Thailand’s retail food business to remain intense|
[10 January 2017] Over the past decade, Thailand’s retail food sector has been one of the fastest-growing in the world and this sector has diverse store layouts ranging from wet markets to hypermarkets. In 2015, total food retail sales from organised retail chain stores reached USD 52.56 billion or 62.3% of total retail sales, according to the USDA GAIN report. Convenience stores showed the biggest number of outlets (13,322) followed by supermarkets (463) and supercentre/ hypermarkets (376). Meanwhile, competition in the retail food business is expected to remain intense. Most investments will aim to improve and modernize existing stores, as well as develop store formats that are suited for urban areas and consumer preferences.
|Indonesia’s Ag Ministry to promote Bali Beef|
[10 January 2017] Indonesia’s Agriculture Ministry through its Directorate General of Livestock & Animal Health has said that it plans to promote premium beef from Bali cattle with the Bali Beef brand, starting 2017. I Ketut Diarmita, Director General of the directorate said: “We want to add value, so Bali cattle farmers will get better profits. In this program, the farmers will no longer sell live cattle, but we will support them in selling fresh meat.” Mr Diarmita said the directorate has identified that Bali cattle is a promising livestock to be developed further as the animal is well adapted to the local climate, is easy to breed, and produce quality meat. Based on the directorate data, there are 553,582 heads of Bali cattle currently in Bali province.
|Provimi launches Cinergy in Vietnam for antibiotic-free farming|
[10 January 2017] Provimi Vietnam Co Ltd recently organised its first international dialogue on antibiotic growth promoters in Vietnam. It also introduced the herbal additive Cinergy as a solution for antibiotic-free livestock farming. Cinergy increases feed intake, and decreases diarrhoea and mortality in farmed animals. “The results of tests and experiments on Cinergy showed that there’s a decrease in diarrhoea and general medical treatment in farmed animals in the absence of antibiotics,” said Chê´ Minh Tu'ng, head of Poultry Husbandry, Nong Lam University. Provimi’s laboratory in Vietnam is working with Vietnamese authorities to control antibiotic residue in feed and meat products, and supplying antibiotic-free solutions and alternatives for the Vietnam market.
|De Heus Vietnam hits milestone of 1m tonnes in feed production|
[09 January 2017] Royal De Heus reached a milestone in Vietnam after producing and delivering 1 million tonnes of feed last December. “We may not be the first, but we definitely reached the 1-million mark the quickest in Vietnam,” Gabor Fluit, De Heus Asia’s Business Group Director, told Asian Agribiz. De Heus has maintained an impressive growth in Vietnam in the last seven years with seven feedmills, 1200 employees, experts and terminal storage across the country. “We almost topped our capacity every year in the last five years. That’s why we built and opened one plant yearly. The years 2015 and 2016 are exceptional as we opened two plants per year,” said Marketing Manager Gideon Hung.
|DA to link local corn farmers with Vitarich|
[09 January 2017] The Department of Agriculture's (DA) regional field office in Davao City is working to link local corn farmers directly with Vitarich Corporation to supply corn for its new poultry feedmill in the city that is targeted to be operational by Q3 this year, said a report by Business World. Under the agreement that is currently being hammered out between the DA and Vitarich, the former will serve as a consolidator of corn produced by local farmers who will initially be under contract to sell half of their produce at a premium price to Vitarich. Mr Oñate is hopeful that such agreements will eventually eliminate middlemen and allow farmers to make better profits from their produce. He said his office is looking to forge similar agreements with other agribusiness companies.
|KFC Indonesia to open more outlets in eastern Indonesia|
[09 January 2017] Fast Food Indonesia, the operator of KFC in Indonesia, targets its income in 2017 to increase 10% to USD 402 million. To achieve this target, Fast Food will open 30 new outlets mostly the free-standing type, and 20 KFC Box outlets. “We will open the outlets in new and existing cities, but most of the new outlets will be in eastern Indonesia,” said Justinus D Juwono, Director. “In 2017 we will allocate a capex of USD 26 million to open the new outlets, expand distribution, add new distribution vehicle, and renovate 45 5-year old existing outlets.” Currently Fast Food operates 559 outlets throughout the country. For its 2016 financial performance, the company is optimistic to book an income of USD 365 million, a 7.8% increase from the previous year.
|Wens sees less fluctuation in China’s pig production|
[09 January 2017] There will be less fluctuation in China’s pig production due to higher thresholds of the sector amid environmental protection, said Guangdong Wens Foodstuff Group, China’s largest pig producer. “The so-called Pig Cycle is mainly due to backyard farms’ fast-in and fast-out system, but now it’s not easy for them to do that with higher thresholds of environmental protection,” Board Secretary Mei Jinfang told investors during a road show. The higher thresholds will keep the sow and pig stocks low, thus maintaining the pig prices at a good and stable level. “It’s a good opportunity for us,” Mr Mei said. According to him, Wens’ pig production will see an average annual growth of about 15%.
|Indonesia to increase seabass production|
[09 January 2017] Indonesia’s Fisheries & Marine Affairs plans to build three offshore aquaculture facilities in 2017 to produce an additional 1500 tonnes of seabass annually. Slamet Soebjakto, Director General of Aquaculture said the facilities will be built in Sabang of Aceh, Karimun Jawa of Central Java and the southern coast of Java between Cilacap and Pangandaran, with a total investment of USD 10.5 million. “The investment will cover automatic feeder machines, fish nets and costs of establishing floating bases and docks which will be adopted from the Norwegian model,” he said. The facilities will be jointly operated by Indonesia’s state-owned fishery company PT Perikanan Indonesia and local fishermen associations.
|India’s Odisha culls poultry over AI outbreak|
[09 January 2017] An eastern Indian state has ordered the culling of more than 2500 chickens and other poultry after four dead crows and three dead poultry tested positive for the highly pathogenic H5N1 virus. The avian influenza (AI) virus was confirmed at Keranga village, about 35km from Bhubaneswar, the capital of Odisha state, days after dozens of crows and chickens were found dead. More than 30,000 birds were culled in a similar outbreak in the region in 2012. “We have issued an advisory to follow immediate measures to complete culling operations, surveillance and sanitization in the infected area,” said Bishnupada Sethi, Commissioner-cum-Secretary of the state’s Fisheries and Animal Resources Development Department as quoted by Reuters.
|Sri Lanka’s Pussalla aims to be hub for producing, exporting parent DOC|
[06 January 2017] Pussalla Meat Producers Pvt Ltd, which raises the Hubbard breed, operates the largest grandparent farm in Sri Lanka. It started exporting parent stock in 2015. By 2016 the company was able to export half its production to south Asian countries, such as Bangladesh, Myanmar and Nepal. “Sri Lanka is disease free. We took that opportunity to export our products,” Chairman Philip Wewita told Asian Agribiz. Pussalla is in talks with Hubbard to make Sri Lanka its hub for producing and exporting parent DOC. This will reduce production costs for importers. “The African market is opening up too. Ghana and Zimbabwe are likley to be our new markets,” son Dilshan said.
|Thailand approves three-year, tariff-free soybean import plan|
[06 January 2017] The Thai government has approved an unlimited soybean import quota with zero tariff for a period of three years (2017-2019). Natthaphorn Jatusriphithak, Advisor to the Commerce Minister, said that the plan has been approved within the framework of the World Trade Organization and soybean imports will be managed on an annual basis. Despite the approved policy, soybean importers are still required to purchase domestic soybean at government determined prices. Importers have to buy domestic soybean at USD 0.43 per kg plus USD 0.06 for the purpose of vegetable oil production, USD 0.44 per kg plus USD 0.06 for animal feed production and USD 0.50 per kg plus USD 0.06 for food production. Thailand produces around 50,000-60,000 tonnes of soybean a year, representing only 2% of the annual soybean demand of almost 3 million tonnes.
|QL Trimitra ventures into food truck business|
[06 January 2017] In 2016 QL Trimitra, a joint-venture company between Malaysia’s QL Resource Bhd and Indonesia’s CV Trimitra, ventured into the food truck business. It has four trucks popular hangouts in Greater Jakarta. It is also actively involved in sales activities conducted by the Indonesian Food Truck Club. Carrying the QQ brand name, the trucks offer ready-to-eat products namely chicken slices, balls, satay, and tulip (made of chicken wings). “At an event in Jakarta in 2016, our food truck was recognised as the best performer by a renowned banking company, confirming that our chicken-based products are well received by consumers,” Cecep Muhammad Wahyudin, QL Group Indonesia Director told Asian Agribiz.
|San Miguel Pure Foods confirms USD 1.5 billion expansion|
[06 January 2017] San Miguel Pure Foods Co Inc (SMPFC), in a disclosure to the Philippine Stock Exchange, confirmed a report by the Philippine Daily Inquirer that it will spend some USD 1.5 billion until 2018 to expand its traditional food business due to growing demand. The bulk of its capital expenditure will be spent on increasing capacities and will include the construction of meat processing plants in Cavite in Luzon, Cagayan de Oro in Mindanao and Cebu in the Visayas, which will produce hotdogs, chicken nuggets and other processed meat products. SMPFC also said that it is currently in discussions with Hormel Foods on business growth opportunities for the Spam brand.
|Shanghai Maling to spin off feed, domestic cattle farming businesses|
[06 January 2017] Chinese food operator Shanghai Maling Aquarius Co said it will sell seven units to two sister companies, so as to exit the feed business and domestic cattle farming operations. Maling is a meat subsidiary of China’s state-owned food and drink conglomerate Bright Foods. In early December, the company completed the acquisition of a 50% stake in New Zealand’s meat processor Silver Fern Farms for more than USD 180 million. “The spin-offs will help develop our core businesses, namely the focus on branded beef sales, the acquisition of overseas cattle resources and the development of a pork value chain,” Maling said.
|Australia’s live cattle exports to Indonesia back to normal|
[06 January 2017] Live cattle exports to Indonesia has “normalised” after disruptions from changes in import policy. According to the latest LiveLink report published by LiveCorp and Meat and Livestock Australia, feeder and slaughter cattle exports increased in November with 67,000 cattle shipped to Indonesia. An additional 20,000 cattle were expected to be exported to Indonesia in December, meaning total exports to Indonesia for 2016 would reach 555,000 cattle, a 10% drop on 2015's number. “High cattle prices had been a welcome outcome for our partners in the production sector, but it has also affected profitability in the supply chain and seriously compromised the affordability of Australian beef for consumers in countries including Indonesia,” the Weekly Times quoted Simon Westaway, Australian Livestock Exporters’ Council Chief Executive.
|CPF to spend USD51.5m to buy stake in Poland’s SuperDrob|
[05 January 2017] Thailand’s Charoen Pokphand Foods (CPF) said it will spend around USD 51.5 million to acquire a 33% stake in SuperDrob Zaklady Drobiarsko – Miesne S.A. (SuperDrob), a leading agro and food company in Poland. CPF signed a preliminary share subscription agreement with SuperDrob and preliminary share purchase agreement with its existing shareholders on December 30. SuperDrob's main products registered as fresh poultry, flavored poultry, as well as sausages and ham under its own brand. Its clients include wholesalers, retailers, hotels, and restaurants both in Poland and foreign countries including the UK, France and China. Adirek Sripratak, CEO of CPF, said this transaction “will mark the first step of CPF in poultry operations in the European country.”
|Iran exports USD810m worth of livestock, poultry products|
[05 January 2017] Iran’s Deputy Agriculture Minister, Hassan Rokni said livestock and poultry products worth USD 810 million were exported from Iran in the first eight months of the current Iranian year which began March 20, 2016. Mr Rokni said around 51,000 tonnes of poultry meat and offal (liver and gizzard) and 477,000 tonnes of milk were exported during the period. “The volume of poultry exports was higher than the same period in 2015. Meanwhile, milk exports also increased by 3%," he told Mehr News Agency. However, Mr Rokni said egg exports declined due to challenges caused by avian influenza. “Egg exports plunged from 54,000 tonnes to 37,136 tonnes.”
|Bestworld Perkasa to expand product range|
[05 January 2017] Bestworld Perkasa, a subsidiary of Malaysia-based Bestworld, has been growing as a reliable meat processing equipment supplier in Indonesia. Elwein Ng, Managing Director told Asian Agribiz in Jakarta that the company enjoys a good market share. “We can supply complete lines for our customers. In addition, customers who buy our machines will get free consultation,” he said, adding that the other boost for the company is that many Indonesian meat processors are now looking for Asian-made machines. On business expansion, Mr Ng revealed that the company wants to expand its business to seafood processing and cold chain equipment. The company also plans to develop its market share in plastic casings for sausages, packaging and printing for packaging.
|China reports more H7N9 avian flu cases|
[05 January 2017] Two of China's provinces reported two new H7N9 avian flu cases over the past few days, raising the number of infections in the fifth wave of disease activity to 21. On January 1 the government media reported a case in Guizhou province in south-central China. The second case was reported in Jiangxi province in south-eastern China. The new cases lift the overall global total from H7N9 since it was first detected in humans in 2013 to 829, according to a case list kept by FluTrackers.
|Indonesia misses aquaculture production target due to rainy season|
[05 January 2017] Indonesia’s Ministry of Fisheries & Marina Affairs has said that aquaculture output in 2016 will only reach around 15.8 million tonnes, missing the target to produce 19.46 million tonnes. Slamet Soebjakto, Director General of Aquaculture said the rainy season which affected temperature and pH of aqua farms was the main reason. “We expect the condition in 2017 to improve. So in 2017 we target the production of aquaculture to reach 21.9 million tonnes, with shrimp as the main commodity,” said Mr Soebjakto, adding that many investors will invest in the shrimp farming sector.
|QL Trimitra plans production of RTE, RTC products in 2017 |
[04 January 2017] QL Trimitra, the joint-venture company between Malaysia’s QL Resource Bhd and Indonesia’s CV Trimitra, which has an integrated broiler business in Indonesia, aims to be a main player in the chicken-based food industry. “We are now restructuring our internal team. We also recruited more people with background and experience in the food industry,” Cecep Muhammad Wahyudin, QL Group Indonesia Director told Asian Agribiz. He revealed that its r&d team started product (ready-to-eat/RTE & ready-to-cook/RTC products) development in early 2016. “We plan to start mass-production in 2017, targeting modern and traditional markets in the country.”
|Ynsect is upbeat about Asia’s market for insect feed|
[04 January 2017] While insect protein could make its way into aquafeed by July 2017 in Europe, one French-based producer of the ingredient, Ynsect, is optimistic it could take off in Asia too. “Shrimp production is big in Asia. We have good results on growth and health of shrimp and tilapia fed with our product. We are convinced the market in Asia for insect protein in aquafeed will be huge,” Chairman and CEO Antoine Hubert told Asian Agribiz. Last year Ynsect exported to Asia a batch of tenebrio molitor protein, or TMP, a de-fatted protein meal made of mealworm larvae. “We are progressing well with discussions with leading companies in the region [in order to export] larger volumes of TMP,” he said.
|CJ Indonesia to integrate its poultry business |
[04 January 2017] There is no guarantee that the poultry and feed industries in Indonesia in 2017 will better than in 2016, Tevi Melviana, Sales & Marketing GM of CJ Feed Indonesia told Asian Agribiz. He said the government will continue to push inflation below 4%, which means the profit margin will be thin. Besides, associations in the industries will be very carefull to conduct meetings to avoid cartel accusation by the Business Competition Watchdog Agency (KPPU). "All the conditions will push industry players to vertically integrate their businesses. We, CJ, will also progress with integration. Currently we already have poultry breeding, feed and primary processing businesses. In the near future, our Food Business Unit will also expand in Indonesia," said Mr Melviana.
|Live pig price in Vietnam plunges to two-year low|
[04 January 2017] Price of live pigs in Dong Nai province, the hub of pig production in Vietnam, has plunged to a two-year low of USD 1.45/kg on the back of an oversupply of pigs, which the province’s producers are now in a rush to unload. “Dong Nai's swine herd is now at 1.8 million heads, up 38% from 1.3 million in the same period last year, leading to an oversupply situation that has dragged prices down, said Dong Nai Livestock Association Chariman Nguyen Tri Cong. The current price is below the average production cost of USD 1.72/kg. Industry players say the market shows no sign of recovery and has warned of an industry collapse if the present trend continues.
|Telangana wants more support for poultry industry|
[04 January 2017] India’s Telangana government has pledged to fight for agriculture status for the poultry industry. E Rajender, the State Finance Minister said the Telangana government had written to the central government to recognise the poultry business as part of agriculture. “This will establish more support from the government, especially in times of crisis,” he said. “When the GST comes into force in April, we want zero tax for poultry items. We are talking to finance ministers of other states and seeking their support for this demand,” he told The Hindu.
Meat trends to watch in 2017
[03 January 2017]
The Asian Agribiz team found some interesting developments within the meat sector in 2016 and these are bound to flourish in 2017. The upscaling of meat consumption we found, are mainly driven by a change in lifestyle as a result of urbanisation and higher incomes. Some of our findings are listed below.
Prepacked, branded meat make headway in Asia
Consumers are becoming more accepting of chilled and frozen meat, but at different paces in various countries. While some consumers have embraced prepacked, precut and preweighed meat, others continue to cherry-pick. In mature Asian markets, prepacked chilled and frozen meat have been making progress. In Japan, South Korea, Singapore, Hong Kong, Malaysia, Thailand, Indonesia, and China, it is typical to see chilled and frozen meat sold prepacked in supermarkets and meat shops. While this is mostly true in urban centres, better cold chain logistics have made these value-added products available even in areas outside of cities.
Demand for portioned cuts picks up in Asia
The demand for portioned cuts in Asia is on the rise, driven by growing incomes and changing lifestyles. In response to this retailers have come up with a variety of cuts to satisfy their customers. Driven by greater awareness for food safety, growing incomes, and changing lifestyles and family size, Asian consumers’ preferences, particularly those in urban areas, continue to evolve. There is now a clear trend towards portioned meat cuts to meet consumers’ convenience and cooking preferences.
Asian producers focusing more on packaging
Ready to eat (RTE) products in Asia is where taste, convenience and technology meet to provide quick and hassle free meals. While making strides in ensuring quality meals, the industry is also driving changes on the packaging front for more attractive, safer and cost effective products. Consumers across Asia, we learnt, purchase RTE meals on a regular basis. The packaging side of the business, is driven by the needs of the industry. A longer shelf life, wastage along the food chain, keeping food fresher and keeping off preservatives have pushed producers to learn the latest in packaging technology, material and processes.
Lifestyle changes transform cured meat sector
Like manufacturers of other processed meat products, cured meat producers in Asia are eager to stay updated with current market trends. Changing lifestyles across Asia has pushed for innovation in almost all aspects of the sector. Asian cured products are traditional delicacies. Yet consumers demand that the products move with the times while retaining their unique flavours and sentiments. Health reasons and changing lifestyles have propelled changes in the sector, and producers in the region have responded by using better quality raw materials and cutting back on salt and preservatives.
Innovation leads value-added seafood category to big gains
Asian consumers are looking to seafood as an alternative protein source but they demand convenient, healthy and delicious products. The value-added seafood industry across Asia continues to grow, backed by lifestyle changes, a growing middle class and consumers who are health conscious. In Indonesia the industry is expected to develop significantly in coming years. In the last three years, the industry grew at around 10% year-on-year.
Producers satisfy epicurean cravings with premium sausages
Generally regarded as healthier and leaner, the demand for premium sausages is expanding in Asia as upscale restaurants flourish and consumers cultivate expensive tastes. Producers of premium sausages are not cutting back when it comes to ingredients and cuts of meat. Today choice meat cuts and a blend of tasty ingredients have created what is called premium, or gourmet sausages.
|The future of TPP to be addressed at AP2022|
[30 December 2016] At Asian Agribiz's Animal Protein in Asia 2022 conference in Bangkok, Thailand this January, Michael Every, Head of Financial Markets Research for Rabobank in Hong Kong will assess whether the US-centric TPP will exit and the China-centric RCEP replace it. Is the trade argument too focused on the US and Europe and can CNY fill any USD gap in Asia? The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Access the complete program, speaker profile and register here.
|Indonesian consumers opt for chicken, mutton during festive season|
[30 December 2016] Indonesia’s soaring beef prices have led consumers to shift to chicken meat and mutton during the festive season. “The price of beef remains high at USD 9.13 per kg,” said Abdullah Mansuri, Chairman of the Indonesian Market Traders Association (Ikappi). Chicken meat and mutton are priced at USD 2.45 and USD 8.54 per kg, respectively. “Usually, the prices of beef and chicken meat drop after Christmas, but it will rise again at the beginning of the year. That’s the annual price cycle,” Mr Mansuri said. Previously, the Trade Ministry facilitated a beef distribution cooperation agreement between the State Logistics Agency (Bulog) and the Indonesian Meat Distributors Association (ADDI). The cooperation was made to ensure that beef prices do not exceed the government’s upper price ceiling of USD 5.95 per kg.
|Lay Hong aims to grow its food producing segment with Japan jv|
[30 December 2016] Malaysian integrator Lay Hong Bhd will position itself as a food producer as it produces more innovative and healthy products. It hopes to achieve this with its joint venture with Japan’s NH Foods Ltd. Group Executive Director Yap Chor How said its new processing plant, expected to be operational in 2018, will feature Japan’s quality control and food safety standards, The Star reported. “Our market share for processed food and ready-to-eat food segment is expected to hit above 10% after 2018 from around 6% at present,” he said. Lay Hong recently launched five frozen products under brandname Nippon Premium NutriPlus, namely Chicken Karaage, Chiki-Chiki Bone, Amakaraage, Tebamoto Amakaraage and Chicken Menchi Katsu.
|Vietnam approves grant package for high-tech farming|
[30 December 2016] Numerous technical, financial and regulation support from the Vietnamese government has helped shrimp farmers in the country. At a conference, Prime Minister Nguyen Xuan Phuc approved a grant package of around USD 2.5 billion for high-tech farming with the most favourable and open lending mechanisms. Nguyen Hoang Anh, Permanent Vice Chairman of the Digital Agriculture Association said Vietnam has visible advantages for strong growth in the shrimp sector, which brings in USD 3-4 billion per year in export value. However, “we haven’t reached full capacity due to some constraints including spontaneous small-scale stocking habit,” he said. With land use transformation to shrimp farming in some strategic areas, especially seawater-intruded areas in the Mekong Delta, Mr Anh said: “We can possibly increase the total shrimp farming area to 2 million ha from the existing 600,000ha.”
|New Zealand can provide halal meat know-how to Japan|
[30 December 2016] New Zealand is known for an economy dependent on agriculture, but it is also a leading exporter of halal meat to Muslim countries including Indonesia. However, the growing demand for halal-compliant foods surpasses New Zealand’s supply capability, and the country is looking to partner with others to promote the business. Bruce Baillie, Alliance Leader for Food Supply and Services at Pricewaterhouse Coopers suggested that New Zealand could provide know-how to Japan. “Japan has the potential to be a major supplier of halal products. Japan, like New Zealand, is a small country and exporting high-value-added products will be crucial to grow its economy,” said Mr Baillie as quoted by Nikkei Asian Review.
|Corn farmers in Batang regency need corn dryers|
[29 December 2016] The Regent of Central Java's Batang regency, Yoyok Riyo Sudibyo is pleased with CJ Feed Indonesia's 5th feedmill in his regency. "The management of the company has committed to give benefits to our regency and society. One of them is providing job opportunities," Mr Sudibyo said. However, "we also want the company to provide corn dryers for our corn farmers as their main problem is how to meet moisture content standards," he told Asian Agribiz.
|Deadline set to validate import permits|
[29 December 2016] The Philippine Department of Agriculture (DA) has given importers of meat, fisheries and other agricultural goods until December 31, 2016 to have their permits validated otherwise these would be cancelled. DA Secretary Emmanuel Piñol said that about 7000 SPS permits out of more than 19,000 issued by the previous administration remain unvalidated. Last month, Mr Piñol declared all import permits must be revalidated since some importers have been recycling them to bring in goods illegally. “The unmonitored SPS clearances, which traders re-use and abuse resulted in unmonitored quantification of the goods that are coming into the country,” he said. Since then the DA has processed 12,000 SPS permits, and is currently putting blacklisted companies on a database.
|Vietnam’s Hoa Phat's agri venture to contribute 30% of profits by 2020|
[29 December 2016] Vietnamese steel producer Hoa Phat Feeds Trading and Production One Member Co Ltd, which recently opened its first feedmill in Hung Yen, will focus on two major fields, namely feed and farming. “Hoa Phat will only look at pig farming,” said Tran Tuan Duong, Hoa Phat’s CEO and Vice Chairman. “By 2020 feed and livestock production will contribute 30% of Hoa Phat’s total profit,” said Mr Duong. The company aims to be one of the top 10 agri companies in Vietnam. It plans to complete the construction of its second feedmill in Dong Nai province by year end, and a third in Phu Tho province by early next year.
Regional Dairy Update
[29 December 2016]
Ultrajaya to launch two new milk products
Indonesia’s Ultrajaya Milk Industry & Trading Company plans to launch two new products namely yoghurt and pasteurised milk in the near future in an effort to boost its sales. The company has seen a growing trend in consumption of milk products in the country. Quoting a Nielsen survey, the company said the milk packaging market in Indonesia has been growing since 2014, and the value of the milk packaging market in Q3 2014 was USD 385 million, while in Q3 2015 the value increased to USD 428 million and USD 528 in Q3 2016. Ultrajaya’s management is optimistic that the liquid milk market will continue to grow, driven by a leaning towards a healthy lifestyle.
Wens becomes the largest dairy producer in Guangdong
Guangdong Wens Foodstuff Group in China said its dairy cow stock has exceeded 20,000 heads after introducing 3500 more cows from Australia, making it the largest dairy producer in the southern Chinese province. Wens, already the largest pig and chicken producer in China, is accelerating its dairy business by expanding Holstein and Jersey stocks. The company started its dairy business in 2000 and became a raw milk supplier to Hong Kong from 2003. It now enjoys a 70% share in Hong Kong’s raw milk market. Wens offers more than 30 dairy products in four categories, namely pasteurized milk, flavoured fermented milk, UHT milk and milk beverages.
Fonterra invests 20 million in Malaysian operations
Fonterra Co-operative Group, the world’s largest dairy export company, has invested USD 5 million in two of its plants in Malaysia. A report in the Nikkei Asian Review said Malaysia is considered a major market by the New Zealand group as ‘consumer insights’ here can be used for broader product development. This investment will boost blending capacity at the Susumas plant and reduce dependence on third parties. The plant can produce and pack an annual 30,000 tonnes of milk powder for brands including Anlene, Anchor, Anmum and Fernleaf, all market leaders in Malaysia. Over 100 products produced in Malaysia are halal-certified, making the country an important hub for export to other Muslim countries.
Indonesia’s milk production estimated to drop in 2017
The Indonesian Association of Dairy Cattle Farmers (APSPI) has predicted that the sluggish trend in domestic fresh milk production will continue next year as more local producers are likely to resign from fierce competition with imported dairy products. The association estimates that next year local fresh milk production will drop to 700,000 tonnes from 750,000 tonnes in 2016. The figure makes up less than 20% of national demand for fresh milk, which currently stands at 3.82 million tonnes. “In 2020, we predict that the proportion will be between 12-13%,” Agus Warsito, APSPI Chairman.
Producers in Vietnam find solutions for dairy farm waste treatment
Vietnam dairy producers are struggling with farm-waste issues. One of the solutions is to build a centralised waste treatment centre where livestock manure in the Moc Chau district, for instance, is treated professionally. “The centre will receive farm waste from the households and process it into organic solid fertiliser, which is then supplied to local farmers for crop cultivation, and liquid biogas to create small-scale electric generation,” suggested Moc Chau Milk's CEO Tran Cong Chien. The Department of Livestock Production supports this. Deputy Director of the Department Tong Xuan Chinh said the plan would require the consensus between the government, enterprises, and farmers.
|Learn more about world food commodity prices at AP2022|
[28 December 2016] Renowned Consultant and poultry industry specialist Gordon Butland will address world food commodity prices and how they have been in slow decline for five years or so, only recently stabilising with some signs of recovery now. With an increasingly unpredictable climate, are we to face the spectre of a return to hyper-price volatility for food staples, he asks. Mr Butland's will be one of 19 visionary presentations from 16 global and regional specialists at Asian Agribiz's Animal Protein in Asia 2022 conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Access the complete program, speaker profile and register at AP2022.
|Thaifoods Group to buy 75% stake in Thailand’s Big Food|
[28 December 2016] Thailand’s Thaifoods Group (TFG) said it will spend no more than USD 1.67 million to purchase a 75% stake in Big Food Group (Big Food), which operates broiler farms and slaughterhouse in Thailand. TFG will acquire 100,016 existing shares from Big Food’s existing shareholders and 200,000 newly issued shares at USD 5.56 per share. Moreover, TFG said it will establish its new subsidiary, Thai National Logistics, early next year to reduce logistic costs of the company. Thai National Logistics will have a registered capital of USD 1.67 million and it will be a wholly owned subsidiary of TFG. Meanwhile, TFG said earlier that it will invest around USD 54 million to build its first cooked chicken plant early next year.
|Indonesia resolves to appeal WTO dispute on agri products|
[28 December 2016] A World Trade Organization (WTO) panel agreed with the US on all 18 of its claims that Indonesia’s unfair trade restrictions are not consistent with WTO rules, according to the Office of the US Trade Representative. The US and New Zealand filed the dispute as co-complainants to address trade barriers in Indonesia that restrict the importation of American animal products such as beef and poultry and other agricultural products like fruits and vegetables. “Importantly, the WTO Panel findings will discourage Indonesia from simply substituting new trade-distorting approaches for the measures repealed, restoring American farmers’ and ranchers’ ability to compete,” said Tom Vilsack, US Agriculture Secretary. I Ketut Diarmita, Director General of Livestock & Animal Health told Asian Agribiz that the Ministry of Agriculture has coordinated with the Ministry of Trade to discuss the appeal efforts.
|Hy-Line China distributor to build USD144m layer facility|
[28 December 2016] Shenyang Huamei Livestock and Poultry Co, a layer and broiler integrator in northeast China, said it will invest USD 144 million to build an integrated layer facility consisting of a farming demo base, hatcheries and a poultry disease research centre. The project is designed to produce 100 million commercial chicks a year, according to Huamei, a Hy-Line distributor since 1985. “We will fully tap Hy-Line’s expertise in genetic development, farming and hatching management, biosecurity, as well as facility layout, so as to better serve the Chinese layer industry,” Huamei said. In December, the company imported new Hy-Line Brown GP stock, following the 16,510 sets introduced in March this year.
|Vietnam’s tra fish processors face severe material shortage |
[28 December 2016] Due to unfavourable weather conditions and farmer's ineffective investment plan, Vietnam’s tra fish processors are facing material shortfall, soaring material prices and decreased production capacity. The situation is expected to continue throughout 2017. According to the Vietnam’s Association of Seafood Exporters and Producers (Vasep), seafood processors will fall short of 40% of tra fish starting from Q1 2017. “The tra fish sector acreage has decreased 30% since November 2016 and is expected to shrink further next year,” said Duong Ngoc Minh, Vasep Vice President.
|CJ Feed Indonesia to maximise its new feedmills' capacities|
[27 December 2016] CJ Feed Indonesia aims to maximise the production capacities of its new feedmills in Lampung, Central Java and South Kalimantan in 2017. Tevi Melviana, Sales & Marketing GM told Asian Agribiz that the company will add more sales people. "We will also focus more on partnerships with feed agents and farming companies who have no feedmills, rather than on retail sales," he said. In 2017, according to Mr Melviana, the company also plans to produce feeds for other poultry species, and possibly pig feed at its Medan plant.
|CPF accelerates its food business after Bellisio deal |
[27 December 2016] Thailand’s Charoen Pokphand Foods (CPF) said it had completed the acquisition of Bellisio Parent LLC, US Frozen food producer, for USD 1.075 billion. Adirek Sripratak, CEO of CPF, said Bellisio’s business will continue to grow and it will expand production lines, which will produce Thai and Asian foods under the CP brand, serving US and Asian consumers in the US. “With Bellisio’s effective production base and cheap raw materials, we may also export these food products to Asian countries,” Mr Adirek added. CPF’s feed and farm business contributes more than 80% to its total sales, while its food business contributes only 12% total sales. After the Bellisio deal, CPF’s food business will contribute 17% to its total sales in 2017 and its sales contribution is expected to reach 25% in the next five years. Meanwhile, CPF expects its total revenue to reach USD 12.52 billion in 2016 and USD 13.91 billion in 2017.
|Malaysia’s Lay Hong expects good results in 2019 with new processing plant|
[27 December 2016] Lay Hong Bhd is confident of delivering a significant rise in performance for the financial year ending March 31, 2019. This will be derived from a new joint-venture plant with Japan NH Foods Ltd, which is expected to start operations by 2018. Group Executive Director Yap Chor How said construction of the plant would begin by the first quarter of 2017. The new plant will produce 2000 tonnes of processed food per month. He expects some products to be exported to Japan, Singapore and Middle Eastern countries, leveraging Malaysia’s halal certification and NHF’s network and expertise, The Star reported. Mr Yap said while NH Foods was eyeing to expand its halal market via Malaysia by capitalising on its NutriPlus brand, Lay Hong was keen to tap into NH Foods’ innovation expertise.
|Imported meat will gain ground in Vietnam|
[27 December 2016] Imported meat has been forecast to prevail in the Vietnamese market, posing challenges for domestic products and businesses. Vietnam’s husbandry sector is expected to face difficulties in the near future when trade barriers are removed following the ratification of free trade agreements, said Tuoi Tre News. Along with Australian beef, meat from Europe, Japan, and Indonesia is expected to become popular thanks to attractive quality and affordable prices. The Animal Husbandry Association of Vietnam said local meat is more expensive because of a limited source of feed and technology. “The poultry industry in the country has been heavily affected by cheap imported chicken. The beef and pork sectors could suffer as well,” said Nguyen Van Ngoc, an official from the association.
|Insect protein to be allowed in EU aqua feed from July 2017|
[27 December 2016] Insect protein can be used in fish feed in Europe from July next year. The announcement comes as European Union member states recently endorsed a European Commission proposal to allow the wider use of insect protein in feed. Jason Drew, co-founder of South Africa-based fly farmer AgriProtein, said the move “brings insect protein into the mainstream of feed ingredients. This is a big step for the environment and world food security. Replacing fish protein with insect protein allows us to dedicate our oceans to production for human consumption alone. But while the new EU regulations will permit insect protein as aqua feed, the situation hasn’t changed for other farm animals, including poultry and pigs.”
|CJ Feed Indonesia targets 3.2mt of feed by 2020|
[23 December 2016] CJ Feed Indonesia, a subsidiary of South Korea based CJ CheilJedang Group, is on track to achieve its target to produce 3.2 million tonnes of animal feed in 2020 after opening its 5th feedmill located in Batang regency, Central Java on December 20. The company has also finished construction of its 6th feedmill in Banjarmasin, South Kalimantan. KS Chung, CEO of the Group’s Feed & Livestock Business Unit, said to achieve the 2020 target, the company will set up 2-3 new feedmills in the country. Hari Suryadi, Project Manager told Asian Agribiz that the Batang plant, which is operated by the company’s subsidiary PT CJ CheilJedang Feed Semarang, has an annual capacity of 384,000 tonnes and is expandable to 500,000 tonnes. The plant, which cost the company around USD 30 million, will cover demand from Central Java and Jogjakarta. Meanwhile about the Banjarmasin plant, Tevi Melviana, GM Sales & Marketing told Asian Agribiz that the plant has started trial production, while the grand opening of the plant is planned for early 2017.
|Thai shrimp output continues to rise after recovery from EMS|
[23 December 2016] More than 50% of Thai shrimp farms have adopted better farm management and strategies to successfully cope with the early mortality syndrome (EMS), resulting in higher shrimp output, Somchai Lerkpoke, Secretary of the Thai Shrimp Association, told Asian Agribiz. Thai shrimp output is projected to hit 300,000 tonnes in 2016, up 15% from 260,000 tonnes in 2015. “We should thank EMS, which has forced us to improve farm management. Only professional shrimp farmers have managed to overcome this challenge,” he said. Better farm management practices adopted by shrimp farmers, range from selecting better shrimp genetics to improved farm structure and cleaning systems. Somsak Paneetatyasai, President of Thai Shrimp Association, said Thailand’s shrimp industry has a bright outlook and shrimp output is expected to reach 350,000 tonnes in 2017.
|Fujian Sunner to launch fifth feed plant by 2017|
[23 December 2016] Fujian Sunner Development Co said it is building a new feed plant with an annual capacity of 500,000 tonnes in Guangze where the company is headquartered. Costing USD 17.3 million, it will be Sunner’s fifth feed plant equipped with Muyang technologies. The facility will include a specialised railway to accept materials, and four silos to store 10,000 tonnes of corn each. The manufacturing process will be PC-controlled and a single shift will need only 10 workers, according to the company. The plant is scheduled to be launched in December 2017. As China’s largest white broiler integrator, Sunner raised and slaughtered 360 million birds in 2015 and targets to 430 million this year.
|Philippine bans poultry from the Netherlands, Germany and Japan |
[23 December 2016] The Philippines has temporarily banned poultry imports from the Netherlands, Germany and Japan after these countries reported outbreaks of highly pathogenic avian influenza. This covers poultry meat, day-old chicks, eggs and domestic and wild birds, but not heat-treated products. Frozen poultry meat with slaughter/process date of 21 days prior to the outbreaks are allowed to enter the country subject to veterinary quarantine rules and regulations. According to the Bureau of Animal Industry, the Netherlands and Germany are the 2nd and 5th largest sources of poultry imports for the Philippines. As of end-October this year, the Philippines imported over 41,000 tonnes of chicken from the Netherlands and nearly 12,000 tonnes from Germany.
|Meat processing equipment market to reach USD14.59b by 2022|
[23 December 2016] The meat processing equipment market, estimated at USD 9.63 billion in 2016, is projected to grow at a CAGR of 7.03%, to reach USD 14.59 billion by 2022. According to Fast Market Research, the market is primarily driven by factors such as increased demand for processed meat products and rising safety regulations generating the need for sophisticated equipment. On the basis of type, the market was led by the smoking equipment, followed by filling and tenderizing equipment. Asia Pacific is projected to be the fastest-growing market for the period considered for this study, due to the high adoption rate of meat processing equipment in food processing. China is expected to lead the market for meat processing equipment in the Asia Pacific.
|NH Foods to make Malaysia export hub for halal foods|
[22 December 2016] NH Foods, Japan’s largest food producer by sales, will make Malaysia the hub of its exports of halal food consumed by Muslims. The group’s unit NHF Manufacturing, a 51:49 joint venture with Malaysian poultry producer Lay Hong, will build a new factory in Selangor. With an investment of USD 10 million, construction of the new factory is slated to begin in early 2017. When completed in the first half of 2018, the factory will be capable of producing 1000 tonnes of food monthly under the first phase, with the option to double the capacity, depending on demand, reported Asia Nikkei. “There is big potential for halal food in Japan,” said Hideki Fujii, an executive of NH Foods, citing the increasing number of foreign visitors to Japan.
|SiamPigs aims to expand its network in Thailand|
[22 December 2016] SiamPigs, established by Sakchai Topanurak, an instructor at Thailand’s Chulalongkorn University, is a network of pig producers using enhanced genetics and disease resistant/tolerant pigs. SiamPigs develops its own breeds including Large White line 7788, Landrace line 4701 and Duroc line 929. SiamPigs breeds have been developed to cater to breeding objectives in Thailand. “Breeding objectives and genetic selection between Europe/the US and Thailand are different. They focus on fatty meats but Thailand focuses more on lean meats,” Dr Sakchai told Asian Agribiz. SiamPigs has developed one nucleus, one farm model, which uses disease resistant pigs in combination with a closed herd system. SiamPigs now covers more than 30 sow breeding farms and more than 100,000 sows have participated in the program.
|Masan to issue USD 300 million non-convertible bonds to foreign investors|
[22 December 2016] Masan Group Corporation recently received shareholders’ approval to issue a non-convertible international bond worth USD 300 million to foreign investors. The bond is valued at USD 1000 per unit with the duration of 5-10 years. After issuance these bonds will be listed on the Singapore stock exchange. Singapore’s Credit Suisse Ltd and Deutsche Bank AG’s Singapore branch are advising Masan Group on the deal. Masan Group is one of Vietnam’s largest private sector business groups focusing on the consumption and resources sectors. It established Masan Consumer Holdings as the primary platform to further exploit opportunities in the Vietnamese consumption segment. It operates in three business lines, namely food, beverage and animal protein.
|McDonald's China to complete hardware upgrade of 1000 restaurants |
[22 December 2016] McDonald's said it plans to complete hardware upgrade of approximately 1000 restaurants, or 40% of its entire restaurant portfolio in China, by the first half of 2017, in line with its “Future 2.0” strategy that aims to create a new customer experience. On December 9, the company’s first outlet in China, the Shenzhen Guanghua restaurant that was opened in 1990, became the first again to be fully upgraded to a “Future 2.0” concept restaurant, which integrates digital hardware, personalized products and considerate service, including Touch-Screen Self-Order Kiosk (SOK), mobile payment, customized burger and table service. “We hope to put more choice and control in the hands of our customers, so that they can have a good dining experience,” said Phyllis Cheung, CEO of McDonald’s China.
|Processing systems can bring in USD 2 billion in exports for Pakistan|
[22 December 2016] Pakistan can see USD 2 billion in poultry exports if it installs proper processing systems. University of Veterinary and Animal Sciences Vice Chancellor Prof Talat Naseer Pasha said the country’s poultry products had export potential particularly in the Middle and Far East countries, Central States and Russia, the Pakistan Observer reported. He added that export of poultry meat would also lift the economic condition of poultry farmers besides boosting the agriculture sector. The government should pay heed to a processing system of poultry products with the help of the private sector. He said poultry was the most vibrant sector in the country with an annual growth of 8-10%.
|Rhone Ma Holdings to expand regionally|
[21 December 2016] Malaysia’s Rhone Ma Holdings Bhd, recently listed on the Main Market of Bursa Malaysia Securities Bhd, said it plans to focus on expanding its product range as well as beefing its presence in four countries in the region, namely Indonesia, Thailand, Vietnam and the Philippines. The group, said Managing Director Dr Lim Ban Keong, also plans to register its 13 feed additives regionally, reported The Edge Financial Daily. Eventually, Dr Lim said Rhone Ma plans to expand its total solution provider (TSP) services, such as veterinarian advisory and antibiotic residue-free programmes, to its regional partners. “We want to educate our partners in the regional market on this [TSP] concept and we can train their people,” he said.
|DaChan Food to set up processing plants|
[21 December 2016] China's DaChan Food (Asia) plans to set up two food processing plants in the north of the country to support its food business. DaChan Food, which claims to be the largest chicken processor in China by number of chickens slaughtered, said its existing plants do not have enough capacity to meet demand for its processed food. The company’s operations include chicken meat production, through which it claims to be the largest chicken meat supplier to KFC in China. DaChan’s processed food arm sells products including chicken, pork, fish and vegetables. Presently DaChan Food's production network includes four processed food production facilities in China. According to Just Food the new sites will be in and around Bengbu, a city in the northern Chinese province of Anhui.
|Japan slaughters birds in Hokkaido to stem spread of bird flu|
[21 December 2016] In the wake of bird flu spreading like wildfire in the East Asian countries, Japan slaughtered some 210,000 farm birds in northern Hokkaido. It is the fifth mass cull this winter in Japan with hundreds of officials working to prevent the spread of the virulent H5 strain, which has been detected at several farms across the country. Just weeks earlier, outbreaks led to a cull of 550,000 chickens in the central city of Niigata and 23,000 ducks in the Aomori prefecture south of Hokkaido. Authorities have also banned the transport of poultry and poultry products in areas close to the affected farms, while sterilising main roads leading to them.
|Vietnam’s Hoa Phat to offer pigs with updated genes in 2018|
[21 December 2016] Vietnamese steel producer Hoa Phat Feeds Trading and Production One Member Co Ltd, which recently opened its first feedmill in Hung Yen, already has a foot in pig farming. In May 2016, Hoa Phat imported 500 pigs of purebred Danish great grandparent. The new breeds will “bring exciting new breeding prospects to Vietnam, as it brings new blood lines not yet present in the country,” said Trần Tuấn Duong, Hoa Phat’s CEO and Vice Chairman. The company will start offering pigs and piglets early 2018, and set a target of producing 650,000 pigs by 2021. “By 2020 feed and livestock production will make up 30% of Hoa Phat’s total profit,” said Mr Duong.
|Australia sees reduced cattle demand from Indonesia due to buffalo meat|
[21 December 2016] Indonesia's demand for Australian cattle has slipped as imported buffalo meat has taken up significant market share, according to Australia’s Northern Territory Livestock Exporters Association (NTLEA). The drop in demand for live cattle coincides with the wet season, which usually reduces available stock, reported ABC News. The number of cattle exported out of the Darwin Port for the 11 months to November is down 139,000 heads to 311,000, according to Australia’s Northern Territory Department of Primary Industry. The drop in shipments has been mostly due to a consolidation of the Vietnamese market and delays with Indonesia's new import regulations, in addition, to "direct competition from buffalo meat. Importers and lot feeders are finding it a bit harder to sell finished cattle,” said Stuart Kemp, NTLEA Chief Executive.
|Hoa Phat’s new feed products receive thumbs up from farmers|
[20 December 2016] Vietnam's Hoa Phat Feeds Trading and Production One Member Co Ltd recently launched its first feedmill in the northern province of Hung Yen. The 4.5ha feed plant is equipped with the latest in European technology is designed to produce 300,000 tonnes of livestock and poultry feed products per year under the BigBoss and HPFeed labels. “Although new on the market, Hoa Phat feed is seeing positive feedback from farmers. Our sales are growing each month," said Hoa Phat Feeds' Director Nguyen Viet Thang in a statement. Hoa Phat Group, a large steel producer, ventured into agribusiness in 2015.
|CJ CheilJedang to record improved Q4 performance|
[20 December 2016] South Korea based CJ CheilJedang’s Q4 result is expected to improve. Shim Eun-joo, Analyst at Hana Financial said the company will likely post Q4 sales of around USD 3 billion and operating profit of around USD 154 million, up 9% and 60% respectively. “The company sees its home meal replacement entrees sell briskly in supermarkets. In addition, overseas retail channels and the number of items sold are rising steadily,” she told The Korea Economic Daily. Another reason, “due to the recent regulation on output by the Chinese government, the lysine price has shot up 67% for the past two months. Given other companies are raising their prices, it is benefiting CJ in terms of financial performance,” she said.
|Myanmar corn production to increase by 6%|
[20 December 2016] In marketing year 2016-17 Myanmar’s total corn production is forecast to increase by 6% due to the expansion of rain fed corn growing areas and increased demand from neighbouring countries, said the USDA Foreign Agriculture Services. The country needs 5000-6000 tonnes of corn seeds annually. Trade sources say 30-35% of local corn is used in feed, 5-6% is used for seed, food processing and alcohol production, and the bulk is exported to China. Corn use in feed is expected to increase to 800,000 tonnes in 2015-16 from 600,000 tonnes the year before. This could climb to 850,000 tonnes in 2016-17 as corn is likely to replace broken rice as a major ingredient in feed.
|PPA says no H5N1 cases in Pakistan|
[20 December 2016] The Pakistan Poultry Association (PPA) has brushed aside rumours regarding an outbreak of H5N1 avian influenza (AI) in Pakistan. Abdul Maroof Siddiqui, PPA Central Convener said there are general aliments in poultry due to the prevailing weather situation, however, the chance of an AI outbreak in Pakistan is minimal. “Investment in our poultry trade is huge and the poultry business will suffer losses of billions of rupees if such rumours are circulated. So far not a single case of H5N1 has been reported, but in 2003 around one million birds, mostly chickens, perished after an outbreak of the less virulent H9 and H7 forms of bird flu,” he told the Daily Times.
|Ringer Hut opens its first restaurant in Jakarta|
[20 December 2016] Japan-based Ringer Hut recently opened a Ringer Hut Citywalk restaurant in Jakarta, its first outlet in Indonesia. The restaurant features a chicken-based Nagasaki Champon noodle meal, as well as Sara Udon noodles. The menu offers more to choose from and includes items where customers are able to choose between chicken and other meats. They are also able to choose between noodles imported from Japan and local noodles. The Ringer Hut Group currently has 11 restaurants abroad: four in the US, four in Thailand, and three in Hong Kong, making the new establishment in Indonesia its 12th in four foreign countries. In the press-release received by Asian Agribiz, the Jakarta restaurant is said to be operated by Ringer Hut Indonesia, a subsidiary established in 2016.
|Indian farmers protest against zero import duty on wheat |
[19 December 2016] Farmers across Uttar Pradesh held a protest against the central government’s decision to scrap the import duty on wheat. Farmers said the demonetisation program and, now, the scrapping of import duty on wheat, will bring down the price of the commodity. Political party Rashtriya Lok Dal West spokesman Praveen Deshwal questioned the move at a time when India already has sufficient buffer stock. “It will take two or three months for wheat to be imported. When it arrives in March the local produce will be ready for harvest. Then prices will crash and farmers will have to sell at a low price.
|China to strengthen production of additives in 13th 5-year plan |
[19 December 2016] China will see its import of feed additives drop between 2016-2020. The country, in its 13th five-year plan for the feed industry, will focus on strengthening local production of additives and concentrates. According to CCM, a market intelligence firm that focuses on China’s feed market, the next few years could see the country slashing its import of additives such as vitamins, amino acids and methionine. The ministry also wants to reduce the country’s dependence on protein additives, which are mainly imported. For now, it is promoting the use of synthetic amino acids. However, all is not lost. CCM added that the focus on domestic production can also offer good opportunities for investments in the Chinese feed additive industry.
|Indonesia’s Ag Quarantine Agency strengthens its vigilance over AI|
[19 December 2016] Following avian influenza (AI) outbreaks in Rumania, Japan, the Netherlands, France, Finland, India and Sweden, Indonesia’s Agriculture Quarantine Agency has circulated instructions to all agriculture quarantine units across the country to strengthen their control and monitoring. In the copy of the official letter received by Asian Agribiz, the agency has banned importation of poultry and poultry products from the seven infected countries. However, importation of hatching eggs and SPF (specified pathogen free) eggs are still allowed. The agency also asked all its units to coordinate with all airport & seaport authorities in the country, as well as monitor poultry distribution within their regions.
|Macao announces its first-ever H7N9 avian flu case|
[19 December 2016] Macao has reported its first human H7N9 avian influenza case, involving a 58-year-old man who owns a poultry market stall, according to a Xinhua report. This announcement comes just after local agriculture officials announced that H7 avian influenza was detected in poultry imported from mainland China. Health officials are testing and monitoring the man's contacts, and the man is reported to be in stable condition. The new H7N9 case follows the announcement of eight infections from China over the last several weeks. Macao's case lifts the global total from H7N9 to 816 cases, according to a case list maintained by FluTrackers.
|ADM sells GrainCorp stake for USD 287 million|
[19 December 2016] US commodities trader Archer Daniels Midlands Co has sold its 19.9% stake in GrainCorp Ltd to underwriters just three years after a failed bid to wholly acquire the Australian grain handler. The sale was valued at USD 286.92 million. ADM’s USD 2.1 billion bid to buy Australia’s largest listed grain handler was blocked by government regulators in 2013 near the peak of a grain market boom. “This transaction will allow us to further reduce our invested capital, and it will provide cash that we can redeploy to higher-return investments,” ADM Chief Executive Officer Juan Luciano said in a statement.
|19 visionary presentations at AP2022|
[16 December 2016] Among the key presentations at Asian Agribiz's Animal Protein in Asia 2022 conference in January are 'Considering the potential for meat products in the halal sector', by Khairul Ruzaini, Business Development Manager, Umairah Halal Food, Singapore and 'Developing promotable attributes for pork products', by Darryl D'Souza, CEO, Sunpork Solutions, Australia. In total there will be 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help you fine-tune your five-year plans. The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). You can access the complete program, speaker profile and register here.
|Rise in Thai shrimp exports|
[16 December 2016] Shrimp producers in Thailand will export around 230,000 tonnes of shrimp in 2017, up 10-15% from an estimated 200,000 tonnes this year, said Somsak Paneetatyasai, President of Thai Shrimp Association. Thai shrimp output is projected to hit 350,000 tonnes in 2017, up from an estimated 300,000 tonnes in 2016. Thai shrimp output has risen because shrimp farmers have adopted better farm management and strategies to cope with the early mortality syndrome. “The US and Japan have been major export markets for Thai shrimp, but we are seeing growth potential in the Chinese market,” Mr Somsak added. Shrimp export from Thailand to the US and Japan were 65,855 tonnes and 32,783 tonnes respectively in the first 10 months of 2016. Meanwhile, Thailand exported 160,935 tonnes of shrimp in the first 10 months of this year, valued at USD 1.53 billion.
|Japan, Russia develop fish processing facilities in Indonesia|
[16 December 2016] Indonesia’s Ministry of Fisheries & Marine Affairs has said that companies from Japan and Russia have shown serious interest in opening fish processing plants, along with associated cold storage facilities in 36 locations, including Sabang, Natuna, Muara Baru, and Makassar. “The Japanese have stated that they want to develop six spots,” said Susi Pudjiastuti, the Minister. She said the Sabang project, where it is planned to build a tuna cultivation centre, would be the earliest project to begin operation. The remaining projects are expected to be realised in 2017. Each plant will need a minimum investment of around USD 2-5 million, she added. Russian project management firm Blackspace, meanwhile, will develop 30 plants, after having completed Untia Port in Makassar. The port has been operating since November in cooperation with state-owned fisheries firm Perikanan Indonesia (Perindo).
|South Korea culls 8 million birds |
[16 December 2016] More than 8 million chickens and ducks have been culled in a nationwide quarantine effort to contain the highly infectious avian influenza (AI) that has devastated hundreds of poultry farms in South Korea over the past weeks. The government is doing everything it can to stop the spread of the H5N6 AI virus, but the virus is still elusive because of cold weather that significantly reduces the effectiveness of AI vaccines, according to the Ministry of Agriculture, Food and Rural Affairs. Experts said the accumulated number of culled poultry will reach 10 million in days to come, making the latest outbreak the worst in Korea since 2014. “We are the making utmost effort to contain the spread of the virus,” a ministry official told the Korea Times.
|Jollibee to sell stake in China’s San Pin Wang|
[16 December 2016] Jollibee Foods Corporation (JFC) will sell its shares in Chinese restaurant chain San Pin Wang and will focus instead on building up Yonghe King, its biggest business in China. JFC, thru its wholly owned subsidiary Jollibee Worldwide Pte Ltd, will sell its 55% share in the San Pin Wang to its partner, Guangxi Zong Kai Food and Beverage Investment Co Ltd for USD 13 million. In a disclosure to the Philippine Stock Exchange, JFC said its “divestment of its shareholdings in San Pin Wang is part of its intention to concentrate its resources on businesses with greater potential.”
|H5N6 detected in China’s Sichuan|
[16 December 2016] China’s Ministry of Agriculture said the nation has confirmed an outbreak of the highly pathogenic H5N6 avian influenza in Mianzu in southwestern Sichuan province. The new outbreak struck 13,000 birds in a farm and 11,000 of them died. “A total of 38,000 birds have been culled and the disease is under control,” the ministry said on December 12. The H5N6 resurfaced in China in early October when the country reported two separate outbreaks in Gansu and Hubei provinces to the World Organization for Animal Health (OIE). The October outbreaks affected more than 100,000 birds.
|China starts rail imports of European pork |
[15 December 2016] A shipment of 21.9 tonnes of pork from Germany arrived in Chengdu, southwest China after a 13-day route by train, indicating the establishment of a new transportation corridor for frozen food between China and Europe, said the Sichuan Entry-Exit Inspection and Quarantine Bureau. Rail transportation saves more than 40 days compared to ocean shipping, and is about USD 1450/tonne cheaper than air freight, according to the bureau. China has also designated Zhengzhou in central Henan province and Yiwu in eastern Zhejiang as meat ports for the China-Europe Express Rails, which began operations in 2011.
|Korea’s beef imports surge over anti-graft law implementation|
[15 December 2016] According to Korea Customs Service data, the country's total beef imports rose 28.4% to 320,219 tonnes in the first 10 months of this year. Imports of US beef surged 47.6% to 131,466 tonnes, while imports of Australian beef rose 14.9% to 162,794 tonnes during the period. South Korea's beef imports jumped partly because of a falling demand for pricey Korean beef amid the implementation of an anti-graft law. Imports of foreign beef are expected to further rise after the anti-graft law took effect in September this year, which limits spending on gifts, according to Yonhap News. Boxed sets of domestic beef, known as “hanwoo” have been popular gifts for the traditional holiday season, but their high prices make people hesitant to give such gifts under the law. Instead, people tend to buy less expensive imported beef.
|Ajinomoto receives award for its feed L-Lysine|
[15 December 2016] Japan’s Ajinomoto Co Inc and its consolidated subsidiary Ajinomoto Animal Nutrition Group Inc were awarded EcoProducts Grand Prize by Japan’s Ministry of Agriculture, Forestry and Fisheries for their long time business efforts of L-Lysine amino acid for animal nutrition. The award is one of the highest honours in Japan to commend the products for environmental protection. “The award evaluating our animal nutrition business from the view point of sustainability is quite meaningful to the entire Ajinomoto Group. We will continue to contribute to a healthy future for humanity through products and services supported by science and technology through our overall business activities,” said Tamotsu Iwamoto, Executive Deputy President of Ajinomoto Co.
Regional dairy update
[15 December 2016]
Vinamilk enters Thai market with yoghurt products
The Vietnam Dairy Products Joint Stock Company (Vinamilk) yoghurt is now available at supermarkets in Thailand, priced as a premium product. Vietnam’s largest milk producer picked Thailand’s Top Most Enterprise (TME) to distribute its products in Thailand, a dairy product market valued at USD 1.7 billion a year. This product is priced at USD 0.49-0.51, higher than other brands. TME expects to cover all distribution channels in Q2 2017. TME also plans to launch Vinamilk UHT milk. Its products are now sold in nearly 200 stores in 45 provinces in Vietnam and in more than 43 countries, such as Cambodia, Thailand, South Korea, Japan, China, Turkey, Russia, Canada, and the US.
Nestle opens Sri Lanka dairy facility
Nestle launched a milk chilling plant in Jaffna, marking a milestone in the development of its dairy business in Sri Lanka. Nestle said the facility would enable it to “preserve the quality and freshness” of milk collected in the region. It is equipped with quality testing facilities and farmers will be paid for the quality of milk they supply. This way Nestle believes it is encouraging farmers to produce more high quality milk. The company also conducts farmer training programs on cattle feeding and breeding, animal health, farm management and quality assurance. Nestle is the largest private sector milk collector in Sri Lanka.
Qantas plans for fresh milk delivery from Australia to China
In the first half of 2017, subject to government and regulatory approvals, Qantas Freight will carry more than 50,000 litres of fresh VAN Dairy’s milk from Hobart, Australia, to Ningbo, China. Local distributors will truck the milk to supermarkets and convenience stores in Ningbo and Beijing. “There is a huge demand for fresh milk in China and the key to satisfying that demand is having a reliable freight partner with an established freighter network, infrastructure and support in China and expertise in handling fresh produce – Qantas provides that,” said Managing Director of VAN Dairy’s parent company, Moon Lake Investments, Sean Shwe.
Amul soon to launch camel milk
With India’s Food Safety and Standards Authority setting new standards for camel milk, India’s dairy major Gujarat Cooperative Milk Marketing Federation, which sells products under the Amul brand, has said that it will launch camel milk in the next three months. “Now, the plant is ready in Kutch. Initially, the camel milk, packed in 500 ml bottle, will be sold in Ahmedabad through Amul booths,” said Hardeep Banga, Marketing Manager, adding that the camel milk will later be marketed in Delhi and Mumbai.
|AP2022 - team registrations close today|
[14 December 2016] Team registrations close today, 14 December, for Asian Agribiz's Animal Protein in Asia 2022 Conference. Register by today to enjoy savings of up to USD 300 per delegate. In total there will be 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help you fine-tune your five-year plans. The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). You can access the complete program, speaker profile and register here.
|Thai Union signs MOU on promoting fair labour practices|
[14 December 2016] Thailand’s Thai Union (TU) and the World Tuna Purse Seine Organisation (WTPO) recently signed a memorandum of understanding (MOU) to establish a high-level framework of cooperation in ensuring fair labour practices. Darian McBain, TU’s global director of sustainable development said “Thai Union Group is committed and focused on efforts of reform in the fishing industry and taken significant steps to promote safe and legal labour.” Under the MOU, TU and WTPO have agreed to develop policies and rules on ethical crew employment and fair labour practices, including training, social responsibilities and basic policies for sea-based operation of the tuna purse seine industry. Both parties also agreed to cooperate and exert efforts to ensure the viability, completion and success of this project.
|China 2016 GGP pig imports up 30% |
[14 December 2016] Chinese pig breeders imported a combined GGP stock of 5746 heads in 2016, up 30% from a year earlier, according to the China Animal Husbandry Group, a state-owned import agent for livestock breeders. The GGP stock came in 13 batches, of which seven were supplied by Genesus. It also recorded the largest single supply of 998 heads to a Jiangsu unit of Cofco Meat. The other suppliers include Hypor, DanAvl, Nucleus and PIC.
|Burger King launches first outlet in Dhaka|
[14 December 2016] US based QSR chain Burger King recently opened its first outlet in Dhaka, Bangladesh. Tiffin Box Limited, a Bangla Trac Group company, is the franchisee, who made a long time development agreement to launch and expand the Burger King brand in the country. Tarique E Haque, Tiffin Box Managing Director said that bringing Burger King to Bangladesh is a strategic move by the Group. “We use local agricultural products. So, it doesn’t only create a new brand image but also helps to extend our agro-products,” he added.
|Bhutan exports eggs to India|
[14 December 2016] Bhutan for the first time exported eggs to India in early December. The Agriculture Ministry sent 800 trays worth more than USD 2500 in its first consignment to Kolkata, India, as reported by Kuensel News. “It was done on a trial marketing basis,” Yeshey Dorji, Agriculture Minister said. “If this works out we will send more. We can sell but the price is the issue. We hope to fetch a higher price,” he said. The country achieved self-sufficiency in eggs in 2012 and today produces more than 250,000 eggs a day, the Minister said. There are about 400,000 laying hens altogether in the private and government farms across the country.
|Great savings if you register today for AP2022|
[13 December 2016] Animal Protein in Asia 2022 (AP2022), organised by Asian Agribiz, will examine the significant opportunities for growth in Asia’s animal protein markets that will emerge over the next five years. You can save USD 300/delegate by registering a team of two at Animal protein in Asia 2022 and paying by Wednesday 14 December 2016. Or USD 350 if you register a team of three or more!!! The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Register here today to enjoy attractive discounts.
|New Hope Liuhe to set up cooked pork JV with French integrator|
[13 December 2016] New Hope Liuhe Co said it plans to set up a 50-50 joint venture in China with French pork integrator Cooperl Arc Atlantique. The JV, with planned registered capital of over USD 21 million, is designed to have an annual capacity of 20,000 tonnes of western-style and low-temperature cooked pork products, such as bacon, sausage and ham. “This will be the first step for the two parties to develop a full pork value chain in China, enabling us to achieve business upgrading and diversification,” New Hope said.
|US companies pin hopes on Vietnam|
[13 December 2016] The US counts Vietnam as an important investment spot in Asean. Michael Michalak, Senior Vice President and Regional Marketing Director of the US-Asean Business Council said even if the TPP falls through, “Vietnam remains an attractive investment destination for Americans”. The Council was on tour with senior leaders from Fortune 500 companies. Alan Willits, Chairman, Cargill Asia Pacific, said Cargill will open its 12th feedmill in Vietnam next year, while Ian Pinner, President of Archer Daniels Midland’s Southeast Asia, Australia, New Zealand, and Global Destination Marketing Department, said ADM will continue expanding its business in Vietnam by not only trading but also investing in production and processing of products.
|Chicken, egg prices in Indonesia expected to increase during upcoming holidays|
[13 December 2016] Indonesia’s Trade Ministry expects chicken and egg prices to continue to increase in line with growing demand during the Christmas, New Year and school holidays. Oke Nurwan, Director General for Domestic Trade said that the prices for both commodities are now higher than last month. “As of December 8, the chicken meat price increased by 2.4% to USD 2.29 per kg, while eggs dropped by 2.3% to USD 1.68 per kg. We expect the figures to increase until the end of the month,” he said, adding that the price increases are normal. Mr Nurwan said the ministry will take measures to prevent dramatic price surges by monitoring regional markets. “We will make sure stocks meet demand, as well as monitoring the prices,” he said.
|CPF to buy 16.54% stake in China’s Ningxia Xiao Ming|
[13 December 2016] Thailand’s Charoen Pokphand Foods (CPF) said it will spend USD 21.04 million to purchase a 16.54% stake in China’s Ningxia Xiao Ming Animal Husbandry (Ningxia Xiao Ming). Chia Tai (China) Investment, a subsidiary of CPF, will buy 11,290,000 new shares of Ningxia Xiao Ming. Ningxia Xiao Ming is engaged in the production and sale of commercial layer chicks in China. Its shares are listed on China’s National Equities Exchange and Quotations. “This transaction is in line with C.P. Pokphand’s strategic investment,” it said in a filing to the Stock Exchange of Thailand. CPF said the transaction is expected to be completed this year. Meanwhile, Ningxia Xiao Ming recorded a revenue of USD 35.67 million in 2015, with a net profit of USD 5.82 million.
India's poultry sector coming to grips with demonitisation
[12 December 2016]
It has been five weeks since Indian Prime Minister Narendra Modi’s surprise announcement on demonitisation, where INR 500 and INR 1000 notes were taken out of circulation. While the plan will help the country flush out 'black money' and encourage a move to cashless transactions, the impact falls hard on farmers where almost every transaction is paid in cash.
Transition may be easy for integrators, not for backyard farmers
India’s demonitisation has squeezed the ‘cash-on-delivery’ structure in agriculture. According to Sujit Kumar, Proprietor, Sujit Kumar Consultants, a company dealing in meat processing, almost 90% of the transactions in India are carried out in cash. He said a complete switch to cashless for the large broiler integrators should not be difficult, and the process has begun. “The issue will remain with marginal or backyard farmers as their products are sold in weekly markets,” he told Asian Agribiz. However, he said, a cashless society will increase credit access and financial inclusion. This could benefit the industry in the long run.
Broiler, layer farmers not seeing the seasonal spike in demand
Broiler and layer farmers are seeing a sharp decline in demand. “The winter is the peak demand season but farmers are not seeing this,” Pankaj Mehrotra from Sampoorna Feeds, in Punjab, India, told Asian Agribiz. Because of the crunch he fears some producers may sell their businesses to integrators. One silver lining for the industry is that large producers will likely import technology from abroad. “While this is a tough patch for the industry to get through, the move will help us to secure the best technology in the business, which will lead to a lower cost of production. The economy will be more equally distributed. This will help improve the buying power of the lower and middle class.”
Broiler farmgate prices in Maharashtra drops 40%
Farmgate prices of broiler in Maharashtra has dropped about 40% after the INR 500 and INR 1000 notes were deemed illegal. Poultry farmers are now approaching customers directly, bypassing retailers. Farmers’ organisations have opened retail shops across the state to sell chicken at USD 1.47 per kg to recover their production cost. The farmgate price of chicken stands at USD 0.71-0.73 in markets across Maharashtra, a steep fall from the USD 0.95-1.02 per kg that the produce was commanding prior to the demonetisation announcement. “Our industry runs purely on cash. Demand has dropped as families are buying other essentials rather than chicken,” Kunal Pathre, owner of Kukoochku Poultry Farm, said.
Government should make transition smoother
Against a dire backdrop where prices have crashed and fresh produce lies rotting, the government should make it easier and cheaper for farmers them to adopt card payment and mobile wallets on a trial basis, said Nidhi Nath Srinivas, Chief Marketing Officer of the National Commodity and Derivatives Exchange Limited. In a Huffington Post article she said retailers should be educated on how they can expand business by moving from ‘cash only’ to ‘cash and card’ because it attracts more customers. “Once village retailers accept digital payments, rural customers will follow,” she said. “Exactly the way mobile wallets picked up with Ola and Uber. Economists call it the network effect.”
Cargill India is optimistic despite 30% drop in feed volume
Cargill Feed and Nutrition, India, sells feed to dealers via electronic transaction. Dealers sell to smaller dealers or directly to farmers. Achyuth Iyengar, Managing Director, said there has been a 10-15% drop in volumes post-demonetisation. "Our end-user is split 50:50 between big/medium farms (more than 10 cows) and small farms (2-10 cows). Sales to small farms is seeing a 30-40% dip while the big/medium farm sale, generally via electronic fund transfer, remains unaffected." He said in the long run, the move will benefit the feed industry. When electronic fund transfers become widespread the quick and smoother transactions would encourage the conversion of non-users to users of complete feed, resulting in better animal productivity and farmer profitability.
|Expect Asian data at AP2022 |
[09 December 2016] At the Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, in Bangkok, Thailand on January 16-17, 2017, participants can takeaway valuable information from 19 presentations – with much data presented in Asia for the first time, by 16 world class speakers from Australia, France, New Zealand, UK and USA. There will also be a special on-stage interview conducted by the Conference Chairman, Prof David Hughes. For the complete program and to register visit our website.
|Philippines issues new rules for import permits|
[09 December 2016] The Philippine Department of Agriculture (DA) issued Memorandum Circular 5, which lays down new rules for securing import permits. The circular calls for the revalidation of existing phytosanitary import clearances (SPS-ICs), and new applications now must be processed and approved manually, leading to longer processing time. A ‘green lane’ was created to fast track release of validated SPS-ICs for perishable goods such as chilled or frozen products. Jesus Cham, President of the Meat Importers and Traders Association, told Asian Agribiz that MITA members are complying with the new order, but he pointed out that legitimate importers like them have been transparent and have followed proper processes, including presenting their shipment for inspection even before the new rules took effect.
|Masan to be listed on Singapore Stock Exchange|
[09 December 2016] Vietnam’s Masan Group, will list its international bonds on the Singapore Stock Exchange with a maximum value of USD 300 million when conditions become favourable. “The listing’s timing has not been confirmed yet due to complex procedures,” said Van Nguyen, representative from Masan Group's Public Relations. Masan, Ho Chi Minh City-based food and consumer product company, is the country’s largest feed producer after Charoen Pokphand Group. In 2015 it acquired a 52% and a 70% equity interest in Vietnam French Cattle Feed JSC, or Proconco, and Agro Nutrition Company JSC, or Anco. Masan aims to hold a 50% market share of the feed industry by 2020.
|CPF to spend USD27m to acquire China’s Cofco Suqian|
[09 December 2016] Chia Tai (China) Investment (CTCI), a subsidiary of Thailand’s Charoen Pokphand Foods (CPF), recently signed an equity transaction agreement with the Cofco Poultry Industry. According to the agreement, CTCI will spend USD 27.23 million to acquire the entire interest in Cofco Meat (Suqian) (Cofco Suqian) from Cofco Poultry Industry. Cofco Suqian is engaged in poultry farming, processing and sales of chicken meat products, mainly to the Yangtze River delta area market. CTCI expects the acquisition will be completed this year. Upon the completion of acquisition, Cofco Suqian will become an indirect subsidiary of CPF. “The acquisition will allow C.P. Pokphand (CPP) to expand its agri-food business in China and further reinforce CPP’s leading position in the agri-food industry,” it said.
|Norway hopes to increase salmon exports to Indonesia|
[09 December 2016] Norway represents the biggest seafood exporter in the world, and it’s all about the salmon, said Per Fredrik Ecker, Board Member of the Indonesian Norwegian Business Council. According to him, the number of salmon exports to Indonesia is not so big for the time being but it has huge potential to grow. “Japan and China are probably the biggest receivers of Norwegian salmon in this region,” he said. Stig Traavik, Norwegian Ambassador to Indonesia said: “We convinced Indonesia that salmon is good and healthy. We can transmit our experience in fish framing to Indonesia.” The value of Norwegian seafood exports to Indonesia was USD 18 million in 2015. In 2015 Norway’s exports of seafood products to China and Japan was USD 290 million and USD 400 million, respectively.
|New Hope Indonesia to set up two more feedmills|
[08 December 2016] New Hope Indonesia continues to expand its feed business in the country. After opening its Lampung feedmill in Sumatera in October, the company is now setting up two new feedmills in Cirebon, West Java and in Makassar, South Sulawesi province. “Each will have a capacity of 10,000 tonnes per month,” Timbul Sihombing, Chief Marketing Officer told Asian Agribiz. Some months before opening the Lampung feedmill, the company inaugurated its new feedmill in Semarang, Central Java province. In East Java, it already operates two feedmills. And in Banten province, it already has one feedmill in Balaraja. “We are now expanding the Balaraja plant’s capacity. Some of the capacity will be used to produce fish feeds,” Mr Sihombing revealed. He added that the company also plans to produce duck feed. “We see good potential in this market.”
|CP Pokphand buys stake in Chinese layer breeder Xiaoming|
[08 December 2016] CP Pokphand Co, a Hong Kong-listed unit of Thailand’s Charoen Pokphand Foods, said it plans to acquire 11.29 million shares, equivalent to a 16.54% stake, in Ningxia Xiaoming Agriculture & Animal Husbandry Co for USD 21 million. The deal is subject to Xiaoming shareholders’ approval. The leading layer breeder and major distributor for Hy-Line in northwest China is currently 70.8% owned by its Chairman and General Manager Wei Xiaoming. It states an annual hatching capacity of 120 million chicks. Xiaoming’s annual report shows that CP China was its largest client with a 5.3% share in 2015, when the company booked revenue of about USD 36 million.
|JGC to set up Sumitomo’s new methionine plant|
[08 December 2016] Japan’s JGC Corporation has been awarded the contract for the construction of a methionine production facility for Sumitomo Chemical to be located in Niihama city, Ehime prefecture. Methionine is a type of amino acid used as an indispensable feed additive to encourage the growth of poultry. The present project to construct a new facility to produce methionine is indicative of Sumitomo’s response to the increase in the global demand for methionine. The new plant is scheduled to be completed in mid-2018.
|Indonesia opens aqua sector to foreign investments |
[08 December 2016] Aquaculture, feed industries, fish hatcheries and processing factories are among the sectors that have been opened up by the Indonesian government to foreign investors. Meanwhile, the catch fishery sector has been strictly reserved for foreign entities. To attract investors to the aquaculture industry, the government will build exclusive zones to ensure business continuity, simplify investment procedures and grant tax incentives on several imported raw materials. Recently Norway expressed interest to invest in the Indonesian aquaculture industry. “We want to enhance our business-to-business relationship and bring our expertise together, because we believe it has a bright future,” said Stig Traavik, Norwegian Ambassador to Indonesia.
|Japan’s Niigata culls 540k chickens over bird flu|
[08 December 2016] Japan’s Niigata Prefectural Government recently completed the culling of 540,000 chickens at two poultry farms to contain an outbreak of the highly virulent H5 strain of bird flu, according to Japan Times. About 230,000 chickens were killed at a farm in Joetsu, following the completion of a similar procedure to eradicate 310,000 chickens in the village of Sekikawa. The outbreak has triggered restrictions on the transport of chickens and eggs within a 10-km radius of each poultry farm. Four farms in Sekikawa and two in Joetsu have resumed shipment of eggs and other products after passing inspection tests in accordance with national rules on epidemic prevention.
|New Hope Indonesia to venture into chicken processing|
[07 December 2016] While it continues to strengthen the presence of its upstream business in feed milling and breeding, New Hope Indonesia has said that it plans to venture into chicken processing. “We have received the green light from our headquarters in China. In 2017 we will set up a chicken processing plant in West Java, which is targeted for operations in early 2018. We are considering the capacity,” Timbul Sihombing, Chief Marketing Officer told Asian Agribiz. Live birds for the plant will be from internal and external supplies, he added.
|Thailand’s Foodland Supermarket set to import more beef and lamb|
[07 December 2016] Thailand’s Foodland Supermarket plans to open 3-5 supermarkets a year over the next five years, Somsak Teraphatanakul, known as Frank, Chairman of Foodland Supermarket Co Ltd. told Asian Agribiz. Foodland will invest around USD 14 million to expand its logistics operations and open 3-5 supermarkets in Thailand in 2017. “If we don’t accelerate expansion of Foodland supermarket, we will have less bargaining power. In order to thrive, we need to have economies of scale and volume,” said Mr Frank. Foodland now runs 19 supermarkets in Thailand and it will open its 20th branch at Terminal 21 in Nakhon Ratchasima province this month. Meanwhile, the company will import more frozen/chilled beef and lamb to fulfil its expansion demand, he added. Every month, Foodland buys 1300-1400 kg of imported beef and 800-850 kg of imported lamb.
|Farmers blame regulation for worsening broiler situation|
[07 December 2016] Sigit Prabowo, Chairman of Indonesia's National Poultry Farmers Association (PPUN) has blamed the government’s regulation for the declining state of the broiler industry. “If the government quickly responds to our demands for DOC supply and market segmentation, independent farmers will be able to survive and develop their business. However, we are still waiting for the regulation and the implementation,” he told Asian Agribiz. PPUN said there are only around 6000 independent farmers now from 150,000 previously due to the hard situation. Yeka Hendra Fatika, Coordinator of Agri-food Studies and Advocacy Centre said the government’s regulation has marginalised independent farmers.
|QL Resources to open new outlets by year-end|
[07 December 2016] Malaysian poultry integrator QL Resources Bhd, which launched its second FamilyMart convenience store recently, will open another two stores by year-end. Executive Director Chia Lik Khai said QL Resources has allocated USD 4-5 million for store expansion yearly, and is confident of achieving 300 stores in five years. “We want everyone to have ready-to-eat fresh food any time, day or night,” said Dr Chia Song Kun, Group Managing Director. “The food will be packed in compliance with high Japanese quality standards and delivered at least twice daily. And the prices will be reasonable because we aim to honour the Family Mart promise of meeting your daily needs.”
|China to import record 86mt soybean for MY2016/17|
[07 December 2016] From July to September 2016, China imported 5.45 million tonnes of soybeans from the US —403% more than the same period last year. Chinese imports of US soybeans are expected to remain strong during the 2016/17 marketing year. According to the USDA’s Foreign Agricultural Service, China’s soybean imports are forecast at a record 86 million tonnes for MY 16/17, in anticipation of higher demand for feed and protein meal due to a recovery in swine production and steady growth in China’s poultry sector.
|Vietnam’s tilapia exports estimated to reach USD45m |
[07 December 2016] The Vietnam Association of Seafood Exporters and Producers (Vasep) estimate that the country’s tilapia exports will reap a revenue of USD 45 million this year, 32% higher than the previous year. The association said tilapia exports have seen a positive trend in the last few years. Import markets also rose from eight countries in 2005 to 68 countries in 2015 – of which America, Colombia and EU are the largest importers. According to the Department of Aquaculture, total area of tilapia farming reached 25,700 ha, generating an annual production of 187,000 tonnes. Vietnam’s northern delta and south-western delta are two major tilapia production areas.
|Trinity Farm plans for a new, better, bigger pig farm|
[06 December 2016] Trinity Farm, a pig farm based in North Sulawesi, Indonesia is planning for a new farm in North Minahasa. Gilbert Wantalangi, owner said its existing farm in Manado, which has 100 sows and a total population of 800 heads, cannot be further developed because the local government has designated the region for residential housing. “I don’t think the local government will extend permits for pig farms in the region, so I have to prepare to relocate,” he told Asian Agribiz. Mr Wantalangi expects to have a new farm within the next two years. There, he plans to raise 200 sows and gradually expand the number to 500 sows. “The new farm has to be better. I plan to set up closed houses as I want to raise pigs that will consume antibiotic-free feed. So the environment and biosecurity have to be better also,” he said.
|China’s Truein to set up two JVs with local fast food chain|
[06 December 2016] Chinese pork integrator Truein Agro-Pastoral Group said it plans to invest no less than USD 19.6 million to set up two joint ventures with Shaxian Delicacies, a fast food chain based in southeast China’s Fujian province with about 20,000 restaurants nationwide. Truein will take 45% of the JVs specialising in supply chain and advertising services respectively. The two companies signed in May to cooperate in material supply, product development as well as e-commerce operations. “We have been developing downstream businesses. The deepened cooperation with Shaxian will effectively expand our sales channels and market shares,” Truein said.
|McDonald’s sells Singapore, Malaysian franchise to Saudi group|
[06 December 2016] McDonald’s in Malaysia and Singapore is now managed by Lionhorn Pte Ltd, the same company that operates the more than 100 outlets in the western and southern regions of Saudi Arabia. McDonald’s Corp said this is part of its turnaround plan announced in May 2015 to move away from direct ownership in Asia. Leading the day-to-day management of the Malaysia and Singapore markets respectively will be local operating partners Azmir Jaafar and Kenneth Chan, both of whom previously held senior leadership positions at McDonald’s and together possess over 40 years of experience. With this transaction McDonald’s has now refranchised about 1300 outlets in a bid to become 95% franchised by end 2018.
|Indonesia invites Norway to invest in shrimp industry|
[06 December 2016] Indonesia has invited investors from Norway to develop the country’s shrimp industry, which is estimated to require USD 2.2 billion to unlock its multi-million dollars a year business potential. Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries and Marine Affairs said the amount is needed to develop the nation’s entire shrimp sector, including offshore cages. “We invite more Norwegian investors to invest in the shrimp industry, considering that Indonesia will revitalise its 300ha of shrimp ponds in 2017,” he said. The shrimp farm revitalisation program has been initiated in several regions including Lampung, West Sulawesi and North Kalimantan. The program is expected to yield 2400 tonnes of shrimp, each harvest worth USD 18.9 million.
|Viphavet Olmix Asialand launches feed additive factory in Vietnam|
[06 December 2016] Viphavet Olmix Asialand broke ground for its first feed additive plant in Vietnam recently. Located in Binh Duong, the plant is designed in accordance with Fami QS Quality and Safety System for Specialty Feed Ingredients and their Mixtures. Once ready it will operate 24 hours, six days a week producing up to 5000 tonnes in its first year. It hopes to meet local demand as well as demand from other Asian countries. With this project, Viphavet Olmix Asialand will become one of the three leading distributors of veterinary drugs and feed additives in Vietnam.
|Despite increased landed costs, US soybean shipments to China up|
[06 December 2016] Soybean shipments from the US to China increased in the third quarter of 2016 compared to the same period a year earlier, despite the rise in the transportation and landed costs, said the USDA’s Foreign Agricultural Service. The costs of shipping from Minneapolis and Davenport to Shanghai increased 18% during the quarter, said the USDA’s weekly Grain Transportation Report. The cost of shipping soybeans from Fargo and Sioux Falls to Shanghai through the Pacific Northwest increased by just 1%. In Brazil, it cost 1% less to ship soybeans from North Mato Grosso to Shanghai. It cost 7% less to transport soybeans from South Goiás to China.
|Malaysia’s DBE Gurney renews supply contracts with KFC, QSR|
[05 December 2016] Poultry company DBE Gurney Resources Bhd’s unit DBE Poultry Sdn Bhd has renewed its contracts worth USD 11.20 million with KFC (Peninsular Malaysia) Sdn Bhd and QSR Stores Sdn Bhd for the supply of poultry products. In a filing with Bursa Malaysia the group said the renewals are effective from January 1, 2017 to December 31, 2017. The agreements are expected to generate a turnover of about USD 11.20 million for DBE Gurney, it added. “Our commitment to supply high-quality poultry products to the industry will continue to be an emphasis for the retailers,” Group Managing Director Datuk Alex Ding Seng Huat said.
|China Everbright’s fund invests in West Hope unit|
[05 December 2016] China Everbright Ltd, a Hong Kong-listed unit of the Chinese central government-owned financial conglomerate Everbright Group, said its Mezzanine Fund has made an equity investment in Sichuan Dekang Agriculture Technology Ltd. “The investment details are confidential at this stage,” Dekang General Manager Luo Lin told Asian Agribiz. Dekang was founded in 2006 by West Hope Group Chairman Chen Yuxin and President Wang Degen, and now is a livestock farming arm of the group. The company states that it’s the largest local livestock producer in southwest China, targeting to sell 250 million birds and 10 million pigs a year by 2020. “The fund will be actively involved in Dekang’s bolt-on acquisitions, financing activities, and implementation of modern corporate governance in order to drive its growth in the modern agriculture industry and help cultivate a world-class agriculture and food company,” China Everbright said.
|Indonesia issues alerts on potential AI cases during rainy season|
[05 December 2016] Following information from Indonesia’s Meteorology, Climatology and Geophysics Agency that rainy season has started and Indonesia’s Directorate General of Livestock and Animal Health has circulated an official letter to all animal husbandry and veterinary agencies in the country to actively monitor cases of avian influenza (AI). In the letter received by Asian Agribiz, the directorate asks all agencies to quickly respond with disease reports from farmers and assist farmers to improve biosecurity. On vaccination, for duck it is recommended to use AI subtype H5N1 clade 2.3.2 vaccine, while commercial layers to use AI subtype H5N1 vaccines with clades 2.1.3, 2.3.2 or the combination. The directorate also urged farmers to buy DOC from breeders who have the AI-free compartment certificate.
|Special VietGAP for tilapia farmers|
[05 December 2016] Funded by Vietnam’s National Agricultural Extension Center and Vietnam’s Ministry of Agriculture & Rural Development, VietGAP is a program designed and applied to tilapia farming in an effort to create a stable background for good quality source of tilapia aimed for exports. In the program, participating farmers from northern and central provinces are supported with breeding fish, feed and probiotics, and are trained with farming standards. Initial results reported by VietGAP farms in Quang Ninh and Nghe An provinces showed a high survival rate of 95%, good growth rate of 650g after six months of stocking and average production of 14 tonnes/ha/year. According to the Agricultural Extension Center of Bac Giang province, one of the pioneer provinces participating in the VietGAP program, 100% of participating farmers are certified with VietGAP and secured the entire output.
ARIEF FACHRUDIN reports from the National Livestock Business Seminar in Jakarta, Indonesia
organised by the Indonesian Veterinary Drugs Association.
[05 December 2016]
Bad year for broiler breeding companies
This is not a good year for broiler breeding companies as the Business Competition Watchdog Agency (KPPU) fined 11 companies over the alleged broiler cartel case. “On September 2015, we were asked by the General Director of Livestock & Animal Health to early cull 6 million broiler PS. When we had cut around 2 million broiler PS, KPPU said we initaited a cartel. This is not a cartel as the government asked us to do it,” said Krissantono, Chairman of the Indonesian Poultry Breeding Companies Association (GPPU). Due to the controversy, Mr Krissantono said investors from Japan, South Korea, France and the Netherlands postponed their plans to invest in the poultry breeding sector. Mr Krissantono urged the government to calculate broiler breeding stock (GGP and GP) needed accurately in the future. According to GPPU, this year the government stopped imports of GGP and limited imports of GP. As a result, PS supply in 2017 will be reduced.
Feed industry to grow 8% in 2017
During the first half of this year, Indonesia’s animal & aqua feed consumption reached 7.9 million tonnes and 849,000 tonnes, respectively, according to the Indonesian Feed Producers Association (GPMT). Hudian Pramudyasunu, GPMT Secretary General said consumption is targeted to reach 17.2 million tonnes and 1.6 million tonnes by the end of this year. Next year the association estimated the feed industry to grow at 8%. “The main challenge in this industry is raw materials especially corn. We expect the government to prepare a buffer stock for corn as local supplies are not completely predictable,” Mr Pramudyasunu said.
Indian carabeef leads to reduction of local beef cattle population
Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI) predicted that in 2017 Indonesians will be more familiar with imported buffalo meat or carabeef. “The price is cheaper than local beef prices. This will change consumers’ preference. More people will consume the meat from India. Meat processors will also use it,” he said. “The impact of this to local beef cattle farmers is on their motivation. They may reduce their cattle population or stop their farm operations.” Mr Boediaya said if the Constitutional Court refuses their proposal for country-based importation, the local beef cattle will decline.
No special attention to dairy cattle farming
Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI) sees no special attention from the government to improve the dairy cattle farming industry in the country. “There has been no significant increase in dairy cattle population and milk production, in fact, it is decreasing. In 2012 the West Java Milk Cooperatives Association noted the number of dairy farmers was 26,153 people with a total cattle population of 101,115 heads. However, in 2015 the figures decreased to 19,362 people and 63,432 heads,” he said. On the other hand, Mr Boediyana said that local and foreign investors see growing milk consumption in the country. “They may invest in integrated dairy business by setting up dairy cattle farms and milk processing plants.”
Animal health industry to grow less than 10%
The Indonesian Veterinary Drugs Association (Asohi) projected that the animal health industry in 2016 may only grow less than 10%. Irawati Fari, Asohi Chairman said the growth in the breeding sector will be minus due to early culling and the alleged cartel case, while the growth in the commercial broiler sector will be stagnant. But in the layer sector, the growth will be around 10%. In 2015, the market for animal health products was estimated at around USD 290 million – the products included biological and pharmaceutical products for poultry, ruminants and pigs, and premixes.
|Find out at AP2022 if your company is in the innovator's league|
[02 December 2016] Would your company be in the 'innovator' league? Find out from Paul Levins, Executive Vice President, Global Head of Partnerships at Xinova LLC, Seattle, who says the meat industry has had limited innovation and there are few true leaders. He will be speaking at the Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, in Bangkok, Thailand on January 16-17, 2017. Xinova helps food companies innovate - to define and solve problems and make better products. For the complete program and to register here.
|Russia considers meat exports to Singapore|
[02 December 2016] At a meeting of intergovernmental commission recently Russia and Singapore discussed supplies of pork, beef and poultry meat to Singapore, Russian News Agency Tass reported. Singapore’s Agri-Food and Veterinary Authority will inspect Russian facilities in February 2017, Russia’s First Deputy Prime Minister Igor Shuvalov said. “We have discussed possible export from Russia to Singapore of meat - pork, beef and poultry,” he said. “We have agreed on how the veterinary authorities would be working in coming months. In February we shall expect inspectors, who will be working with the Russian companies," he said.
|Berdikari to venture into poultry business|
[02 December 2016] As recommended by the government and the Business Competition Watchdog Agency (KPPU), Berdikari, a state-owned company focusing on the integrated beef cattle business, plans to venture into the poultry business in 2017 to ensure quality DOC supply and stabilise broiler prices. Suwhono, President Director said the company will set up an integrated poultry business from breeding, feed milling, commercial farming to processing. “We will partner with independent broiler farmers and assist them,” he said. For the initial phase, Berdikari plans to set up commercial broiler farms and then broiler breeder farms.
|H5N6 developments in Japan, South Korea|
[02 December 2016] Japan has reported a third suspected H5N6 outbreak, the second from Niigata prefecture. The new outbreak involves a farm housing 230,000 birds. A few days ago animal health officials in Japan announced two outbreaks, one in Niigata and the other in Aomori prefecture. Earlier this month H5N6 was confirmed in black swans and in environmental samples in Japan. South Korea has confirmed H5N6 in farms in at least three provinces. The avian flu committee said the virus was likely carried from China by migratory birds.
|Hasco Feed ready to supply meat during Tet holidays|
[02 December 2016] After being first introduced to the market in July this year, Vietnam’s Hasco Breeding Food JSC or known as Hasco Feed is ready for greater market participation. The company announced that it is preparing to supply 5000 tonnes of fresh, quality meats during the Tet holidays. In other developments, the company said it has launched a new pig farm in Bac Giang province with a capacity to produce 5000 finisher pigs. Next year the company aims to set up distribution channels to large-scale farms in the North Vietnam and promote its brand in Vietnam’s feed industry.
|Indonesia’s feed wheat imports expected to rise in 2017|
[01 December 2016] Indonesia’s imports of wheat for animal feed could jump by about 36% to 3 million tonnes in 2017 if the government pushes forward with efforts to restrict corn imports, according to Desianto Budi Utomo, Chairman of the Indonesian Feed Producers Association (APPI). Indonesia has emerged as the world’s second-largest wheat importer and its imports of the grain spiked in 2016 after the country imposed tighter rules on corn imports. In 2015, Indonesia imported only 1890 tonnes of wheat for animal feed, according to the Statistics Centre Agency, but this was expected to rise to 2.2-2.3 million tonnes in 2016. Indonesia imports feed wheat from Ukraine and Eastern European countries as well as Argentina.
|Clean pork supply program launched in Vietnam|
[01 December 2016] De Heus Vietnam LLC, Vinh Anh Food Technology JSC, Fresh Studio Innovations Asia Ltd, and Hanoi’s Livestock Development Centre have cooperated to create a program aimed at establishing a clean, safe and secure pork supply chain that complies with HACCP and TRACEPIG standards. “The program is designed to be the first clean, safe and traceable pork supply that serves as a reliable brand with high credibility and accepted by Vietnamese consumers,” said De Heus Asia General Director Gabor Fluit. He added that the goal is “to supply high quality pork to local consumers while securing sustainable profits for the farmers and setting up a model to improve the quality of Vietnam's food and feed industries.”
|Malaysia’s CAB increases PS capacity by 84%|
[01 December 2016] Through acquisitions late November Malaysian integrator CAB Cakaran Bhd has increased its breeding capacity by 84%, from 510,000 parent stock to 940,000 parent stock. It acquired, through 53.04%-owned subsidiary, Farm’s Best Food Industries, a total of 21 parcels of land together with six breeder farms. This amounted to USD 14.13 million. CAB Group currently has eight breeder farms and 129 broiler farms, mostly located in Penang and Kedah. The recent purchases are focused in the south of Peninsular Malaysia. CAB said these purchases are in line with its growth plan, where it “has been continuously on the look-out for opportunities to expand its business both in Malaysia and overseas”.
|CPF to export healthy soups to Japan|
[01 December 2016] Thailand’s Charoen Pokphand Foods (CPF) is investing USD 19.65 million for a new facility in Ayutthaya province's Wang Noi district, said Sukhawat Dansermsuk, Chief Operating Officer of Food Business at CPF. The new facility, expected to start production in the middle of 2017, will produce thick soup and ready to eat products for health-conscious consumers, the elderly and sick persons. The new facility will have a production capacity of 70,000 tonnes of soup a day. Japan is expected to be the first export market, Mr Sukhawat said, adding “the new business is projected to generate revenue of USD 33.69 million in 2017.” CPF’s soup will include chicken, pumpkin, riceberry, mixed-vegetable and tomato soups.
|Indonesia’s shrimp exports up 6.84%|
[01 December 2016] Indonesia’s shrimp exports from January to August 2016 increased 6.84% to 136,323 tonnes over the same period last year. In terms of value, exports increased 3.75% to USD 1.13 billion. According to Nilanto Prabowo, Director General of Fisheries Competitiveness Improvement of the Ministry of Fisheries & Marine Affairs, the increase was due to demand for shrimp in global markets. Most of Indonesia’s shrimp is exported to the US, Japan and China. To further increase the export, Mr Prabowo said the ministry will continue to revitalise idle shrimp ponds in the country. According to Budhi Wibowo, Chairman of the Indonesian Fishery Products Processing and Marketing Association (AP5I), the revitalisation program is needed. If the government successfully revitalises 5000ha of shrimp ponds, this could net an additional 120,000 tonnes of shrimp per year.
|Korea’s CJ CheilJedang to acquire 47.3% of Vietnamese food firm|
[01 December 2016] South Korean food company CJ CheilJedang is planning to buy a 47.3% in Cau Tre from its three existing shareholders. CJ CheilJedang said Vietnam is an important market in its global expansion path. In March, CJ Vietnam purchased 4.18% of the Vietnam Meat Industries, or Vissan, for USD 13.3 million during its IPO auction. However, it failed to acquire a further 14% stake which went to Vietnamese conglomerate Masan Group. CJ Vietnam Chairman Chang Bok Sang also said the company will consolidate its presence in Vietnam through a USD 500 million m&a activity, focusing on the food sector.
|Learn about the future role of meat in the QSR business in Asia at AP2022|
[30 November 2016] Arron Hoyle, Principal of Black Dragon Advisors Ltd from New Zealand says the quick service restaurant business has been kind to Asia’s meat industry over the last 10 years. At the Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, he will address the future role of meat in the QSR business in Asia. The conference will be staged in Bangkok, Thailand on January 16-17, 2017. For more details, the complete program and to register click here.
|Bioceleng to produce value added pork products|
[30 November 2016] Bioceleng Farm in Bali, Indonesia, has ventured into pig processing. Romeo Alfonso, owner told Asian Agribiz that he gets better profits from portioned cuts. On average he sells around 800-1000kg of Bioceleng Farm branded pork (both chilled and frozen) to boutique hotels and fine-dining restaurants in Ubud, as well as to a hotel in Jakarta. However, Mr Alfonso admitted that the main challenge of processing is carcass balance. Bioceleng’s fast-moving cuts include belly, pork chops and knuckle. To get around the challenge, Mr Alfonso plans to further process the slow-moving cuts into smoked products and sausages. Currently Bioceleng has a total pig population of 250 heads with 30 sows. The pigs eat specially formulated diets which contain almonds among others. The pigs are also raised under a semi free-range farming model.
|Malaysia’s Rhone Ma to build manufacturing plant |
[30 November 2016] It is vital for animal health solution providers to have continuous product development and enhancement in the animal nutrition market to meet the needs of its customers. As such Malaysia’s Rhone Ma Holdings Berhad said it plans to set up a GMP-compliant plant in Negeri Sembilan. The plant will be the company’s own in-house manufacturing and R&D centre aimed at supporting Rhone Ma’s business. It will also construct a warehouse in Klang. This was revealed at the company’s prospectus launch. It hopes to raise USD 7.08 million from the proposed listing on December 19 on the main market of the Malaysian Bourse.
|Brazil challenges Indonesia’s halal requirements for imported meat|
[30 November 2016] Brazil has filed a complaint against Indonesia to the World Trade Organization (WTO), challenging Indonesia’s halal certification requirements for imported meat. The trade dispute has been registered in Indonesia-Measures Concerning the Importation of Chicken Meat and Chicken Products No. DS:484. Ahmad Firdaus Sukmono, Head of Trade Advocacy Bureau of Indonesia’s Trade Ministry said the policy is implemented as part of the government’s consumer protection efforts. “The dispute is focused on Indonesia’s rights to ensure compliance with food safety and halal requirements,” he said. Being the world’s largest chicken exporter, Brazil sees access to Indonesia constrained because Indonesia only allows halal whole chickens which are slaughtered individually.
|EU tightens inspection on Vietnamese seafood |
[30 November 2016] Vietnam is facing the risk of losing its major seafood market in the European Union (EU) due to raising concerns on food safety. “EU is tightening their inspection on Vietnamese seafood,” said Nguyen Hong Phong, Deputy Director of the National Agro-Forestry-Fisheries Quality Assurance Department. Besides sending warnings, EU also announced that it will implement a cross-sector inspection on harmful substance residues next year. In 2014, there were 48 seafood shipments to the EU that violated antibiotics and banned chemicals requirements. The number of violations in 2015, dropped to 29% from 54.9% in 2014. Within the first half of this year, however, the violations increased with six seafood shipments turning positive for chemical and antibiotics residues.
|Singapore imposes temporary ban on poultry from Germany|
[30 November 2016] In view of the recent outbreaks of avian influenza in Germany, Singapore recently announced that it has imposed temporary restrictions on poultry and poultry products from the country. Heat-processed poultry products, which meet the requirements for heat inactivation of AI virus, will not be affected, said a memo to meat traders on the Agri-Food and Veterinary Authority. Nearly 9000 geese were reported culled in the northern state of Schleswig-Holstein. Earlier last week some 30,000 chickens were culled in the state as a precautionary step to contain the H5N8 strain of the virus. Under German law, poultry must be killed even if they have a low pathogenic form of avian flu, which can mutate spontaneously into high pathogenic ones.
|Indonesia revises supply, distribution, monitoring of commercial chicken|
[29 November 2016] I Ketut Diarmita, Director-General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture said the directorate is now discussing a revision of supply, distribution and monitoring of commercial chicken. Integrators will be obliged to sell 50% of their DOC production to independent farmers. Secondly, all DOC sold to independent farmers have to meet Indonesia’s National Standard (SNI) on quality DOC. “So far, there are grade A and B in the market and independent farmers get grade-B DOC,” said Mr Diarmita. Last but not least, the ministry will oblige every broiler company with a production capacity of 500,000 birds/week to set up a processing plant plus cold storage facility. Singgih Januratmoko, Chairman of the Indonesian Poultry Farmers Association hopes the government will monitor the implementation of the policy.
Novus Gut Health Forum report by CRAIGE ALLAN
[29 November 2016]
Novus recently held a Gut Health Forum, which focused on The Impact Of Antibiotic-Free Production. Key take-home messages from the meeting in brief were as follows:
Feeding strategies for broilers in the absence of “in-feed antibiotics”
According to Dr Gonzalo Mateos, Professor of Animal Science, University of Madrid, Spain when the EU banned in-feed use of antibiotics in 2006 broiler performance, including FCR was not reduced. However, you need much better management when you don’t use in-feed antibiotics, starting at the hatchery. Since the ban we have seen a continual increase in the use of feed enzymes, organic acids etc., he observed.
Gastrointestinal tract health
Dr Mateos’s opinion is that it is a good idea to have a more diversified gastrointestinal tract (GIT) microbial population. Antibiotics reduce GIT microbial diversity – we don’t want that, he said. The GIT tract contains more than 600 species, and this population is very easy to modify. Nutrition can influence about half of the changes in the GIT microbial population. Ceacal fermentation does not necessarily mean problems. The fermentation of carbohydrates can be beneficial for the chicken as this can lead to the production of butyrate, whereas fermentation of proteins is not good and can result in an increase in hindgut pH causing the proliferation of harmful bacteria such as Clostridium.
Anti-nutritional factors and gut health
While anti-nutritional factors (ANFs) are common in feed raw materials they are often overlooked in formulations – particularly corn-soy diets, and rarely analysed, commented Dr G Saravanan, Technical Manager, Novus International. Phytate, a common ANF can cause intestinal irritation, and increased mucin production. Mucin is high in the essential amino acids, serine, threonine and proline and is poorly recovered. He also commented that when using phytate we need to rethink our trace mineral recommendations. For example, the NRC recommendation is to use 60ppm of zinc in broilers, however, common commercial practice is 130ppm. When using phytate you can recover about 35ppm of available zinc from raw materials.
Feed hygiene in an AGP-free production
When you think about antibiotic growth promoter-free (AGP) production we need to be concerned with feed hygiene, and this is a long-term strategy said Xabier Arbe, Head of Technical Services, South Asia and Southeast Asia Pacific, Novus International. You have to identify and evaluate your risks. We often think of animal-origin products, such as meat and bone meal (MBM) of being a high Salmonella risk, however, in a global Novus survey of soybean meal (300 samples), wheat and rice bran (192) and canola meal (85) about 9%, 13% and 12% of samples respectively were contaminated with Salmonella. Furthermore, the inclusion level of SBM is about 20-25% in most poultry diets, much higher MBM, so it can be a higher risk raw material, he said. “The risk in a free AGP production need to be managed by a proper sampling, technology like heat treatment and feed additives. However we need to understand their weaknesses so we will have a successful feed hygiene program,” concluded Dr Xabier.
|Cargill invests USD50m to expand poultry processing in Thailand|
[29 November 2016] Cargill is investing USD 50 million to expand its poultry processing operations at its facility in Nakhon Ratchasima province in Thailand. The company said this expansion is due to an increase in customer demand and strong customer confidence in the high quality and safety standards of the products produced by Cargill in Thailand. Construction on the new building annexed to the current facility began in October and is due for completion by Q1 2018. The expansion will create 1,400 new jobs and add to the more than 13,500 employees that Cargill currently employs across 14 locations in the country.
|15,000 pigs smuggled to China from Vietnam every day|
[29 November 2016] China Central Television (CCTV) reported that more than 15,000 live pigs are illegally shipped to China from Vietnam via ‘smuggling routes’ in Aidian town, a national port. Local inspection authorities have allegedly condoned the shipments, CCTV reported. The smuggled pigs from Vietnam, which are USD 0.58 cheaper per kg than Chinese pigs, escape inspection and quarantine. The thriving illegal pig imports have been also promoted by ‘truck escorting teams’. One of the truck drivers told CCTV that the smuggled pigs are sent to slaughterhouses across the country, including Southwest China’s Chengdu, Kunming and South China’s Guangdong Province.
|China’s Yisheng imports broiler GGP stock from Hubbard|
[29 November 2016] Shandong Yisheng Livestock & Poultry Breeding Co, the largest broiler breeder in China, said it has signed with Hubbard for the import of day-old GGP chicks valued at USD 10.4 million. The first shipment from Poland has been delivered, with the remainder to arrive in batches by September 2018. Hubbard has been a major GP supplier for Yisheng, but it’s the first time for a Chinese boiler breeder to introduce GGP stock. “This will change China’s structure of sourcing broiler genetics that was confined to overseas breeders and was easily affected by epidemic outbreaks worldwide,” Yisheng said. China’s GP imports fell significantly in 2016 due to bans on US and French poultry products.
|Bangkok Ranch to set up two new joint ventures|
[28 November 2016] Thailand’s Bangkok Ranch (BR) said it will invest no more than USD 2.5 million in two new joint ventures, aiming to expand its food business. BR’s two new joint ventures will engage in food manufacturing, retail and restaurant business. BR will establish its new joint venture, Chef Recipe Company Limited, which a registered capital of USD 1.1 million. The other new joint venture is Golden Star Century Company Limited. Chonlachart Worawuitthichongsathit, Assistant to CEO at BR told Asian Agribiz: “BR’s food business will generate higher margins than our conventional business. Although sales volume in food business is relatively small now, it has high growth potential.”
|Bright outlook for meat imports in Indonesia |
[28 November 2016] Considering a population increase of around 3 million per year, middle income population increase, limited land availability for farming, growing meat demand and development of the tourism industry, Thomas Sembiring, Executive Director of the Indonesian Meat Importers Association believes meats import in Indonesia in the next 5, 10 and 20 years is likely to see a 10% annual growth. “Take beef for example, the consumption is now only 2.5kg per capita. The demand for beef continues to grow, but local supplies can’t meet growing demand. So the only way to fill the gap is through imports,” Mr Sembiring told Asian Agribiz. “The interesting thing with imports is that you only buy cuts that are demanded by the market.”
|Council confirms date of DDGS ban in Vietnam|
[28 November 2016] The US Grains Council (USGC) is working with Vietnamese importers of distillers’ dried grains with solubles (DDGS) to end the country’s planned suspension of US shipments of the product due to contamination with the Ballion variety of beetle. “The Council was able to confirm the effective date is the bill of lading date, not the arrival date,” Kevin M Roepke, USGC Regional Director for Southern Asia and Oceania, told Asian Agribiz. “This would enable some shippers and end users to work together in order to clean the pipeline before the effective dates and ship early,” he said adding that the council will continue to work with Washington DC to try and come to a resolution on the issue.
Onsite with CRAIGE ALLAN and CHAKRIT RIDMONTRI at Poultry India 2016
[28 November 2016]
Shanthi Feeds to open further processing plant
Shanthi Feeds, India’s biggest frozen chicken exporter based in the southern state of Tamil Nadu, will open its first chicken further processing plant in 2017. V. Ilayaraja, Shathi’s Deputy General Manager, told Asian Agribiz that the plant will have an initial capacity of 100 tonnes/moth. It will produce a range of processed chicken items such as sausages, frankfurters, nuggets and patties supplying fast food chains, hotels and supermarkets across India. Based in Coimbatore city, Shanthi operates an automatic processing plant capacity 6000 birds/hour from Meyn of the Netherlands. It shipped 3600 tonnes of frozen chicken to the Middle East in 2015-2016 fiscal year, and has become India’s biggest frozen chicken exporter.
Unnat Feeds ventures into chicken processing
Unnat Feeds, a feedmiller-cum-broiler integrator in north India, will venture into the chicken processing business with a plan to set up a processing plant in 2017. Ranpal Dhanda, Joint Managing Director, told Asian Agribiz that he plans to build the plant with a capacity of 2000 birds/hour and expandable to 4000 birds/hour. It will be located in Panipat, about 80km north of capital Delhi. Unnat produces 250 tonnes of broiler feeds a day for commercial sales and use in the company’s farms. It produces 700,000 birds/month at the moment and will double the flock size for serving the new processing plant next year.
Semi-closed insulated layer houses reduce labour and mortality
The lack of reliable electricity supply in many areas in India makes fully closed housing perhaps not the right thing to do according to Bernada Lüers, Training and Marketing Manager, Big Dutchman. She recommends a semi-closed house with well insulated roofs as this reduces the radiant heat and therefore the house temperature. This increases bird comfort and reduces summer mortality rates. Conventional housing requires one person per 5,000 birds, whereas semi-closed housing only needs one person per 50,000 birds, except for morning egg collection. The manure belt removes manure daily, overcoming the odour and fly issues with open houses.
Poultry India and Aviagen growing together
Paul Gittins, Business Manager, Aviagen India remarked that the growth of Poultry India is indicative of how the Indian poultry industry is internationalising and offering producers greater choices. This is truly a win: win situation, as the local industry can grow faster with access to the latest techniques, equipment and methods. Likewise, international companies can be part of a big, exciting and growing market. Part of this increased choice is the growing acceptance of Aviagen birds, which are gaining more market acceptance as their biological performance adapts to local climate, environment and management conditions, noted Mr Gittins.
Mycotoxins – under-estimated risk in India
Mycotoxins are a major concern in India, as traditionally, mycotoxin analysis uses ELISA technology, which mainly detects aflatoxin. However, raw materials and feed from the sub-continent when analysed using state-of-the-art LC-MSMS analytical tools at Romer laboratories Singapore revealed that the prevalence of deoxynivalenol (DON), T-2 toxin (T2) and ochratoxin A (OTA) are vastly underestimated. These other mycotoxins damage the intestinal lining, resulting in other problems, such as reduced absorption of trace minerals that can lead to lameness. Sujit Kulkarni, Managing Director, Biomin India, reported that as producers become more aware of the mycotoxins and the economic losses they cause, there is growing interest in Mycofix which is a complete solution which not only adsorbs and deactivates mycotoxins, but also provides bioprotection.
Marel Poultry introduces Marel TargetBatcher
Jatin Bajaj, Account Manager said that this is the easy way to reduce giveaway, combining a pre-determined number of fresh or frozen products into a package of fixed weight. With seven high-accuracy individual scales and 14 holding bins the TargetBatcher selects the best combination of products in the fraction of a second. With fixed weight batching processors can reduce product give-away, which is 2-5% in manual operations, to 0.1-0.5% depending upon the batch commented Bajaj.
Unique xylanase for consistent performance
According to Dr Sushant Labh, Jubilant Life Sciences, many customers are concerned with problems with feed costs and feed variability. Most have found Xylamax (xylanase) useful in being able to resolve these issues he told Asian Agribiz. Xylamax outperforms other xylanases by releasing up to 130 kcal metabolisable energy (ME)/kg in corn-based poultry diets and up to 150 kcal ME/kg in wheat poultry diets due to its unique protein structure and pH profile.
|Presentations at AP2022 will help fine-tune five-year plans|
[25 November 2016] The Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, will deliver 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help fine-tune five-year plans. The conference which will be staged in Bangkok, Thailand on January 16-17, 2017, will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register on our website.
|Hy-Line China JV to build 60-million-chick hatchery in Chongqing|
[25 November 2016] Chinese layer breeder Huayu Agricultural Technology Co, in which Hy-Line International holds a 55% stake, said it will build a hatchery with annual capacity of 60 million chicks in Fengdu County in the southwest municipality of Chongqing. Initial investment will be USD 51 million, while a parent stock farm and a feedmill are also in the pipeline. Separately, Huayu, which is based in north China’s Hebei province, said it has won an order from CP Chongqing to supply one million Hy-Line Gray chicks in 2017. Data from the China Animal Agriculture Association shows that Huayu imported 75,740 Hy-Line GP stock from Spain in the first three quarters of 2016, approximately one third of the country’s total GP imports. China has banned US poultry imports from 2015.
|QL Resources’ net profit falls on lower margins from fisheries division|
[25 November 2016] Malaysian poultry producer and food processor QL Resources Bhd said its net profit declined 8.4% in the second quarter of the fiscal year as its fisheries products margin shrank. Net profit for the three months ended September 30, totalled USD 11.4 million compared to USD 12.48 million in the same quarter a year earlier, QL Resources said in a stock exchange filing. Quarterly revenue rose 5.7% year-on-year to USD 164.89 million. QL Resources is Asia’s biggest manufacturer of surimi. The company also produces fishmeal, frozen fish and surimi-based products with total annual output of about 140,000 tonnes.
|Singapore fast food restaurants brave slump|
[25 November 2016] Fast food restaurants in Singapore are doing better than regular restaurants. A Straits Times article noted that they beat sales at restaurants with lower prices, better efficiency and by responding nimbly to trends. Fast-food sales in September are estimated to have risen 2.6% over the same period last year. But sales at restaurants rose more modestly at 0.9%. “It has speed and convenience, and even the ambience is getting better at the outlets. They keep having new products, which people get on to social media,” said Singapore Polytechnic Senior Retail Lecturer Sarah Lim. “Singapore is the hotbed of innovation and creativity when it comes to flavour profiles. It is a trend leader,” said Mr Amarpal S Sandhu, Texas Chicken’s General Manager for Asia Pacific.
|Big Dutchman strengthens Philippine team|
[25 November 2016] After acquiring the Proline Group, Big Dutchman has boosted its Philippine team by adding new staff and moving to a bigger office in Metro Manila. The Manila office will take on the regional role for Big Dutchman pig equipment in Asia, excluding China. “The future expansion plans will allow the team to build up the market, promote the Big Dutchman brand and provide the Philippines with a new level of support that we are known for in the global market,” said Patrick Ty, Managing Director of Big Dutchman Philippines.
|McDonald's Indonesia to launch mobile app|
[25 November 2016] McDonald's Indonesia will launch a mobile app to serve customers amid growing technology development in the fourth quarter of this year. The fast food giant said by launching the app, it wants to tap the growing smartphone market and keep up with shifting consumer behaviour. Michael Hartono, Marketing and Communications Director said once it is launched, customers can download the app and click on the menu when they want to place an order. In other developments, the company plans to open 15 stand-alone outlets across the country, adding to its 168 existing outlets. “We aim to record 15% sales growth this year,” Mr Hartono said.
Onsite with CHAKRIT RIDMONTRI at Poultry India 2016
[24 November 2016]
Good focus on processing
The 10th edition of Poultry India opened yesterday in Hyderabad with about 250 exhibitors from all sectors related to the poultry industry from across the region and the world. Remarkable growth is evident in the poultry processing sector in India. At the present edition of the show, one out of the four halls is completely occupied by poultry processing equipment from both local and international suppliers such as Meyn, Marel Stork, Linco, Moba and more.
Senha Farms opens modern poultry processing plant
Sneha Farms, a major broiler integrator in India’s poultry hub of Hyderabad, recently opened its first modern broiler processing plant. It has a fully automatic processing line with a 6000 birds/hour capacity supplied by Marel Stork Poultry Processing from the Netherlands. Managing Director Ram Reddy told Asian Agribiz that the investment in the modern processing line is aimed at laying down the basis for Sneha to become a food company soon.
|Korea’s Daesang buys Vietnamese sausage maker Duc Viet|
[24 November 2016] South Korean food producer Daesang Corp said it has completed the acquisition of a 99.99% stake in Vietnam-based meat processor Duck Viet Food Joint-Stock Co for USD 32 million. Duc Viet Food, which mainly makes hams and sausages, is a small, but sound company with USD 13.6 million in total assets, said Daesang. The Vietnamese company posted a net income of USD 1.69 million and USD 26.21 million in sales last year. According to market intelligence agency Mintel Group Ltd, demand in processed meat products in Vietnam reached USD 490 billion last year. Chilled sausages made up the largest share (23%), followed by shelf stable sausages (19%) and Vietnamese traditional sausage (18%).
|Philippine chicken, chicken egg output up in Q3|
[24 November 2016] Philippine chicken production and chicken egg production grew 1.89% and 4.96% respectively in Q3 2016. Data from the Philippine Statistics Authority (PSA) showed that chicken output for the period was 400,950 tonnes while chicken egg was 112,970 tonnes. According to the PSA, the higher demand drove up chicken production, while increased inventory and expansion of layer farms led to the growth in egg production. Although average farm price of chicken took a slight 0.55% dip, the higher output led to a 1.33% hike in earnings, while for chicken egg industry, a higher average farm price translated to a nearly 12% increase in gross revenue.
|FAO, the Vatican condemn illegal fishing|
[24 November 2016] FAO and the Vatican have called for an intensified international push to stamp out human rights abuses in the world’s fishing industry — including trafficking of people and forced labour — as well as an end to the scourge of illegal fishing. José Graziano da Silva, UN Director-General said although fishing provides food and income for millions of people, “sadly, the same industry that offers so many opportunities also victimizes the most vulnerable.” Therefore, “FAO and the Holy See are calling for collaboration between all partners to work together in order to end human rights abuses along the entire fisheries value chain,” he said.
|MSD Animal Health calls for submissions for 2017 High Quality Pork Award |
[24 November 2016] MSD Animal Health announced its sponsorship of the 2017 High Quality Pork PhD Award in support of research in swine health, production and welfare. The award is open to recent doctoral graduates in veterinary or animal science, and the winner gets the opportunity to present their research at MSD Animal Health High Quality Pork meetings to be held in Europe, the Americas and Asia in 2017. Applications must be submitted by January 15, 2017 and the winner will be announced in mid-February. Visit highqualitycongress.com/hqporkphdaward.aspx to get further details and to apply.
|Fast Food Indonesia to operate 600 KFC outlets in 2017|
[24 November 2016] Fast Food Indonesia, the operator of KFC in Indonesia, has said that it will continue to increase the number of its outlet in the country. Currently the company operates 560 outlets across the country. Hendra Yuniarto, General Manager said it plans to operate 600 outlets in 2017 by setting up 40 new outlets both in Java and beyond Java. The company is confident of achieving a 10% revenue increase in 2017. To achieve this target, Mr Yuniarto said it will launch 3-4 new menus and push its online sales by cooperating with non-cash payment providers.
|Have traditional supermarkets peaked?|
[23 November 2016] At the Asian Agribiz Animal Protein in Asia 2022 conference, David Hughes, Emeritus Professor of Food Marketing at Imperial College London, UK will address how ‘Big Box’ retail food stores must to come to terms with the fact that on-line, discount, smaller supermarket, and convenience store sales will outpace hypermarket sales as consumers move towards a more shopper-friendly and dynamic multichannel grocery environment. The conference which will be staged in Bangkok, Thailand on January 16-17, 2017. This boutique conference will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register here.
|South Korea lifts ban on Thai frozen chicken|
[23 November 2016] South Korea has agreed to lift its 12-year ban on frozen chicken imports from Thailand, after South Korea’s Quarantine Inspection Agency (QIA) visited and inspected 12 Thai chicken plants in September this year. “This is good news because we can expand our export markets. And the volume of chicken exports will increase,” Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. Mr Kukrit said Thai chicken plants will export around 10,000 tonnes of frozen chicken to South Korea in 2017 and the volume will increase to 30,000-40,000 tonnes in the next 2-3 years. In total, Mr Kukrit said Thailand will export around 715,000-720,000 tonnes of chicken meat this year.
|Philippine hog production up in Q3|
[23 November 2016] Philippine hog production rose to 522,840 tonnes in Q3 2016, up over 4.5% from the previous year, the Philippine Statistics Authority (PSA) said in its quarterly agricultural performance report. This brings the country’s total production to nearly 1.6 million tonnes from January to September this year. The PSA said the rise was due to heavier slaughter weights and higher demand from institutional clients, traders and meat processors in Central Luzon and the Calabarzon regions, both of which are adjacent to Metro Manila. The higher volume helped push up the industry’s gross earnings to USD 989.2 million for Q3, up 1.75% year-on-year despite an almost 2.6% drop in average farm price during the review period.
|Vietnam a good market for EU meats, by-products |
[23 November 2016] Rising concerns on food safety in Vietnam and a preference for imported meat, has seen European countries promoting their meat products here, more so with EU-Vietnam Free Trade Agreement (EVFTA) that is due to take effect by 2018. A delegation of 42 EU establishments led by Phil Hogan, EU Agriculture Commissioner, held meetings with Vietnamese enterprises in an effort to strengthen ties and work towards the implementation of the EVFTA. The meeting showed that Vietnamese consumers favour not only high quality pork, but also poultry by-products. About 100 EU exporters currently export meat products to Vietnam. Meat imports from EU to Vietnam grew to 711 tonnes in 2015 from 10 tonnes in 2012.
|Japan, Korea, Hong Kong restrict poultry imports from Germany|
[23 November 2016] Japan, South Korea and Hong Kong are among several countries that have placed import restrictions on poultry from Germany following outbreaks of avian influenza in the country, the German state government of Mecklenburg-Vorpommern said in a statement. Eight European countries and Israel have found cases of the highly contagious H5N8 strain of avian influenza in the past few weeks and some have ordered that poultry flocks be kept indoors to avoid the disease spreading. Most outbreaks have involved wild birds, but Germany, Hungary and Austria have also reported cases in domestic duck and turkey farms where all poultry had to be culled. More outbreaks in Europe are likely in the next few weeks as wild birds believed to transmit the virus migrate south.
|Demonetisation hits India’s layer farmers|
[23 November 2016] Poultry farmers in India’s Andhra Pradesh state are badly hit by a drop in egg prices after demonetisation of high denomination notes. Layer farmers having 100,000 birds are losing at least USD 881 a day on sale of eggs and the losses are higher for farmers raising below 100,000 birds. With the money transactions becoming difficult across the country, the egg dealers are refusing to buy eggs from local farmers and they are offering prices lower than that fixed by the National Egg Co-ordination Committee (NECC). Kanakamedala Premkumar, NECC Zonal Committee Chairman said: “Our hopes on running the poultry industry this season were ruined due to the government’s decision of scrapping of high denomination notes.” He said the egg price fell from USD 0.05 to USD 0.04 per piece after Prime Minister Narendra Modi announced demonetisation on November 8.