TOP STORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 July 2015
|SKM Animal Feeds venture into chicken processing|
[03 July 2015] South Indian animal feeds manufacturer SKM Feeds and Foods (India) Private Limited has ventured into chicken processing with the acquisition of a 3000 birds/hour chicken processing unit in Tamil Nadu. Speaking to Asian Agribiz, Dr M Chandrasekar, Managing Director of the company said that they are now producing 1100 tonnes/month of processed chicken from their unit near Coimbatore. “We have launched the brand Porna chicken in South India,” he said and pointed out that once they reach full processing capacity of 1800 tonnes/month they will embark on expansion.
|China plans 10.5 million tonnes of new grain storage|
[03 July 2015] China is planning to build 10.5 million tonnes of new grain storage capacity in order to improve management of the country’s current grain surplus, according to a report by the official news agency Xinhua. High government subsidies have encouraged farmers to grow vast surpluses of corn, with stocks reaching almost 100 million tonnes by the end of the 2014 crop year. Officials for the state grain reserves said they are planning to build more storage facilities in the grain-rich northeast, as well as in other areas where grain is stored and sold, the Xinhua report said. Meanwhile other government officials are encouraging farmers to grow alternative crops, but there has as yet been no change in the subsidies that have raised domestic corn prices 30% above the world market price.
|GGP offers to buy rest of Sierad for USD29.64m|
[03 July 2015] Indonesia’s Great Giant Pineapple (GGP), a subsidiary of Gunung Sewu group, has offered to buy the remaining 49.49% of poultry firm Sierad Produce that it does not own for USD 29.64 million. GGP has offered to buy 464.79 million Sierad shares at IDR 850 each, according to a prospectus published in the Investor Daily newspaper. That is 1.8% above Sierad’s closing price on Monday. GGP said the Indonesian poultry sector offers strong potential and it is keen to expand the company’s product distribution network.
|KFC opens first outlet in Myanmar|
[03 July 2015] US chain KFC opened its first outlet in Yangon, Myanmar, on June 30, becoming the first major western fast food chain to establish a foothold in the country. “It has been our dream for a long time to have a KFC in Yangon,” said Micky Pant, CEO of KFC. KFC views the country with a total population of 50 million as an important emerging market, he said. The Southeast Asian country has seen an influx of foreign brands since the end of military rule in 2011, which prompted the lifting of many Western sanctions. KFC’s parent company, Yum! Brands, had signed a deal with Singapore-based Yoma Strategic Holdings as a local partner in Myanmar.
|OSI committed to China despite losses|
[03 July 2015] OSI Group remains committed to the China market despite losing close to USD 1 billion since a food safety scandal last summer, according to an OSI executive quoted by the official Chinese news agency Xinhua. Speaking to local reporters during a tour of a new OSI plant in the central province of Henan, OSI China Vice President Lü Yong said the firm had lost about USD 987 million since July 2014, when allegations surfaced that an OSI plant in Shanghai was using out-of-date meat, the Xinhua report said. “However, our faith in the Chinese market has not changed,” Mr Yong said, adding OSI has invested more than USD 500 million in China over the last five years.
|Valid data crucial to stabilise supply & demand|
[03 July 2015] In order to control the supply and demand of poultry, Indonesia’s Ministry of Agriculture is now trying to get valid industry data. Muladno, Director General of Livestock and Animal Health, said the ministry is looking for a professional survey agency to do data verification. “This week we will also ask all poultry breeding companies to send their production and supply data. In addition, we plan to call poultry genetics companies to explain about production cycle and the right method to calculate potential production of DOC,” Dr Muladno said. From the three actions, Dr Muladno said the ministry will then launch e-poultry or an online data-base application on the real supply of DOC.
|Agri firms unhappy over FTA with South Korea|
[03 July 2015] Agri businesses in Vietnam fear the free trade agreement (FTA) with South Korea will bring them more losses than gains, reported Thanh Nien News. Signed in May, the FTA is expected to boost Vietnam’s exports to Korea and more than double bilateral trade over the next five years. Next year South Korea will remove tariffs on shrimp from Vietnam, currently at 10-15%, raising hopes of expanding exports. South Korea is Vietnam’s fifth biggest shrimp importer. Last year Vietnam surpassed China to become the biggest exporter to Korea. However, Le Van Quang, General Director of seafood producer Minh Phu, said it is not easy for local seafood enterprises to increase exports because there is a quota for Vietnamese shrimp of only 10,000 tonnes enjoying zero tax. The quota will be increased by 10% every year until it reaches 15,000 tonnes.
|NIRS workshops – making the most of feed|
[02 July 2015] Feed producers are constantly under pressure to produce consistently high quality feed, while maintaining profitability and production targets. Consistent feed quality begins with having full knowledge of your incoming ingredients. Asian Agribiz Skills Development will be holding one day NIRS workshops, presented by Ivan Ward of Agri-Torque Pty. Ltd. Mr Ward has extensive practical experience implementing NIR systems, in particular with Australia’s largest feedmiller. Introductory Workshops will be held in Bangkok (September 1 and Jakarta September 5) and an Advanced Workshop for people with more than two years NIR experience will be in Bangkok (2 September). Please register your interest today with Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org
|Sats to evolve into regional food company |
[02 July 2015] Singapore’s Sats Ltd’s joint venture with Brazil’s BRF GmbH to manufacture food products will eventually evolve into an integrated branded food company with a physical presence in other Southeast Asian markets. “After configuring a distribution presence in these new markets we will look at the value added servuces such as cutting and marinating, and later finished products such as ready-to-eat meals,” CEO Alex Hungate said recently. “Asean is an attractive and high potential meat market,” he said, adding that the urbanisation has seen rapid growth in the middle and affluent class. “This category will want to consume higher quality and safe food. The jv is targeted at this trend especially with meat."
|Cargill’s latest animal nutrition centre opens in China|
[02 July 2015] Cargill in China has opened its 12th Technology Application Centre (TAC) in Bazhou, Hebei. The centre has 120 lactating dairy cows and 280 sows, and focuses on technology applications to improve animal performance, lower diet costs, reduced nitrogen and phosphorus excretion and enhanced animal health. “Our TAC is designed to evaluate and test the application of Cargill technology under local conditions. This TAC allows us to deliver new products and services that are customised to meet requirements of our customers in China,” said Scott Ainslie, Global Strategic Marketing and Technology Director for Cargill’s Animal Nutrition Business. “The new TAC allows our Chinese customers to tap into best possible solutions from around the world,” said Jason Shelton, Global Technology Application Director.
|CP Indonesia reduces capex|
[02 July 2015] Indonesia’s largest poultry integrator Charoen Pokphand Indonesia this year will spend only around half of its total capital expenditure of last year, which amounted to more than USD 225.3 million, according to Director Ong Mei Sian. The company will spend a smaller amount of capex this year because it carried out fewer expansion projects in line with around a 20-30% reduction of its DOC output, which resulted from a regulation requiring large companies to reduce their DOC production. Ms Ong said the company could not yet predict its revenue this year, but she expects that it would be at least the same as last year’s.
|Chinese officials seize ‘zombie’ chicken paws|
[02 July 2015] Chinese health officials in Chongqing seized pickled chicken paws and pig’s trotters that may have been as much as 40 years old, according to the Xinhua news agency. The meat, which the report referred to as ‘zombie flesh’, had been chemically processed and then sold to midnight snack stalls and restaurants. “The meat was older than some of the men who were eating it,” said the report, which did not specify whether the meat was a domestic product or had been imported or smuggled into China.
|Water-injected beef found in Surakarta|
[02 July 2015] Indonesia’s Surakarta municipal administration in Central Java has called on local residents to lookout for water-injected (beef) meat in traditional markets throughout Ramadhan. The warning was made after the city’s Agriculture Agency last week confiscated 40kg of water-injected meat from two vendors during a raid on the Nusukan traditional market. The agency’s Veterinary Public Health Section Head, Bagus Sarwoko, said this indicated that unsafe products have started to flood the city in the midst of growing demand during Ramadhan. Mr Bagus added that the local administration has been cooperating with authorities in six neighbouring cities to intercept the influx of water-injected meat from and to their respective regions.
|Disease threat among pigs in India’s Mizoram|
[02 July 2015] Disease threat has surfaced in parts of northeast India after samples of pigs that died in Aizwal and the surrounding areas in Mizoram state in India tested positive for classical swine fever and Porcine Reproductive and Respiratory Syndrome (PRRS). Confirming this, State Animal Husbandry and Veterinary Director Dr L B Sailo said the samples were tested at the laboratory in Veterinary Science College in Selesih. According to him, the outbreak of classical swine fever has been a yearly affair during the pre-monsoon season. “This is due to the changes in weather and the situation would soon normalise,” he added.
|Pure Pig Genetics acquire ACMC assets|
[01 July 2015] Pure Pig Genetics Ltd, a new company owned by Matthew Curtis, former Managing Director of ACMC, has taken over major assets owned by ACMC, which went into administration in April. Included in the acquisition are ACMC’s nucleus herd and Gene Bank Stud. Pure Pig has also taken over ACMC’s worldwide franchise contracts as well as its high health multiplication contracts in the UK and purchased all breed genetic rights worldwide, all the brand names and intellectual property, PigCom herd management system and the Genetic Evaluation Program. Mr Curtis said that “after a considerable period of uncertainty,” ACMC customers no longer need to worry as they can now acquire ACMC products through Pure Pig. Meanwhile, Dr Danny Silbor, Country Manager of ACMC Philippines told Asian Agribiz that they will continue operating in the country. “The Philippines remains one of the most successful ACMC franchises outside of the UK and this year will be good for our two nucleus farms.”
|STM Group to venture into chicken processing|
[01 July 2015] Indonesia’s Sinar Terang Madani (STM) Group based in Makassar, South Sulawesi plans to venture into chicken processing. Audy Joinaldy, President Commissioner, told Asian Agribiz that the company recently set up a chicken trading division for the plan. “We are still analysing the market potential and channels. But for the first stage we plan to have a 1500 bird/day chicken processing plant in South Sulawesi,” he informed. Mr Audy said South Sulawesi with a population of 8 million people is a fast growing province in Indonesia. Although marine fish is the number one animal protein source in the province, the consumption of chicken continues to increase.
|Chinese vaccine production centre fitting out|
[01 July 2015] Luoyang Huizhong Biotechnology Co Ltd in China is building a USD 25 million animal vaccine production centre that will include six vaccine production lines, according to the Luoyang Daily News. The project, which has entered the equipment procurement stage, will manufacture vaccines against Newcastle disease, avian influenza, infectious bronchitis and other poultry diseases. Luoyang is located in the central province of Henan, one of China’s most important animal protein production centres. The Chinese animal vaccine market is growing at a 15% annual pace, with sales expected to reach more than USD 3 billion by 2017.
|Pakistan plans to produce 3.8m tonnes of meat in 2015-16|
[01 July 2015] The Pakistan government has set a target to produce 3.8 million tonnes of meat in 2015-16 to fulfil local requirements as well as exports. According to the Ministry of National Food Security and Research, beef production target has been set to 2 million tonnes, mutton production targets was fixed at 686,000 tonnes and fish production targets at 788,000 tonnes in 2015-16. Apart from this, the government has also scaled up its target of milk and egg production in the country for the said period. To meet this target, the government is developing its veterinary infrastructure, standardisation of feed and development of skilled manpower, a statement from the ministry added.
|China report new H5N1 outbreaks |
[01 July 2015] China reported more outbreaks of H5N1 avian flu, affecting about 15,000 domestic birds, according to reports posted by the World Organisation for Animal Health (OIE). The virus hit a flock of 2349 ornamental birds on a farm in Jiangsu province in the east and a 12,554-bird chicken farm in Guizhou province in the south, health ministry officials reported in a June 19 OIE report. The small flock had 2149 cases and 1858 deaths, while the larger farm reported 4615 cases and 3800 deaths. The remainder of the flock was culled to prevent disease spread.
2015 7th International Symposium on Emerging and Re-Emerging Pig Diseases
Reports from CRAIGE ALLAN
[01 July 2015]
Why ileitis remains a problem
Dr George Aretis, Apac Regional Swine Consultant, Elanco Animal Health, said ileitis is “the most underestimated problem in the swine industry.” About 96% of farms globally are infected. Based on the level of management, sometimes subclinical or even chronic cases of ileitis can be underdiagnosed. Pigs recover in 3-4 weeks after the clinical phase, however, the adverse effect on average daily gain cannot be compensated. Mr Aretis described ileitis as “a disease that stays on the farm”. This is because pigs with subclinical infections can excrete 10 million lawsonia bacteria per gram of faeces, and it takes just 1 million lawsonia to cause an infection. The bacteria can also survive for 14 days in the faeces at 15 degrees Celcius.
Transmission of PEDV through feed
Scott Dee from Pipestone Applied Research presented the results of a study on the risk of feed and feed ingredients as vehicles for porcine epidemic diarrhoea virus or PEDV transmission. Initial reports indicate the ability of PEDV to survive in dry feed for seven days and in wet feed for 28 days when stored at room temperature. In studies the use of a swine bioassay demonstrated infection in naïve pigs following ingestion of contaminated feed. Mr Dee concluded that as the global swine industry prepares itself for the spread of the virus a biosecurity program designed to reduce the risk of feed along with plans for reducing transport and aerosol risk becomes essential.
Infection chain and prevention chain
In Boehringer Ingelheim Vetmedica’s ‘Chain thinking in disease prevention’ satellite meeting, Dr Eduardo Fano presented “Infection Chain/Prevention Management” which aims to connect epidemiological events, or infection chain, between the different production phases, or production chain. He gave an example of the gilt acclimation initiative ‘50-350’, which aims to reduce vertical transmission for Mycoplasma hyopneumoniae from gilts to piglets. Gilts are exposed to M hyopneumoniae at 50-80 days of age, targeting complete population infection at 100 days with validation by diagnostics. Recovery and shedding stops at 300-320 days before the first farrowing at 350 days.
Producers accede to demands for antibiotic-free products
[30 June 2015]
Antibiotic use in animals is expected to surge by two-thirds globally between 2010 and 2030, while doubling in emerging giants like China, Brazil, India and Russia, said a study by the International Livestock Research Institute. By 2030 Myanmar and Vietnam are projected to be two of the top five countries with the largest increases in antibiotics use – 205% for Myanmar and 157% for Vietnam. However, Asian lawmakers, feedmillers, poultry and livestock producers are taking charge of the situation. A survey by the ASIAN AGRIBIZ team showed that consumers and retailers are driving the move for antibiotic-free meat products, and for producers to be more ethical in their use of drugs.
Indian government urges industry to stop using AGP
Fearing the threat of antibiotic resistance, India’s Drug Controller General of India (DGCI) and Union Agriculture Ministry have directed state governments to stop the use of antibiotics and hormones in animal feed. However, there is no regulatory provision regarding the use of antibiotics in livestock and hence there is no immediate ban. “The idea is to cut the misuse of antibiotics by phasing out these practices completely but it would be done while sensitising farmers about the risk it poses to health of people,” a DGCI spokesperson told Asian Agribiz.
Indonesia targets antibiotic-free production
The Indonesian government and poultry stakeholders have put a timeline on antibiotic-free poultry production in its poultry industry roadmap. Desianto Budi Utomo, General Secretary of the Indonesian Feed Millers Association and President of the Indonesian Poultry Science Society, told Asian Agribiz that the country plans to achieve it in the next 10-15 years. “It takes time because industry players and infrastructure are not ready for a total ban. We learnt from a case in a Scandinavian country where a total ban of AGP without a transition process caused the use of antibiotics for therapeutic reasons to increase. So it is important for Indonesia to use the 10-15 years as a transition period and also to educate farmers,” said Dr Desianto.
Full ban could lead to bacterial infections
Even though the Indian Government has asked industry players to stop the use of antibiotics and hormones in feed, there is no blanket ban on its use. Dr Sujit Kulkarni, Managing Director of Biomin India, told Asian Agribiz that if there is a blanket ban it would lead to more incidences of dysbiosis or other bacterial enteritis, which can open the door for more bacterial infections. Despite the risk of price escalation, he said considering the health hazard of antibiotic residues in chicken meat, people are ready to pay a premium for AGP-free chicken.
Consumers drive demand for antibiotics-free food in Vietnam
In Vietnam the move towards antimicrobial-free products stems from food producers and retailers. “Broiler farmers are being asked by the slaughterhouses to remove antibiotics from feeds in the last phases. The slaughterhouses are instructed by fast food retailers like KFC, Jollibee and Lotteria, food caterers and big hotels,” Gabor Fluit, General Director De Heus Vietnam, told Asian Agribiz. The dairy sector is more advanced. Vinamilk, Friesland Campina and TH are serious about zero antibiotics contamination in processed milk products. In the pig sector, he said, both feedmillers and farmers are starting to feel the pressure from consumers. In export-driven products like pangasius and shrimp, feedmillers, farmers and processors work closely and monitor the whole chain to prevent antibiotic contamination in end-products. “Producers do not want to risk losing important export markets, so there is a natural drive to improve and perform,” he said. “In general we see a clear trend,” Mr Gabor said.
Use of AGP in feed declines
With the Central Government directing the industry to stop antibiotics in feed, Biomin India observed that poultry integrators have reduced the use of antibiotic growth promoters in feed in the last few years. “Poultry industry players seriously observe the withdrawal period. They ban the use of AGP in feed in the final 8-10 days of production to eliminate antibiotic residue in chicken meat,” Sujit Kulkarni, Managing Director of Biomin India, told Asian Agribiz. According to him, these farmers have managed to maintain good husbandry practices by using alternatives such as phytogenics, probiotics, prebiotics and organic acid in combination or by itself.
Philippine producers not ready for blanket ban
Despite decisions by McDonald’s, Tyson and Walmart in the US to phase out antibiotics in meat products, this could take a longer time in the Philippines. “We can only implement this if our farmers are already mature enough to observe proper biosecurity, strict feed quality and good animal husbandry,” Dr Roland Cruz, a veterinarian consultant in the Philippines told Asian Agribiz. He noted that regulators are still unable to overcome the use of banned beta-agonists as meat enhancer. He said highly integrated operations like San Miguel Foods, Bounty Fresh and Robina Farms could supply meat that is antibiotic free, but many others cannot. Besides, despite food safety awareness, most consumers are still price-sensitive and this could affect how producers raise their animals. Nevertheless, many producers are anticipating shifts in consumer preferences and are slowly making changes.
Indonesia to reduce use of AGP on farms
In order to achieve antibiotic-free poultry production in the next 10-15 years, Indonesia’s government is planning to reduce the number of AGP from 30 to six items. This will be gradually reduced to zero. Desianto Budi Utomo, General Secretary of the Indonesian Feed Millers Association and President of the Indonesian Poultry Science Society, told Asian Agribiz that besides reducing the products, its usage will also be limited based on feed phase. “Considering the withdrawal time before harvest, the use of AGP in (broiler) finisher feed will be prohibited.” As a result of this, Dr Desianto said, farmers have to improve their biosecurity and farm management.
Awareness levels high in Malaysia
Stakeholders in Malaysia’s livestock and poultry industry have been talking about the misuse of antimicrobials as growth promoters for some time now. “Awareness levels are high among feedmillers, and livestock and poultry producers. The Department of Veterinary Services has been pushing for this for a long time,” Dr C Paul Suppiah, Veterinary Association Malaysia President, told Asian Agribiz. Many producers have established good biosecurity on their farms to keep their animals safe. Meat producers, on the other hand, demand for meat that is free from antibiotics residue. Malaysia also exports poultry, pork and eggs to Singapore where the country’s Agri-Food and Veterinary Services maintains high food safety standards that Malaysian exporters comply to. However, Dr Paul does not foresee Malaysia issuing a nationwide-ban on the use of drugs as growth promoters. “There are many farms that are still open house facilities.”
CP Indonesia initiates change with higher biosecurity
Major poultry integrator Charoen Pokphand Indonesia has done much to reduce the use of antibiotics in its operations and improve traceability. Desianto Budi Utomo, Vice President of Government and Academic Liaison, told Asian Agribiz the company gradually transformed its internal commercial broiler farms from open house to closed house. “We raised the biosecurity level of our commercial broiler farms. We place much attention on the withdrawal time of antibiotics since this relates to traceability,” Dr Desianto said, adding that since the company plans to export its further processed chicken products to Japan, a team of auditors has surveyed its production facilities. “They found that we can meet their food safety standards and can guarantee compartmentalisation and traceability.”
De Heus can work out alternative solutions for feed
De Heus Vietnam installed its first antibiotic-free production line for dairy cattle feed back in 2011. “Back then we saw the biggest risks in the dairy market,” Gabor Fluit, General Director, told Asian Agribiz. Today the company’s aqua feeds are antibiotic-free as well. “That is the reason why we have two fully-dedicated aqua production locations in Vinh Long and in Vinh Phuc. For pig and poultry feeds we are reducing the risks of contamination by producing high-risk feeds on dedicated production lines like the piglet feed, and frequently cleaning the lines,” he said. He expects costs could go up in the short term for producers. “There could be an upward price impact on some products as antibiotics are not only used for disease tackling, but also as growth promoters. Alternatives are available in the market, but these alternatives are in some cases more expensive,” he said. Long term, however, Mr Gabor believes that Vietnam will be able to adapt to a changing environment.
|CP Prima launches shrimp feed to overcome disease|
[29 June 2015] Responding the spread of white faeces disease in shrimp ponds in Lampung and East Java, Indonesia’s largest aqua feed producer Central Proteinaprima (CP Prima) recently launched a special shrimp feed to overcome the problem. Irwan Tirtariyadi, President Director, said several trials of the special feed have been done in East Java and the results showed that after treatment with the feed, infected shrimps could grow again. Mr Irwan informed that the feed will be produced at its feedmills in East Java, Lampung and North Sumatera.
|Poultry and livestock production to grow in the Philippines|
[29 June 2015] The Philippines’ poultry production in 2015 could increase by 9% year-on-year, while livestock output could increase by as much as 5% this year on the back of good weather and the absence of diseases, according to the Department of Agriculture. Robust domestic demand for chicken and pork is encouraging hog raisers and poultry growers to increase their output.
|Austrex signs end-to-end meat processing deal|
[29 June 2015] Austrex, one of Australia's largest exporters of live cattle has signed a deal, reported to be worth about USD7.7 million, with two Indonesian businesses Pramana Agri Resources and Rumpinary Agro Industry to form an end-to-end meat processing company based in South Sulawesi. The deal will allow the joint venture to have control of the cattle supply from Australia through to the sale of boxed beef. The business model will be integrated, from the animal feed supply to the fattening, up to the meat cutting and the beef box processing," Pramana Agri Resources director Robert Erizo Kusnadi told the Jakarta Globe. In the first phase, we would have a feedlot capacity in the range of 10 [thousand] to 15,000 cattle," he said. Operations for the joint venture were expected to begin in the second quarter of 2017.
|McDonald’s to sell Taiwan stores|
[29 June 2015] McDonald’s Corp said it is aiming to sell all of its 413 Taiwan-based stores to a franchise operator, as the US fast food chain looks to cut costs globally and turn around its flagging China business. The move could help comfort investors who were sceptical and wanted specific details after McDonald’s new CEO Steve Easterbrook announced a revamp plan in May that included reorganising business units and selling outlets to franchisees, reported Reuters. “McDonald’s has decided to search for suitable candidates to become its developmental licensee in Taiwan,” the company said. It added the model would enable “faster local decision-making, quicker learning, and restaurant growth”.
|China continues to dominate aqua market|
[29 June 2015] China will increasingly influence global fish markets, says a World Bank report titled Fish to 2030. It says that by 2030, China will account for 37% of total fish production (17% of capture production and 57% of aquaculture production), and account for 38% of the global consumption of fish.
|Russia limits buffalo meat imports from India|
[29 June 2015] Russia is imposing restrictions on the supply of buffalo meat from India over disease concerns as incidents of foot-and-mouth disease have been recorded in India, Sputnik News reported. “The restrictions will apply to companies of the Uttar Pradesh state in India, where cases of foot-and-mouth disease have been recorded,” a spokesperson for Russia’s agriculture watchdog Rosselkhoznadzor said. Of the four Indian companies exporting buffalo meat to Russia, three are from Uttar Pradesh.
|USD 480m worth of meat seized in month-long ‘grey channel’ crackdown|
[26 June 2015] China Customs officials broke up 14 smuggling gangs and seized more than 100,000 tonnes of frozen meat worth up to USD 483 million in a month-long crackdown on ‘grey channel’ imports, according to Chinese media reports. The seizures came as part of a continuing food safety and anti-corruption campaign that began late last year. Grey channel imports are not properly inspected either when they enter China or when they pass through Hong Kong or Vietnam, according to Yang Bo, an official at the Changsha bureau of Customs, where 800 tonnes of meat up to four years old was seized during the crackdown.
|BAI opens new duck slaughterhouse|
[26 June 2015] The Philippine Bureau of Animal Industry (BAI) opened the first government-owned duck slaughterhouse and packing plant last week, a report by BusinessMirror said. The new plant, which can process 150 head per hour, is located in BAI’s Animal Products Development Center in Valenzuela City in northern Metro Manila. BAI Director Dr Rubina Cresencio said the facility is part of the government’s efforts to develop the country’s duck meat industry. She said this will encourage increased production to help meet increasing demand in both the local and overseas market. Last year, the Philippines started the commercial shipment of duck meat to Japan.
|Novel H5N9 virus described as hybrid of H5N1, H7N9|
[26 June 2015] Chinese researchers who analysed influenza viruses from poultry in live-bird markets said they have discovered a novel H5N9 virus that represents a hybrid of the highly pathogenic H5N1 avian flu virus and a human H7N9 virus, along with other elements. The researchers took samples in 2013 at two live-bird markets in Hangzhou, a city in Zhejiang province, where human H7N9 cases had occurred, according to their June 17 report in the Journal of Virology. The report does not indicate that any of the birds were sick. The team isolated 13 viruses from the samples: 1 H5N1, 2 H5N9, 4 H9N2, and 6 H7N9. They determined that the novel H5N9 virus prefers avian-type cell receptors, known as alpha2,3 sialic acid, rather than the human-type receptor, called alpha2,6. “This newly isolated H5N9 virus is a highly pathogenic reassortant virus originating from H5N1, H7N9, and H9N2 subtypes,” the researchers wrote. “Live bird markets represent a potential transmission risk to public health and the poultry industry.”
|Kimchi-based probiotics study in Malaysia shows good results|
[26 June 2015] A group of Universiti Sains Malaysia researchers used an extract from kimchi to develop probiotics as an additional nutrient for poultry and an alternative to antibiotics. The study, conducted at the TerokaJaya Farm in collaboration with several industrial partners, including Probionic Corp from South Korea, showed good results. Adviser to the program Prof Madya Dr Liong Min Tze said changes in the health and growth of the birds can be seen in day 42. “The probiotics act against harmful bacteria in the intestines and help birds maintain good health,” he said. “Most importantly, livestock productivity can be improved as the probiotics are capable of reducing animal death rate,” he added.
|Ramadan spikes cattle demand in Indonesia |
[26 June 2015] A good supply of Australian cattle has been exported to Indonesia’s feedlots in time for Ramadan and following festivals, reported ABC Rural. Preparation for Ramadan is also one of the busiest times of the year for livestock exporters as it is the peak period for consumption of meat and beef in Indonesia. Scot Braithwaite, COO for Wellard Rural Exports in Asia, said timing of this year’s Ramadan has worked well for the industry. “Ramadan, has arrived just in time for the first part of the second quarter permits for those cattle available.”
|FTAs to put Vietnam livestock sector to the test|
[26 June 2015] Vietnam’s animal husbandry industry is expected to face serious challenges under new and future free trade agreements (FTA) because of low productivity, high production costs and small scale of production. Speaking at a conference held in Ho Chi Minh City, Doan Xuan Truc, Deputy Chairman and General Secretary of the Animal Husbandry Association, said that FTA would adversely affect the industry. But he noted that FTAs would also help the industry access new technology, products, and animal breeds as well as production methods. “If the sector does not lower production costs, cheaper imported meat will enter the market,” he said.
|STM Group to double DOC production |
[25 June 2015] Indonesia’s Sinar Terang Madani (STM) Group, based in Makassar, South Sulawesi, plans to increase its broiler DOC production by 6 million hatching eggs per year. Audy Joinaldy, President Commissioner told Asian Agribiz that currently the company produces around 3 million hatching eggs per year. “We recently finished the construction of our second PS breeding farm in South Sulawesi, and are now setting up the third and fourth farms also in the province,” he said, adding that the company raises Cobb strain. To expand its market reach, STM Group also plans to set up a breeding farm in South Kalimantan and North Sulawesi. Currently its DOC production is only for internal use and contract farming.
|Another big grey channel bust in China|
[25 June 2015] Customs officials in southern China have busted two smuggling gangs, made 20 arrests and seized 800 tonnes of meat worth about USD 1.7 million, the official Xinhua news service reported. The meat, much of it in packaging with foreign language labels, was being smuggled through the Red Star Wholesale Frozen Market in Changsha, the capital of Hunan Province, and would have been distributed to cities across southern China. The busts were part of a continuing crackdown on the Hong Kong ‘grey channel’. Some of the meat was three to four years old, and one official said poor handling and uncertain cold chain in the grey channel caused serious sanitary issues for such aged product. China Customs estimated that one-third of the Red Star Market’s annual 800,000-tonne throughput came from unknown overseas origins.
|VVV is Grupo CEM’s agent in the Philippines|
[25 June 2015] Argentina’s Grupo CEM, a group of companies that produces, sells and exports different agricultural products and commodities, has named Veritas Vetnutrition Ventures Inc (VVV) as its sole agent in the Philippines. With this partnership, “poultry and livestock producers can now purchase commodities and products like soybean meal direct from an Argentinean producers,” Dr Nervy Santiago, President and CEO of VVV told Asian Agribiz, during the contract signing ceremony recently. Meanwhile, Nico Bolzico, General Manager of LM10 Corp, a local company with Argentine capital that was instrumental in developing the partnership, told Asian Agribiz, the tie up will introduce “premixes with sorghum, corn, wheat and sunflower among others that will allow local producers to achieve a more cost efficient ratio conversion of vegetable to animal proteins”.
Onsite reports by ISA Q TAN
[25 June 2015]
The third edition of Livestock Philippines began yesterday and will run until tomorrow. Today, President Benigno Aquino III will be the guest of honour at the show’s official opening ceremony. With more than 200 brands coming from 18 countries, the three-day event with the theme Farm to Shelf, serves as a platform for global stakeholders in the livestock, animal health and feed industries to share the latest developments in the animal protein production.
Producers must improve farms
Philippine livestock and poultry producers should realise that there are plenty of opportunities for growth both locally and globally, but they must also look at things that they need to improve on, Dr Eugene Mende, President of the Philippine Veterinary Drugs Association, told Asian Agribiz at Livestock Philippines. He added that the global meat market, particularly in Asia, has been bullish and will continue to be so. To take advantage of these opportunities, he said producers must achieve efficiency in production costs and management, be updated on the latest trends and industry technology, and invest in research and development.
Philippines develops diagnostic test kit for PED
The Philippines now has a rapid diagnostic test kit for porcine epidemic diarrhoea (PED). Dr Clarissa Yvonne Domingo of the College of Veterinary Science and Medicine of Central Luzon State University, who developed the Andali PED RT-Lamp based diagnostic test kit, told Asian Agribiz the portable and easy-to-use kit can produce fast and efficient results in less than an hour. It is also affordable. The university has not commercialised the test kit, but Dr Domingo said there are several business plans they are exploring. At this time, the researchers are still doing molecular characterisation of the virus, in order to identify where the strain of the virus present in the country originated.
Yemmak ventures into the Philippines
Yemmak, a producer of feedmill equipment from Turkey, is bringing its products into the Philippines and later to other Southeast Asian countries. Selcuk Erdem, Yemmak Marketing Manager, told Asian Agribiz the company has been in the equipment business for 50 years and has decided to expand its business into Southeast Asia. “According to our market research, to start in the Philippines is the best way, and then we will be moving into Malaysia, Indonesia and Vietnam. We see good potential in these markets.” Yemmak equipment is being represented in the Philippines by EVP Trading.
|OIE declares Philippines FMD free without vaccination|
[24 June 2015] The Philippines received its official recognition as an FMD-free without vaccination country during the 83rd General Session of the World Organisation for Animal Health (OIE) in May. “It’s a nationwide recognition with emphasis on ‘without vaccination’,” said Dr Rubina Cresencio, Bureau of Animal Industry Director and Chief Veterinary Officer, adding that previous declarations were done on per zone basis, beginning with Mindanao in 2001, Visayas in 2002 and finally Luzon in 2010. The OIE also recognised the Philippines as free of Peste des Petits Ruminants, a highly contagious disease affecting small ruminants. With these declarations, the Philippines is aiming to become a strong player in the global market.
|STM Group to set up bigger feedmill|
[24 June 2015] Indonesia’s Sinar Terang Madani (STM) Group, based in Makassar, South Sulawesi, has recorded significant growth in its feed business in the last three years. Audy Joinaldy, President Commissioner, told Asian Agribiz the company, which was founded in 2011, has seen its feed sales grow from 500 tonnes/month to 2000 tonnes/month. “Our 2000 tonnes/month feedmill in Barru is now running at full capacity. We need a new feedmill to increase production capacity and meet increasing demand for our broiler and layer feed,” he said. STM Group plans to set up a new 8000 tonnes/month feedmill which is targeted for operations in early 2017. STM Group sells its poultry feed under the Perkasa Feed brand to regions in eastern Indonesia, mainly in Sulawesi. Of its total production 50% is for internal use and the remainder is for its customers.
|US rejects shrimp with traces of antibiotics|
[24 June 2015] The US Food and Drug Administration (FDA) has refused entry to certain consignments of shrimp exported from India, Malaysia and Vietnam as traces of banned antibiotics were found. A report from USFDA stated that the refusals involved six different companies from these three countries. The main reason cited by the US regulator was related to nitrofuran or other veterinary drug residues found in the shrimp. Edwin Samuel, a seafood exporter from India, told Asian Agribiz that educating exporters against the continued use of antibiotics in shrimp aquaculture is a continued process. While the USFDA refused entry to 208 shrimp entry lines for banned antibiotics in 2014, the figure has already touched 203 in between January and May this year.
|Egg prices soar in Hyderabad|
[24 June 2015] With the layer farm industry in India’s Hyderabad reeling with a shortage of birds due to severe heat wave, egg prices in the city have increased to INR 5 per egg (USD 0.08). Sanjeev Chintawar, Business Manager of the National Egg Coordination Committee, said since more than 5 million chickens across Telangana state were killed due to the heat wave there is a drastic drop in egg production. “Daily egg production in the region has come down from 30 million to 27 million per day due to this and hence the increase in price,” he commented.
|Vietnam breaded shrimp exports to US up 50% in Q1|
[24 June 2015] First quarter US imports of Vietnam's frozen breaded shrimp rose, with tonnage up 50% year-on-year and value up 42%. During the quarter, the US imported 1491 tonnes of frozen breaded shrimp worth USD 11.9 million. Total shrimp imports fell 23% year-on-year to 12,341 tonnes, the Vietnam Association of Seafood Exporters and Producers said. Meanwhile tra fish exports continue to fall. Its turnover this year would be USS 1.7 billion, a 4% year-on-year drop due to difficulties in importing markets and tighter regulations. The association said export turnover to China surged 46%, and Canada went up 12.5% over last year, while exports to the US increased slightly by 8.8%. However, the export value of tra fish to the EU saw a sharp decrease of 16%, to Mexico of 21% and Colombia of 8%. In the US the export value of tra fish represented a strong reduction of 23% in January due to anti-dumping operations by the US Department of Commerce.
|Nepal needs USD 20 million to kick start agri sector|
[24 June 2015] About USD 20 million is needed to support farmers in earthquake-hit Nepal so that they can resume agricultural activities and stave off the threat of prolonged food insecurity, the Food and Agriculture Organisation (FAO) said. The recent tragedy heavily disrupted agri activities in the country. “To date only 13% has been received of the USD 23.4 million in emergency agricultural assistance, which FAO estimated is required, as part of the revised UN Flash Appeal for Nepal,” FAO said. The repair and functioning of irrigation systems will be crucial for the winter cropping season while livestock urgently require shelter, feed, water, medicine and vaccinations. About 15% of cattle and 36% of poultry were lost in the disaster with detrimental effects on rural household consumption and income.
2015 7th International Symposium on Emerging and Re-Emerging Pig Diseases, Kyoto, Japan
Onsite report by CRAIGE ALLAN
[23 June 2015]
Recognising the increased importance of Asia in controlling emerging and re-emerging infectious diseases globally, the 7th ISERPD is for the first time being held in Asia with the theme ‘Global Collaboration in controlling emerging and re-emerging pig diseases: From Asia to the World’.
The emergence and re-emergence of pig diseases: What next?
In the opening lecture, Joaquim Sengalés, IRTA Centre dé Recerca en Saitat Animal (CReSA), said 42% of emerging swine pathogen species are zoonotic. Most emerging virus species are variants from RNA viruses. Moreover, most swine RNA viruses are multi-host compared to emerging DNA viruses, which are all swine specific. It is hard to predict what will come next in pig diseases but the advent of PPRS by the late 80s and beginning of the 90s, PCVDs by the late 90s, the pandemic A/H1N1 by 2009 and PED in North America and Europe by 2013/14, implies that new diseases emerge every seven to eight years.
International framework for addressing emerging and re-emerging diseases
Bernad Vallat, Director General of the OIE, said key elements of efficient veterinary services such as early detection and rapid response to animal disease emergencies that could pose a risk to human health are essential. Alliances are key and it is the responsibility of governments to ensure these alliances are there and working well with the capacity to implement biosecurity measures. He also said antimicrobial resistance is a growing global concern. Veterinarians are not the problem. Instead they are the solution to minimise antimicrobial selection.
Swine industry in China
Pig production and pork processing are still two essentially different and unrelated businesses in China, according to Zhichun Yan, New Hope Liuhe Group, China. He believes there are less than 40 million sows in China, and that less than 10% of all pigs sold come from backyard production that carry 20 or less sows. These farms, however, are disappearing quickly.
Healthy r&d pipeline
According to Narciso Bento, MSD Global Swine Business Unit Manager, Asia is where the future will be, with projections that more than half of the increase in animal protein consumption by 2021 will be in Asia. “We want to work not only as a science-based company, but aim to provide solutions that increase the return on investments of our partners. R&d ensures not only MSD’s future but that of our customers too. With multiple late stage swine product development projects, which may become commercial products in the next five years, this shows the robustness of our r&d program to bring these new solutions,” he said.
PRRS in Asia – from the lab to the field
Several studies have indicated that PRRSv can cause immunosuppression, and interleukin 10 (IL-10) plays a major role in causing weak innate immune responses, said Professor Roongroje Thanawonguwech, Faculty of Veterinary Medicine, Chulalongkorn University, Thailand. The timing of vaccination is key. Prof Thanawonguwech recommended that vaccination needs to be done at least 3-4 weeks prior to field virus exposure for optimum development of protective immunity.
Experience with PCV2 control under field conditions
Professor Mathias Ritzmann, Clinic for Swine, Ludwig Maximilans-University Munich, said the diagnosis of PCV2 is not easy as clinical manifestations vary and can result in distinct diseases. In Europe, vaccination of piglets starting at three weeks of age has been shown to reduce viral shedding. It protected the animals successfully and is a valuable tool against PCV2. However, elimination of PCV2 under field conditions is not possible.
Innovation in vaccination
Vaccination is the preferred method to control PRRSv and PCV2, said Dr Rika Jolie, MSD Global Technical Director for Swine. Traditional vaccines are administered by intramuscular injection. However, MSDs IDAL offers intradermal and needle-free vaccination for registered vaccines, with benefits including fast immune response, less pain and stress for pigs, improved welfare, no tissue damage and no transmission of disease.
US strains of PED outside North America
Veterinary consultant Dr John Carr discussed his experience of a 2014 clinical outbreak of PED in a 5000-sow unit in Ukraine which practiced extremely good biosecurity measures. The outbreak resulted in a loss of six pigs per sow and took 20 weeks to resolve. Initial control measures on Day 1 included euthanasia of all piglets less than 10 days old and weaning of all piglets more than 10 days old.
|Singapore launches world’s first biochip diagnostic tool|
[22 June 2015] Singapore’s Agri-Food and Veterinary Authority (AVA) and supplier of diagnostic tools Veredus Laboratories Pte Ltd launched VereVet, a biochip that can identify nine major poultry diseases, including Newcastle disease virus, salmonella pullorum, salmonella enteritis, campylobacter and avian influenza, in one sample. Emphasising the significance of the breakthrough, Tan Poh Hong, CEO of AVA, said, “The new Lab-on-Chip will enable authorities to take appropriate action. This will, in turn, strengthen animal and public health for the region.” Veredus is a Singapore-based majority-owned subsidiary of Accuron Technologies Limited, a precision engineering and technology group wholly-owned by Temasek Holdings.
|Indonesia’s shrimp ponds infected by white faeces disease|
[22 June 2015] Shrimp farmers in Indonesia’s East Java and Lampung recently learnt that their ponds are infected with white faeces disease, reported Bisnis Indonesia. According to Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries and Marine Affairs, lab test results have shown that the dead shrimp samples collected from the regions were negative of early mortality syndrome but positive of white faeces disease. Mr Slamet added that technical teams from the ministry have been deployed to control the disease and educate farmers in the infected regions of remedial measures.
|Philippines adds to areas with import bans|
[22 June 2015] The Philippines has added Turkey and the state of Nebraska in the US on the list of areas for which it has a temporary ban on poultry imports. Both Turkey and Nebraska have reported outbreaks of highly pathogenic avian influenza, serotype H5N1 and H5N2, respectively. The ban covers domestic and wild birds, poultry meat, day-old chicks, eggs and semen, but does not include heat-treated products. The Philippines, which remains AI-free, has been imposing bans on AI-infected countries in an effort to keep the disease at bay. Agriculture Secretary Proceso Alcala said that being disease-free will help the country penetrate more export markets, especially now that the Asean economic integration is close to implementation.
ProPak Asia 2015
Onsite report by ARIEF FACHRUDIN
[22 June 2015]
Meat processing technology developers and suppliers gathered in Bangkok from June 17-20 for the annual ProPak Asia exhibition. The show featured the latest in machinery and technology in the meat processing industry, and updated participants on trends in the sector.
Frey launches dosing station
The ready-meal sector in the region, especially in Thailand, is growing, and food producers are looking for the next level of automatisation, Heinrich Frey, Managing Director of German based Frey Maschinenbau, said. At the show the company launched its dosing station DS. Earlier in the year the DS was unveiled for the first time at Anuga FoodTec in Germany. The system features a servo-controlled dosing and portioning system with integrated filling flow divider from 1 to 8-way distribution and dosing in thermoformers, cans, and trays or on racks, grids and dough lines. “This new system is perfectly matched with what producers need since the movement and speed is infinitely adjustable,” he said, adding that CP Group is its big customer for the new system in Thailand.
G Mondini partners with Forefront Foodtech
Italy-based packaging solutions provider G. Mondini recently teamed up with a new agent in Thailand. Gianfulvio Spelgatti, Area Sales Manager, said the company chose Forefront Foodtech because of its expertise in the food sector. “We see many developments in the ready meals category in this region. We expect to tap the market potential with the new agent,” said Mr Spelgatti.
Emerson Technik promotes smoking, cooking chambers
Emerson Technik promoted its smoking and cooking chambers for the production of cooked and smoked products in small and medium-sized plants as well as in large factories. The chambers are preferred for smoking different kinds of products like sausages, salami, injected products and for all kinds of meat including pork, beef, poultry and fish. Gabriel Trasca, Sales and Marketing Manager for Asia, said the chambers feature fast programs due to perfect ventilation system for each trolley and less energy consumption due to innovative airflow design. “With our chambers meat processors will get products which are uniform in quality and with minimum weight loss,” said Mr Trasca.
|Pork traceability system for the Philippines|
[19 June 2015] Researchers from the University of the Philippines in Los Baños have developed a nationwide pork traceability system (NPTS) that can assure the safety and quality of locally produced pork meat. One of the researchers, Dr Jaderick Pabico, said that the NPTS is an information and communications technology-based system that will allow real-time tracking of animals from ‘pen to plate’, and trace meat cuts and permit the use of a DNA-based verification system. It is also designed to be responsive to international standards in preparation for the regional economic integration later this year. The NPTS not only represents improved livestock monitoring but can also pave the way for the entry of Philippine meat products into other global markets.
|Berdikari to operate cattle slaughterhouse in Lampung|
[19 June 2015] Indonesia’s state-owned company Berdikari involved in cattle integration recently signed an MoU with the local government of Lampung province to operate the cattle slaughterhouse in Way Laga that is owned by the local government. Librato El Arif, Director, said the company targets to send beef to Jakarta from the facility in the next two weeks. “The slaughterhouse has an installed capacity of 100 heads of cattle per day, but for the first stage we will only slaughter around 20 heads per day.” Berdikari is now also setting up two new slaughterhouses in Bali and Kupang. The slaughterhouse in Bali is targeted to start operations next month.
|Pakistan soy imports to grow prior to tariff rise|
[19 June 2015] For the second consecutive year, Pakistan is set to increase the tariff on imports of soybean meal on July 1. Tariffs will climb to a minimum of 21% from 11%. The proposed rate has prompted importers to increase their 2014/15 imports of soy to an estimated record 450,000 tonnes, said a USDA Foreign Agricultural Service report. For 2015/16, imports of soybeans are expected to climb to 1 million tonnes as the higher tariff takes full effect on sourcing decisions.
ProPak Asia 2015
Onsite report by NITSARA THONGRUNG
[19 JUNE 2015]
Meat processing technology developers and suppliers gather in Bangkok from June 17-20 for the annual ProPak Asia exhibition. The show features the latest in machinery and technology in the meat processing industry, and updates participants on trends in the sector.
Leading Thai food processor to take delivery of Handtmann’s AST 340
Handtmann celebrated its first transaction in Thailand of the Automatic Smoke Sticks Transferring Unit AST 340. The robotic solution, which will be delivered to a leading food processor soon, ensures that the smoke sticks are accurately positioned and set down in the smoking trolleys. This reduces costs, brings in high production output and improves system utilisation due to optimisation. “With this robot, processors achieve reliability, food safety, lower labour cost and production efficiency. Automation is key,” Sale Director Uwe Kessler told Asian Agribiz. Handtmann also highlighted the PVLH automatic line for automated filling and portioning system.
Sairem cuts defrosting time
Sairem, supplier of microwave and radiofrequency machines for the food industry, displayed the AWM 200, a 915 MHz microwave batch machine. According to Managing Director Jean-Paul Bernard the machine allows frozen foods such as meat poultry, fish, cheese, butter and fruits and vegetables to be defrosted quickly. “The advantages of this machine includes its sanitary features, its reliability and the short time it takes to defrost meat as time is of essence. The machine has been sold globally including Singapore and Malaysia, Mr Bernard said.
Holac makes first appearance at the show with distributor K&W
Holac, specialist in slicing and cutting technology from Germany, made its first appearance at the show displaying its wares at the booth of its local distributor K&W Global Technology. “The show is a good platform for the company to gain experience and understanding of Thai and other Asian markets,” Ronald Ralf Ambrassat, International Sales of Holac, told Asian Agribiz. Working with K&W, Mr Ambrassat expects Holac to learn and grow in this region.
Grasselli exhibits 2D slicer
Grasselli from Italy exhibited the NSA series, its latest 2-dimension automatic slicing machine. The machines are the automatic product infeed and outfeed for a total inline solution. “Meat processors are now looking for equipment that is flexible and can be added to the line, and work completely inline. This is for time saving and operational efficiency,” Riccardo Guidi, Export Manager, told Asian Agribiz. The machine features 610mm or 1000mm of useable width with minimum slice thickness of 3mm or 5mm for fresh and cooked boneless meat.
|Komarla Group to commission USD3m feedmill |
[18 June 2015] India’s Komarla Feeds & Foods Pvt Ltd based in Maharashtra will commission a 20 tonne/hour poultry feedmill next year. “We plan to develop this into a Greenfield project at a total investment of about USD 3 million,” KV Krishna Charan, General Manager (Operations), Komarla Feeds told Asian Agribiz. The company, which has a strong customer base in Miraj, recorded an annual revenue of about USD 31 million in financial year 2014-15. With the commissioning of its new feedmill by next year, Komarla Feeds eyes to increase its share in the local market.
|Bulog to import 1000t of secondary beef, offal |
[18 June 2015] Indonesia’s Ministry of Trade has issued a permit for the Logistics Agency (Bulog) to import 1000 tonnes of secondary beef and offal. “We issued the permit last week to prevent a price increase during Ramadhan and Idul Fitri,” Partogi Pangaribuan, Director General of International Trade, said. Mr Partogi is optimistic that with the recent additional imports of 29,000 ready-to-slaughter cattle plus the import of secondary beef and offal, the supply of beef during the period is sufficient and will remain at an affordable price.
|Farmers demand subsidy for poultry feeds|
[18 June 2015] Layer farmers in India’s Tamil Nadu state are demanding a subsidy for poultry feeds as egg prices touch a new low of INR 2.25 (USD 0.04) compared to INR 5 (USD 0.08) few months ago. R Nallathambi, President of the Tamil Nadu Poultry Farmers’ Association, said layer farmers are affected due to the high cost of production and the fall in the price of eggs. “We expect the government to provide subsidies for poultry feed to tide over this crisis,” he said. According to him, of the total corn requirement for poultry feed only 50% is available in Tamil Nadu and the rest has to come from neighbouring states.
|More H5N2 outbreaks strike Taiwan|
[18 June 2015] Three new H5N2 avian flu farm outbreaks have affected more than 23,000 poultry in Taiwan. All the outbreaks are in Yunlin County in the west, one of Taiwan's most-affected counties. They involve geese flocks of 1,500 and 3,380 birds, and a chicken farm of 18,648 birds. Of the 23,528 susceptible poultry, 8,894 were killed from the virus, and the rest were culled to contain the outbreaks, which began on May 28, May 30, and Jun 1. As is standard procedure, a 3 km zone of intensified surveillance has been created around each farm.
|Harim Group proceeds with Pan Ocean merger|
[18 June 2015] Harim Group, a major livestock and animal feed group in Korea, will move forward with its takeover of troubled dry bulk carrier Pan Ocean. Harim, partnering JKL Partners, participated in the bid last year and was picked as the preferred bidder in December. The company paid over USD 895.5 billion for the deal earlier this month. “Prices of grain and corn are determined by international markets, so there is not much room for cost efficiency,” said a Harim spokeswoman. South Korea depends almost entirely on foreign companies like Cargill, ADM and Louis Dreyfus for grain supplies.
|Berjaya Food Q4 earnings up 21.5%|
[18 June 2015] Berjaya Food Bhd, which operates the Kenny Rogers Roasters chain of restaurants in Malaysia, saw its net profit rise 21.5% to USD 1.71 million for its fourth quarter ended April 30 2015 from a year ago, mainly due to the full effect of consolidation of the newly-acquired wholly-owned subsidiary, Berjaya Starbucks Coffee Co Sdn Bhd. Revenue for the fourth quarter more than tripled to USD 34.41 million from USD 9.76 million in 2014. For the 12-month period net profit rose to USD 49.28 million from USD 6.05 million in 2014, while revenue jumped 150.95% to USD 100.70 million from USD 40.13 million. On prospects, the company said the weakening of the ringgit against the US dollar is expected to increase to cost of sales and thus compress the group’s profit margin.
|Opportunities in AEC abound, but Philippine producers wary|
[17 June 2015] Philippine Agriculture Secretary Proceso Alcala has urged local livestock and poultry raisers to focus on opportunities with the Asean economic integration rather than threats. He said the Department of Agriculture will assist producers meet international quality and safety standards to help them thrive globally. Although the country has been FMD-free and AI-free, pork exports have yet to happen, while chicken exports have been minimal. “We are not ready for AEC,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz. He added that producers can compete, having already had experience competing with cheap and illegal importation. However, a key player in the pig industry, who did not want to be named, told Asian Agribiz that producers should work with the government. “There are opportunities and as responsible businessmen, we should trust our government to help us. We should help each other.”
|Yum! Brands and Jardines to bring Pizza Hut to Myanmar|
[17 June 2015] Yum! Brands will partner Jardine Restaurant Group, a subsidiary of Hong Kong-headquartered conglomerate Jardine Matheson, and local retail company City Mart Holding to open its first Pizza Hut outlet in Myanmar. The restaurant will be located in a standalone building beside City Mart’s Marketplace supermarket and is scheduled to open in November. Jardine Pacific operates over 600 Yum! franchises in Hong Kong, Taiwan, Vietnam and southern China. Elsewhere, it also represents KFC, but failed to secure the franchise in Myanmar. KFC instead partnered with Singapore-based Yoma Strategic Holdings Ltd. The only international food and beverage franchises in operation in Myanmar are South Korea’s Lotteria and Malaysia’s Marrybrown. Both entered the market in 2013.
|Vietnam feed additives market to reach USD 161m |
[17 June 2015] Vietnam’s feed additives market is expected to grow to USD 160.5 million by 2022 from USD 112.45 million last year, growing at a CAGR of 4.7% from 2015 to 2022, said US-based market research and consulting company Grand View Research. The report added that meat consumption is expected to drive demand for feed enzymes, feed acidifiers, amino acids and antioxidants over the next seven years. Antibiotics emerged as the leading product segment and accounted for over 36% of the total market revenue in 2014. Feed acidifiers are expected to be the fastest growing product segment over the next seven years. Shift in meat consumption from pork to poultry is expected to further drive poultry feed demand, thus further complementing feed acidifiers growth.
Indian dairy sector update
[17 June 2015]
Cargill’s dairy feed additive now available in India
Cargill’s dairy feed additive Promote Amaferm sold under the Provimi brand is now available in India to help dairy farmers increase milk production. In 2013, field trials were conducted in Jabalpur district in Madhya Pradesh, which revealed an improvement of 4.7% milk fat due to better fibre digestion. Maxime Hilbert, Cargill’s Technology Leader for additives said that Amaferm acts as a prebiotic, delivering more microbial protein and energy to the animal through increased digestibility. “Along with increased milk production, trials also demonstrated improved weight recovery after calving by 22% as well as an ability to decrease ketosis risk,” the press release added.
Milk Federation to sell dairy products using app
Karnataka Milk Federation (KMF) in India has launched an android based app that will enable consumers to buy its Nandini milk and dairy products using the app. According to a statement, KMF has tied up with BigBasket.com to deliver the products in the shortest possible time. Consumers can also find the nearest milk parlour on the app under ‘Locate Nandini’ option by typing the name of location or PIN code. The app also provides details of special offers on products. KMF produces about 7 million litres of milk every day.
Mahindra Group to enter dairy business
India’s multi-business conglomerate Mahindra Group is all set to enter the dairy business. Ashok Sharma, President and Chief Executive of Mahindra & Mahindra said that the group plans to start its operations from Indore in Madhya Pradesh state. “Initially, we will outsource the processing and once we are able to secure our supply chain we will invest in our own plant,” he said. As per initial plans, the company will not be buying cattle but will source milk directly from farmers. Mahindra Group also has plans to expand to other regions in phases and will introduce a retail brand at a later stage.
|CP Cambodia builds feedmill in Pailin |
[16 June 2015] CP Cambodia (CPC) plans to build a new feedmill in Pailin, in the west of the country, with a full capacity of 15,000 tonnes/month. Its existing capacity is 30,000 tonnes/month. The test-run of the mill is expected late July. Securities company Bualuang Securities said it believes the feedmill will represent the company’s growth driver from second half of the year until 2016. CP Cambodia also aims to increase the food portion of its business from 3% to 10% in the next five years through modern trade and food service channels. CPC operates a fully-integrated agribusiness in Cambodia, which includes a feedmill, breeder and hatchery farms for pig, broilers and traditional chicken and a processed food plant. Its Phnom Penh feedmill’s full capacity is 318,000 tonnes/year.
|Al Shaheer Corporation to go public|
[16 June 2015] Pakistan’s Al Shaheer Corporation Limited, the parent company of Meat One, a high end retail chain of butcheries, is set to expand across the country by going public. The Karachi based company will utilise the additional capital of about USD 10 million to fund its nationwide expansion and leverage off its first mover advantage. Chief Executive Officer Kamran Ahmed Khalili, said that consumer awareness and demand for hygienically processed quality meat is set to increase in Pakistan. The company’s listing in the Karachi Stock Exchange will make it the first initial public offering by a local foods company in five years since 2011.
|Indon-Australian JV for beef processing|
[16 June 2015] Two Indonesian agriculture companies have formed a joint venture with Brisbane-based Australian Rural Export, or Austrex, for a USD 10 million end-to-end meat processing company in South Sulawesi. Pramana Agri Resources and Bogor-based Rumpinary Agro Industry, which specialises in fattening and selling both local and imported cattle, signed the agreement with Austrex in Jakarta recently, reported the Jakarta Globe. “The business model will be integrated, from the animal feed supply to the fattening, up to the meat cutting and the beef box processing,” said Robert Erizo Kusnadi, Pramana Agri Resources Director. He added that the jv is scheduled to settle licensing over the next three months with operations to begin sometime in the second quarter of 2017. “In the first phase, we would have a feedlot capacity in the range of 10,000 to 15,000 cattle.”
|Lower grain shipping cost|
[16 June 2015] Transportation costs for shipping corn and soy from Minneapolis, MN, to Japan decreased significantly through the Gulf and moderately through the Pacific Northwest (PNW), in Q1 2015 compared to the previous quarter, reported the USDA in last week's Grain Transportation report. The year-to-year transportation costs for shipping corn and soy were down notably from the Gulf and PNW. The decreases were caused by lower rates for each of the transportation modes. Much lower ocean rates also helped push Gulf transportation costs down. High vessel supply and lower demand for bulk grain continued to drive transportation costs down.
|Indonesia develops harvest strategies for tuna|
[16 June 2015] Indonesia has embarked on an ambitious program to develop harvest strategies for its tropical tuna fisheries in archipelagic waters. Indonesia is the world’s largest archipelagic nation, contributing more than 15% of global tuna production. The aim of the harvest strategy is to maintain commercial tuna stocks at sustainable levels, while maximising returns. Under the leadership of Indonesia’s Ministry of Fisheries and Marine Affairs, the harvest strategy will also create a more reliable and predictable operating environment for the fishing industry. "As an archipelagic nation, our future depends on us developing harvest strategies to manage our fishery resources effectively,” said Saut Tampubolon, Deputy Director of Fishery Resource Management.
|New promotion to boost Pizza Hut sales|
[16 June 2015] Pizza Hut Malaysia expects its 2015 Ramadhan or fasting month promotion to boost sales by 10% during the period. Senior General Manager, Low Kang Moon, said Pizza Hut will be introducing an Italian-flavoured chicken dish. The promotion is available at all Pizza Hut restaurants in Malaysia until July 21, 2015. Early this year the company launched the Pastry Crown pizza — a combination of Italian pizza with sweet buttery pastry. “When it comes to inventiveness, combining unlikely elements together can either result in a complete mess, or it can lead to something truly amazing. The Pastry Crown pizza is proof of this as we managed to create a combination of tastes that comes together perfectly.”
|CP Prima to increase production, expand market|
[15 June 2015] Indonesia’s largest processed shrimp and aqua feed producer Central Proteinaprima (CP Prima) aims to increase production and expand its market reach this year. During a meeting in Jakarta last week, President Director Irwan Tirtariyadi said with the weakening price of frozen shrimp globally, the company wants to focus on further processed shrimp production. “Further processed products will give us added value and better profit margin,” he said as quoted by Kompas. In order to get higher growth, the company plans to open new markets for its further processed products such as to China, Italy, and Switzerland and Asean countries. In addition the company targets to export 6000 tonnes of aqua feed to India, or 10 times higher than last year.
|China confirms new H7N9 cases|
[15 June 2015] Chinese health officials reported nine new H7N9 avian flu cases last week including one fatality. The newest case is a 61-year-old male resident of Shanghai who is undergoing treatment. The other eight cases were included in a national health ministry update on notifiable diseases. The report also noted a death in May from bird flu separate from the H7N9 cases. The reports raise the H7N9 global total to 681 cases, according to a list maintained by FluTrackers.
|Corn prices down due to poor demand |
[15 June 2015] Corn prices in India have declined due to a sudden drop in demand from the poultry sector, according to US Grains Council report. USGC India Representative Amit Sachdev said prices are down to about USD 169 per tonne. “The decline is attributed to the sudden drop in demand from the poultry sector due to lower placement and high mortality in south India due to heat wave,” he explained. However, he said prices may improve in July. Mr Sachdev pointed out that despite the decline, India will not be able to export corn to Southeast Asia and Bangladesh as prices need to drop further for the country to be competitive and export.
|Enough cattle in Indonesia for Ramadhan |
[15 June 2015] Indonesian Cattle Importers and Feedlotters Association (Apfindo) has said that it is confident that enough cattle are now on feed to fulfil Ramadhan and Idul Fitri requirements, reported Beef Central. Endro Susilo, Apfindo Board Coordinator, said its members collectively had over 200,000 cattle on feed in their feedlots at the beginning of May, which should guarantee sufficient beef supply for the holiday period. Previously in April, the government issued additional import permits for 28,000 head for heavier, ready-to-slaughter cattle. For Q3 2015, meanwhile, Apfindo predicted that permit allocations would be similar to Q3 2014 where the government issued permits for 167,000 cattle, which contained a mix of 133,000 feeder cattle and 34,000 slaughter cattle.
|KFC, Pizza Hut shut indefinitely in Nepal|
[15 June 2015] International fast food chains KFC and Pizza Hut restaurants in Nepal have been shut down indefinitely following a dispute between the management and the local staff over long working hours. “We could not operate in such an environment,” said Rohit Kohli, the company's Kathmandu-based director. There has long been a dispute between the workers and management over working hours. In 2012, the restaurants were shut down temporarily for about a month as staff had allegedly attacked and threatened branch managers over a labour dispute.
Malindo hopes for better results in 2015
Report by ARIEF FACHRUDIN
[12 June 2015]
Indonesia’s leading poultry integrator Malindo Feedmill last year recorded a net sales of USD 338.3 million, an increase of 7.4% over the previous year, the company stated during its public expose yesterday in Jakarta. This increase was fuelled by an 11.6% increase in feed sales worth USD 26 million. However, its gross profit decreased by 55.1% to USD 24.2 million due to low DOC prices and feed raw materials price increase. As a result, the company last year recorded a net loss of USD 6.4 million.
Malindo’s poor show persists in Q1
The unsatisfactory results of Malindo Feedmill in 2014 persisted to the first quarter of this year. Although the company’s net sales increased by 4%, boosted by feed sales, its gross profit decreased by 42% due to low DOC prices and the increasing cost of DOC production. As a result the company recorded a net loss of USD 4.5 million in Q1. Director Rewin Hanrahan told Asian Agribiz that the poultry business will still be challenging for the rest of this year. He mentioned that currency depreciation, economic slowdown and operational cost increase due to the fuel price hike are the main challenges.
Strategies for positive results
To prevent losses, Malindo Feedmill this year will continue to increase production efficiency at all of its operational and production lines. Director Rudy Hartono told Asian Agribiz that the company has also decided to postpone its expansion plans. “Our plans to set up a feedmill in Sumatera and poultry farms in different regions have been postponed. We may realise these plans next year.” Director Rewin Hanrahan added that the company will also better manage feed raw material purchase by monitoring global raw material prices and inventory. With all the strategies, Mr Rudy is optimistic that this year the company will be able to record a 10% growth in revenue.
New feedmill in Sulawesi
During the public expose, Malindo Feedmill also announced that it the construction of its new feedmill in Makassar, South Sulawesi was completed in May this year. This plant cost the company around USD 16.9 million and has an installed capacity of 240,000 tonnes/year (expandable to 360,000 tonnes/year). Director Rewin Hanrahan told Asian Agribiz that east Indonesia is a focused region for expansion. He said that the company has broiler PS breeding farms in South Sulawesi that cater to demand from Sulawesi and Papua.
|JBS to shift to group housing for sows|
[12 June 2015] By 2016, Brazil-based JBS, the world’s leading meat processor and exporter, will no longer use gestation crates and instead use collective housing for breeding sows in its own farms, a report by Meatingplace said. The company said it is supporting its partners to make a similar move, but did not give a timeframe for its suppliers to stop using gestation crates. JBS is the latest in a line of pork producers to make this move, following Smithfield Foods, the world’s largest swine producer, as well as Hormel, Cargill and Maple Leaf Foods. Last year, Brazil’s leading pork processor, BRF, also announced it will phase out the use of gestation crates. The report said the gestation crates are already banned in the EU, Canada and nine US states, while New Zealand and Australia will phase them out by 2015 and 2017 respectively.
|PPA warns of 25% hike in poultry prices|
[12 June 2015] Pakistan Poultry Association (PPA) has warned of a 25% increase in prices as the Federal Government has introduced duties and taxes on poultry feeds in the 2015-16 budget. The government recently imposed a 10% sales tax and 10 % import duty on soybean meal and 5% sales tax on all types of poultry feeds. “The budget has a demoralising effect on poultry farmers and the heavy duty on the import of soybean meal is illogical because it is a basic raw material and is not produced in Pakistan,” PPA Chairman Muhammad Mustafa Kamal said. According to him, this might result in a 25% additional cost to consumers.
|Jammu and Kashmir mulls poultry feed plant|
[12 June 2015] India's Jammu and Kashmir state is planning for a poultry feed plant for the industry in the state. According to State Minister for Animals, Sheep Husbandry and Fisheries the proposed feed plant will employ modern feedmilling technology and will help build the poultry industry in the state. Funding for the proposed plant is expected from the Central Government under the agricultural promotion schemes. The proposal is part of the state government’s effort to make the state self-sufficient in poultry production.
|New Hope Liuhe to invest USD 60m in Asian feed, poultry sector|
[11 June 2015] China’s largest animal feed maker New Hope Liuhe will expand its feedmill and poultry business in 10 Asian markets, the company said recently. New Hope Singapore Pte Ltd, a subsidiary of the Chinese firm, will use a USD 60 million loan from the International Finance Corporation (IFC), a World Bank organisation, to build new projects in India, Lao People’s Democratic Republic, Myanmar and Nepal and expand existing businesses in Bangladesh, Cambodia, Indonesia, the Philippines, Sri Lanka, and Vietnam. The company is focusing on international expansion as growth in animal feed demand slows at home, hurt by weaker economic growth and a clampdown on official spending.
|Probiotech receives USD 3.8m to rebuild facility|
[11 June 2015] The World Bank's International Finance Corporation (IFC) and the Private Sector Window of the Global Agriculture and Food Security Program have disbursed USD 3.8 million to Probiotech Industries, following a commitment announced last year to support the Nepalese private sector more so as it rebuilds itself after the devastating earthquakes. Probiotech is a poultry feed manufacturer that set up the first pellet feed mill in the country. The company will use the funding to finance manufacturing capacity for high-margin value-added products such as soy flour nuggets, and refined oil, and streamline the food supply chain. “Through IFC’s investment and advice, we seek to rebuild this sector and adopt best practices for production efficiency, environmental and social standards, and to upgrade technology,” said Anand Bagaria, Managing Director, Probiotech.
|Soy exports from India set to decline|
[11 June 2015] India's soy exports to Southeast Asia is set to decline due to a rise in domestic demand and stagnation in harvest, Bloomberg reported. Pawan Kumar, Associate Director, Food and Agribusiness Research and Advisory, Rabobank Singapore said Southeast Asian countries will turn to Brazil, Argentina and US for supplies against this backdrop. “India’s crop is not enough to cater to both domestic and export markets,” Mr Kumar said. According to him, India is losing customers because supplies are more expensive than global rates as a result of the crop's non-genetically modified status and lower supply.
|CP Prima records strong Q1 operating results|
[11 June 2015] Indonesia’s largest shrimp processor Central Proteinaprima (CP Prima) reported strong operating results in the first quarter of this year, reported Undercurrentnews. During the period CP Prima recorded turnover (against the same period last year) of USD 170.47 million, up 15.51%. The company’s gross profit was USD 28.4 million, up 23.81, with operating income at USD 4.5 million, up 4.23%. However, financing costs and a heavy loss on the foreign exchange on bonds dragged the company’s bottom line into the red. CP Prima’s increase in sales was driven by feed (up 21.65%), shrimp (up 4.45%) and shrimp fry (up 40.62%).
|Insufficient rain to hit agri production|
[11 June 2015] With the Indian Meteorological Department (IMD) issuing deficient monsoon forecast for the upcoming four-month southwest monsoon season that started in June, agricultural production in India is expected to be affected. “This will be the second year in a row when rains will be deficient and could affect the grain, oilseeds and pulses production in country”, India Representative for US Grains Council Amit Sachdev commented. Poor monsoon rains could lead to inflationary pressure on food crops such as rice, oilseeds, corn and pulses. A normal southwest monsoon brings 70% of India’s total rainfall and even for irrigated agricultural lands strong monsoon is crucial to boost yield and reduce cost of production.
|Singapore, FAO to collaborate on food safety, illegal fishing|
[11 June 2015] Singapore and FAO will work together to improve food and nutrition security in Southeast Asia, with a special focus on food safety and fisheries, according to an agreement. Improving the health and safety of food, including street foods, and combating illegal, unreported and unregulated fishing are key areas in a larger collaboration that will also look at cutting food losses and waste, making trade and agriculture more sustainable, and building resilience to animal and plant-related threats.
|Sneha Farms to commission new plant by year end|
[10 June 2015] India’s Sneha Farms is expected to commission its new chicken processing plant in Telangana state, by the end of 2015.D Varun Reddy, Sneha Farms Director, told Asian Agribiz that the 6000 birds/hour processing plant will be India’s largest and is expandable to double the initial capacity. The USD 16 million facility being developed by Marel Stork Poultry Processing will have 2000 tonnes of cold storage. Commenting on the project, Erik Talens, Area Sales Manager of Marel Stork told Asian Agribiz that the greenfield project incorporates various solutions for high speed automatic evisceration and giblet processing.
|Indon meat processors experience decline in sales|
[10 June 2015] Indonesia’s National Meat Processors Association Chairman, Ishana Mahisa, told Asian Agribiz that in Q1 this year many meat processors experienced a decrease in sales compared with Q4 2014. “The average decrease was around 15%, especially sales in traditional markets. During the period, the purchasing power was weak led by currency depreciation,” Mr Ishana said. However, compared with Q1 2014, most meat processors recorded a small growth in sales. “The main problem in this industry is still the price of meat. If we can get cheaper beef and chicken, we will be able to sell meat products at affordable prices,” said Mr Ishana.
|QL Livestock Farming launches Omega eggs in Sarawak|
[10 June 2015] QL Livestock Farming launched QL Omega Eggs in Sarawak, Malaysia recently. According to Mark Chia Mak Hooi Managing Director, the eggs are produced with feed enriched with fish oil, flax seed oil and vitamin E, through enhanced bio-security and stringent quality screening processes. He said the eggs contain more than 10 vitamins and minerals, high quality proteins and low saturated fat such as EPA and DHA. “We will continue to invest in nutrition research, farming technology and product development to bring quality food products to customers,” he said. QL Livestock Farming is the largest egg producer in the Asean region with almost five million eggs produced daily across Malaysia, Indonesia and Vietnam. QL also produces a full range of premium frozen chicken products at affordable prices.
|KFC China files suit against rumour mongers|
[10 June 2015] Encouraged by the Chinese government's intensified campaign to stop the spreading of false information, KFC has filed a lawsuit against three companies that it says used social media accounts to spread false rumours about its food, including that its chickens have eight legs. KFC, China’s biggest restaurant operator, has had major setbacks with other issues relating to food safety in the past. In an announcement posted last week on its Chinese website, KFC said one of the most prevalent fake stories was one claiming chickens used by the company are genetically modified and have six wings and eight legs.
|Shrimp exports from Mekong Delta down 32% |
[10 June 2015] Shrimp exports from Vietnam's Mekong region fell 32% in the first five months of the year because of a slump in demand from Europe, Australia, Japan, and Korea. Vietnamese shrimp also has to compete with products from Thailand and India. The decline has pushed prices down in the delta, posing a big challenge for shrimp breeders, Sai Gon Giai Phong newspaper quoted Deputy Chairman of the Ca Mau People's Committee, Le Dung, as saying. Due to the low demand Vietnamese exporters shipped large quantities to the US, causing prices there to go down sharply. To cope with competition, Mr Ca Mau asked authorities to help with information about market demand, prices, and types of goods in demand to help exporters and farmers/buyers.
|Betagro to open more Bee Cheng Hiang stores in Thailand |
[09 June 2015] Betagro Group of Thailand plans to open more Bee Cheng Hiang outlets, a famous brand of barbequed pork, or Bakkwa from Singapore. The first outlet that Betagro launched has received impressive response. “We plan to open around two to three shops per year,” Betagro Group’s Senior Department Manager for Operation Piyaporn Taepaisitphongse told Asian Agribiz. Betagro brought Bee Cheng Hiang to the Thai market via a franchise agreement. It set up Betagro Bee Cheng Hiang Co Ltd to operate this premium brand. The first flagship Bee Cheng Hiang store in Bangkok opened in late March. Betagro expects Bee Cheng Hiang to generate around USD 900,000 a year in sales.
|Pronic Indonesia to triple its probiotic chicken production|
[09 June 2015] Pronic Indonesia, a producer of probiotic (broiler) chicken under the Probio Chicken brand, plans to triple its production by 30,000 carcasses per month. Atanasius Harpen Tulis, General Manager, told Asian Agribiz that its product is gaining ground, especially in big cities where medium and high-class consumers work and live. “The demand for antibiotics and hormone-free chicken in Indonesia is growing along with income growth and awareness of healthy food products,” he said. Probio Chicken is sold at a premium price of around USD 3.74/kg. Mr Atanasius revealed that within the next five years he plans to set up a chicken processing plant in West Java to have better control on carcass quality. “At the moment we cooperate with QL Group Indonesia to slaughter our chickens,” he added.
|San Miguel Foods exports chicken to South Korea|
[09 June 2015] The Philippine Department of Agriculture (DA) announced yesterday that San Miguel Foods Inc shipped 11 tonnes of frozen chicken to South Korea last Friday. DA Assistant Secretary Davinio Catbagan said the shipment is expected to arrive in South Korea today. The Philippines, which remains free of avian influenza, has been negotiating with several countries to ship their chicken products. Meanwhile, DA Secretary Proceso Alcala said that the DA is looking to take advantage of the Japan-Philippines Economic Partnership Agreement, under which the Philippines could export pork to Japan at a lower tariff. According to DA Undersecretary for Livestock Jose Reaño, the country will soon start negotiations with Tokyo for pork exports.
|No immediate threat to Indian poultry industry|
[09 June 2015] Although the WTO's appellate body upheld the panel’s report against India, industry players feel there is no immediate threat. GB Sundararajan, Managing Director of Suguna Foods Ltd said that there will not be any immediate impact on the industry as the consumer market in India is largely driven by whole chicken. According to him, in India almost 96% of retail consumption is of live birds and hardly 4-5% of frozen chicken meat. “We may see an impact in about two years,” he said.
|Whiteleg shrimp leads seafood exports for Vietnam|
[09 June 2015] In the first four months of the year whiteleg shrimp remained Vietnam’s main export item despite its 29.3% year-on-year decline in export value. Accounting for almost 60% of Vietnam’s total shrimp exports, whiteleg shrimp export was valued at USD 340 million, reported Vietnam Association of Seafood Exporters and Producers. Black tiger shrimp exports, meanwhile, dropped by 31.6% to USD 178.1 million. Vietnam is the world's leading producer of black tiger shrimp with a production of 300,000 tonnes per year. Whiteleg shrimp has been cultivated in different provinces in the country since 2008. According to the association shrimp exports last year reached USD 3.95 billion, up 27% over 2013. Whiteleg shrimp exports doubled the sales of black tiger shrimp to reach USD2.3 billion, up 46.3% over 2013.
|US confident of new market in India|
[09 June 2015] The WTO’s ruling backing exports to India has instilled confidence in the US poultry industry. It will help lower trade barriers and open new markets for US farmers, according to US officials. Welcoming the WTO decision, US Trade Representative Michael Froman in a statement said that this will help eliminate unjustified trade barriers so US farmers can sell high quality US agricultural products to customers around the world. US Secretary of Agriculture Tom Vilsack said that this is a major win for US agriculture, in particular, the US poultry industry.
|De Heus plans for feedmill in Indonesia|
[08 June 2015] Netherland-based De Heus plans to have a feedmill in Java, Indonesia. Jan Cortenbach, Chief Technical Officer of De Heus-Wellhope, told Asian Agribiz that the company hopes to realise the plan within a year. Setting up a new plant and acquisition are options being considered. An acquisition will only push through if there is a good feedmill that meets its requirements and standards. Mr Cortenbach said it plans to produce aqua (shrimp and fish) feed. “Aquaculture is a vibrant sector in Indonesia and offers good potential,” he said. Besides, it will also produce dairy cattle feed. “We have good knowhow in this sector and we want to transfer this to farmers in Indonesia,” he said.
|India loses WTO appeal against US imports|
[08 June 2015] An appellate body of the World Trade Organisation (WTO) has upheld the rule of a WTO panel that India's ban on American poultry product imports was inconsistent with international norms. In January 2015, India filed an appeal with the Dispute Settlement Board of the WTO against the ruling passed by a panel in October 2014. The appellate body also endorsed the panel's finding that India's avian influenza measures violated global norms on the grounds that the prohibition was limited to just one country and not to all imports from any country with avian influenza risk. India will have 12-18 months to implement this ruling, after which the US can begin exports of poultry products to India.
|ADM builds fourth premix plant in China|
[08 June 2015] Archer Daniels Midland Company is building a new feed-premix plant in Zhangzhou, southern China, bringing to four the number of plants in the company’s premix network in the country. “Demand for safe, high-quality animal feed in China is growing, and we are expanding our feed business there to meet that demand,” said Brent Fenton, President, ADM Animal Nutrition. The plant, to be completed in the fourth quarter of 2016, will manufacture a range of premixes that will contain various vitamins and minerals, amino acids such as lysine and threonine, and special feed additives, among other ingredients. It will produce about 30,000 tonnes of premix products per year, which will also provide 80,000 tonnes of additional capacity for the production of complete feeds and concentrates. “This plant will serve Fujian, Guangdong, Guangxi and Hainan,” said Mr Fenton.
Seminar on best farming practices in Indonesia
Onsite report by ARIEF FACHRUDIN
[08 June 2015]
In line with its vision to share knowledge and technical advances to improve the livestock industry, the organisers of Ildex Indonesia held the Best Farmer Practice seminar in Jakarta last week. The event served to promote the show which will be held at JI Expo in Jakarta from October 8-10, said Manuel Madani, VNU International Sales Manager. Ildex Indonesia will focus on feed-to-meat solutions and integrated farming solutions, as well as support international collaboration.
Challenges in the hatchery
The current challenges in the hatchery industry are food safety, animal welfare and sustainability, according to Bouke Hamminga, Pas Reform Director of International Sales and Business Development. The challenges require industry players to have better hygiene, information technology, track & trace and hatchery automation. Mr Hamminga said to help industry players Pas Reform has developed SmartCenterPro that enables hatchery managers to make well-informed decisions for the future refinement and development of incubation programing, hatchery management and maintenance schedules. In addition, the technology supports the hatchery to meet traceability demands of its customers.
Solving on farm problems
Jan Cortenbach, Chief Technical Officer of De Heus-Wellhope, said every farm, even the best ones face problems. But the difference between a good and a bad farm is that the good ones will detect it much earlier and will take the appropriate measures. “Gather the correct information by listening to what the birds tell you. Take time to learn the poultry language, and this can only be done in the poultry house, not in the office,” said Mr Cortenbach. He spoke about the importance of poultry pre-starter feed to stimulate a healthy gut flora. “Early development is important to achieve good results. If weight development is under target, pre-starter feed will offer benefits and is cost effective,” he said.
Shift in current poultry breeding goals
According to Willie Blokvoort, ISA Sales Manager for Indonesia and the Philippines, there is a shift in current poultry breeding goals. In the past the goals were on production efficiency and parent stock efficiency, but now the goals also include product quality and health & welfare. “ISA as a leading layer genetic company is responding to the trend and improving the genetics of our layers,” said Mr Blokvoort. The current breeding goals of ISA are to increase earnings for the egg value chain by delivering excellent products, to produce quality food and to support sustainable operations and improve the welfare of animals," he said.
Common indicators of mycotoxicosis
Representing Biomin, Prof Charles Rangga Tabbu, an expert in pathology from Indonesia’s Gadjah Mada University discussed mycotoxicosis in poultry. According to him, the common indicators of mycotoxicosis are: 1) if a group of chickens that consumed the same feed/ingredients are affected, 2) there is no signs of disease transmission between chickens, 3) antibiotic treatment has little or no effect on the disease, 4) field outbreaks are seasonal and associated with specific feedstuffs, and 5) examination of the suspected feed reveals signs of fungal activity.
Combi tunnel versus pure tunnel
Devan Krishnan, Big Dutchman Technical Sales Advisor-Climate, compared the minimum ventilation of combi tunnel versus pure tunnel. Results from trials (period: from day 1 to day 34) showed that birds raised under the combi tunnel system had better weekly bird weight and FCR. In addition the system saves power and heat. Mr Krishnan said during the trials, the birds were well spread in the house under the combi tunnel system, which in turn resulted in better bird uniformity.
Time to invest in processing
It is undeniable that the popularity of fast food and ready meals has grown in Indonesia, said Rudy Hudin, Country Manager Indonesia of Marel. At the same time, he added, time spent on cooking at home is decreasing. He said in the US, the further processing value is increasing while the whole bird value continues to decrease, “and this trend will also happen in Indonesia.” Looking at this phenomenon, Mr Rudy said poultry producers should invest in processing. “The live bird market is open to steep price fluctuations that limits profits. In the processed/further processed products market, the profit margin is stable and high.” However, he advised producers not to be ‘me too’ players. “We have the technology to help them innovate and generate new products.”
|Vietnam feed companies muscle for bigger market share|
[05 June 2015] Local animal feed producers in Vietnam are keen to grab a larger share of the feed market from their foreign counterparts. According to Tuoitrenews.vn, Masan Group recently announced an ambitious plan to take 50% of the local market share in the next five years. It recently acquired Sam Kim Co Ltd, renaming it Masan Nutri-Science Co Ltd. Masan, now with subsidiaries in Proconco and Anco, has become the second largest company in the local feed market. Hanoi-based Hoa Phat and Hung Vuong in Tien Giang Province of the Mekong Delta are also names to look out for. Hoa Phat has a capacity of 300,000 tonnes per year and aims for a 10% market share in the next five years while Hung Vuong is considering M&A to grow its business. Currently, demand for animal feed in Vietnam is 16mt, worth about USD 6 billion per year, and expected to reach 25-26mt by 2020.
|New feed, hatchery and poultry breeding unit in Puducerry|
[05 June 2015] India’s Rajiv Gandhi Institute of Veterinary Education and Research has launched a new feedmill, and poultry and hatchery unit at Kurumbapet, Puducerry. The mill is expected to roll out up to 6 tonnes of poultry feed on an eight-hour shift. The plant will have a feed grinder, feed mixer, motor control centre and other equipment. The feed will be rolled out in 250kg bags each and will later be sold loose to farmers. The unit will also establish parent stock of the Giriraja breed and a hatchery, to supply chicks of this dual purpose breed of chicken to rural farmers. By supplying poultry feed the institute hopes to help encourage small farmers to take up poultry farming, and provide a sustainable income through the sale of eggs and chicken meat.
|Indonesia still needs imported beef, cattle|
[05 June 2015] Newly elected Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture, Prof Muladno said it’s undeniable that the country still needs to import beef and cattle as local supply and demand are not balanced. “Without imports, our local cattle stocks will run out.” Prof Muladno, chose to be realistic about the beef self-sufficiency program. “It’s not easy to reach the target in the near future, it may even take up to 30 years. But to quicken this, we need to import superior breeding cattle from abroad.”
Sneak preview of Asian Poultry Magazine, June 2015
[05 June 2015]
Sunfresh Farm rises on good management and nutrition
In just a few years, Sunfresh Agricultural Ventures, a layer farm in Mindanao, Philippines, more than tripled its size. ISA Q TAN writes that much of the farm’s successes lay on good management and its strong relationship with its nutrition provider.
You cannot sell a percentage!
In an integrated broiler operation, money is only truly made at the back door of the plant when the product is sold in kilograms or pounds to the customer, writes DOMINIC ELFICK. Many integrators today operate a profit centre model to help each department or phase of the production cycle to focus on maximising their potential and profitability.
High farming standards breeds success for quail farmer
William Ho, Lian Wah Hang Farm Pte Ltd’s Managing Director, dispels misconceptions on quail meat and eggs, and gets Singaporeans to add protein variety to their meals, RACHAEL PHILIP writes.
Rohini Minerals to maintain lead with R&D
With a strong R&D division, Rohini Minerals based in South India aims to improve the quality of its poultry feeds and maintain its competitive edge. ARIEF FACHRUDIN also learns that the company embraces modern technology for its feed milling and quality control facilities.
Optimising broiler performance in open-sided housing
In Asia, broilers are still commonly raised in naturally ventilated open-sided housing. The main dilemma is how will the producers in these farms be able to maximize the genetic potential of the current broilers? In this article, RAUL ELIAS LOPEZ discusses some points which may help producers to get the benefit of the improved genetics in open-sided housing.
Reducing feed induced immune response from galacto-mannans in sbm
Feed Induced Immune Response (FIIR) is a recently recognised phenomenon in animal nutrition. The use of enzymes to control this occurrence is likewise a fairly new concept in feed enzyme use explains SARAH CERVANTES-PAHM and MARCO MARTINEZ. β-mannanase enzymes can minimise the metabolisable energy loss caused by FIIR from β-mannans, allowing more energy to be available for growth and performance.
Greater specificity for mycoplasma monitoring
Routine mycoplasma monitoring can help avoid production losses and animal health costs associated with infection, but not all tests are created equal. New studies show that greater test specificity pays report CHAVALIT PIRIYABENJAWAT and YANG ZHAO.
|Thailand’s Sun Group plans new feedmill |
[04 June 2015] Sun Group of Thailand, plans to construct a new feedmill in the next three years, CEO Chamlong Termglinchan told Asian Agribiz. “By 2017 we plan to set up a new feedmill that will be fully automated to reduce reliance on human labour,” he said. The new facility will have a capacity of 300,000 tonnes/year, complementing the existing mill churns out feed production at 500,000 tonnes/year. The new feedmill will have two processing lines and both will be antibiotic-free lines. Sun Group produces around 1 million DOC per week and slaughters around 100,000 birds/day.
|Chicken prices increase due to heatwave |
[04 June 2015] With the death of over 7 million poultry due to the heatwave in India, chicken prices have increased by USD 1.49/kg. Valsan Parameswaran, Secretary of All India Poultry Exporters Association told Asian Agribiz that the increase in price is also attributed to the beef ban imposed by a few states in India. With chicken being the most popular meat in India, consumers are feeling the pinch. However, the onset of the southwest monsoon set to begin in the first week of June is expected to bring some relief to the poultry industry as temperatures will go down.
|Busung Farms upgrades breeder hatchery|
[04 June 2015] South Korea’s Busung Farms Co Ltd has upgraded its Busung breeder hatchery, replacing its previous installation with Pas Reform’s SmartPro single stage incubation for better hatchability and chick quality. The company carries Ross, Arbor Acres and Indian River DOC for its own HapDeok, GoeSan and BaRan breeder farms. South Korea’s poultry sector has experienced steady growth in recent years, with increased parent stock production to meet anticipated growth in demand as poultry is a less expensive alternative to beef and pork.
Grain & Feed Asia Conference in Jakarta, Indonesia
Report by ARIEF FACHRUDIN
[04 June 2015]
Feed wheat use to remain stagnant in 2015/16
World wheat production in 2015 could decline by 1.4% from last year's record output due to uncertainties like El Nino, geopolitical risks and economic conditions, said Mark Smulders, Senior Economist and FAO Representative to Indonesia. “As one of the main wheat producers China could produce a bit more this year. However, higher production levels are expected in the US,” he said. The use of wheat for feed, meanwhile, increased sharply in 2014/15 by 8.5%, but will remain stagnant in 2015/16, and inputs may be down slightly in Asia. “Feed wheat use in China is up 2 million tonnes annually, but the stock is down,” Mr Smulders added.
Canola & dehulled lupin meal as alternative feed ingredients
Asia’s growing animal protein consumption is driving demand for feed grains and protein meal in the region, said Neoh Soon Bin, CEO of Malaysia’s Soon Soon Oilmills. Southeast Asia alone currently produces around 60 million tonnes of animal feed with poultry and pig as the main species. However, Mr Neoh said the region is short of protein meals and relies too much on imported SBM. With this in mind, he said the region needs alternatives. From its research and trials, Soon Soon Oilmills found that canola meal and dehulled lupin meal are the best alternatives as they contain high AME and digestible amino acids.
Pulau Sambu promotes copra meal for local market
Indonesia’s PT Pulau Sambu - Kuala Enok is currently trying to sell its copra meal in the local market. The company has a production facility in Riau, Sumatera and produces coconut milk and oil and the by-product copra meal. “Our copra meal is exported to Korea and they use it for pig feed. Now we are also targeting local markets for poultry and pig feeds,” Kenneth John Macleod, Business Development, told Asian Agribiz on the sidelines of the conference. He said for poultry feed copra meal can be used at around 1-2% as a source of protein and energy.
World coarse grain production to decline by 2.6%
World coarse grain production this year is predicted to decline by 2.6% from last year's record, according to Mark Smulders. The decline is to happen in all regions except Oceania and Asia where it could increase slightly. Mr Smulders said the decline would be due to moderate to severe El Nino challenges that will last until 2015 and will result in low planting.
More food needed for population in 2050
The world population in 2013 reached 7.2 billion, and in 2050 the figure is forecast to increase to 9.6 billion. Mark Smulders said the world population increase means that demand for food will be higher. “People will consume more, especially animal protein sources,” he said. “We have to increase agricultural production by 60% globally, and by 100% in developing countries.” Sources of the increased production could come from yield shifts, intensification and land expansion.
|Thai pig prices rise on drought, disease |
[03 June 2015] Pig prices in Thailand have been rising buoyed by the heat and Porcine Epidemic Diarrhoea (PED), said Surachai Sutthitham, President of the Thai Swine Raisers Association. Prices of live pigs have increased to USD 2.04-2.11/kg from around USD 1.84-1.87/kg in April. Retail price of pork has increased to USD 4.45/kg from around USD 4.09/kg in April. “The drought has slowed down pig growth while PED in several farms, especially in the north-eastern region in the beginning of the year have caused the death of up to 30% of piglets,” he said. Pig and pork prices are expected to decline in the coming rainy season, he added.
|Pacific West wins product innovation award|
[03 June 2015] Malaysia’s Pacific West Oven Baked Fish Fillets clinched the Malaysian Institute of Food Technology Product Innovation Platinum Award 2015 last week, Paul Loo, Pacific West Foods (M) Sdn Bhd Branding Support Executive, told Asian Agribiz. The award recognises Malaysian food processors and manufacturers in their effort towards producing outstanding food products. Judging criteria included its sensory attributes, technological innovation, nutrition and wellness, consumer appeal, packaging, material and design. Pacific West is the premium brand of Golden Fresh. The company sources its raw products from well-managed fisheries and processes them at its world-class facility in Penang, which is capable of processing over 8000 tonnes of frozen value-added seafood products annually.
|Taiwan continues to battle H5N2, H5N8 outbreaks|
[03 June 2015] Taiwan reported four new H5N2 outbreaks and one H5N2 incursion to the World Organization for Animal Health (OIE) on May 29. The country has reported numerous outbreaks of the two viruses on poultry farms over the winter and this spring. The four H5N2 outbreaks affected close to 55,000 while the H5N8 outbreak struck a farm housing 12,000 chickens. In line with Taiwan's standard procedures, farms within 3 km of the affected ones will be under intensified surveillance for three months, officials said.
|Indonesia revitalises idle shrimp ponds|
[03 June 2015] Revitalising idle ponds is one strategy by Indonesia’s Ministry of Fisheries and Marine Affairs this year to increase shrimp production. The ministry has targeted this year’s shrimp production to reach 785,900 tonnes, an increase of 32% over last year. Recently the ministry revitalised around 13,000ha of idle ponds in North Mamuju, West Sulawesi. “This region has potential to increase national shrimp production. With good farming practices supported with good fries and feed, we can harvest 6 tonnes/ha/year,” said Slamet Soebjakto, Director General of Aquaculture.
|South Korea to scrap tariffs for shrimp from Vietnam|
[03 June 2015] South Korea will eliminate tariffs for seven types of shrimp imported from Vietnam beginning next year. The quota for 2016 is 10,000 tonnes. By 2020, Vietnam will be permitted to export 15,000 tonnes of shrimp annually without the imposition of import duties. Currently, Vietnam can only ship 2500 tonnes without import taxes under the Asean Korean FTA. According to the Vietnam Association of Seafood Exporters and Producers, the South Korea market is the fifth largest consumer of Vietnamese shrimp, after the US, Japan, EU and China. Vietnam also overtook China to become the largest shrimp supplier to the republic last year when it imported 27,791 tonnes from Vietnam.
|East Kalimantan to import BX cattle from Australia|
[03 June 2015] Indonesia’s East Kalimantan province plans to import 11,000 Brahman crossbred (BX) cattle from Australia. The local government recently held a meeting with several Australian business institutions such as the Northern Territory Cattlemen’s Association and the Northern Territory Livestock Exporters Association. Dadang Sudarya, Head of Animal Husbandry Agency in the province, said Australia has paid close attention to the cattle specifications requested by the East Kalimantan government, such as the requirement that 40% of the cattle are pregnant. “Once the cattle arrive, we will distribute them to farmer groups to support the cattle-oil palm integration program and the cattle integration program in former coal mining areas,” he said.
|Sido Agung inaugurates fifth mill |
[02 June 2015] Indonesia’s Sido Agung Agro Prima last week inaugurated its new feedmill in Cirebon, West Java. The mill, which will produce mainly poultry feed, is the company’s fifth. It will service markets in Banten, Jakarta, West Java and Central Java. Bram Sebastian, Operational Director, said the mill cost the company around USD 49 million. “It has an installed capacity of 300,000 tonnes/year. With the addition of this new mill, our total capacity has increased to 900,000 tonnes/year,” Mr Bram said, adding that the other four feedmills are located in Sidoarjo and Pasuruan in East Java, Makassar in South Sulawesi and Magelang in Central Java.
|Avian Flu challenging global trade |
[02 June 2015] The global trade streams and poultry prices are expected to remain under pressure for the remainder of 2015, due to the impact of avian flu stated Rabobank in its Poultry Quarterly Q2 report. The long-term impact may be significant due to several trade bans. "Poultry industry fundamentals are facing meaningful headwinds with stronger than expected feed prices due to a strong US dollar, increased competition from falling pork prices and restrictions on trade," says Rabobank animal protein analyst Nan-Dirk Mulder. "Prices for whole chicken, leg quarters and chicken feet are declining further, while breast meat prices remain relatively strong." The report stated that many countries in Asia, including China, who have implemented restrictions on trade on breeding stock might be affected by low supply next year due to expected future shortages in local breeding value chains.
|Indonesian poultry stocks back to prospective |
[02 June 2015] In the face of school holidays and Ramadhan, the stocks of Indonesian poultry companies are back to prospective status. Taye Shim, Research Head of KDB Daewoo Securities, said during the period poultry products consumption will escalate. “We have seen the price of poultry products such as chicken and eggs reverting to normal. So this is the right time for investors to back the poultry sector,” he said. Besides, Mr Taye also sees clear income visibility of the sector due to the increase in selling prices and production volumes in the next two to three months. Poultry companies that are listed in Indonesia’s Stock Exchange are Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Malindo Feedmill and Sierad Produce.
|Canada detains corn imports from India|
[02 June 2015] The Canadian Food Inspection Agency has detained corn shipments from India after the agency found high levels of aflatoxin, a toxic element linked to various diseases. In a notice, the agency informed that this measure was necessary to prevent contamination of livestock feed and to protect Canadian livestock and public health. The agency will detain all incoming shipments of corn from India, including organic corn, intended for use as livestock feed until it has been tested for aflatoxins. “Importers must sample the imported corn upon arrival in Canada and provide test results to the agency,” the notice said.
|Altor and Goldman Sachs to acquire Hamlet Protein|
[02 June 2015] Altor Fund IV and Goldman Sachs Merchant Banking Division are partnering to acquire the majority of Hamlet Protein from Polaris Private Equity and the founder of the company, Ole K Hansen. Hamlet Protein, a global provider of soy-based protein solutions used in high value-add animal feed for young animals, services more than 50 countries from its two production facilities in Horsens, Denmark and Findlay, Ohio. Søren Munch, CEO of Hamlet Protein said: “With the strong support of Altor and Goldman Sachs Merchant Banking Division we are uniquely positioned to accelerate the development and growth of Hamlet Protein and better service our customers and partners globally.”
|Malaysia exports frozen chicken to Japan|
[01 June 2015] Malaysia has resumed shipping frozen poultry meat to Japan. “On April 1 three containers of frozen chicken meat was shipped to Japan from one processor in Perak,” Dr Kamarudin Md Isa, Deputy Director General (Veterinary Health), Department of Veterinary Services, Malaysia, told Asian Agribiz. “There are a total of 13 processors from the states of Perak, Selangor, Negeri Sembilan and Malacca who are able to export to Japan. They are in the process of finding their own importers in Japan.” He said Japan has agreed to import poultry from Malaysia because the country has been free from bird flu disease since 2007. Japan is also satisfied with the compartmentalisation practice where Newcastle disease is concerned. “The import requirements are stringent in Japan. The country wants quality and safe food. Japan is also developing its halal market in the light of the 2020 Olympic Games.”
|Heat waves claim 7 million birds in India|
[01 June 2015] An unprecedented heat wave in Telangana and Andhra Pradesh states in India led to the death of about 7 million birds last week. G Ranjith Reddy, President of Telangana Poultry Breeders Association told Asian Agribiz that the poultry industry has incurred losses to the tune of USD 16 million because of the weather. According to him, temperatures touched 49 degree Celsius in some parts of these states paralysing normality. “This has come as a shock to the poultry industry in this region, which is recovering from an avian influenza outbreak,” he said.
|Fast Food Indonesia optimistic of 12% growth in Q2|
[01 June 2015] Fast Food Indonesia’s income in Q1 2015 did not reach the growth target of 7-10%. The operator of KFC in Indonesia only recorded around USD 76 million or an increase of 3.4% compared to the same period last year. Director Justinus Dalimin Juwono said the income growth slowed down due to the weak purchasing power caused by currency depreciation and raw material price increase. “However we are optimistic that income in Q2 2015 will escalate by 10-12% led by school holidays and Ramadhan,” he said. Mr Justinus revealed that in Q2 the company will open 12 new outlets in Jabodetabek, Central Java, East Java and Sulawesi. Meanwhile in Q1 it opened 13 new outlets in the same regions. Mr Justinus also said that the company plans to improve its online order & home delivery system.
Brighter days for pork industry in SEA/China
[01 June 2015]
Weather, diseases, costs continue to weigh on the pig industries in Southeast Asia and China, but brighter days might be in the offing for producers. Read this as well as a comprehensive report in Asian Pork Magazine this June
Prices to remain stable
Farm prices of hogs and retail prices of pork in the Philippines have remained stable since the beginning of the year, and despite the expected drop in consumption in the third quarter when the rainy season sets in, prices will likely remain stable. Edwin Chen, President of the Pork Producers Federation of the Philippines, told Asian Agribiz that the current rate at which traders are now buying live pigs might mean a tighter supply in the third quarter. Even the supply of culled sows and oversized pigs is down. “This could mean that despite lower demand during this period, we may not see prices reducing,” he said.
Hot weather pulls down supply
The hot summer weather that has led to lower pig weights and a decline in overall pork supply in Thailand. Coupled with farmers’ earlier bouts with PEDv and PRRS, this has kept farm prices of pigs steady at a “fair level,” Surachai Sutthitham, President of the Swine Raiser Association of Thailand told Asian Agribiz. The onset of the rainy season, however, is expected to improve farm conditions and animal performance. Meanwhile, pig farmers in northeast Thailand say prices are likely to remain steady and may even increase in the next 3-4 months, boosting demand for commercial piglets.
Festivals to push up pig demand in Indonesia
Indonesian pig producers can look forward to a better second half thanks to festivals that are happening in various parts of the country. In Bali, the Galungan festival in June/July is expected to push up demand for pigs, Phaithoon N Na Ayudhaya, Pig Specialist of Charoen Pokphand Indonesia told Asian Agribiz. Similarly, pig farmers in North Sulawesi, who suffered low prices last year, reduced their sow population. Thus the province now has insufficient pork and prices have since gone up. Mr Phaithoon predicted prices would continue to go up in the province, especially from June to September, when traditional ceremonies requiring large numbers of pigs, are celebrated. “Each ceremony usually requires more than 1000 pigs, so this is a great opportunity for farmers and I see that they there are already prepared for this.”
Some relief for China
After falling almost continuously since September 2014, China’s pork price reversed course in late March, offering some relief to hard-pressed farmers facing persistent negative margins. The USDA office in Beijing forecast an 8% reduction in China’s pig production this year. Lower feed prices are expected in 2015 going forward, partly due to reduced demand from a smaller herd, which with the rising pork price may allow producers to make some money this year. However, prices also rose for a period last year, but never reached profitable levels for producers. “It’s the same trend as last year, but the curve (of price increases) is not as steep as last year,” Michael Ellermann, a partner at Carthage MHJ (CMHJ), a swine consultancy based in Suzhou, China told Asian Agribiz, adding that price will likely “follow the same pattern as last year, and peak in August or September.
Vietnam pig producers to maintain profitability
While prices of live pigs have declined in Q2 this year, Vietnamese pig farmers remain profitable as lower feed prices have helped keep production costs down, a report by Rabobank said. Meanwhile, the Ministry of Agriculture and Rural Development forecast a 2.4% increase in output this year to 3.37 million tonnes. Despite the challenges it still faces, Vietnam’s pig industry is in transition and is witnessing investment in genetics in order to improve farm-level efficiencies. Rabobank said that despite the growth in production, the supply/demand situation in the country remains in a balance.
|Saha Farms creditors approve rehabilitation plan|
[29 May 2015] Major creditors of Thailand’s indebted poultry integrator Saha Farm voted earlier this week to approve the rehabilitation plan proposed by its assigned debt restructuring planner Ernst and Young Corporate Services Limited Thailand. Up to 67% of the creditors including banks, farmers, suppliers, employees and others, and 76% of creditors of its subsidiary Golden Line Business approved the plan. The rehabilitation will be completed when Saha Farms and Golden Line Business return monies owed to their creditors within seven and 10 years respectively. The Bankruptcy Court agreed in July last year that Saha Farms and Golden Line Business enter into the rehabilitation process. Its major creditor Krung Thai Bank extended a loan for cash flow, allowing the company to resume operation at much smaller level.
|QL Resources declares strong Q4 results|
[29 May 2015] Malaysia’s QL Resources Bhd announced that its net profit for the fourth quarter ended March 31 2015 jumped 21% year-on-year to USD 12.83 million. It attributed this to higher contribution from its integrated livestock farming and marine products, which surged 53% and 41% respectively. Revenue rose 9% year-on-year to USD 181.73 million, boosted by sales of its marine products. For the full year the company’s net profit increased 19% year-on-year to USD 52.33 million. Revenue increased 10% to USD 741. 58 million. Segmentally its marine products division contributed 51.4% to the group’s pre-tax profit followed by integrated livestock farming (43.3%) and palm oil plantation (5.3%).
|Indonesia to develop mariculture|
[29 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has said that besides freshwater fish production, it is also focusing on increasing the production of mariculture as its commodities have huge potential in the global market. “Mariculture products have high economic value as they have immense global market potential and good export prospects,” said Slamet Soebjakto, Director General of Aquaculture, adding that the government needs to develop fishery zoning to facilitate the development of mariculture. He explained that fish commodities to be developed in the zoning system will be adjusted to the local conditions. Fish species will include snapper, grouper, pomfret, starfish and abalone.
Asian Agribiz regional dairy update
[29 May 2015]
Amul to have 1000 more franchisees by 2015
Indian dairy major Amul plans on having 1000 more franchisees by December 2015 to expand its distribution network. R S Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF) that markets Amul said exclusive retail outlets is the only way to showcase their entire range of products. "Franchising is a logical method of expanding,” he said. Amul has been expanding its franchise since 2001 and has 8000 franchisee run and 125 company owned units in more than 2000 towns in India.
Dairy equipment market estimated at USD10b
The global dairy processing equipment market is projected to reach USD 10.4 billion by 2019, growing at a CAGR of 5.3% from 2014 to 2019. According to the Dairy Processing Equipment Market by Equipment Type, Application and by Region - Global Trends and Forecasts to 2019, the market is growing in accordance with the increasing demand for dairy products and the technological advancements in dairy processing equipment. It is driven by the rise in consumption of dairy products and particularly the increase in demand for milk powders and protein concentrates. The market for dairy processing equipment in Asia Pacific is estimated to be the fastest-growing market from 2014 to 2019. In 2013, the region emerged the largest dairy processing equipment market, dominated by Australia. It lists IDMC Limited from India as a key player in the industry among Switzerland’s Tetra Laval, Sweden’s Alfa Laval, US’ SPX Corporation and Germany’s GEA Group.
Pakistan may increase import duty on milk powder
Pakistan is considering increasing the import duty on milk powder and whey powder to protect domestic dairy players. At present, 20% duty is imposed on these products from SAARC (South Asian Association for Regional Cooperation) countries and 25% on imports from other countries. Based on representation by the Ministry of National Food Security and Research, the federal Finance Ministry is expected to increase the import duty in the upcoming budget. According to local industry players, dumping of dry milk powder from around the world has affected dairy farmers and milk production.
Parag to focus on value added dairy products
Indian dairy player Parag Milk Foods Pvt Ltd will focus on value added products such as cheese and ghee to fuel its growth. Both accounted for nearly half of the company's turnover in the last financial year, which was about USD 235 million. Chairman of Parag Milk Foods Devendra Shah said that the company is also betting on the dairy beverages space which has an estimated market size of about USD 861 million and is growing at 25% in volume terms every year. Parag Milk Foods recently launched new varieties of dairy beverages.
Dutch Lady’s Q1 profit down 26%
Malaysia’s Dutch Lady Milk Industries Bhd registered a 26.2% year-on-year drop in net profit to USD 4.688 million for its first quarter ended March 31 2015 on lower revenue and increased marketing investments to support its relaunch activities. Revenue for the quarter fell 13.5% to USD 54.12 million. In a filing with Bursa Malaysia the dairy products manufacturer said its business environment is expected to remain competitive against the backdrop of less robust consumer confidence. “Despite the ongoing business challenge for 2015 the company remains committed to leveraging the strength of the Dutch Lady brand with the introduction of the Dutch Lady Purefarm range and the relaunch of Dutch Lady Childrens' Formula Milk.
Amul to support Mongolia’s dairy sector
Gujarat Cooperative Milk Marketing Federation (GCMMF) is all set to support the dairy sector in Mongolia to develop an effective milk procurement system. According to an agreement between GCMMF and the Institute of Technology of Mongolia, Amul will work with Mongolia’s cooperative sector and milk processors to restructure the dairy industry. Amul will help develop training programs on management of bulk milk cooling systems, clean milk production and animal health.
|TGM will start test run at new plant in June |
[28 May 2015] Thailand’s meat processor Thai German Meat Product Co will start test runs at its new meat processing plant next month, Managing Director Chantana Puapattanakajorn told Asian Agribiz. The new plant, located at the same site of the existing facility, will produce varieties of ham at a capacity of 50 tonnes per day, she said. “Initially, this plant will produce only hams. Sausages and other products will be added later,” she said.
|GoGo Franks grows to 19 outlets in Indonesia |
[28 May 2015] Singapore’s GoGo Franks, a premium sausage retail outlet, will open its 18th and 19th outlet, the first two for Jakarta, in Indonesia by next month, Jean Lee, Managing Director of Carona Holdings Pte Ltd, told Asian Agribiz. The company opened its Indonesian arm in 2013 with the launch of Carona Indo, which consists of two entities – production and retail. “Indonesia is our future and I think we can grow quickly,” she said. Late last year the plant opened its second line to cope with growing orders. “We started out with 500kg/day. Now we are doing 3000kg/day in two eight-hour shifts.” Plans are already in the pipeline to build a second plant in Indonesia.
|CAB Cakaran profit declines 24% |
[28 May 2015] Malaysian poultry integrator CAB Cakaran Corp Bhd’s reported a net profit decline of 24% to USD 687,000 in its second quarter ended March 31 2015, from the previous quarter, despite a 27.2% increase in revenue. Revenue came in at USD 57.28 million. In a filling with Bursa Malaysia the company attributed the higher revenue to better sales by its integrated poultry farming and processing division. It recorded an increase in the production of chicks and broilers as well as higher demand for feed from contract farmers. The division recorded a lower profit of USD 1.93 million due to the lower average selling price of broilers. On prospects, the Group expects its farming and processing division to improve on expectations of higher average selling price of broilers and stable price of feeds.
|DMC aims for integration|
[28 May 2015] Dimanika Megatama Citra (DMC), a PS breeder in Surabaya, Indonesia aims to be an integrated poultry company. Last year the company put its new 15,000 tonne/month poultry feedmill in East Java into operation. The capacity of this plant is expandable to 50,000 tonnes/month. It is also expanding its broiler contract farming business in Java, Sumatera, Kalimantan and Sulawesi. In addition, it also has a chicken slaughterhouse in Pasuruan, East Java that is supported with commercial broiler farms to ensure the supply of live bird for processing.
|PISAgro allocates funds to corn farmers |
[28 May 2015] PISAgro, a multiplayer platform initiated by Indonesia’s government to improve agri production, is ready to allocate around USD 2.3 million for 2000 corn farmers in Bima and Dompu regencies in West Nusa Tenggara. The number of farmers in this year’s project is 10 times more than the previous year. Syngenta Indonesia that is leading the project targets to increase corn productivity in the regencies by 7.2 tonnes/ha, or an increase of 20% of the current average corn productivity. Lim JungLee, President Director of Syngenta Indonesia, said the project is aimed at self-sufficiency in corn. Developed under the micro-financing model, the project plans to partner with 5 million farmers by 2020.
|Russia interested in poultry exports to India|
[28 May 2015] Russia, which is actively seeking export markets for its poultry products has expressed interest in poultry exports to India. Deputy Head of Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) Alexei Alexeenko said this is part of its plan to diversify exports. “There is demand for poultry in India and our Indian partners have shown interest,” he said. Russia exported 57,000 tonnes of poultry in 2014, 5% more than in 2013. Russian Agricultural Ministry expects that export of poultry will increase fourfold within the next five years to about 200,000 tonnes.
|Indonesia’s DMC setting up new breeding farm|
[27 May 2015] Dimanika Megatama Citra (DMC) based in Surabaya, Indonesia will set up a new broiler PS breeding farm in Jombang, East Java to meet growing demand for its broiler DOC. Yudi Martadi, DMC General Manager, told Asian Agribiz the company’s existing two broiler farms in Jombang and Malang produce 400,000-500,000 DOC/week. “With the new farm, we may produce around 700,000-750,000 DOC/week,” Mr Yudi said, adding that the company raises Cobb and Indian River strains.
|Pilmico eyes further expansion in Vietnam|
[27 May 2015] Pilmico Foods Corp, which is engaged in flour milling, feed production and pig production, is looking to expand further in Vietnam by acquiring another feed company there. In a report by BusinessWorld, Pilmico President and CEO Sabin Aboitiz said that they are currently considering three companies in northern Vietnam and that they hope something will materialise over the next two months. Last year, the company bought a 70% stake in Vin Hoan 1 Feed, one of the largest aqua feed producers in Vietnam.
|Nuscience opens new plant in Tianjin|
[27 May 2015] The Nuscience Group officiated its new plant in Tianjin, China, yesterday. The USD 16.16 million plant, with a production capacity of 10,000 tonnes per month, replaces its old plant in Central Teda, or Tianjin Economic Technological Development Area. With the new plant, production capacity has been increased and new production techniques have been added in order to answer to the growing market demand in China, said a Nuscience press release. “With this investment, Nuscience clearly states that it is ready for growth in China,” said Patrick Keereman, CEO of Nuscience Group.
Preview of Asian Pork Magazine, June/July 2015
[27 May 2015]
Brighter days await region’s pig industries
Despite some concerns, swine raisers in Southeast Asia and China may have something to smile about in the second half of this year, the ASIAN-AGRIBIZ team reports.
Breeding to stabilise Cambodia’s pig market
The pork industry in Cambodia is still seeing heavy imports, both legal and illegal. M’s Pig ACMC (Cambodia) Co Ltd aims to reduce imports and motivate local producers to get back to farming with its brand of Yorkshire-imported fast-growing pig, HE Mong Reththy tells RACHAEL PHILIP.
Quickgrow Genetics aims for more productive breeders
The Philippines hosts some leading global pig genetics companies and well-respected local breeding companies. Yet for many small and medium size raisers, access to quality pigs remains an obstacle. One rising genetics company in Northern Philippines has taken the task to hand, writes ISA Q TAN, and is now building up its operations to bring quality pigs to those who most need them.
Nutritional management of the modern sow – part 1
Just because you have hyper prolific genetics does not guarantee that the sow will perform in a hyper prolific manner in either the short or long term. MEGAN EDWARDS examines the findings of recent research into the nutritional management of modern sows with the objective of maximising reproduction and productivity. Part one of this two-part article will consider feeding from mating to entry to the farrowing facility.
Counteract health challenges with MOS
Post-weaning diarrhoea is usually associated with the proliferation of different enterotoxigenic Escherichia coli (ETEC) strains in the gastrointestinal tract. Yeast cell wall products naturally stimulate growth and immunity and can be an important tool to reduce prophylactic antibiotic treatments in weaning and sow diets, which are commonly used to reduce bacterial health challenges. Birgit Keimer and Katharina Göettke write that it is essential to compare the quality of these products, especially their pathogen binding capacity.
Improving sow energy utilisation with bioemulsifiers
Lactating sow nutrition is a huge challenge for farmers and nutritionists, because during the lactation period sows are always in negative energy balance, and very often feed intake is not sufficient to cover nutrients requirement, particularly for modern (hyper prolific) sow strains. In recent years, there has been increasing interest in the use of emulsifiers in swine diets. Lysophospholipids are biological emulsifiers highly effective in enhancing the absorption of oils and fats from feed by the animal. Lysophospholipids enhance nutrient absorption, which leads to improved animal performance explain Lakshmibai Vasanthakumari Bindhu and Mauro di Benedetto.
|Sarawak PFA hopes for more exports|
[26 May 2015] In the last weeks of 2014 Singapore’s Agri-Food and Veterinary Authority gave its final approval to the Sarawak Pig Farming Area (PFA) in east Malaysia to export frozen meat to the country. The first consignment arrived in Singapore in February and, by the end of 2015, Director Dr Ng Siew Thiam told Asian Agribiz that it hopes have exported a total of about 1200 tonnes of frozen pork. The PFA slaughterhouse has a capacity to slaughter 120 pigs/hour, and a cutting plant to process 50 pigs/hour. PFA’s long-term goal is to export 800 carcasses/day besides setting aside some carcasses for the local market. The processing facility was built according to export standards.
|InVivo aims for key position in pet food market|
[26 May 2015] The pet food market in Indonesia, which has a volume of 15,000-20,000 tonnes/year, is dominated by two big brands that control around 50% of the market share. Alain Symoens, Country Manager Indonesia of InVivo NSA, said the company through its subsidiary PT Guyovital involved in pet food trading hopes to register as a key player. “If in the next 10 years the market doubles to 40,000 tonnes, we will have a 10-20% market share,” Mr Symoens told Asian Agribiz. PT Guyovital sells premium cat and dog food imported from Brazil and Mexico. However in the near future the company plans to import more from InVivo NSA’s production facility in Vietnam. “We recently added a new pet food line at our facility in Vietnam which will supply to Southeast Asia and also China and India,” Mr Symoens said.
|China-Brazil beef deal threatens Australia|
[26 May 2015] A trade and investment deal between China and Brazil is expected to win Brazilian farmers up to USD 500 million a year in extra beef exports, raising fears Australian producers could lose out, reported Reuters. Brazil’s Agriculture Ministry said China was lifting a three-year-old ban related to mad cow disease. Before the 2012 ban, Brazil exported USD 1.5 billion of beef a year to China. Jed Matz, Cattle Council of Australia Chief Executive, said: “We are confident the free trade deal we have with China will give us a comparative advantage. We believe our reputation for food safety and reliability stands us in good stead.”
|Pakistan producers slam government's tax move|
[26 May 2015] The Pakistan poultry industry is decrying the government's move in withdrawing the zero-rated status for value-added, processed, frozen and packed poultry products. In a country where malnutrition is common, there is increasing focus on making the chicken industry modern and efficient. But with this withdrawal, the cost of production has gone up by PKR 20-40 depending on the product. Pakistan Poultry Association Chairman Khalil Sattar says the government has compounded the problem by imposing an import duty of 5-30% plus sales tax on ingredients used by local producers of value-added chicken. [USD 1 = PKR 100]
|Scanner to detect marbling in cattle |
[26 May 2015] Researchers at the National Institute of Advanced Industrial Science and Technology in Japan said they have developed a new in-vivo scanner to detect the level of marbling in cattle. “This is a world first,” Yoshito Nakashima, Chief Senior Researcher at the institute said. According to Mr Nakashima, it only takes about 10 seconds for the scanner to determine the level of fat inside the cattle. It can only check an area about three centimeters deep from the skin, but observing the cattle’s trapezius muscle is usually enough to provide the relevant assessment, he said.
|VPF Group to start further processing plant in November|
[25 May 2015] Thailand's VPF Group, based in Chiang Mai, hopes to put its first further processing plant into operation in November, Marketing and Sales Director Vanichaya Jeeraprapapong told Asian Agribiz. “The plant will has a production capacity of 30 tonnes per month initially and can be expanded if required,” she said. At present, the company slaughters around 600-700 pigs per day at its existing primary processing facility which also involves cutting, special cutting, portioning, cold storage and packing. The company is embarking on retail and the restaurant business, with two retail shops and a restaurant.
|Robina Farms inaugurates poultry biogas facility|
[25 May 2015] Robina Farms, one of the country’s biggest poultry and livestock producers, inaugurated on Friday its poultry biogas facility, the first of its kind in the country. The facility, located in the company’s farm complex in Naic, Cavite, powers the operation of the commercial layer farm. The facility was initially conceptualised to address waste disposal concerns, Francisco Castillo of Robina Farms told Asian Agribiz at the inauguration, but an added benefit is the savings on energy. Mr Castillo said that based on their computation, the company can save more than USD 11,000 per month on electricity costs while the facility is running at 16 hours a day and this could go up to more than USD 15,000 per month once they run 24 hours. The biogas facility, which includes two mixers, two digesters, a scrubber and a 250kVa generator set, cost around USD 540,000 to build and has been operating for more than a month.
|Dagsap records significant growth|
[25 May 2015] Dagsap Endura Eatore, a leading meat processors in Indonesia, last year recorded 39% growth. Director Ishana Mahisa told Asian Agribiz this was due to its good sales performance mainly in traditional markets with its nuggets, sausages and meatballs. “We plan to increase our market share in modern markets this year since our production capacity is ready to meet growing demand,” Mr Ishana said. Dagsap will also expand its distribution network to five regions namely Lampung in Sumatera, Semarang in Central Java, Madiun and Jember in East Java, and Purwakarta in West Java. “We want to be closer to our customers. We will set up cold storage facilities equipped with reefer trucks,” said Mr Ishana. To achieve better productivity and cost efficiency, Dagsap this year decided to automate the packaging lines of its plants with technology from Japan and Taiwan. “Labour and electricity costs are increasing. With automated packaging line, we need only one operator to control the process,” said Mr Ishana.
|Mavin Foods to tap export market by end 2016 |
[25 May 2015] Vietnam’s Mavin Foods Joint Venture Company hopes to export its processed products by Q4, 2016. The plant came into operation last September and has been producing more than 60 kinds of sausages, hams, pate, bacon and salami at the Dong Van Industrial Zone. “We hope to export sausages and cold cuts to Cambodia and the Philippines,” Nguyen Anh Tuan, Deputy General Director of Mavin told Asian Agribiz. Mavin Foods, a USD 15 million Vietnamese joint investment company with Australia, has the distinction of being Vietnam’s only farm-to-table food processor. A subsidiary of Austfeed Vietnam, which owns feedmills, veterinary pharmaceutical plant, GGP breeding swine farm and contract farms in Vietnam, Mavin uses meat from its own supply chain to produce high quality products. In the early stages, Mr Tuan said, exports will only make up 3-5% of its production capacity.
|Nafas Food Processing looks for suppliers in Pakistan|
[25 May 2015] Malaysia’s Nafas Food Processing and Marketing, a subsidiary of state-owned farmers’ organisation Nafas, confirmed that the group made a trip to Pakistan in April to source for alternative raw material, namely beef, for processing in Malaysia. To date it has no concrete plans to set up a processing plant in Pakistan to further process chicken meat to be exported back into the country, as reported in the media, but is open to the option. Nafas Food Processing and Marketing has a processing plant in Penang, Malaysia, capable of processing 1500 birds per hour. The company manufactures ready-to-cook products such as chicken satay, chicken nuggets and chicken pop.
|Odisha government launches Chicken Fresh outlet|
[25 May 2015] In a first of its kind initiative by a government in India, the Odisha state government has opened an outlet called Chicken Fresh in Bhubaneshwar to provide processed hygienic meat to consumers. Fisheries and Animal Resources Development Secretary Bishnupada Sethi said that the government will open more such outlets if there is good response from consumers. The Odisha government is already operating two fish outlets, Chilka Fresh, which has been well received by the consumers. The government is also exploring the possibility of a tie up with Venky's India Limited to provide ready to eat chicken products to consumers at an affordable price.
|Thai DOC output at risk with bans of GP & PS imports |
[22 May 2015] Thailand’s broiler industry is at risk of a sharp drop in production in 2016 following a ban of GP and PS imports from nine countries due to bird flu concerns. DOC production may fall to only 10 million chicks per week next year, from 32 million chicks/week at present if the bans continue to the end of this year, said Prajit Udnoon, Executive Vice President for poultry business of Charoen Pokphand Foods (CPF). Thailand banned imports from the US, Canada, UK, Netherland, Germany, Hungary, Italy, Japan and South Korea. The Department of Livestock Development is considering allowing imports from the UK and the Netherland who have confirmed they are free from the bird flu, said Watcharapong Suddee, head of the poultry section at the Bureau of Disease Control and Veterinary Services.
|Mavin Foods is ready for Phase 2|
[22 May 2015] Vietnam’s Mavin Foods Joint Venture Company has been producing more than 60 kinds of products of sausages, hams, pate, bacon and salami. It will launch Phase 2 of its expansion plan in Q1 2016. The plant currently consumes around 15-16 tonnes of meat per day and churns outs 10 tonnes of processed products per day. In Phase 2 production capacity will double. “We will get new machines from Germany,” Nguyen Anh Tuan, Deputy General Director of Mavin told Asian Agribiz. “We want to install fully-automated machines that will help us reduce human resource, and keep hygiene levels high. “We are hoping for an average revenue of USD 25 million per year and it is expected that profit will be recorded from next year onwards.”
|AVA allows boneless and bone-in beef cuts from US|
[22 May 2015] Singapore’s AVA has extended the range of US beef products for export to Singapore to include boneless and bone-in beef from cattle of all ages, processed beef products and offal. Previously it had only allowed boneless cuts from cattle less than 30 months old. Import of beef cuts must be sourced from establishments on the US Department of Agriculture’s list. Its Agricultural Marketing Service Beef Export Verification program for Singapore, stipulates the products should come from cattle born, raised, and slaughtered in the US. Beef and beef products derived from calves under 12 months of age imported from Canada for direct slaughter are also eligible, while products from cattle imported from Canada for direct slaughter can only be boneless cuts from animals less than 30 months of age.
|Proposal to sell new shares to Lay Hong’s Yap family rejected at EGM|
[22 May 2015] At an EGM, shareholders of Malaysian poultry company Lay Hong Bhd rejected a proposal to sell new shares to Managing Director Yap Hoong Chai, Executive Directors Yeap Weng Hong and Yap Chor How, and Non-Executive Director Yeap Fock Hoong. The Yap family, which owns 42.7% of the company, has been fighting a takeover bid by competitor QL Resources Bhd, which owns 38% of Lay Hong, and had previously opposed the company’s plan to place out new shares. “This is normal,” Yap Hoong Chai said, referring to the rejected proposal. He said the company’s relationship with QL Resources was ‘still friendly’. “We are still buying raw materials from QL Resources,” he said. Meanwhile, he added that the company expects to perform better this financial year.
|Vietnam wants to speed up feed checks|
[22 May 2015] Vietnamese feed importers are calling for a change to the system of inspection and quarantine of imported feed raw materials. Cao Duc Phat, Vietnam’s Minister of Agriculture and Rural Development, at a meeting with stakeholders, agreed that the time and cost involved in inspecting imported animal feed should be reduced. Tran Thanh Quang, Director General of Quang Minh Corporation, said plant quarantine and animal feed quality inspections affect animal feed importers. Storage fees at ports during are one of the biggest issues as quarantine procedures and quality inspection can take up to 10 days. Mr Phat has ordered the Animal Husbandry and Plant Protection Departments to hold talks with businesses later this month to find ways to minimise the time and costs. The proposals should be submitted to the minister before May 30, he said.
Trouw Nutrition's Modern poultry in the Philippines
Report by ISA Q TAN
[22 May 2015]
Ensuring feed intake crucial in production
No matter how good a feed formulation is, it will be for naught if the chicken is unable to take it in and absorb the nutrients, nutrition consultant Chris Cobacha told participants at a seminar organised by Trouw Nutrition yesterday in the Philippines titled ‘Feeding the Future: Modern Poultry Nutrition in the Philippines.’ He said management intervention is required to achieve maximum feed intake, and this includeS giving the birds a comfortable environment to minimise heat stress, especially in growing conditions like those in the country. He also discussed nutrition, noting the need to maximise the use of traditional feed ingredients while using non-traditional raw materials. He remarked that producers can no longer afford to waste resources so it is important to use various technologies to improve nutrient utilisation as well as implement more accurate feed formulation strategies.
Managing heat stress with betaine
Heat stress is a major concern in tropical countries like the Philippines because it leads to poor performance, which lowers farm income. There are several ways to address this, and one way is by adding betaine in feed. Dr Edita Zandee, Global Product Manager for Trouw Nutrition, explained that betaine is an osmolyte and methyl donor and is a highly effective anti-heat stress molecule. She presented trials which showed that adding betaine in the broiler diet had positive effects during heat stress, as it led to significant improvement in ADG, FCR and percentage of breast meat.
|VPF expects completion of pig farm expansion in 2016 |
[21 May 2015] VPF Group, an integrate pig farming and processing operator based in Thailand’s northern province of Chiang Mai, hopes to complete its pig farm expansion in 2016 when it will reach a full production capacity at 300,000-350,000 finishers per year, President Yutthapong Jeeraprapapong told Asian Agribiz during a visit to the farm site. “This is our second phase of expansion which started in 2014 and it is now 70% completed,” he said. At present, VPF Group raises 12,000 sows at two farm sites.
|Sarawak starts pork exports to Singapore|
[21 May 2015] Following more than a decade-long ban on pork from Malaysia, the frozen product is back on the shelves in Singapore. The Republic's Agri-Food & Veterinary Authority (AVA) recently approved the import of frozen pork from a slaughterhouse in Sarawak, East Malaysia. The Singapore Straits Times reported that the first consignment arrived in February and, as of April, about 9 tonnes of frozen pork products have been imported. An AVA spokesman said Sarawak's state animal and veterinary public health programs were assessed and inspections were conducted at the pig-farming area and slaughterhouse to ensure that bio-security control measures and hygiene standards meet AVA's requirements.
|Indonesia’s fishery, aquaculture record positive growth|
[21 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs reported that the country’s fishery and aquaculture sector recorded positive growth in Q1. Catch fish production increased by 4.69% to 1.4 million tonnes with a value of USD 2.2 billion in Q1. This increase was mainly due to the successful initiative on cracking down on illegal fishing. Aquaculture production, meanwhile, reached 2.92 million tonnes with a value of USD 1.6 billion in Q1. Commodities that recorded high growth in this sector were tilapia production of 149,000 tonnes and milkfish production of 137,000 tonnes.
Asian feedmills bet on technology
Preview of a special feedmill construction report in Asian Feed Magazine June/July 2015
[21 May 2015]
Poultry feed rules the roost
Across Asia feedmilling capacity expansion for poultry feed is growing at a faster pace compared to feed for other species. However, feed for other species is also on the rise. In China capacity expansion is seen for pig feed while in India dairy cattle and fish feeds are growing faster. Feed millers in Asia want improved and, in some cases superior, technology to achieve operational cost efficiency and better finished product quality and hygiene. The June/July issue of the Asian Feed Magazine, tracks the growth of feeedmilling companies in a comprehensive annual industry report.
More premix plants
Premix plants are becoming a more prominent feature in Asia. Their growth is spear headed by international companies such as Nuscience Group’s new facility in China and Trouw Nutrition’s new plant in Indonesia, while Evonik Industries in Singapore and CJ Bio Malaysia in Malaysia are keen to capture the sizable regional market for methionine.
Quest for operational cost efficiency
Feed millers in Asia want improved and, in some cases superior, technology to achieve operational cost efficiency and better finished product quality and hygiene. A quick survey among feed milling technology providers revealed that the Asian market is now looking for more advanced feed milling technology with higher capacity. Olaf Naehrig, Senior Area Manager of Germany-based Kahl, concurred. He said feed quality is becoming an important issue in the region because of the stiff competition between feed millers, and new technologies can help them reach that goal.
Bigger capacity to curb rising cost
Liu Guangdao, President Director of International Business Development, Muyang, told Asian Agribiz that the average capacity at the moment in Asia for poultry and aqua feed is 20 tonnes/hour and 5-10 tonnes/hour, respectively. However, due to rising production costs, millers are looking for bigger capacity. “I think feed millers in Asia will look at bigger machines and higher capacity as they are looking for lower operating costs and hygienic operations,” Jos van de Berg, Area Manager Asia, Van Aarsen, said.
Indonesia to record smaller growth
While feed milling technology providers talk about the impressive growth in Asia as a whole, some markets, however, are slowing down, and not registering the high number of investments seen two or three years ago. In Indonesia, for instance, issues in 2014 such as the oversupply of live birds and broiler DOC, and currency depreciation, persists. Chairman of the Indonesian Feed Millers Association, Sudirman FX, said several companies have decided to postpone their expansion plans. “Some six or seven feedmills have put on hold their growth plans due to the current situation,” he said. A Harwanto, Executive Vice President, Head of Feed Division of Japfa Comfeed Indonesia, told Asian Agribiz the company will not set up new feedmills this year but is refurbishing its old plants.
Disease and demand impact investments
India’s Telangana state recently witnessed a H5N1 avian influenza outbreak which could have caused a USD 24 million loss. This could affect investments in the feed industry. The Philippines, meanwhile, paints a different story. Players in the country told Asian Agribiz that big and medium-sized feedmills this year are expanding spurred by the growth in the poultry and pig sectors. This will continue to raise demand for feed.
|InVivo plans for new feedmill in Sulawesi|
[20 May 2015] Within the next five years, InVivo NSA plans to set up a new feedmill in Sulawesi, eastern Indonesia. Alain Symoens, Country Manager Indonesia, told Asian Agribiz that they are evaluating the location for the plant. The considerations are to be close to the port like many feed millers did in Makassar, South Sulawesi, or close to customers, or close to corn production centres. “Indonesia’s President Joko Widodo said in 2017 the country should not import corn. This means that the market would be complete feed or concentrate. If the market is concentrate where farmers have their own corn, we should build the plant between the port and the farmers,” said Mr Symoens. “But it is also important to know what the future would be in the region,” he added.
|Philippine hog, chicken production up in Q1|
[20 May 2015] Philippine hog production is up 3.8%, while chicken output rose by 5.3% in the first quarter of this year, a report by the Philippine Statistics Authority (PSA) showed. Hog production for the first three months was at 499,890 tonnes from 481,710 tonnes the previous year. Although average farm price for live pigs for the period slipped to USD 2.20 from USD 2.22 a year ago, the higher volume still led to a 2.9% increase in the sector’s production value to USD 1.1 billion in Q1. Meanwhile chicken meat production was also up by 5.3% to 414,180 tonnes from 393,410 tonnes the previous year. Similarly, despite a 3.4% drop in average farm prices, the higher chicken meat output pulled up industry production value by 1.7% to USD 782.18 million in Q1.
|Vietnam to buy more seafood from Indonesia|
[20 May 2015] Vietnam is looking to increase its fisheries imports from Indonesia. “We imported USD 8.90 million worth of seafood in the first four months of this year, almost half of the USD 17.32 million fisheries products that we imported from Indonesia in the same period in 2014,” Vietnam Embassy First Secretary Trung Truong Xuan said. According to the General Department of Vietnam Customs, last year Indonesia exported USD 43.98 million worth of seafood to Vietnam. Vietnam, could become a major market for Indonesia’s fisheries products. “Vietnam has been buying shrimp from Ecuador and India. Now they want our shrimp but we don’t have enough stock,” said Thomas Darmawan, Chairman of the Indonesian Fishery Product Processing and Marketing Association.
|Indonesia releases additional cattle import permits|
[20 May 2015] The Indonesian government recently issued additional import permits for 29,000 heads of slaughter cattle in a bid to ensure that sufficient heavy cattle would be available for the critical end of Ramadan and Lebaran period in mid-July. Beef Central reported that exporters have been active in April with over 60,000 feeder cattle delivered to Java and Sumatera. Many of these April deliveries will be ready for slaughter for the festival period. Partogi Pangaribuan, Director General of Foreign Trade, said during the period, “beef demand may reach 60,000 tonnes. Jakarta, Banten and West Java are regions with high demand.”
|Japan’s seafood imports from US escalate|
[20 May 2015] Japan’s seafood imports increased 0.3% year-on-year through March 2015, to about 2.11 million tonnes, according to trade data released by Japanese Customs. Products from the US are gaining market share, 13.7% of overall imports, a 1.4% increase. Compared to the previous year, seafood imports from the US increased by 280,000 tonnes, a 12% jump. A relative scarcity of whitefish in Japanese waters last year added to demand for US products.
|Singapore bans poultry from Nebraska|
[20 May 2015] Singapore’s Agri-food and Veterinarian Authority (AVA) has imposed a temporary restriction on the import of poultry and poultry products from Nebraska, USA due to the avian flu. However, heat-processed poultry products are not affected. Meanwhile, Singapore lifted restrictions due to H5N8 HPAI from the Netherlands. An AVA notice said the outbreaks in the Netherlands have been resolved and no further outbreak of the disease has been detected. Restrictions were imposed in 2013 and 2014. Restrictions remains for Barneveld, Gelderland and Tzummarum and Friesland where outbreaks of H7 LPAI in layer farms were seen and in Milheeze, Noord-Brabant, where the H5N2 LPAI were seen.
|Hypor supplies breeder pigs to Sri Lanka|
[19 May 2015] Pig genetics company Hypor has exported 32 breeder pigs to the National Livestock Development Board (NLDB) of Sri Lanka. Jacques Sips, General Manager, Asia of Hypor told Asian Agribiz that the animals were carefully selected in Canada in order to comply with the local breeding goals set by the NLDB. “The breeders will be housed at the farm of NLDB where they will contribute to an improved genetic profile of the swine population in Sri Lanka,” he said. The 32 breeder pigs exported to Sri Lanka in February this year include Large white, Landrace and Magnus Duroc breeds.
|GPMT, regions eye corn production boost|
[19 May 2015] The Indonesian Feed Millers Association (GPMT) and government leaders from corn-producing regions have expressed commitment to the Agriculture Ministry's food production goals. An MoU was signed by GPMT and 101 regents from corn-producing regencies across the country. The 101 regents, head regencies with a total area of 700,000ha of corn fields, while the GMPT represents 62 animal feed manufacturers, including Cargill Indonesia, Charoen Pokphand Indonesia and Japfa Comfeed Indonesia. “We are still importing 3 million tonnes of corn each year to fill the gap between supply and demand. That is why we are aiming to achieve self-sufficiency,” Agriculture Minister Amran Sulaiman said.
|Jollibee profit up 10.2% in Q1|
[19 May 2015] Jollibee Foods Corp (JFC) of the Philippines has reported a 10.2% rise in income in the first quarter of this year, backed by a 9.5% growth in system wide sales. The company said foreign sales grew 8.1%. According to CFO Ysmael Baysa, “overall business in the Philippines remained strong, with improving profitability in China and robust growth in Vietnam and in some parts of the Middle East.” As of the first quarter this year, JFC has a network of 2951 stores, 2335 of which are in the Philippines and 616 overseas. Mr Baysa said the company is “looking forward to improving raw material price trends and higher growth rate of its store network in the months ahead.”
|Indonesia’s fisheries exports down 15% in Q1|
[19 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs reported that its exports of fisheries dropped by 15% to USD 970 million in the first quarter of this year. Saut Hutagalung, Director General of Fish Processing and Marketing, said the total fisheries export volume declined to 246,000 tonnes during the period from 263,624 tonnes during the same period in 2014. Value also declined to USD 970 million from USD 1.06 billion. Last year, Indonesia’s total fisheries exports reached USD 4.63 billion, below the government’s target of USD 5.65 billion.
|Newcastle Disease behind bird deaths in Hyderabad|
[19 May 2015] The Animal Husbandry Department in Telangana state in India has found that Newcastle Disease is behind the recent deaths of over 15,000 poultry in Hyderabad. Y Thirupathaiah, Additional Director of the Animal Husbandry Department said that tests on samples are still underway and avian influenza can be ruled out only after confirmation by Bhopal-based High Security Animal Disease Laboratory (HSADL). G Ranjith Reddy, President of Telangana Poultry Breeders' Association commented that it would be helpful for the industry if authorities declare the cause soon as the delay could adversely affect the poultry industry.
|Vietnam must increase value-addition, branding of food products|
[19 May 2015] Vietnamese firms should supply quality products and increase export of farm produce. Deputy Minister of Industry and Trade Do Thang Hai said the agricultural sector not only met local needs and exported as well. Agricultural exports had increased to more than USD 30 billion last year. “However, limited processing capacity, a lack of brands and exports via intermediaries have resulted in low earnings,” he said. Pham Minh Duc, Senior Economist at the World Bank in Vietnam said local firms could expand through the Asean Economic Community, the Vietnam-EU free trade agreement, and the Trans-Pacific Partnership. He urged companies to increase value-addition and improve quality management to meet food safety demands.
|Thai feed industry expects growth|
[18 May 2015] The Thai feed industry is forecast to continue to grow this year thanks to the growing livestock industry, according to Pornsilp Patcharintanakul, President, Thai Feed Mills Association. Feed consumption demand this year is expected to grow by 7% to total 18 million tonnes, Mr Pornsilp said. Continued growth in the livestock industry spurred by the growth in chicken exports, is said to be driving the expansion, he added. Thailand is expected to export 600,000 tonnes of chicken meat worth around USD 2.48 billion this year, up from 579,466 tonnes valued at USD 2.36 billion, he said.
|New H7N9 cases in China|
[18 May 2015] China last week notified the World Health Organization (WHO) of six more H7N9 avian influenza infections, two of them fatal. The victims’ ages range from 3-67. Four of them had been exposed to poultry environments. Two were from Zhejiang while the rest were from Anhui, Fujian, Jiangsu, and Shanghai. Compared with the past 2 months, the number of H7N9 infections is decreasing in China, the WHO said.
|Government ensures adequate supplies ahead of Ramadan|
[18 May 2015] Indonesia’s Coordinating Economic Minister Sofyan Djalil has said the supply of staple foods is adequate ahead of the fasting month of Ramadan and Idul Fitri celebration, lessening worries on inflationary pressures that usually occur during the festivities. The Central Statistics Agency (BPS) said that currently the price of staple foods have begun to decline. However, anticipative measures, including preparing adequate food supplies, still needed to be carried out. An official of BPS said the fluctuating price of beef, sugar, red chilies, and fuel, have the potential to contribute to inflation in May. However, the supplies of several food commodities, such as cooking oil, shallots, milk and wheat are still adequate.
Asian Agribiz regional dairy update
[18 May 2015]
Amul eyes USD 3.8 billion turnover in 2015-16
Indian dairy major Amul is expecting an 18% increase in turnover of USD 3.8 billion in 2015-16 on the back of rising consumption. Gujarat Co-operative Milk Marketing Federation (GCMMF) Managing Director R S Sodhi said that the company expects milk procurement to increase by 13-14% while prices of products are likely to increase 4-5% compared to 2014-15. GCMMF that sells dairy products under the Amul brand posted a revenue of 3.2 billion in the 2014-15 financial year. According to Mr Sodhi, the company is witnessing higher consumption of dairy products with more availability of branded and packaged products.
China’s infant milk formula market to taper off in next 5 years
After more than a decade of rapid expansion, Rabobank expects growth rates in China’s infant milk formula market to taper off between 2015 and 2020. In its latest report, Rabobank said China’s infant milk formula market is expected to see growth but at a much slower rate. Sandy Chen, Senior Industry Analyst said the market grew at a 16% CAGR by volume between 2000 and 2013. International players have captured the largest share of this growth. “We estimate that China’s infant milk formula volume growth will halve by 2020, growing by a CAGR of 7-8%, driven largely by income growth and improving distribution networks into lower-tier cities and rural areas,” said Ms Chen. Also, a number of Chinese dairy companies have invested in new onshore and offshore capacity expansion projects which will be coming onstream by 2016.
Kwality Ltd plans USD 16 million dairy unit
Kwality Ltd, a leading dairy product manufacturer in North India has entered into a memorandum of understanding with the government of Jharkhand to set up a dairy unit at Ranchi with an investment of around USD 16 million. The company said in a filing before the Bombay Stock Exchange (BSE) that it would also invest in skills upgrading and training of youth. Kwality’s Dairy Best brand is considered to be one of the fastest growing private sector dairy companies in northern India and has various milk processing plants with a capacity to handle around 3 million litres of milk per day.
Amul cautions government about dumping of dairy products
The Gujarat Cooperative Milk Marketing Federation (GCMMF) in India, which markets its products under the Amul brand has requested the Indian government not to allow other countries to dump their dairy products in India under the Free Trade Agreement (FTA). Expressing his concern, GCMMF Managing Director R S Sodhi said that policy makers should ensure that dairy products are completely kept out especially since the European Union, New Zealand and Australia are under pressure to sell their surplus products as they have been hit by a major meltdown in global dairy products market recently.
|Thai GP imports in a balance|
[15 May 2015] Kukrit Areepakorn, Manager of the Thai Broiler Processing Exporters Association, told Asian Agribiz that due to farm expansion, Thailand imported around 1 million GP and PS last year. However, due to the ban on GP from the US, this year imports will be lower and the lower figure will see a decline in production in the second half of the year. “GP imports will definitely decline. But the quantum of reduction is yet to be assessed,” he said.
|Cargill’s corn milling plant due in October|
[15 May 2015] Cargill India’s new corn milling plant that is coming up in Karnataka state in India is set to become operational this October, said Cargill India Pvt Ltd Chairman Siraj A Chaudhry. The USD 95 million plant with an annual capacity of 300,000 tonnes will produce modified starch for the processed food and pharma industries. The company is also setting up a cattle feed plant at Bathinda in Punjab state with an investment of about USD 16 million, due for operations in March 2016. Cargill India is also looking to acquire popular brands to extend its reach in India.
|Betagro's Cambodia feedmill to start operations|
[15 May 2015] Betagro Group of Thailand will start operations at its feedmill in Cambodia later this month. Narongchai Srisantisaeng, Executive Vice President and Chief Operating Officer of the group visited the plant to check on the readiness of the facility, construction of which commenced in June 2013. The feedmill, located in the Phnom Penh Special Economic Zone, has an initial production capacity of 6000 tonnes per month of pig and poultry feeds for local customers in the provinces of Phnom Penh, Battambang, Kampong Chhnang and others.
|Indonesia initiates fish feed projects|
[15 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has said that it will realise its independent fish feed project this September. Slamet Soebjakto, Director General of Aquaculture, said the ministry has allocated around USD 12 million for the project. “At the moment we are identifying locations to build small-scale feedmills in fish production centres in Indonesia. We are encouraging fish farmers to form groups that will manage the plants and will help with training,” explained Mr Slamet. He said the ministry has tasked Perindo, a state-owned company involved in fishery, to initiate a large-scale feedmill which will be set up in Surabaya, East Java.
|Australia expands beef market share in Japan|
[15 May 2015] Australia is set to strengthen its dominance over the US as Japan’s biggest beef supplier as a trade deal drives shipments toward a four-year high. Imports of Australian chilled beef rose 8% last quarter and may reach the highest since 2011 while shipments from the US has dropped to the lowest in three years, according to Tatsuo Iwama, Executive Director of Japan Meat Traders Association, as quoted by Bloomberg. The rising inflow of Australian meat to Japan’s USD 2.6 billion beef market is the result of decreasing tariffs triggered by a bilateral agreement that took effect in January, he said. “Lower duties for Australian products are attractive to Japanese meat importers and beneficial to local consumers,” Mr Iwama said.
|Currency depreciation impacts Thai chicken exports |
[14 May 2015] Thailand’s chicken exporters are facing a major challenge due to low export prices, Kukrit Areepakorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. He attributed this to currency depreciation adding that the decline amounted to about 10% over last year to around USD 2900 to USD 3000 per tonne. For major buyer Japan, the Yen has declined markedly while Russia, has taken a much lower volume than earlier expected due to the weakening ruble, Mr Kukrit explained. Russia has imported only around 100 tonnes so far this year while Thailand expected orders of around 8000-10,000 tonnes. That expected volume is not likely to materialise this year, Mr Kukrit said.
|Soon Soon to reproduce lupin meal next month|
[14 May 2015] Malaysia’s Soon Soon Oilmill’s, hopes to start producing lupin meal again next month. It was first launched two years ago but production ceased as it was not able to find a consistent supplier. “We have found other sources and are doing contract growing in Australia,” Dr Neoh Soon Bin, Managing Director of the Soon Soon Group, told Asian Agribiz. Late last year the company launched a processing facility in Penang, which manufactures high efficient protein meals such as Soon Soon High Efficiency HiFat Canola Meal and Soon Soon High Efficiency HiPro 50 SBM, which has a minimum protein content of 49%. It’s Soon Soon Dehulled Pre-emulsified Full Fat Lupin Meal has an amino acid profile similar to soybean meal. “This product can be used up to 15% in feed rations. It contains no trypsin inhibitor and is low in phytate and antigenic protein,” he said.
|Asia may face GP shortage if US bird flu persists|
[14 May 2015] The H5N2 highly pathogenic avian influenza outbreaks in the US could affect poultry production in Asia if the situation prolongs. “If (the outbreak) continues for a long time, say until the end of the year, it could affect production in Asia at the end of next year due to shortage of imported GP,” Gordon Butland, Director at G&S AgriConsulting Co, told Asian Agribiz. Imports will continue from some European countries and Australia but the capacity will not be enough to fulfil demand. “We are hoping that, once summer sets in, the problem (of bird flu outbreaks due to migratory birds) will be resolved,” Mr Butland said.
|Indonesia’s corn imports predicted to escalate|
[14 May 2015] Until May Indonesia has imported around 1.2 million tonnes of corn for animal feed. This figure is almost the same as the same period of last year. Sudirman FX, Chairman of the Indonesian Feed Millers Association, predicted that corn imports by mid-year may increase by 50% since local corn harvests in several provinces has ended. “Corn harvests in several regions in Sumatera and Java have ended. Now only two regions, namely West Nusa Tenggara and Makassar in South Sulawesi, will soon enter the harvesting period,” said Mr Sudirman. “West Nusa Tenggara may produce around 300,000 tonnes while Makassar around 3 million tonnes, but only 25% of that we can be accessed.”
|Cargill plans animal feed plant in Uttar Pradesh|
[14 May 2015] Cargill India, which started selling its animal and dairy feed products in Uttar Pradesh state in India last year is mulling setting up an animal feed unit in the state. Cargill India Chairman Siraj A Chaudhry said that the company has surpassed its target by almost 40% in Uttar Pradesh. The company is eyeing 600 tonnes in monthly sales of animal feed in this state and is expected to set up a unit after building capacity. According to him, since Uttar Pradesh is predominantly agrarian there is large potential for business in the dairy and poultry sectors.
|Association protests government decision on beef imports|
[14 May 2015] Indonesia’s decision to reopen the import of secondary meat and offal to stabilise the price of beef during Ramadhan and only allow PT Berdikari to import has invited protests from business players. PT Berdikari is a state-owned company involved in cattle breeding, feedlot and beef processing and retailing. Thomas Sembiring, Executive Director of the Indonesian Meat Importers Association, said: “We have been in this industry for more than 30 years and have developed our network and distribution but, are not allowed to import. This could lead to a monopoly.” Mr Thomas is also concerned that PT Berdikari will resell the meat to importers, and this will raise the price at consumer level. According to the Ministry of Trade data and survey results by universities, beef demand in the country this year is predicted to reach more than 600,000 tonnes.
|Sneha Farms to commission new processing plant |
[13 May 2015] India’s Sneha Farms based in Hyderabad is expected to commission its new chicken processing plant in Telangana state by end this year. D Varun Reddy, Director, Sneha Farms told Asian Agribiz that the 6000 birds/hour processing plant will be India’s largest chicken processing plant and is expandable to 12,000 birds/hour. “We have invested USD 15.5 million for this project, which also includes a 2000 tonnes cold storage facility,” Mr Reddy said. Equipment for the new plant is being supplied by Marel and Sneha Farms is expected to leverage its presence in Telangana and Andhra Pradesh with the commissioning of this plant.
|Higher tariff on pork jowl sought|
[13 May 2015] The Philippine Department of Agriculture (DA) is calling for higher tariffs on imported frozen pork jowl or neck cuts, saying these are premium meat cuts. DA Undersecretary Jose Reaño said pork jowl and neck cuts are currently lumped with offal and are only charged a 5% duty. Should the Tariff Commission approve the proposal, pork jowl and neck cuts will be included under the minimum access volume scheme and will be levied a 35% tariff. Reacting to concerns that higher tariffs would bring up prices, Mr Reaño countered that local producers can easily increase production to meet any increase in demand.
|Indonesia aims to produce 700,000t shrimp|
[13 May 2015] Indonesia’s Ministry of Fisheries and Marine Affairs has said that it aims to increase national shrimp production this year by 700,000 tonnes or a 24.2% increase over last year. Of the figure, the government targets to produce 500,000 tonnes of vannamei and 200,000 tonnes of black tiger prawns. To achieve the target, the government will reactivate idle shrimp ponds in Java, Kalimantan and Aceh. Slamet Soebjakto, Director General of Aquaculture, said: “Shrimp has been an important commodity for Indonesia. Around 70% of the production is exported to the US, Europe, Japan and China. We focus heavily on quality and are committed on ‘zero antibiotics’ in farming.”
Feed ingredient profiles and formulation seminar in Kuala Lumpur, Malaysia
Report by RACHAEL PHILIP
[13 May 2015]
Things to consider before buying alternative feed material
There are limited sources of good quality soybean meal (sbm) so producers turn to alternative feed ingredients. According to Dr Budi Tangendjaja, Technical Consultant, US Grain Council, feed producers must consider certain factors before they purchase these. “They must look at the stability and the variability of the product and consider the consistency of the supplier, the product’s anti-nutritional factors as well as moulds and mycotoxins,” he said. Using DDGS as an example, he urged feedmillers to consider the price of the product, its nutritional content as well as the digestibility and palatability of the product. “Producers must also find out about the processing operation and the equipment at the feedmill. This will contribute to the quality of the product.”
Soon Soon uses special processing method
Malaysia’s Soon Soon Oilmills Sdn Bhd’s new processing facility, launched late last year in Prai Industrial Estate, Penang, manufactures high efficient protein meals. The plant, capable of processing 5000 tonnes of seed per month, is expected to reach full capacity within a month or two, Neoh Soon Bin, Managing Director for Soon Soon Oilmill’s parent company, Soon Soon Group, told Asian Agribiz. The mill’s star products include High Efficiency Dehulled Full Fat sbm and, High Efficiency HiFat Canola Meal. “Our sbm is well received. This is because we use a special processing method. We are now applying this processing method to other ingredients such as peas as lupin to get consistent high quality,” said Dr Neoh.
Canola meal a good substitute for sbm
Canola meal is highly synergistic with sbm making the ingredient a good substitute. Malaysia’s Soon Soon Oilmills Sdn Bhd’s, one of the two crushers in the country, said its canola meal is produced from double zero canola seed. This means it is low in erucic acid and glucosiolates. Canola meal is different from other protein ingredients because it is a non-solvent extract product high in oil and with moderate protein. It is also high in methionine and threonine leading to cost savings in formulation. “Canola meal can be used at an inclusion rate of 5-15% for starters and growers, and at 10-15% for layers. It can be used at 6% for starter pig and 12% for grower and finisher pigs,” said Dr Neoh.
|San Miguel Pure Foods income up 7% |
[12 May 2015] San Miguel Pure Foods Company Inc (SMPFCI) posted strong first quarter results, with consolidated revenues reaching USD 563.3 million, up 4% year on year, and its net income topping USD 20.4 million, a 7% uptick from a year ago. The company attributed the strong performance to higher volumes and better selling prices and the strong performance of its core brands. Its Agro-Industrial businesses, riding on the back of its feeds business, posted a combined revenue growth of 4%. Although pork prices remained stable during the review period, the glut in the poultry market led to a slowdown for the poultry and meats business.
|Indonesia to increase aquaculture production |
[12 May 2015] Indonesia is aiming to up its aquaculture production in 2015 from 14.5 million tonnes to some 17.91 million tonnes, reported Antara News. Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries and Marine Affairs, said that the country plans to boost its aquaculture production by developing the potential of fresh, brackish and sea water farming. “With hard work and cooperation with neighbouring countries, we are optimistic the target can be achieved,” Mr Slamet said.
|PPA urges zero rating for poultry processing|
[12 May 2015] Pakistan Poultry Association (PPA) has urged the Federal Commerce Ministry for restoration of zero rating for the poultry industry to promote poultry processing. PPA Central Chairman Ahmed Wasim said that withdrawal of zero rating has increased the cost of processed chicken and value added poultry products. “Zero rating will not just promote poultry processing but will also bring stability in the prices and create more products for export,” he said. Pointing out that zero rating has helped the industries worldwide, Mr Ahmed Wasim said that it will also provide a competitive environment that will boost the quality.
|Modern International to open 50 new 7-Eleven outlets in Jakarta|
[12 May 2015] Although Indonesia’s economic growth is slowing down, Modern International, the operator of 7-Eleven in Indonesia, plans to open 50 new outlets this year. Tina Novita, Investor Relation Manager, said the new outlets will be in and around Jakarta. One outlet will cost the company around USD 152,000-228,000. By the end of December 2014, the company had 187 outlets in Jakarta.
|Pakistan withdraws increase in quarantine rates|
[12 May 2015] After persistent demand from meat exporters particularly from the poultry sector, the Pakistan government has withdrawn the raise in quarantine rates. The Ministry of National Food and Research increased quarantine rates on April 24, which according to Pakistan Poultry Association (PPA) would deal a blow to the industry. Dr Ehsan ul Haq, Director, Animal Quarantine Department in a statement said that the government has withdrawn the increase as international competition was too intense in some segments and the fee hike could hit sales.
|Chicken oversupply to continue|
[11 May 2015] The current rise in the farm price of chicken in the Philippines does not mean there is no longer an oversupply, Elias Jose Inciong, President of the United Broiler Raisers Association told Asian Agribiz. He noted that inventory of frozen chicken remains high at about 21000 tonnes. Normally farm prices go up during the summer season, when hot growing conditions extend the growing cycle or lead to smaller birds. However because of the high inventory of frozen chicken, prices have not picked up as they should have. Industry observers also point out that based on the number of broiler breeders currently in place, the potential production capacity is high and the oversupply situation is expected to extend throughout the rest of the year.
|CP Foods to double shrimp output from Vietnam|
[11 May 2015] Charoen Pokphand Foods (CP Foods) plans to double its shrimp production from Vietnam in 2015. Last year CPF produced some 6000 tonnes of finished products from its two plants in Vietnam. In 2015, the target is to produce 10,000-12,000 tonnes, reported Undercurrent News. CP Foods set up the second factory in Vietnam early last year, in Hue, through its CP Pokphand (CPP) subsidiary. Its first plant is in Dong Nai, while the company’s pangasius factory is in Ben Tre. The big drop in production seen in Thailand due to early mortality syndrome to around 200,000 tonnes in 2014, from a peak of 650,000 tonnes, is part of the rationale for the expansion in Vietnam. Although selling to the European market was part of the reason for the plants in Vietnam, demand is much stronger from Asia. “We are selling more to China and South Korea,” said a CP Foods executive.
|China refuses to drop nationwide ban on US poultry|
[11 May 2015] China has refused to drop its nationwide ban on US poultry imports due to Avian influenza. US Secretary of Agriculture Tom Vilsack asked Chinese Minister of Agriculture Han Changfu to limit its ban to US regions that have actually been hit by HPAI. Mr Han said Chinese law required a nationwide ban, according to media reports, although in the past China has imposed regional bans. Three Midwestern US states declared emergencies after an outbreak of H5N2 on turkey and layer farms, but so far it has not affected broiler production in the Eastern US. The Chinese poultry industry is suffering from overproduction and low prices, and China banned all US imports last December. In his conversation with Vilsack, Mr Han also brought up the US ban on imports of Chinese processed poultry, a sore point with Chinese trade negotiators who believe the ban is unjustified.
AI Update from China
[11 May 2015]
Flu season winding down, but new infections persists
Although the winter bird flu season is winding down in China, Central China's Hubei Province recently confirmed its first human infection with the H7N9 strain, according to the provincial health commission. The commission said a 50-year-old poultry trader and butcher from Luotian County developed symptoms after contact with infected live chickens. The victim was reported in stable condition and the county has closed live markets, culled infected birds and boosted patient monitoring at hospitals. The World Health Organisation reports that case numbers have declined in the last two months, but the H7N9 strain has infected more than 640 people and caused more than 220 deaths in China since it broke out in late 2013.
Few stalls resume live chicken sales in Shanghai
Shanghai’s winter ban on selling live chicken in wet markets officially ended on April 30, but a survey of several wet markets showed that few dealers have returned to the business. Dealers told Asian Agribiz that permit and inspection requirements are now extremely tight, and complained that they lost money during the winter months, when they were forced to stop selling live birds. Shanghai banned live chicken sales from January 1 to April 30, one of a number of bans on live chicken sales in cities and provinces around China. Some cities want to enact permanent bans and are encouraging development of slaughter and cold chain logistics capacities that would make live sales unnecessary, but aficionados of live chicken say the taste of chilled chicken is not the same.
Seahisun Chairman: Poultry slump temporary setback
The slump in the poultry industry due to avian influenza and safety issues is only temporary, according to Seahisun Group Chairman Jin Jun. “In the last 12 years, this is not the first time the market has faced problems,” Mr Jin said in an interview with Asian Agribiz. Some producers may be hurt, but the best producers will survive and improve their operations, Mr Jin said. Safety has become a major issue for consumers, and the industry needs to face up to the issue, improve safety and develop innovative products for consumers. “From the long view, we’ll all be better off because of this,” said Mr Jin.
China vaccine maker to use Finnish technology
China’s largest poultry vaccine manufacturer will use a novel gene transfer technology developed in Finland to research and develop a new vaccine for HPAI. QYH Biotech Company will also use FIT Biotech’s novel vector technology to develop other animal DNA vaccines, according to a joint press release by both companies. QYH is based in Beijing and has four plants in China. FIT Biotech, based in Tampere, Finland, developed a patented gene transportation unit (GTU) focusing on gene therapy and DNA vaccines.
China poultry company’s revenues fall
DaChan (Asia) Limited’s 1Q 2015 revenues fell 13.5% from last year following outbreaks of bird flu and food safety incidents that affected consumer demand, but says it has taken the opportunity to streamline operations and prepare for a rebound. In a filing with the Hong Kong Stock Exchange, the company said its first-quarter turnover in 2015 was more than USD 375 million, down from last year’s USD 430 million. The company said cheap pork prices also affected demand for poultry meat while market prices for DOC increased, squeezing margins. The company said it pruned less reliable contract farmers and took other measures to improve productivity, enabling it to maintain a 5.2% gross profit margin, down only 0.9% from last year.
|Medan Juara expands breeder capacity |
[08 May 2015] Malaysia’s Medan Juara Sdn Bhd, a subsidiary of Pertubuhan Peladang Negeri Johor (PPJN), or Johor State Farmers’ Association, plans to increase its breeder capacity by building three units of closed houses. “Currently the company delivers 4 million DOC per year. With the expansion it hopes to produce 500,000 DOC per month, Mohd Yazid Basirun, Manager, told Asian Agribiz. “Construction works will begin in June in Kota Tinggi, Johor, and the houses are expected to be ready in December this year.” Medan Juara produces DOC for PPJN members. The company also farms 300,000 broilers per month. With the upstream expansion, Medan Juara hopes to farm 450,000 broilers per month. PPJN, meanwhile, also operates a poultry processing plant. The facility, located in Machap, Air Hitam, Johor, is capable of processing 10,000-12,000 birds per day.
|Corruption crackdown affecting China’s grey channel|
[08 May 2015] China’s crackdown on corruption is severely affecting Grey channel meat import volumes, according to traders at the SIAL China 2015 exhibition in Shanghai. International traders from several nations told Asian Agribiz traffic was down for countries and companies that do not have legitimate access to the China market. “The first thing prospective Chinese buyers ask is, are you PRC-approved? If not, they turn away,” one trader said. However, other traders said some beef was still moving through the channel, although at higher prices and with higher risks. China imported more than 800,000 tonnes of Indian beef last year, all of it through the Grey channel. The Chinese government has been cracking down on corruption since 2013, but there was little impact on the Grey channel until early this year.
|Elders to replicate Indonesian supply chain model in Vietnam|
[08 May 2015] Leading Australian agribusiness company Elders confirmed recently that it is moving ahead with plans to establish a feedlot in Vietnam. Elders Chief Executive Officer Mark Allison said it may copy its Indonesian integrated cattle feeding and beef marketing operations for its business in Vietnam. For the Indonesian market, the company does live exports into its own feedlot. It uses its own abattoir and brands its products through top end markets. In Vietnam Elders has placed two additional people. “We are scoping our feedlot development there now,” Mr Allison was quoted as saying in Beef Central.
|Avanti Feeds achieves four star BAP status|
[08 May 2015] India’s Avanti Feeds Limited has become India’s third group to achieve four star Best Aquaculture Practices (BAP) status for shrimp from the Global Aquaculture Alliance. The status denotes that the processing plants, farms, hatcheries and feed mills are BAP certified. “Avanti Feeds has always promoted sustainability and reliability in aquaculture, and, as part of this effort, had its processing plant and feed mills BAP certified,” said the company in a statement. The company achieved this status on confirmation that it sources shrimp from BAP certified farms and BAP certified hatcheries.
|Vietnam authorities seize poultry smuggled from China|
[08 May 2015] Mobile teams, in co-operation with police and market watch inspectors from northern Bac Giang province, have seized 1000 live broilers smuggled from China. The birds were found in Yen Dung District recently when a truck carrying live poultry for examination was stopped. The driver, Luong Dinh Quang, had no documents saying where they came from and was fined USD 92. Soon after this incident the teams caught three more poultry smugglers from China and fined them a total of USD 276. Nearly 3000 birds were also culled.
|Indian food processing sector growing at 8.4%|
[08 May 2015] India’s Union Minister for Food Processing Industries, Harsimrat Kaur Badal declared that the food processing sector in India is one of the fastest growing sectors of the economy with the growth rate of 8.4%. “India has the potential to become a global leader in food processing sector and can close the gap between farmers and consumers,” she said. The sector being one of the major employment intensive segments, the government has permitted 100% foreign direct investment to tap the full potential. The ministry recently sanctioned 17 Mega Food Parks to attract foreign investment which includes 30 new cold chain projects.
|Malaysia’s EggTech launches new products|
[07 May 2015] EggTech Manufacturing Sdn Bhd, Malaysia’s first producer of liquid eggs, is diversifying its portfolio. Since August last year the company has been producing hard-boiled eggs as well as washed and sanitised eggs. “In 2013 we found the liquid egg market was too saturated. We came up with solutions. Now we want to concentrate on half-boiled eggs,” Wong Wing Hong, Director, told Asian Agribiz. Last year it installed a new machine that processes 8000 eggs per hour. Currently it works alternate days producing 8000 hard-boiled eggs per day. “We get about 5% rejects due to cracks. These will be used for our new spin off product, which is egg spread. We learnt that egg sandwiches is a big market in Malaysia,” said Mr Wong. Washed and sanitised eggs, meanwhile, is mostly for the hotel industry. “Washed eggs is a halal requirement. We produce about 5000-6000 of these products per week. This is about 50% of our capacity.”
|Weak rupiah, crowded market hit Japfa's Q1 performance|
[07 May 2015] Japfa Comfeed Indonesia has reported a loss of around USD 16.6 million in the first quarter of this year, on the back of the weaker rupiah and stiff competition. The loss came in stark contrast to the profit of around USD 5.3 million that the company recorded in the same quarter of last year, according to Indonesia Stock Exchange. Although revenue climbed by 5% to around USD 457 million, the cost of goods sold rose by 7% to around USD 409 million through the quarter. The company also suffered a USD 13.6 million loss from foreign exchange rates this year. “The market challenges in Indonesia have persisted longer than expected,” Tan Yong Nang, Chief Executive of Singapore-based parent company Japfa, said in a statement. “We continue to reduce capital expenditure and scale back on DOC production in Indonesia, and focus on improving operational efficiency and profitability.”
|Rabobank opens new office in Singapore|
[07 May 2015] Rabobank opened its new Singapore office at South Beach Tower yesterday to support its expanding presence in the region. The office serves as a regional product and service hub for Singapore, Malaysia, Philippines, Thailand and Vietnam. Marcel van Doremaele, Chief Executive Officer of Rabobank Singapore & Representative Markets, said the new office is an important milestone as it enters a growth phase on the back of increased investment in food and agriculture in Southeast Asia, and with commodity trading and logistics activity in Singapore continuing to grow. “From Singapore, we are well placed to serve the trading, and food and agri community locally, in the region and globally. With the changing needs of our clients, Rabobank remains in a strong position to finance the whole supply chain, linking origins to destinations across the world,” he said.
|Prima Meat Packers expects record profit |
[07 May 2015] Japan’s Prima Meat Packers is expected to post a record pre-tax profit of around USD 83 million for fiscal year ending March 2016, marking a 30% jump from results a year ago. Earnings will improve at subsidiaries that make pre-packaged dishes for convenience stores, and the ham and sausage businesses will expand. The weak yen will likely push up prices of raw materials, but elevated sales will make up for the increase. Fiscal 2014 saw the company hit with ballooning labour costs associated with a new manufacturing facility for convenience store products. But it expects production efficiency to improve in the current fiscal year, where sales are seen up 4% at around USD 2.92 billion.
|Tyson Foods plans to cut antibiotics use |
[07 May 2015] Tyson Foods Inc of the US plans to eliminate the use of human antibiotics in its chicken flocks by September 2017. The meat producer said it is also working to curtail on-farm drug use at its other protein businesses, which include pork and beef. The move marks the latest push by the livestock and food industries to reduce the use of antibiotics crucial to human health in meat production. Tyson's move will help the company meet a deadline recently outlined by McDonald’s Corp for its US restaurants to gradually stop buying chicken raised with human antibiotics over the next two years. Tyson is a leading chicken supplier to McDonald’s. Tyson said it has already stopped using antibiotics in its 35 broiler hatcheries and has cut human antibiotics used to treat its broilers by more than 80% since 2011.
|Global feed additives market to reach USD 30b |
[07 May 2015] The global feed additives market is expected to cross USD 30 billion by 2020 growing at the CAGR of 4.7% during the forecast period 2014-2020, revealed Mordor Intelligence. The market was worth around USD 25 billion in 2013. Amino acids, antibiotics, acidifiers and vitamins account for 45% of the global market. Feed antioxidant is listed as a high growth segment due to efforts of manufacturers to prevent feed spoilage and wastage. The market for this product is expected to grow gradually as more compound feed manufacturers are moving towards value addition to stay ahead of competition. The poultry segment accounted for around 35% of the market share in 2013. The demand for feed additives from the aqua feed industry is expected to be highest during the forecast period as a result of increase in adoption of aquaculture activities in Southeast Asian countries and demand for fish and fish products.
|Thai chicken exports face lower prices|
[06 May 2015] Thai chicken exports is facing a major challenge with a reduction in export price, Kukrit Areepakorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. He added that currency depreciation has led to a price decline of around 10% from last year to around USD 2900-3000 per tonne. For major buyer Japan, the Yen declined markedly while Russia, the new potential market for Thai chicken exports, saw less volume than earlier expected due to weakening of the ruble and economic difficulties, Mr Kukrit explained. “It appears that buyers bargain for lower prices,” he said. But the losses can be compensated by growing export volume especially to Japan. Thailand targets to exports 600,000 tonnes of chicken in 2015, up from around 579,000 tonnes in 2014, data from the association showed.
|Indonesia’s feed consumption predicted to reach 16.8mt|
[06 May 2015] Indonesian Feed Millers Association has predicted that this year’s feed consumption will reach 16.8 million tonnes from 15 million tonnes last year. According to Chairman Sudirman FX, the consumption increase will see the need for about 6.8 million tonnes of corn. “Last year we imported around 3.1 million tonnes. If the government fails to increase local corn production, we may import 4-5 million tonnes of corn,” said Mr Sudirman. Recently the Ministry of Agriculture declared its cooperation with 101 regents for the corn self-sufficiency program. This program is slated to expand corn-planting by 700,000ha.
|Malaysia’s Singapore Chicken Rice expands in Sabah and Indonesia|
[06 May 2015] Singapore Chicken Rice (SCR), a Malaysian family restaurant based in Sarawak, has expanded its franchise to Sabah and Indonesia. Johnny Leo Lee Boon, General Manager Franchising and Strategic Planning, said SCR has identified six new locations in Sabah as well as Pontianak in Indonesia. “We target to open the six outlets in the next two years,” he said. SCR ventured into the franchise business about three years ago, and increased its restaurants to 22 in Sarawak and Brunei, 10 of which were set up last year and six this year. It also operates 30 company-owned SCR restaurants, mostly in Sarawak. Offering a variety of local and western cuisine with Singapore Chicken Rice as its signature dish, the company is also eyeing Labuan and opportunities in Peninsular Malaysia.
|Aman Feed prepares for IPO|
[06 May 2015] The initial public offering (IPO) of Dhaka based Aman Feed to raise USD 9 million will begin on May 25, according to officials. The public subscription will conclude on June 4. Bangladesh Securities and Exchange Commission approved the IPO proposal of Aman Feed on April 9, this year. The company will offer 60% shares for the general public, 20% for small investors, 10% for non-resident Bangladeshis and 10% for mutual funds and the funds will be used for business expansion and repayment of long term loans among others.
|Nepal bans meat sale over pandemic fears|
[06 May 2015] In the aftermath of the devastating earthquake that hit Nepal last week, the Kathmandu District Administration has appealed to the public not to consume meat items. According to a public statement, this could trigger sanitation and health related complications as several agencies fear the outbreak of a pandemic. “We have urged the locals of Kathmandu not to slaughter animals and birds keeping in view the health condition of the local people,” Kathmandu District Administration Chief Ek Narayan Aryal said. There was a swine flu epidemic in Jajarkot district in western Nepal some time before the earthquake and a few people in Kathmandu were also infected with the bird flu virus.
|Massive cattle exports from Darwin in April|
[06 May 2015] The rush to supply cattle to Indonesia in time for the country’s peak Ramadan/Lebaran demand period in mid-July resulted in a massive cattle shipments in April from the Port of Darwin in Australia, reported Beef Central. The port usually ships an average of 26,000 cattle in April, the first month of the second quarter. However exporters shipped 78,128 heads from the port last month. Of this, 64,800 were delivered to ports in Indonesia, with 8000 shipped to Vietnam and 5400 to the Philippines.
|More pigs harvested due to hot weather|
[05 May 2015] Supply by weight of pigs has declined in Thailand due to the hot weather. “Normally around 40,000 pigs are harvested daily to meet consumption demand. But due to the hot weather that has reduced feed intake and lowered the weight of pigs for market, and additional 4000 pigs have to be harvested daily,” Surachai Sutthitham, President of the Swine Raiser Association of Thailand told Asian Agribiz, adding that this has had an impact on the cost of production. “Continued decline in weight gain and the heat could lead to higher mortality in the herds.” Farmers are trying to allay the impact by spraying water on the pigs and providing them with more water. The farm gate price of live pigs is hovering at fair levels of around USD 2.12-2.15 per kg in the eastern region provinces and around USD 1.96-2.00 in the western region areas.
|South Korea imports from Brazil |
[05 May 2015] Poultry exports by the US has dropped as importing countries including major Asian buyer South Korea has imposed a ban due to the bird flu. “Brazil has taken the US' share in the South Korean market and has exported quite a lot there,” Gordon Butland, Director of G&S AgriConsulting Co, told Asian Agribiz. Kukrit Areepakorn, Thai Broiler Processing Exporters Association Manager, also told Asian Agribiz that despite the demand from South Korea, Thailand will not be able to increase its export volume as South Korea has yet to lift its ban on Thai raw chicken imports.
|CP Prima increases focus on domestic market|
[05 May 2015] Indonesia-based shrimp supplier Central Proteinaprima (CP Prima) is unfettered by the recent drop in global shrimp prices, which has declined by about 26% since the same time last year, according to Undercurrent News. The company has a heavy focus on the US, where about 45-50% of its exports go, while 28% go to Europe, 18% to Japan, and the remaining to Australia, Korea and China. According to Arianto Yohan, Assistant Vice President, the company is more interested in a smaller, albeit more interesting and long term business in the domestic market. “While the plan is to have more geographic coverage, we are seeing more and more restaurants coming up locally," he said.
Regional dairy update
[05 May 2015]
InVivo Indonesia transfers knowledge to milk cooperatives
InVivo Animal Nutrition and Health Indonesia (InVivo Indonesia) is bullish about Indonesia’s dairy potential. Alain Symoens, Country Manager, told Asian Agribiz: “The potential in this sector is big since the current per capita milk consumption is only around 10 litres. But, we learned that farmers need education on farm management and they need quality feed to increase milk production,” he added. To support this as well as grow its business, InVivo Indonesia will work with many milk cooperatives in the country for technology and knowledge transfer. Mr Symoens said the company will also help the cooperatives on feed formulation. “We will analyse their raw material quality and supply them with our quality concentrate,” he said, adding that it has started working with some milk cooperatives in East Java alongside Danone.
Vinamilk receives 400 dairy cows from Australia
The Vietnam Dairy Products Joint Stock Co (Vinamilk) has received 400 out of a total of 1000 dairy cows it plans to import from Australia this month. It will import a further 2000 cows — 400 from Australia and 1600 from the US. Vinamilk is investing in developing its own dairy farms in what is a key long-term strategy to reduce dependence on milk imports amid global price volatility. As of April Vinamilk has nine dairy farms in Tuyen Quang, Thanh Hoa, Nghe An, Binh Dinh, and Lam Dong. Its farms provide the company 650 tonnes of fresh milk daily for processing.
FrieslandCampina Asia wins Gold Stevie Award
FrieslandCampina, one of the world’s top five dairy companies, was named the winner of the Gold Stevie Award for the ‘Corporate Social Responsibility Program of the Year’ at the Asia-Pacific Stevie Awards 2015. The award honours the company’s contribution through its nutrition-education campaign, Drink.Move.Be Strong - the region’s first integrated activation and advocacy campaign that aims to address malnutrition among children in Southeast Asia. The campaign encourages children to drink one glass of milk a day and exercise for one hour a day outdoors. The campaign currently runs in Indonesia, Malaysia, Thailand, Vietnam and the Philippines. Piet Hilarides, COO Consumer Products Asia, said: “We believe that FrieslandCampina can play a critical role in improving the well-being of our consumers in the region through our focus on a multi-stakeholder approach to Corporate Social Responsibility.”
Russia allows import of dairy products from India
Russia’s Rosselkhoznadzor or Federal Service for Veterinary and Phytosanitary Surveillance has allowed import of Indian dairy products. Rosselkhoznadzor has included two Indian companies namely Pune-based Parag Milk Foods Pvt Ltd and Mumbai-based Schreiber Dynamix Dairy Industries Ltd in the register of enterprises licensed to export products to the Russian Federation. Both the companies will supply hard cheese, which has huge demand in Russia and Parag Milk Food is ready to increase its cheese production capacity to cater to the Russian markets. According to Aleksey Alekseenko, Assistant Head of Rosselkhoznadzor, during the next inspection they will visit more Indian dairy product manufacturers.
Chitwan overtakes Kavre as largest milk producer
Chitwan has overtaken Kavre as the largest producer of milk in Nepal recording a daily output of 250,000 litres. According to the Chitwan Milk Producers Cooperatives Association, there are 151 milk cooperatives in the district with a membership of more than 35,000 small farmers. “Out of these cooperatives, 148 are linked to the association,” said Binod Khatiwada, Manager of the association. He added that the association collects milk daily from these cooperatives. The district consumes 35,000 litres daily while the rest is shipped to Kathmandu, Pokhara and Hetauda. Farmers earn USD 0.4 per litre of milk.
|Asia sees impact of US bird flu |
[04 May 2015] The H5N2 avian influenza outbreaks in the US could affect poultry production in Asia if the situation prolongs. “If the outbreak continues up to the end of the year, it could affect production in Asia due to the lack of GP imports,” Gordon Butland, Director of G&S AgriConsulting Co, told Asian Agribiz. Asian countries have banned GP imports from the US due to disease concerns. They continue to import from some European countries and Australia but the capacity is not enough. “We are hoping that with the onset of summer the problem will be resolved but it could resurface in November and December when the weather will see a new wave of migration of wild birds," he said.
|Hot weather causes decline in pig weight in Thailand |
[04 May 2015] Recent hot weather has caused a significant reduction in pig weight per head in Thailand and that would lead to increase in herd mortality and decline in overall supply. “The hot weather has discouraged eating among the pigs and growth rate has been affected,” Surachai Sutthitham, President of the Swine Raiser Association of Thailand told Asian Agribiz. Average weight of harvested pigs among farms in the eastern region of the country, has dropped by 5-6 kg/head in the second quarter, Mr Surachai said, adding that pigs are being harvested at around 100kg against the normal harvest weight of 110kg.
|US asks China to drop ban on poultry imports|
[04 May 2015] US Agriculture Secretary Tom Vilsack has asked China to drop a ban on imports of US poultry imposed because of an outbreak of bird flu in chickens and turkeys, reported Reuters. The US wants China to limit trade only from states or regions that have had cases of the flu. Cases of avian flu prompted China and South Korea to impose bans on US poultry imports earlier this year. Last year, the two countries accounted for about USD 428.5 million in export sales of US poultry meat and products, according to USDA data. China’s Agriculture Minister indicated he would consider Mr Vilsack’s request, but linked the matter to US limits on imports of poultry raised and processed in China. The US restrictions on imports of poultry from China are related to human health, while the bird flu is an issue of animal health, he added.
|Vietnamese shrimp exporters advised to cut prices |
[04 May 2015] The Vietnam Association of Seafood Exporters and Producers (Vasep) has warned shrimp exporters that they may lose the US market to India and Indonesia if they don’t lower prices. It said the price of shrimp shipped to the US averaged USD 13/kg last year, a 15-year high. The price of Indian shrimp however, is USD 11/kg. Chu Van An, Deputy General Director of Minh Phu Seafood Corporation, Vietnam’s leading shrimp exporter, said shrimp production is up in India and some other countries because they have been spared from early mortality syndrome, enabling them to cut unprocessed shrimp prices, which account for 60-70% of production costs. In addition to price cuts, Truong Dinh Hoe, Vasep General Secretary, called for its exporters to improve their shrimp quality, given the low demand in international markets.
|Brazil taps into cattle breeding potential in east Indonesia|
[04 May 2015] A Brazilian investor has expressed interest to invest around USD 77 million for cattle breeding on Buru Island in Maluku – east Indonesia, competing with other investors to tap into Indonesia’s lucrative but under-supplied beef market, reported the Jakarta Globe. Aside from Brazil, Australia and several local investors are attracted to investing in cattle breeding on the island. The government expects to sign an MoU with the Brazilian investor, whose plans to produce 200,000 cattle a year.
|IMD forecasts below normal monsoon in India|
[04 May 2015] The Indian Meteorological Department (IMD) has issued a below normal monsoon forecast for the upcoming four-month southwest monsoon season that begins from June. The first stage forecast statement issued by IMD predicts a 35% chance for below average rainfall, 33% chance for deficit rainfall and 28% chance for average rainfall. Poor monsoon rains negatively impact agricultural production and inflationary pressure on food crops such as rice, oilseeds, sugarcane, cotton, corn and pulses. A normal southwest monsoon brings 70% of India’s total rainfall and even for irrigated agricultural lands strong monsoon is crucial to boost yield and reduce cost of production. The second stage forecast will be issued in June.
|Sujaya Group to set up pig slaughterhouse|
[30 April 2015] Indonesia’s livestock and agriculture company Sujaya Group is planning to set up a pig slaughterhouse in the same region as its pig breeding and commercial operations in Singkawang, West Kalimantan. Dede Slamet Ruchyadi, Manager, told Asian Agribiz that the modern slaughterhouse will produce split carcasses and portioned cuts with Batam Island, Singapore and Malaysia as the market targets. In late 2013, Dr Nawa Subianto, Pig Farm Manager, told Asian Agribiz that the group was in talks with prospective buyers in Singapore and Malaysia. The group has been sending around 200 live finishing pigs to Batam Island and Singapore in every fortnight. At the moment the group has a total pig population of around 70,000 heads with 8500 sows.
|Teo Seng expands in Singapore with BH Fresh Food acquisition|
[30 April 2015] Malaysia's Teo Seng Capital Bhd’s unit Premium Egg Products Pte Ltd (PEPP) will acquire loss-making meat processor and wholesaler BH Fresh Food Pte Ltd (BHFF) for USD 7.37 million. PEPP had signed a conditional sale and purchase agreement with Oceantrade Foods Pte Ltd, Loi Teck Heng, Low Sook Cheng and Lee Yee Gee to acquire the entire equity interest in BHFF. Teo Seng, which has been operating in the Singapore market for a decade, will be able to expand its business operations by acquiring the property as a distribution centre to cater to demand for its products in the republic. PEPP also signed a conditional agreement with the vendors to dispose of the business and certain assets of BHFF, on an ‘as is where is’ basis, to LM Meat Pte Ltd for USD 1.35million.
|Soybean price rise worries Indian poultry industry|
[30 April 2015] The price of soybean in India was up 30% in April over March this year. The price rise is attributed to low supplies in the domestic market. In Indore, the soybean trade hub of India, the average daily arrival of soybean in April has declined to 65,000-70,000 bags of 100 kg each compared to 70,000-80,000 bags in March. “This price rise is a cause of concern especially for the broiler sector,” Valsan Parameswaran, Secretary of All India Poultry Exporters Association, told Asian Agribiz. According to him, this swill directly reflect in feed cost.
|Vietnam increases meat imports from Europe|
[30 April 2015] The volume of European pork, beef and poultry imported into Vietnam jumped to 6000 tonnes in 2014 from just 800 tonnes in 2012, according to Poland-based Union of Producers and Employers of Meat Industry (UPEMI). Export of pork, for instance, rose from 822 tonnes worth USD 1 million in 2012 to 6149 tonnes worth USD 7.2 million last year, said Agnieszka Rozanska, UPEMI Managing Director. In sourcing for imported meat producers look for clear origin of product, good quality and hygiene. UPEMI reported that over 100 European businesses have been licensed to export meat products to Vietnam, 40 of them from Poland. Vietnam, South Korea and the US are the largest importers of European meat products. The EU’s meat exports to Vietnam is expected to rise by over 5% next year, Ms Rozanska said.
|Artemia short supply hits Indian shrimp hatcheries|
[30 April 2015] Short supply of artemia used as live feed for shrimp larvae production has hit shrimp hatcheries in East Godavari and the rest of Andhra Pradesh in India. L Satya Narain, President of All India Shrimp Hatcheries’ Association said that the short supply is due to delay in clearance of artemia imported from the US. Artemia sourced from the Great Salt Lakes accounts for the strong post larvae produced by Indian shrimp hatcheries. “Hatcheries find it difficult to run production without artemia and if the situation continues, the hatcheries will have to close,” Mr Satya Narain said.
|Vinamilk to focus investments on cattle feed |
[30 April 2015] Vietnam’s largest dairy product company Vinamilk plans to set aside USD 185 million for mergers and acquisitions this year, mainly in the animal feed sector, the company announced. Vinamilk’s board of directors has approved the new initiative that involves partnering with other firms to develop the cattle feed business. In the past year, it has built two dairy farms, adding to the total of seven farming facilities.
|CV Missouri to expand alongside demand|
[29 April 2015] The layer DOC business of Indonesia’s CV Missouri based in Bandung, West Java and controlled by the Latif family has seen significant growth in recent years. Andry Latif who manages the technical division told Asian Agribiz that the demand for Hy-Line Brown DOC is growing and to respond to this demand the company has set up new breeding farms. “Our customers told that our strain performs and adapt well with the climate in this country." Although demand is growing, Mr Andry said the company does not want to expand rapidly. “Our expansion has to be well planned. Increasing supply is easy but it has to grow in tandem with demand,” said Mr Andry.
|Masan Group acquires Proconco and Anco|
[29 April 2015] Vietnam’s Masan Group said it has purchased 52% in Vietnamese-French Cattle Feed JSC (Proconco) and 70% in Agro Nutrition Company (Anco), after acquiring Sam Kim Co Ltd and renaming it Masan Nutri-Science Co Ltd. With this move Masan Group has gained second spot in the local feed market. The acquisition is a key step to increasing the productivity of Vietnam’s protein sector. Masan Nutri-Science will provide Masan Group a lead in the growing USD 6 billion animal feed sector. “Proconco and Anco, as a combined business, is the number one external pig feed and second overall animal feed player in Vietnam, supplying farmers with over 1.7 million tonnes of animal feed products in 2014. It is well on track to deliver revenue of USD 1 billion in 2015,” the company added.
|India widens lead over Brazil in beef exports|
[29 April 2015] India has widened its lead over Brazil as the top global beef exporter, according to a latest report by the US Department of Agriculture, with a projected export total of 2.4 million tonnes in 2015 against Brazil’s 2 million tonnes. Since Russia has opened its market to Indian buffalo meat, exports are expected to increase further. The report also pointed out that global beef exports are poised to reach a record 10.2 million tonnes in 2015 mainly due to larger shipments from India.
|Hormel breaks ground on new plant in China|
[29 April 2015] Hormel Foods Corporation held a ground-breaking ceremony recently to announce the construction of the Hormel Foods Jiaxing Plant in China’s northern Zhejiang province, reported meatingplace.com. The plant, which will be operational by the end of 2016, is located in the food industrial park of Jiaxing Economic and Technological Development Zone. The construction period is divided into two phases to achieve an annual processing capacity of 30,000 tonnes by the end of first phase, expanding to 50,000 tonnes when completed. The new plant will produce products such as bacon, ham and sausage, as well as a series of products specifically suited to Chinese consumers’ tastes and flavours.
|Vietnam shrimp, fish exports found with antibiotic residue|
[29 April 2015] The US Food and Drug Administration (FDA) refused 107 batches of shrimp from India, Malaysia, China and Vietnam in the first two months of the year as they contained nitrofurantoin, an antibiotic used to treat urinary tract infection, the FDA said. Nguyen Van Dao, General Director of Go Dang JSC, admitted it was difficult to control antibiotics in shrimp. Instead of using reasonable doses, Vietnamese farmers use medicine in an uncontrolled manner. He said seafood export firms collect shrimp from different sources, making it difficult to track down the source of materials. The Vietnam Association of Seafood Exporters and Producers said most businesses follow strict regulations in controlling the quality of input materials.
|Poultry industry can address malnutrition problem|
[29 April 2015] India's Poultry industry can help address malnutrition among children said geneticist Prof MS Swaminathan. Addressing the gathering at the Annual Scientific Program 2015 in absentia, organised by the Institution of Veterinarians of Poultry Industry in Bangalore, Prof Swaminathan said eggs and poultry meat have enough macronutrients to ensure a healthy future generation. “In states like Tamil Nadu, where eggs are provided to school children during noon meal there is no problem of malnutrition,” he pointed out urging the poultry industry to pursue this in other states.
|TUF plans new shrimp plant in India|
[28 April 2015] Thai Union Frozen Products (TUF), a global seafood company based in Thailand, is planning to build a new shrimp processing plant in India through a joint venture with publicly listed Indian firm Avanti Feeds, The Nation reported. TUF has a 25.1% stake in Avanti Feeds and the existing shrimp plant running under Avanti Feeds has an 8000 tonnes/year capacity. Rittirong Boonmechote, President for the global shrimp business of TUF, said recently that the company was looking to expand in India through the new joint venture, in which it would hold a higher stake. The new shrimp processing plant with the production capacity of 15,000 tonnes/year will require an investment of USD 10-20 million.
|Terminal Puyuh plans to produce cooked quail meat|
[28 April 2015] Indonesia’s Terminal Puyuh, one of the largest quail breeders in Kediri, East Java, plans to produce canned cooked quail meat. Takim, Director and owner, told Asian Agribiz: “Quail meat is a niche market in the region and it’s usually derived from spent layer quail. But we see that the demand for quail meat is growing since people are opting for different types of meat.” To realise the plan, Terminal Puyuh will cooperate with a local feed miller in the region Menara Feedmill. Both will also raise broiler quail since the supply of spent layer quail fluctuates. The target market for the canned cooked quail meat is food stalls and restaurants in the region.
|Indonesia commends Thai plan to monitor fishing vessels|
[28 April 2015] Indonesia has praised Thailand's initiative to monitor thousands of its fishing vessels with an automatic tracking system in an attempt to curb rampant illegal fishing in the region. Indonesia’s Coordinating Maritime Affairs Minister, Indroyono Soesilo said he had learned about the plan from Thai Deputy Prime Minister and Minister of Foreign Affairs, Tanasak Patimapragorn. “Thailand is planning to monitor their fishing vessels with 7,000 vessel monitoring systems to ensure their vessels only fish legally,” said Mr Indroyono. The 10 Asean member countries account for a quarter of global fish production. Indonesia, however, has been complaining of rampant illegal fishing in its waters, which the authorities claim accrues annual losses of USD 23.1 billion to the country.
|Chinese & Australian regions prepare for live cattle shipments|
[28 April 2015] The city of Huizhou in Guangdong province and the Australian state of Queensland have become the latest local government entities to sign agreements in anticipation of live cattle exports to China. In addition, the ports of Huizhou and Townsville signed a sister-ports agreement. However, the opening of the trade itself has been held up over quarantine restraints related to blue tongue disease. Australian politicians have predicted the trade will lead to shipment of up to 1 million head a year, but analysts say cattle producers have been hit hard by drought in recent years and it is not clear how many animals will be available for export.
|Philippines bans beef from Alberta|
[28 April 2015] The Philippines has temporarily banned beef imports from Alberta, Canada following the outbreak of bovine spongiform encephalopathy (BSE) or mad-cow disease in Edmonton. In a memorandum, Philippine Agriculture Secretary Proceso Alcala said: “The outbreak was confirmed to have been caused by a resistant prion protein-classical BSE-affecting cattle.” With the ban, the Department of Agriculture also suspended the processing and issuance of import clearance for animals and meat imports from Alberta. Canada is one of the biggest sources of pork and beef imports for the Philippines.
|Chicken sales in Hyderabad down 80% |
[27 April 2015] Chicken sales in Hyderabad, India declined by 80% last weekend due to the H5N1 outbreak in Telangana state. However, sales of chicken and eggs were not affected in the rural areas of the state. S Balasubramaniam, General Manager of Venkateshwara Hatcheries said that during the first four days after the outbreak chicken consumption dropped by 50% and subsequently to 80% last Sunday. It is estimated that the poultry industry in Telangana could have suffered a loss of USD 24 million due to the outbreak.
|Japfa Indonesia expects loss in Q1|
[27 April 2015] Japfa Comfeed Indonesia expects to register a net loss in the first quarter of this year. The will be the result of a combination of two main factors. First is the continuing weakness both in the poultry market and in the purchasing power of low-income consumers. And second is the translation loss from the company’s USD loans as a result of the 5% drop in the Rupiah to US Dollar exchange rate as at March 31, 2015. Taking into account the oversupply of broiler DOC, the company said it could not set an ambitious target this year.
|KFC China sales still down, poultry sector remains weak|
[27 April 2015] KFC reported Q1 same-store sales in China down 14% from the same period last year, a sign of continuing weakness in the poultry sector following last year’s food scandals and anxiety about avian influenza. Greg Creed, Yum Brands CEO, nevertheless expressed optimism, saying that China sales were recovering from last year’s lows along with “upward momentum in consumer perceptions.” The 14% sales decline represented a slight improvement over 2014 Q4’s 16% sales decline. Sales also declined at Yum’s Pizza Hut operations in China, but only by 6%, and Yum’s overall China sales were down 12%. Mr Creed said Yum remains “on track to open at least 700 new restaurants in China,” and expects a strong second-half performance from the China division.
|Sneha Farms expands its hatchery with energy saving technology|
[27 April 2015] India’s Sneha Farms from Hyderabad, will be increasing its commercial broiler operations with an energy conscious expansion to its hatchery. The expansion will bring six SmartSet setters and six SmartHatch hatchers online, with Pas Reform’s ESM (Energy Saving Module) in the setters to reduce energy consumption, as annual capacity increases to a total of 13 million set eggs. Varun Reddy Dendi, Sneha Farms Director, commented that the project presents the right opportunity to expand operations using the latest technologies from Pas Reform. Natarajan Venkitakrishnan, Pas Reform Sales Director for India, told Asian Agribiz that even during trials Sneha Farms was satisfied with the performance of Pas Reform’s ESM technology that helped them reduce energy consumption.
|AGCO acquires Farmer Automatic|
[27 April 2015] AGCO, a worldwide manufacturer and distributor of agricultural equipment, has acquired Farmer Automatic from The Clark Companies. The sale includes Farmer Automatic’s manufacturing operations in Laer, Germany as well as its global distribution network. Tom Welke, GSI Senior Vice President for Global Grain and Protein, said that they are excited to be adding Farmer Automatic to the AGCO family. “Farmer Automatic will enable GSI to move into the commercial egg business and provide a full-line solution for our poultry customers,” he said. Farmer Automatic products will continue to be sold through their present distribution channels. It will remain a stand-alone company and will be integrated into GSI over time.
|Southeast Asian markets take more sheepmeat|
[27 April 2015] Lamb and mutton exports to Southeast Asian markets improved for most countries during the last quarter, Meat and Livestock Australia (MLA) reported. Sheepmeat export volumes increased by 19% to 6815 tonnes into Malaysia and lifted by 9% into Singapore to total to 2541 tonnes, but were lower into Vietnam. MLA said total Australian red meat (beef, lamb, mutton, goat and offal) shipments declined by 7% to 28,441 tonnes into Singapore, Malaysia, the Philippines, Thailand, Vietnam, Laos, Brunei, Cambodia and Myanmar during the March quarter, but were higher than the five-year average of 21,344 tonnes.
|McDonald’s closing hundreds of stores|
[27 April 2015] McDonald’s closed 350 stores in early 2015, on top of the 350 it had already said it would shutter, as the burger purveyor seeks to stanch sales declines, reported Fortune. The company shuttered 350 poorly performing stores in Japan, the US, and China the first three months of 2015 as part of its plan to boost its sagging profits. The previously unannounced closings, disclosed during a conference call with Wall Street analysts, are on top of the 350 closures targeted for the year. While the 700 store closings this year represent a fraction of the 32,500 or so restaurants worldwide, it shows how aggressive McDonald’s is getting in pruning poorly attended locations that are dragging down its results. Recently the company reported an 11% decrease in revenue and a 30% drop in profit for the first three months of the year.
|Global pork prices drop|
[24 April 2015] Pork prices in the global market were down sharply in the first quarter this year, Rabobank said in its Pork Quarterly Q2 Report, noting “robust global supply growth, driven by US, Russia and Brazil, has outpaced rather subdued demand.” On the other hand pork prices in China, which bottomed out in March this year, are expected to go up and “will offer opportunities for considerable export growth” into the second half of the year. Albert Vernooij, Rabobank’s Industry Analyst for Animal Protein, told Asian Agribiz that “based on the current exchange rates and availability, European countries like Germany, Denmark, Netherlands, Spain, as well as Brazil are best positioned to take advantage of this development in China’s market, but added that the US and Canada will increase exports. Mr Vernooij also noted that rising production and steady demand in Vietnam and the Philippines, the two key pork markets in Southeast Asia, would mean no major changes in their import volumes.
|Vietnam top buyer of US soy|
[24 April 2015] In the last marketing year 2013/14 the US became the largest exporter of soybeans to Vietnam, surpassing Brazil, said the USDA Gain report, reaching close to 700,000 tonnes, 26% over the previous year. In the current marketing year exports are expected to reach about 750,000 tonnes as Vietnam’s domestic crushing is set to increase. Soybean meal imports meanwhile, were 3.64 million tonnes, a 14% increase in demand from the animal and aquaculture feed industries. The report noted that Vietnam’s oilseed production continues to fall below demand from the food industry and the livestock and aquaculture feed sectors due to low yield and strong competition from other field crops such as corn. “The competition will get even fiercer in the future as the Ministry of Agriculture and Rural Development has approved the first corn biotech events for commercial cultivation.
|US, Brazil, Japan meat producers’ eye Myanmar market|
[24 April 2015] Meat exporters from the US, Brazil and Japan are looking to export quality meat to Myanmar. Their representatives are in talks with Myanmar’s Meat Industry Board, said U Win Sein, Vice Chairperson of Myanmar Livestock Federation. “The US is set to exempt tariffs on fishery or garment exports from our country, and we will also have to allow their meat exports,” he was quoted by Myanmar Business Today. “This won’t be a problem [for local players] if the imported meat are more expensive than local products. However, we need to be careful to prevent low quality products being imported at low prices,” he added. Currently, high-quality pork and beef imported for the hospitality industry.
|Prantalay launches new fish snack |
[24 April 2015] Prantalay Marketing, a manufacturer and distributor of frozen seafood products and ready-to-eat foods in Thailand has introduced a snack product made from fish. Realising the value of the snack market of around USD 926 million a year, Chief Marketing Officer Anurat Khokasai said the company sees opportunity for its product named ‘Niji’ which is different from other meat snack products. The fish is tempura-coated, baked then deep-fried using a system that absorbs less oil. The company has invested around USD 3.1 million to acquire this innovative cooking machinery from Japan and will have a production capacity at 1 million packs per month.
|Suryamitra Exim achieves four star BAP status|
[24 April 2015] Andhra Pradesh based Suryamitra Exim Pvt Ltd has achieved the four star Best Aquaculture Practices (BAP) status, an international third party certification for shrimp, the Global Aquaculture Alliance (GAA) announced. Four star BAP status, the highest achievement in the BAP program denotes that the processing plants, farms, hatcheries and feedmills of the group are BAP certified. The effort was coordinated by US based National Fish and Seafood (NFS), a national supplier and partner of seafood in the US, which sources shrimp from Suryamitra. Suryamitra is the second Indian company to be four status BAP rated, the first one being Kerala based Penver Products Pvt Ltd.
|PPA seeks no increase in quarantine rates|
[24 April 2015] Pakistan Poultry Association (PPA) has urged the Federal Government to withdraw the proposed raise in quarantine rates as it will adversely affect poultry exports. Pakistan’s Ministry of National Food and Research increased quarantine rates on export of DOC and table eggs. PPA North Zone Chairman Dr Muhammad Mustafa Kamal said that the export of table eggs to Afghanistan will suffer and so will the poultry sector. According to reports, the ministry has also issued a warning to exporters saying that their facilities will be closed if the fee for quarantine is not paid. The Lahore Chamber of Commerce & Industry (LCCI) has also termed the increase in quarantine rates as exorbitant.
|Andhra Pradesh bans poultry products from Telangana|
[24 April 2015] Andhra Pradesh government in India has banned entry of poultry products from Telangana in the wake of the H5N1 outbreak last week. Andhra Pradesh Animal Husbandry Department’s Director P D Kondal Rao said that they have deployed six teams to the border with Telangana to stop the movement. “We are now stopping vehicles carrying poultry feed in addition to DOC, birds and eggs as there is a possibility that poultry feed could also be infected,” Mr Rao said. According to him, the ban may remain in place for around a month.
|Teo Seng to expand in line with local egg consumption |
[23 April 2015] Malaysian integrated layer company Teo Seng Capital Bhd, the country’s third largest egg producer by volume, expects per capita egg consumption in Malaysia to grow 3-5% this year from the current 36.5 million eggs per day, reported The Edge. Its Non-Executive Director Tan Sri Francis Lau Tuang Nguang said the average price of eggs has remained stable for the past six months at about 35 sen, or USD 0.09, and is projected to remain stable. The company said it hopes to spend USD 55 million to grow its capacity by 67% to produce 5 million eggs/day in the next four to five years. The group is also targeting to increase its market share to 10% in four years from 6.5% presently. About one-third of eggs produced by Teo Seng are exported to Singapore and the group expects to maintain that percentage.
|Retail price of beef up in Bangladesh|
[23 April 2015] With the Indian government stopping smuggling of cattle into Bangladesh, retail price of beef in Bangladesh has gone up. “Price of beef in Bangladesh has gone up by 30% due to heightened vigil by the Border Security Force against cattle smuggling,” Mujibur Rahman, a beef trader in Bangladesh told Asian Agribiz. According to the state-run Trading Corporation of Bangladesh which monitors commodity prices, beef is now being sold at USD 4.5/kg against USD 3.8/kg in March. “The price rise is also due to frequent blockade and strikes that has disrupted supply,” Mr Rahman said.
|SFI, BRF create jv company in Singapore |
[23 April 2015] Singapore Food Industries (SFI) has entered into a joint venture with Brazil’s BRF GmbH to set up a company in Singapore to process meat and manufacture branded food products for distribution to retailers, restaurants, wholesalers, distributors and ship chandlers. The jv company, called Sats BRF Food, will see SFI contribute a sublease of two meat processing facilities and a warehouse, the machinery related to the processing facilities and a licence agreement for the use of certain brands and trademarks in Singapore. Sats BRF will focus on expanding the supply of high value-added, semi-processed meat and further processed food products, initially for the Singapore market, said Augusto Riberiro Junior, Chief Financial and Investor Relations Officer, BRF, in a press release. SFI will hold a 51% stake in the jv.
|Cargill, Monsanto, BRI collaborate in boosting corn production|
[23 April 2015] A public-private partnership between Cargill, Monsanto and Bank Rakyat Indonesia (BRI) since 2012 aims to double Indonesia’s corn production capacity in the wake of the government’s food self-sufficiency program. Jean-Louis Guillou, Cargill Indonesia President Director, said: “We can help boost Indonesia’s corn production. With the right guidance and technology, we can achieve 7-8 tonnes/ha from 3-4 tonnes/ha now.” Indonesia’s Partnership for Sustainable Agriculture was formed in 2012 and the pilot project began with 100 farmers in June last year in Jrambe village, Mojokerto in East Java. Monsanto distributed its high-quality seeds while BRI facilitated finance to the farmers. The lender spent USD 23,500 on working capital credit. The farmers then sold their crops to Cargill.
|Jeil Feed, InVivo sign 2nd partnership pact|
[23 April 2015] Korean feed producer Jeil Feed has extended for a year a partnership agreement with French animal nutrition firm InVivo NSA which sees the Korean company gaining knowledge, assistance and technical support. The contract was signed by Yoon Ha Un, CEO of Jeil Feed, and Hubert de Roquefeuil, CEO of InVivo NSA, in Daejeon, South Korea. Doctor Jin Park, Pig Species Manager for Jeil Feed said after two years of successful cooperation, Jeil Feed decided to reiterate its trust in InVivo’s zootechnical expertise. “This allows us to work with InVivo to enhance our know-how in r&d and innovation,” he said. Jeil Feed produces 1.4 million tonnes of feed per year with a turnover of USD 535 million. The company, which recently invested in a pet food plant in Korea, belongs to the Harim Group.
|McDonald’s Japan expects sales to fall 10%|
[23 April 2015] McDonald’s in Japan is expecting another bad year. The 49%-owned subsidiary of the American fast food giant expects an operating loss of around USD 210 million in 2015, more than triple its losses last year, according to Quartz. The company also expects sales to fall 10% in what will be the seventh consecutive year of declines. In hopes of making a profit again in 2016, the company will close about 131 outlets and renovate another 2000. It also plans to cut about 100 jobs at its headquarters in Tokyo. As for the food, the chain has pledged stop importing chicken from China, and it has rolled out a faux chicken nugget made from tofu: the “Tofu Shinjo Nugget.”
|CPF seeks shareholders’ approval for Cambodia project|
[22 April 2015] Thailand’s Charoen Pokphand Foods (CPF) will seek approval from its shareholders at its annual general meeting today for its plan to increase investments in Cambodia. CPF’s Board agreed earlier to acquire a 75% stake in C.P. Cambodia Company Limited (CPC) for USD 87.87 million as it is deemed beneficial to CPF as Cambodia’s agro-industrial and food business have strong potential for growth. “The Board feels this investment will benefit shareholders as it corresponds with to the core strategy of the company and the agro industry sector in Cambodia, especially the livestock segment, holds great growth potential,” said CPF’s President and Chief Executive Officer Adirek Sripratak.
|Cargill considering poultry investments in Indonesia|
[22 April 2015] Cargill Inc. is seeking to enter the Indonesian poultry sector reported the Wall Street Journal. The Minnesota-based company is “in active discussions” to enter the poultry sector in Indonesia, which will include building a new facility and likely partnering, said Alan Willits, Cargill Chairman for Asia Pacific. “We’ll most likely partner with someone that is an integrated poultry producer, and we’ll do the value-added piece, the same thing we do in Thailand and China,” Mr Willits said. He also said the company is “very interested” in entering aquaculture in Asia. “We’ll most likely buy a global company that” could have a presence in Indonesia, he said. He added that the company could consider investing hundreds of millions in building a large-scale corn-processing facility, but would likely need assurances about importing some amount of corn.
|SRP for chicken set at USD 2.49/kg|
[22 April 2015] The Philippine Department of Agriculture (DA) has set the new suggested retail price for chicken at USD 2.49/kg in Metro Manila, the biggest market in the country. The new SRP, which took effect on Monday, is meant to better reflect the prices at the farm level. According to the United Broiler Raisers Association’s price survey, the average farm price of live chicken in Luzon is USD 1.48/kg, up from USD 1.14/kg the previous week. DA Undersecretary for livestock Jose Reaño said that with the new SRP, prices of chicken in both public markets and supermarkets have improved. Last week, the prevailing retail price was about USD 2.71/kg.
|After Telangana, H5N1 hits Manipur|
[22 April 2015] A week after the outbreak of highly pathogenic H5N1 in Telangana state in India, avian influenza has surfaced in the north eastern state of Manipur. Samples taken from the Indian Council of Agricultural Research (ICAR) poultry unit at Lamphelpat was found to contain the H5N1 strain. “So far around 1000 birds have been culled within a one-km radius of the poultry unit by the State Veterinary and Animal Husbandry Services Department,” Manipur Chief Secretary P.C. Lawmkunga said. According to him, culling will continue and steps have been taken by the government to control the outbreak.
Indian dairy sector in upgrade mode
[22 April 2015]
With Indian dairy companies securing funds for expansion through IPO's and the government's help in boosting dairy exports, the Indian dairy industry is in an interesting phase of growth. In this special web report, SM ARUN takes a look at the latest developments in the Indian dairy industry, which is growing at a faster pace than ever.
Growth of 15% in 2015-16
The Indian dairy sector is expected to continue its robust performance in 2015-16 with an impressive 15.6% growth, according to a report by India Ratings & Research (Ind-Ra). “During the same period, milk production is forecasted to grow at 4.6%. The sector will remain one of the focus areas of the government to improve the economic wellbeing of the rural population,” the report said. According to Ind-Ra, demand for milk and milk-based products remained high due to changing dietary habits and rising incomes. “Domestic price of milk has remained firm despite the collapse of global milk and dairy product prices,” the report added. The cooperative sector especially, continues to get policy and monetary support from the government, ensuring its growth.
Potential in Russian markets
After Russia opened its market to Indian buffalo meat, expectations are high that the country will open its market to Indian dairy products. Private dairy player Parag Milk Foods Pvt Ltd which has India’s largest cheese production unit with a capacity of 40 tonnes/day, is bullish about exports to Russia. “Russian demand is huge and it presents attractive potential if this market accepts our products," Mr Devendra Shah, Chairman told Asian Agribiz. In October-November 2014, a team from Russia’s phytosanitary watchdog Rosselkhoznadzor visited India to inspect dairy units but no approval has been secured yet.
Strategy required to boost dairy exports
India’s Union Ministry of Commerce and Industry has asked the dairy sector to prepare strategy paper to boost dairy exports. Even though India is the world’s largest producer of milk and has huge potential for exports, the government is concerned over the drop in exports due to quality issues. According to a report, the sector is unable to meet stringent export quality parameters as around 80% of the dairy industry in India is unorganised. The Ministry recently convened a meeting of representatives including Amul to discuss export challenges. “The dairy industry is expected to submit the paper soon and the government will take appropriate steps to encourage export of dairy exports after deliberating on the recommendations,” a statement from the Ministry said.
Prabhat Dairy to raise USD48m through IPO
Maharashtra based Prabhat Dairy Ltd, an integrated milk and dairy products company has filed for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The IPO comprises a fresh issue of shares to raise USD 48 million in addition to an offer for sale of up to 14.7 million equity shares. With this, investors such as Rabo India PE and French DFI Proparco are set to part exit. Prabhat Dairy’s products include toned and raw chilled milk, sterilised condensed milk, milk powder, lassi, butter and ghee. It also supplies dairy based food ingredients to multinationals and Indian food and beverage companies like Abbott Healthcare, Mondelez (maker of Cadbury) and Britannia among others.
Mother Dairy forays into dairy whitener market
India’s Mother Dairy, a wholly owned subsidiary of National Dairy Development Board (NDDB) has ventured into the dairy whitener market with the launch of its brand ‘Dailycious’ in Guwahati. Subhashis Basu, Business Head for dairy products, Mother Dairy Fruit & Vegetable Pvt Ltd told Asian Agribiz that they have plans to expand in the entire North East region. “Dailycious will be made available through a wide network of distribution channels of close to 10,000 retail outlets across the region,” he said. Dairy whitener segment is a USD 320 million market in India and the company will compete with dominant brands like 'Everyday' of Nestle and 'Amulya' of Amul in this market segment.
Amul launches poly pack milk in Punjab
Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk and other dairy products under the Amul brand in India recently launched poly pack milk in Punjab state. GCMMF Managing Director R S Sodhi said that they have identified Punjab as an opportune market for their fresh product offerings. “We will be selling pouch milk at affordable prices to brand conscious consumers in Amritsar, Pathankot, Gurdaspur and Batala towns in Punjab and looking to garner 20% market share in these areas,” he said. Amul sells around 10.5 million litres per day of pouch milk across India.
Milk price hike unviable due to global trends, Amul
Talks about increasing the milk price locally has been ruled out as global trends are not favourable to it. R S Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul brand of milk and other dairy products said that since global milk prices are 40-50% lower than Indian milk prices any further hike will see a rise in imported milk or powdered milk. “Unlike private players, cooperatives are not under any margin pressure and could hold on to current prices,” he said and added that GCMMF is of the view that other players in the organised sector too might hold on to price levels. The last time GCMMF raised milk prices was in May last year.
|Kanemory's ready meal plant starts operations |
[21 April 2015] Kanemory Food Service, a joint-venture company between Japan-based Kanematsu Group and Indonesia-based Cimory Group, has put its USD 31 million ready meals plant in Cikande, Banten province – Indonesia into operation. Axel Sutantio, Vice President, said the plant is able to produce 10 tonnes/day for one ready meal item, while the installed capacity is around 27,000 tonnes/month. Around 90 items of ready meals are produced at the plant, such as meatballs, sausages, satay, and ready meals based on meat, fish, vegetables and rice in Japanese and Western styles. The products are sold in convenience stores, supermarkets, hypermarkets and restaurants. Mr Axel is optimistic that the company will be able to generate sales of around USD 8 million in the next three years.
|160,000 birds culled in Telangana state in India|
[21 April 2015] Following the outbreak of highly pathogenic H5N1 in Telangana state in India last week, animal husbandry officials have culled around 160,000 birds. D Venkateswarlu, State Animal Husbandry Director told Asian Agribiz that birds in a one km radius of the village in Ranga Reddy district have been culled and over 230,000 eggs destroyed. “We have now shifted our focus to a 10 km radius surveillance zone and we will conduct regular checks on poultry,” he said. According to estimates, poultry population in the surveillance zone in 18 villages is estimated to be around 1.3 million.
|CJ eyes stake in Vietnam food processing company|
[21 April 2015] CJ Cheiljedang Corp (CJ), a South Korean conglomerate and manufacturer of processed food, is reportedly interested in picking up a strategic stake in the Vietnamese state-owned food company Vissan, when the latter goes for an initial public offering (IPO), reported DealStreetAsia, a regional business portal. Vissan, has been operating for 45 years, and its latest financials reveal average annual sales of USD 209 million. It is known for Vissan sausage and ham products in the local market. Meanwhile, CJ is already present in Vietnam through CJ Vina Agri Co Ltd, which focuses on animal feeds.
|Japfa Indonesia cancels its export plan to Japan |
[21 April 2015] Japfa Comfeed Indonesia has said that it plans to cancel its plan to export further processed chicken products to Japan. Koesbyanto Setyadharma, Director, said the company doesn’t want to add more pressure to its operations since investment for the exports is high risk. “We once exported our products in 2003 but then Japan banned imports from Indonesia due to avian influenza. We experienced losses because of the ban.” Moreover, he added that the export volume to the Japanese market is small. During its public expose, meanwhile, Bambang Budi Hendarto, Vice President Director, mentioned that the company is in talks with some countries to export DOC. However Mr Bambang did not disclose what countries they are.
|DA to post farm prices in retail markets |
[21 April 2015] The Philippine Department of Agriculture (DA) said it will post farm prices of chicken and hogs in retail markets so consumers will know if these commodities are being sold at reasonable prices. In a statement, DA Undersecretary for Livestock Jose Reaño said the DA will post either daily or every-other-day the farm price of chicken. This will allow consumers to question retailers if the prices are much higher than farm prices. He noted that the reasonable retail price for chicken should be only about USD 1/kg more than the farm price. According to the United Broiler Raisers Association, average farm price of chicken is currently around USD 1.14/kg.
|Sabah to produce prawns worth USD 282m by 2020|
[21 April 2015] Malaysia’s Sabah state could emerge as the nation’s biggest producer of prawns by 2020. By then the state is expected to produce prawns valued at USD 828 million annually. This follows the USD 309 million invested by four companies to spur the shrimp aquaculture, with 30% of contributed by the Federal Government. “The price of white shrimp is between USD 7.50-8.50/kg. The estimated production of these four companies will be about 110,870 tonnes until 2020,” said Datuk Bobby Ahfang Suan, State Agriculture and Food Industry Assistant Minister. “In 2013, Sabah produced around 11,700 tonnes worth USD 51.66 million of white shrimp. Last year production increased to 18,900 tonnes worth USD 88.65 million, a 38% increase. This year, production is estimated at 30,000 tonnes,” he said.
|Taiwan has no plan to lift ban on US pork imports|
[21 April 2015] Taiwan has no plan to lift its current ban on imports of US pork containing the leanness-enhancing drug ractopamine, a Ministry of Foreign Affairs (Mofa) official said. Kelly Hsieh, head of Mofa’s Department of North American Affairs, yesterday said at a regular news briefing that Taiwan's government has no plan to change the ban despite US’ repeated concerns. “We will continue to talk to our US counterparts to make clear our stance,” he said, when asked to comment on remarks made by two US senior officials' last month who said that Taiwan needs to resolve issues surrounding the import of US meat products to speed up its push to join the US-led Trans-Pacific Partnership.
|Halal abattoir in the Philippines nears completion|
[20 April 2015] The first halal slaughterhouse in the Philippines is almost completed and will soon be operating, the Philippine Department of Agriculture (DA) said. The facility, located in Cotabato City in Mindanao, will have a slaughtering capacity of 15 heads of cattle, 10 heads of carabao, and 40 heads of goat per hour. DA Secretary Proceso Alcala said that the slaughterhouse will initially have an AA rating. With this rating, it will be allowed to send products all over the Philippines. However, the DA plans to upgrade the facility later to an AAA rating so it can be accredited to process meat for export.
|InVivo Indonesia to offer complete range of aqua feed|
[20 April 2015] InVivo Indonesia aims to be a leader in aqua feed in the country. Alain Symoens, Country Manager, told Asian Agribiz that the company recently ventured into the hatchery feed market. The company provides larval feed both for fish and shrimp that are sold under the BernAqua brand. In addition, Mr Symoens revealed that it will also venture into the marine fish feed market. “Our strategy is to offer a complete range of products that help our Indonesian partners realise better production, efficiency and profits.” He said that its freshwater fish feed sold under the Ocialis brand has progressed well in the market.
|Cambodia drafts standards for feed production|
[20 April 2015] The Institute of Statistics Cambodia has issued draft standards on chicken and duck feed production, aimed at bringing the products in line with international standards and helping producers increase exports. The new guidelines will give the products international recognition because they will specify how they should be produced and processed, therefore adding value. Chan Borin, Director General of the Institute of Statistics Cambodia, said once the standards are in place, the process of negotiating export of the products will be easier,” said. “It will help to boost trade and encourage farmers to expand the production.” The draft documents must be approved by the National Standards Council within 30 days of their issuing on April 6. Public comments may be submitted during that period.
|China pork price rises at last|
[20 April 2015] After falling almost continuously since September 2014, China’s pork price has finally reversed course and risen slightly in the last three weeks, according to the Ministry of Commerce’s weekly commodity price report. Although the total rise so far is only 2%, the beginning of a price recovery is a relief to hard-pressed farmers who have faced negative margins due to oversupply for more than a year. Live pig prices have also recovered slightly over the last three weeks in the major producing provinces of Shandong, Henan, Hebei, and Hunan, according to a compilation by Carthage & MHJ, a swine consultancy based in Suzhou. Consumption has declined due to the government’s austerity program and a weakening economy. In the last two years, millions of sows have been slaughtered and the herd’s overall size has shrunk significantly.
|India plugs cattle smuggling into Bangladesh|
[20 April 2015] Following orders from Union Home Minister Rajnath Singh, India’s Border Security Force (BSF) has stopped smuggling of cattle into Bangladesh. According to Mr Singh, the government had set up a committee to check smuggling of cattle, drugs and fake Indian currency notes. “It is more important to ensure security at the border by putting an end to all smuggling activities,” he said recently. Around 170,000 cattle were smuggled to Bangladesh from India in 2014. The move was initiated by the Indian government in the wake of killing of three BSF soldiers by smugglers in different incidents.
|H5N1 outbreak triggers alert in Telangana|
[20 April 2015] An outbreak of highly pathogenic H5N1 avian influenza has been confirmed at a poultry farm in the outskirts of Hyderabad in India. Following the confirmation by the High Security Animal Disease Laboratory (HSADL) in Bhopal, the Telangana government has ordered to cull as many as 145,000 poultry birds in a one km radius. The site of infection is Srinivas Reddy’s poultry farm located in Ranga Reddy district, which is about 50 km from Hyderabad. A ban on trading of all poultry products from farms in a 10-km radius 'surveillance zone' has also been put in place.
|Asian demand for live cattle export continues|
[20 April 2015] Australia exported almost 101,000 head of live cattle in February, up 29% year-on-year in trade. The trade has continued to increase following record levels in 2014, with February marking the fourth consecutive month of year-on-year growth. Indonesia remained the largest market, taking almost 47,000 head during the month, while Vietnam received over 35,000 head. With the Indonesian market constrained to a 100,000-head quota in the first quarter (68,000 head were sent to Indonesia during the first two months of the year) of 2015, it was encouraging that the second quarter quota is at 250,000 head. Strong Asian demand has translated into improved live export cattle prices. In February, light steers out of Darwin averaged 273 cents a kg live weight, up 19% year-on-year.
|Japfa Indonesia halves capital expenditure|
[17 April 2015] Japfa Comfeed Indonesia has decided to scale down its operations as a sluggish market continues to dampen its sales. Bambang Budi Hendarto, Vice President Director, said the company will cut its capital expenditure this year mostly that allocated for production and expansion, by up to 50%, down to around USD 58.6 million. Mr Bambang said that the oversupply has severely hit the local DOC market as the demand for chickens from customers had yet to show improvement. With such a situation, DOC and other broiler prices remain depressed. However, he said that the company’s feed division still generated stable profits, helping the company to reduce the losses suffered by the breeding division.
|Astra Agro to venture into cattle farming|
[17 April 2015] Indonesia’s major plantation company Astra Agro Lestari, a subsidiary of Astra International, is set to venture into cattle farming in an effort to diversify its business. Widya Wiryawan, President Director, said the company is assessing the possibility of entering the cattle-breeding business. “It may go hand-in-hand with our existing palm oil plantation, creating business synergy. We have many flat plantation sites that may suit the cattle’s needs,” he said. At present, Astra Agro’s plantation sites are scattered across the country, but most of them are located in Kalimantan and Sulawesi. Mr Widya acknowledged that cattle farming will provide a new business opportunity for the company, citing the government’s ambition to achieve national beef self-sufficiency.
|Japanese firm to invest USD9b in Andhra Pradesh|
[17 April 2015] Japan’s Mayekawa Manufacturing Company based in Tokyo is looking to invest USD 9 billion in Andhra Pradesh state in India to support the food processing sector. The move is expected to give a major boost to the poultry sector in Andhra Pradesh. Recently, a Japanese delegation led by Chairman of Mayekawa Manufacturing Company Yoshiro Tanaka visited Andhra Pradesh and explored opportunities to construct a mega food park that would facilitate technology transfer between Indian and Japanese companies.
|Research brings vaccine against ASFV a step closer|
[17 April 2015] Research work headed by Dr Fernando Rodriguez, IRTA researcher from the CReSA Animal Health Program, demonstrates the feasibility of designing a safe and efficient vaccine against African swine fever virus (ASFV) in the near future. There is no vaccine available today to fight ASF. The study confirmed the presence of multiple potential vaccine candidates. Specifically identifying them will allow developing safe and efficient subunit vaccines in the future. “This work opens the door to the possibility of obtaining an efficient and safe vaccine against ASFV in the near future” said Dr Rodriguez. “Identifying as many protective antigens as possible between those proteins codified by ASFV will allow designing an optimal vaccine formulation. It is just a matter of time, investment and willingness.”
2015 US Dairy Business Conference, Singapore
On –site report from CRAIGE ALLEN
[17 April 2015]
Hosted by the US Dairy Export Council (USDEC) the US Dairy Business Conference attracted stakeholders from all sectors of the dairy value chain from throughout Southeast Asia. This is the first time the conference was held in Asia, recognising the region’s growing demand for dairy products. Asean is the second largest market for US dairy products, with sales of USD 1.322 billion in 2014 (+3% year-on-year). A common theme of the presentations and panel discussions was that while historically the image of the US has been that of a commodity supplier of dairy products, USDEC is changing rapidly and becoming more responsive to the specific market needs in terms of what ingredients customers want.
Looking ahead: US position in the global dairy market
USDEC President, Thomas Suber was confident that “despite the current situation, in the long-term, the supply of dairy products will be constrained to meet demand. Furthermore he said that despite the recent lifting of EU quotas, with the exception of Ireland, which like New Zealand is a pasture-based production system, the EU does not have the additional feed capacity, and this will hamper their long-term supply capability. The US, however, has a cost of production advantage, primarily due to lower cost of feed. The EU also faces land and environmental constraints”, he said
US largest producer of cow’s milk
The average US dairy herd size in 2014 was 204 cows, with an average production of 10,100kg/cow/year. “Last year about 35% of US milk was produced by herds of more than 2,000 cows and 50% from herds of more than 1,000 cows” noted Mr Suber. He said the US is the largest single-country producer of cow’s milk, producing 93.4 million tonnes in 2014.
Expanding offerings to meet Southeast Asian demand
Marc A.H. Beck, Executive VP Strategy & Insights, USDEC provided perspectives on what the evolution of the US dairy product portfolio and plant expansions means for customers in Southeast Asia. He stressed the strategic importance of Southeast Asia and that the US wants to be a preferred supplier. In 2014 the global dairy market was estimated to be more than USD 19 billion in value, with Southeast Asia being the largest market with about 36% share, more than double China. 'It’s not only about selling more products, but how we provide business solutions, which deliver growth opportunities for ourselves and our business partners,” said Mr Beck.
Investment in innovation for continued growth
The US is the largest single-country exporter of whey and lactose ingredients, and also a rising exporter of milk powders and milk proteins, commented Vikki Nicholson, Senior VP Global Marketing, USDEC. She said that the US was committed to innovation to meeting customers’ growing needs. The major trends driving this innovation are; healthy ageing, childhood health, chronic disease risk and sports nutrition. 'For example, beginning at about age 40 we begin to lose 0.5% muscle mass every year, and whey proteins can help mitigate this loss.”
Maximising value with permeate
Food and beverage manufacturers are always looking for functional and nutritional ingredients that can also help their bottom line. Kimberlee J. Burrington, Dairy Ingredients Applications Coordinator, Wisconsin Centre for Dairy Research said that “permeate is one of the sleeping giants in the dairy industry and we are only just starting to tap its potential as a food ingredient. Besides cost reduction, permeate offers other benefits, such as moisture retention, browning properties, protein enhancement and reduction of sodium”. As a rule of thumb, Ms Burrington recommended “that the addition of 11g of permeate will allow a reduction of 1g of salt.”
|Chicken sales in India to be stable in summer |
[16 April 2015] Following the ban on sale of beef in India's Maharashtra and Haryana states, demand for chicken is likely to be stable this summer. Valsan Parameswaran, Secretary of All India Poultry Exporters Association told Asian Agribiz that even though drastic increase in chicken sales is not expected, the ban is likely to influence consumer preference. “Usually, chicken consumption drops during summer months in India but this year due to the beef ban in these two states, the market is expected to be steady,” he said.
|Pakistan poultry industry calls for review of FTAs|
[16 April 2015] Pakistan Poultry Association (PPA) has urged Commerce Minister Khurram Dastagir to review the free trade agreements (FTAs) with Malaysia, India and China to help the local poultry industry. Khalil Sattar, Chairman Tariff and Taxation Committee of PPA stated that Pakistan has opened up its market by allowing poultry products to be imported free of duty and sales tax. “But these trading partners have not reciprocated and use non-tariff barriers to discourage imports from Pakistan,” Mr Sattar said. According to him, India has placed all poultry products under ‘Sensitive list’, a non-tariff barrier, which prevents exports to the country. He also pointed out that these FTAs are hurting the local poultry industry.
|Food Panda and Korea’s BBQ Chicken to expand in Vietnam|
[16 April 2015] Food ordering platform Food Panda and the Vietnam-based unit of South Korea’s BBQ Chicken in Vietnam have forged an exclusive shipping agreement. The cooperation allows customers to access the services and promotion programs in the entire BBQ Chicken Vietnam system. Food Panda entered the Vietnamese market in 2012. It has connected nearly 20 franchises and 800 restaurants including popular brands of Al Fresco’s, Baskin Robbins, Burger King, Jollibee and Subway. By cooperating with the South Korean fast food chain, it is targeting a broader presence in the north of Vietnam, where BBQ Chicken is better known than Burger King, Jollibee or Subway.
|TET 2015 sees 10% rise in pigs slaughtered |
[16 April 2015] Vietnam's demand for pork just before TET (the New Year) this year was higher than estimated. “There was an adequate supply of pork,” said Ron Lane, Business Director for Asia Pacific, and Meggie Vo, Genesus Marketing Representative in Vietnam. According to the Department of Livestock, during TET it was estimated that the total number of slaughtered pigs was about 4.2 to 4.5 million nationwide, equivalent to about 310,000 tonnes of pork. This is an increase of over 10% compared with the average number of pigs slaughtered each month. For March and April, pork supplies will continue to hold steady. According to the Department of Animal Husbandry, between June to July, annual meat consumption should decline, but still remain on average, from 3.5-4 million pigs/month.
|Senepol-cross steers outperform Brahmans |
[16 April 2015] A beef researcher with Australia’s Northern Territory Department of Primary Industry (DPI) said Senepol-Brahman cross cattle are showing distinct production advantages for both northern cattle producers and Indonesian importers. The DPI has been studying the benefits of breeding Brahmans with Senepol bulls, and recently sold a number of crossbred and straight Brahman steers to an Indonesian buyer and their weight gain was tracked over 121 days in an Indonesian feedlot. Coordinator of the Beef Research Program for the DPI, Tim Schatz, said on average, the Senepol-cross steers put on an extra 21 kg compared to the straight Brahman steers. “There has been this perception that that high-grade Brahmans do better in Indonesian feedlots,” he said. “What we found was the Senepol-cross steers outperformed the Brahmans.”
|InVivo Indonesia to increase market share in poultry feed|
[15 April 2015] InVivo Indonesia plans to increase its market share in poultry feed. Alain Symoens, Country Manager, told Asian Agribiz that although competition is rife, the target is achievable. Several strategies have been prepared. For broilers it plans to launch an innovative pre-starter feed called Genesa in June. Fed to chicks from day 1 to 5, Genesa is designed to optimise the development of the chicks, improve feed intake & viability, and enhance flock uniformity. To support and provide its broiler customers with good quality DOC, it will also cooperate with local DOC producers. Meanwhile for layers, the company plans to launch Perfegg in September following several local trials. Perfegg is a vegetal active substances-based feed additive to increase egg production. “Layer farmers don’t need to reformulate as the product can be used on-top,” said Mr Symoens. He also revealed that the company is now eyeing local feed companies for acquisition to support its target on growing market share.
|Too early to predict impact of beef ban on chicken sales|
[15 April 2015] With two Indian states Maharashtra and Haryana banning sale of beef, speculation is high that consumption of chicken would increase in the coming months. M K Gupta, General Manager (North Zone), Venky’s told Asian Agribiz that it is too early to predict as consumer preference can be rigid. “It will take some time for the government decision to reach ground level,” he said adding that it all depends on how consumers are going to substitute beef in their menu. According to him, there are multiple choices for consumers such as mutton and seafood apart from chicken.
|US stops shrimp from five Asian countries |
[15 April 2015] Information released by the US Food and Drug Administration (FDA) showed that over one in three of the 155 seafood import entry lines refusals in March took place for reasons related to veterinary drug residues. The FDA reported that 58 entry lines were refused for banned antibiotics in March. With the March refusals, the FDA reports having refused 140 shrimp entry lines in 2015. In March, shrimp from Malaysia, India, Vietnam, China, and Indonesia were refused for reasons related to veterinary drug residues.
|Aman Feed gets IPO nod|
[15 April 2015] Bangladesh Securities and Exchange Commission has given the green light to Aman Feed to raise USD 9.3 million from the public. The feed producer plans to float 257,000 ordinary shares worth USD 0.13 each at an offer price of USD 0.46, with USD 0.33 as premium, the stock market regulator said in a statement. Aman Feed will use the funds from the initial public offering (IPO) for business expansion and long-term loan repayment. Aman Feed is primarily engaged in producing and distributing poultry, fish, shrimp and cattle feed. At present, the company's production capacity is 6000 tonnes a month.
|McDonald’s Japan’s sales in March fall 29.3%|
[15 April 2015] McDonald’s sales in Japan fell a startling 29.3% in March. Sales in Japan have now fallen for fourteen consecutive months, according to Bloomberg data. The stretch of unsavoury results for McDonals’s Japan, which boasts about 3100 restaurants, follows a series of high-profile food scares in Asia in 2014. Objects including a human tooth and a piece of vinyl were found in McDonald’s food in Japan. Those issues came just months after McDonald’s sales in China took a hit after Chinese supplier Shanghai Husi Food Co. was accused of selling expired meat. But while sales in China have recovered somewhat, in Japan they haven’t, suggesting deeper problems there.
|Change needed in Indonesia's cattle permits system|
[15 April 2015] Australia’s live cattle export industry is hopeful Indonesia will soon change its system of allocating cattle permits every three months, to a yearly quota system. Representatives from Australia’s live cattle industry were in Jakarta recently to meet with importers and government officials. Simon Crean, Chairman of the Australian Livestock Exporters’ Council, quoted by ABC Rural, said talks had been positive and there was support for the permit system to be changed. "The message we’ve been putting, is that Indonesia will run into problems unless they build certainty into the system,” Mr Crean said. “The best way to secure that, is through the mechanism of annual permits.”
|NECC launches mobile app for egg prices|
[14 April 2015] The National Egg Co-ordination Committee (NECC), an association of over 25000 layer farmers in India has launched a mobile app to provide access to egg prices across India. Sanjeev Chintawar, Business Manager of NECC said the app has been developed for both android and iOS platforms. “Egg prices will be updated on all days except Sundays,” Mr Sanjeev Chintawar told Asian Agribiz. According to him, the app will provide seamless access to egg prices and is a boon to farmers. He pointed out that they have plans to develop the app into an interactive platform, which includes news and blog columns for disseminating information. NECC has been declaring daily egg prices since May 1982.
|President Joko orders probe into Benjina slavery case|
[14 April 2015] Indonesia’s President Joko Widodo has ordered the formation of a special team to handle a slavery case in Benjina, Maluku. “What we are doing about the Benjina situation will become an international benchmark, [showcasing] the seriousness of Indonesia in addressing illegal fishing and slavery,” said Susi Pudjiastuti, Fisheries and Maritime Affairs Minister. Mrs Susi said local fisheries products were at risk of being boycotted if the government failed to show commitment in cracking down on forced labour. A recent Associated Press report exposed alleged forced labour practices in which the only official fishing operation on the island, PT Pusaka Benjina Resources, was suspected of treating hundreds of workers inhumanely.
|Fitch revises Japfa Indonesia’s outlook to negative|
[14 April 2015] Fitch Ratings has revised PT Japfa Comfeed Indonesia Tbk’s outlook to negative from stable. This reflects Fitch’s view that Japfa’s financial flexibility is under strain amid an uncertain market outlook. Weak demand growth and high supply led to thinner margins for Japfa in 2014. Japfa’s cost pass through ability appears to have been eroded by the increased supply over the last couple of years. While demand for chicken meat has been weak for the past two years, a reduction in supply has only kicked in over the past six months or so. Japfa has cut DOC production capacity by about 15% this year, and the company believes smaller producers are also making similar capacity cuts.
|Malaysian group shows interest in investing in Pakistan|
[14 April 2015] Malaysia’s Nafas Food Processing & Marketing Sdn Bhd (NFPMSB), a state owned company has shown interest in setting up a food processing and halal meat unit in the Special Economic Zone near Islamabad in Pakistan and then exporting the products back to Malaysia. Recently, a Malaysian delegation led by Dato Haji Ali Bin Shaikh Ahmad of NFPMSB met officials in Pakistan to discuss and explore the investment opportunities in Pakistan. Dr Miftah Ismail, Minister of State and Chairman, Board of Investment assured full cooperation to the Malaysian group for the venture which would boost trade and economic relations between the two countries.
Achieving food sovereignty needs multi-sector cooperation
Report from a seminar in Jakarta by ARIEF FACHRUDIN
[14 April 2015]
The Indonesian government under the leadership of President Joko Widodo AIMS to achieve food sovereignty mainly in rice, corn, beef, poultry, shrimp and fish. According to Prof Bungaran Saragih, former Minister of Agriculture (2000-2004), to achieve this the government must have a clear view of food sovereignty, and focused strategies, policies and programs. “There should also be a clear allocation of tasks of across departments and regions. And the most important is the existence of multi-sector cooperation between the government and farmers, businessmen and NGOs,” said Prof Bungaran.
Connectivity big challenge for food sovereignty
Connectivity is a key challenge for Indonesia as it is an archipelagic country, said Hari Priyono, Secretary General of the Ministry of Agriculture. “Therefore we need centralisation of certain commodities in certain regions.” He urged farmers to change their mind-set. “Now is the time for them to think of corn farms or livestock farms as ‘factories’ that should continuously meet market demand.” He added that: “The government will support with good policies and we will strengthen our communication with farmers and businessmen to respond to their needs and feedback.”
Technical ministries asked to be more creative
Bambang Adi Winarso, Deputy for Food Coordination and Biological Resources of the Coordinating Ministry for Economic Affairs, believes that plans and systems that have been prepared by the government to achieve food sovereignty have been good. However, he said manpower to run the plans and systems is the challenge. “Officials in technical ministries like the Ministry of Agriculture and the Ministry of Fisheries & Marine Affairs have to be more creative. They have to know that there is no ‘one policy fits for all’. They have to make special policies according to the potential of each region. In addition, they also have to think about market, not only production,” said Mr Bambang.
Livestock sector to meet increased animal protein demand
Indonesia’s population in 2015 is predicted to reach 255.5 million and by 2035 the figure is expected to reach 305.7 million. This means that in the next 20 years, the population increase per year will be around 2.51 million people. Fauzi Luthan, Director of Livestock Farming of the Ministry of Agriculture, said the livestock sector has to be able to cater to the growing demand for animal protein. He said the ministry plans to increase farmers’ economies of scale, improve the logistics system and develop a supply chain that follows animal welfare concepts. “We will also actively try to change consumers’ preference from fresh warm meat to chilled/frozen meat,” said Mr Fauzi.
Aquaculture sector to increase production
Indonesia's Ministry of Fisheries & Marine Affairs data, revealed that fish and shrimp production in 2014 reached 3.69 million tonnes and 0.59 million tonnes, respectively. Slamet Soebjakto, Director General of Aquaculture, said that to increase fish and shrimp production and to meet domestic and export demand, the ministry this year will certify farms and hatcheries to Good Aquaculture Practices. It will also increase farmers’ independence in feed, adopt biofloc technology for fish and increase the number of fish & shrimp health stations in production centres. “The programs will also be supported with the ‘Minapadi’ program – an integration of aquaculture and rice farm. FAO supports this integration program,” said Mr Slamet.
Asian Agribiz 2015 Pig Feed Quality Conference
Onsite report by CRAIGE ALLAN
[13 April 2015]
The second day of the Pig feed Quality Conference in Ho Chi Minh City, Vietnam on April 10, continued to present the latest science, trial data and solutions for Asian pig and feed producers. Presentations from the Feed Additives and Feed Manufacturing themes included;
The future of copper as a growth promoter in pigs
Xabier Arbe, Regional Technical Manager, Novus International reported recent research findings indicating that chelated copper (Mintrex Cu) is a more effective growth promoter than copper sulphate in weaner pigs. In fact, less total copper is required to exhibit the same or better growth and feed efficiency responses. He made the interesting observation that the dark green/black faeces normally attributed to high dietary inorganic copper supplementation was not present in manure from pigs fed chelated copper, and stressed that faecal colour has no bearing on the performance of the grower pigs.
Supporting the immune system of piglets with egg immunoglobulins
Piglets are born without any immune protection and need external support to their immune system right after birth, before passive protection provided by the sow’s colostrum starts working. Egg antibodies have been shown to be efficient immune ingredients, due to the reduced incidence of diarrhoea, medical treatment costs and mortality, said Felipe Freitas Barbosa, Product manager, Globigen, EW-Nutrition. In trials in Thailand, the return on investment for Globigen was 1:2.2, not including weaning weight improvement, he reported.
In-line moisture management determines feed quality
The feed industry needs the ability to measure moisture accurately throughout the production process but until recently has not had the tools to do this effectively in real time. According to Jon Ratcliff, Managing Director of Food & Agriculture Consultancy, the latest technology to solve this problem is based on microwave resonator technology (commercially known as M007) which measures in real time the moisture of the raw material before batching, and auto corrects the batching weight to correct for the true dry matter. The auto weight correction for moisture is completed without any delay to the batching process and the PLC provides an adjusted formulation for verification, traceability and stock reconciliation purposes.
Steam conditioning for pellet efficiency
Problems of feed pelleting were reviewed by Steven Goh, Regional Business Director, Delst Asia. He said that surfactants are commonly added to the mixer to address the issue of low moisture after steam conditioning. Because surfactants are added prior to gelatinization adsorb to the surface of the starch granule, the surface is rendered lipophilic, which retards the migration of water into the starch granule. There is no effective softening of the amylose, resulting in uncooked, resistant starch, affecting the digestibility of the starch, and hence the energy value of the feed is compromised.
NIR & moisture management in feed
Traditionally, discussions on controlling water in feed have focused on moisture content. This provides valuable information about product quality. Water activity is another important moisture measurement that defines the energy or ‘availability’ of water in a product. While both measurements are important, water activity provides the most valuable information, noted Ivan Ward, Director of Agri-Torque. Water activity, determines the lower limit of available water for microbial growth. Typical limits for water activity for feed are in the range of 0.65 and 0.73 aw.
|Harbin Institute introduces China’s first PEDv vaccine|
[13 April 2015] The Harbin Weike Biotechnology Company has introduced China’s first vaccine for the Porcine Epidemic Diarrhea virus (PEDv), part of a triple-vaccine that also protects against Transmissible Gastroenteritis (TGE) and Type G rotavirus. A PEDv outbreak severely affected the US pork industry last year, but China has also suffered frequent PEDv outbreaks. The new vaccine was developed at the Harbin Veterinary Research Institute, one of China’s top veterinary institutes, by a team led by Dr Feng Li. Veterinarians consulted by Asian Agribiz applauded the new vaccine, but cautioned that it may not be effective against all PEDv variants. The USDA licensed two PEDv vaccines for sale last year, but the licenses are conditional, meaning the vaccines are still being evaluated for final approval.
|Malaysian jv to open Johnny Rockets joints in China|
[13 April 2015] Johnny Rockets, a themed hamburger chain based on 1950s style US diners, plans to open 100 restaurants in China over the next decade. A company statement revealed that the restaurants will be operated by a joint venture between two Malaysian companies, AUM Hospitality and Parkson Retail Group Ltd. AUM already runs Johnny Rockets franchises in Malaysia, and Parkson has a network of about 60 grocery stores and malls in China. Johnny Rockets has about 330 outlets in 32 US states and 27 countries, and will be joining specialty hamburger outlets like Fatburger and Carls Jr. in the China market. Johnny Rockets is owned by Sun Capital Partners, a Florida-based private equity firm. Its first China store is expected to open in 2016.
|South Korea struggles with livestock diseases|
[13 April 2015] South Korea sees no relief in its fight against foot-and-mouth disease (FMD) and highly pathogenic avian influenza (HPAI) which, despite large scale culling and a vaccination program, have not been eradicated. Some 151 FMD cases in pig and cattle farms have been confirmed. To date 139,000 head on 160 farms have been culled. A USDA report stated that FMD disease cases recently spread to new areas and the number of cases is increasing. The government is introducing compensation for those who support suspected cases and provincial governments are taking action against farmers who intentionally avoid or delay reporting suspected cases. In addition, 800,000 doses of a new type of vaccine will be distributed to farms in FMD-infected areas and the government is planning to import another 2.4 million doses.
|India to increase buffalo meat exports to Russia|
[13 April 2015] Indian authorities are in talks with Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) to increase buffalo meat exports to Russia. Mr Amit Telang, First Secretary at the Embassy of India in Russia has asked Rosselkhoznadzor to hold a new round of inspections of Indian companies interested in exporting their products to Russia. A Russian delegation is due to visit India soon to review India’s food products inspection system. Currently, four Indian companies have been allowed to supply buffalo meat to Russia and two have already started exports.
|MoU for poultry courses in Pakistan|
[13 April 2015] The Technical Education and Vocational Training Authority (TEVTA) in Pakistan’s Punjab state has signed a MoU with University of Veterinary and Animal Sciences and Pakistan Poultry Association to offer poultry related courses. A Government Technical Training Centre will be established offering short term courses. Mr Irfan Qaiser Sheikh, Chairperson, TEVTA said that this joint venture wold increase employment opportunities and will enable the students to compete at both local and international level. “Students who pass out as Poultry Assistants will be an asset for the poultry industry,” he said.
Asian Agribiz Pig Feed Quality Conference 2015
Onsite report by ISA Q TAN
[10 April 2015]
With a record attendance of over 200 delegates, the Asian Agribiz 2015 Pig Feed Quality Conference presented science, trial data and solutions to update industry professionals and provide relevant and useful industry information for Asian pig and feed producers.
Feeding modern and hyperprolific sows
Rapid development in pig genetics mean that traditional feeding systems are no longer appropriate for today’s hyper-prolific sows. Dr Megan Edwards, animal nutrition consultant from ACE Livestock Consulting said there is a need to fine-tune how modern sows are fed to help them reach their genetic potential. While each genetics company has its nutritional recommendations, she stressed that these recommendations may need to be adjusted and customised to take into account other constraints to genetic potential like environment, housing, climate, labour just to name a few. Among the solutions she suggested is to adopt specific pre-farrow diets and micro manage sow nutrition during late gestation. “When designing nutrition programs, we need to consider not only the role of nutrition on metabolism but also on hormone regulation and subsequent reproduction,” she said. Dr Edwards also stressed the need for more research to address knowledge shortfalls in sow nutrition in order to keep up with genetic advances.
How NSP enzymes can benefit sows
After farrowing, sows reduce feed intake due to drastic changes in metabolism. During lactation, sows mobilise their body reserves to produce milk, leading to significant weight loss. However, extreme weight loss at this time affects subsequent reproductive performance and increases the duration of weaning to oestrus interval. Thus increasing feed intake during lactation is critical. Dr Kevin Liu, Vice President of Adisseo Asia Pacific, said recent studies showed that “adding NSP-degrading enzymes improves feed intake, hence reducing mobilisation of body reserves, leading to less live weight and backfat loss.” This finding led to the EU’s recent approval of the use of NSP enzymes in sow nutrition.
Bio-emulsifiers can improve energy utilisation during lactation
Feeding the lactating sow is one of the biggest challenges for pig producers and nutritionists as in this period, the sows’ feed intake is often insufficient to cover their energy and nutrient requirements. Dr Lakshmibai Vasanthakumari Bindhu, Staff Scientist at Kemin Industries Asia, said “such energy imbalance could negatively affect sow fertility as well as piglet weight and homogeneity at weaning,” thus it is critical to maximise energy intake during lactation. One way to achieve this is to increase the energy density of the diet by adding bio-emulsifiers like lysophospholipids. She presented a study that showed how adding lysophospholipids in sow diets improved metabolic adaptation to the demands of lactation as well as minimised body weight loss. The positive effect was further reflected in higher litter weight at birth and at weaning.
Legumes and canola can be effective protein sources
Soybean meal (SBM) remains the leading source of high quality protein for pig diets. However, issues with pricing and availability as well as the increasing calls for GM-free protein sources have led to the search for viable alternatives. Dr Megan Edwards said that among the possible alternatives are legumes and canola. Although their relative value is lower compared to SBM, the availability of synthetic amino acids today at competitive prices means that they can be used effectively in diets. However, she stressed that it is important that the attributes and shortfalls of these ingredients be properly understood, and that the materials are applied correctly in the diet. “By considering a broader portfolio of raw materials we have a means of providing partial buffering against pricing and supply volatilities and competition from other sectors. It may also allow feed supply to better meet changing consumer pressures.”
Creatine can boost growth performance and meat quality
In a highly competitive pork production industry, enhancing efficiencies help producers push up productivity and margins. Dr Eloisa Carpena, Technical Sales Manager of Evonik (SEA) Pte Ltd, said studies indicate that dietary supplementation of the amino acid creatine “may contribute to the improvement of growth performance like weight gain and feed efficiency of pigs and improve meat quality parameters like drip loss, post mortem pH and visual colour.” However, a downside is that creatine monohydrate (CMH) is expensive and is not thermostable. Dr Carpena presented new trials showing that an innovative form of guanidinoacetic acid (GAA), which is the only precursor of creatine, can be a more suitable dietary source of creatine for pigs and poultry. However, she said more research is needed to understand better the application of GAA in improving the growth performance and meat quality of pigs.
Minimising leg lameness in pigs
Despite improved genetics, nutrition, disease resistance and housing management practices, leg lameness in pigs continue to occur. Dr Thau Kiong Chung, Regional Vitamin Category Manager of DSM Nutritional Products Asia Pacific, said that this could be explained in part by the occurrence of osteochondrosis. What triggers its onset is still unclear. Moreover, osteochondrosis could cause premature culling among gilts and sows and decrease growth performance of fattening pigs, resulting in hefty economic losses. Nevertheless, while leg weakness cannot be prevented, Dr Chung said one way to halt its progression is to supplement pig diets with 25-OH-D3. Doing so tends to promote normal endochondral ossification, inhibit osteochondrosis progression and possibly regenerate destroyed cartilage tissue. Likewise, supplementing diets of growing gilts with 25-OH-D3 leads to a higher proportion of females being selected as breeding replacements.
|Indon farmers facing low live bird prices|
[10 April 2015] Broiler farmers in Indonesia are facing a hard time. Information of live bird prices on April 6 sent by Pinsar Indonesia to Asian Agribiz revealed live bird prices in Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi) is in the range of USD 1.00-1.15/kg, while production cost is around USD 1.15-1.31. In some regions such as North Sumatera, Central Java and East Java, live birds were priced at around USD 0.92/kg. Sigit Prabowo, Chairman of the National Poultry Farmers Association, told Asian Agribiz that the situation has worsened since the government increased the price of fuel. This plus currency depreciation has prompted plans by feed millers to increase the price of feed.
|Bird flu in China-Myanmar border area|
[10 April 2015] Avian influenza H7N9 has surfaced in the China-Myanmar border namely in Laukkai, Chin Shwe Haw and Muse Townships, eleven.com a Myanmar news site reported. The Livestock Breeding and Veterinary Department in Myanmar has been cooperating with the World Health Organization and a recent sample of avian influenza A tested in the border area was found to contain strains H9 and H5. The strains should be present together to incite an incidence of H7N9. No human infection of the virus has been reported. A researcher active in bird flu research in the China-Myanmar border area urged chicken meat sellers to clean their shops regularly to prevent the spread of the virus.
|US beef exports to Japan, South Korea up in February|
[10 April 2015] US beef exports in February accounted for 14% of total production and 11% for muscle cuts only – ratios similar to a year ago, but higher than in January. Exports to Japan rebounded significantly in February, up 11% from a year ago in volume (15,933 tonnes) and 23% in value (USD 112.6 million). For the two-month period, exports to Japan were still down 1% in volume (29,743 tonnes) from a year ago but increased 11% in value (USD 204.1 million). The trend was similar for South Korea, as February exports were up 16% in volume (10,899 tonnes) and 24% in value (USD 80.4 million). January-February exports to South Korea were still 7% lower in volume (17,972 tonnes) but increased 3% in value (USD 137.9 million).
Asian Agribiz Pig Feed Quality Conference 2015
[09 April 2015]
The two-day Asian Agribiz Pig Feed Quality Conference 2015 opens today in Ho Chi Minh City, Vietnam. Over 200 professionals will gain new knowledge from the strong technical program addressing themes that can enhance the performance and profitability of Asian pork producers. Yesterday, DSM held a Satellite Symposium on Clean Pork Production as a prelude to the Pig Feed Quality Conference. Following is some information that was conveyed:
Producing clean pork
Around the world, consumers are increasingly calling for safe and quality food, and pork is no exception. Many countries have now banned the use of antibiotic growth promoters in animal production, while at the same time urging prudent use of these substances even for therapeutic purposes. “Consumers demand and deserve clean pork that is free from harmful residues,” said Dr Rolando Valientes, Regional Category Manager-Eubiotics of DSM Nutritional Products Asia Pacific. He noted that production of clean pork requires a holistic approach that includes management, health and nutritional interventions. Toward this end, eubiotics like organic acids, essential oil compounds, probiotics and nucleotides can be used as tools to reduce the use of antibiotics and to produce clean pork.
Coping with heat stress
One of the biggest problems in pig production is heat stress, which adversely affects how the animal functions. Dr Megan Edwards, animal nutrition consultant from ACE Livestock Consulting Pty Ltd, said that to respond to heat stress, pigs reduce their feed intake to limit the metabolic heat derived from feeding, exercise, growth among others, but this leads to more problems. To cope in these circumstances, Dr Edwards said good nutrition is necessary and should focus on diets that minimise heat production and enhance thermal tolerance. Management should focus on maximising feed intake by reviewing and reassessing feed ingredients, feed processing and feeding processes and practices.
|CP Vietnam invests in new processing plant |
[09 April 2015] CP Vietnam Cooperation, a unit of Thailand’s Charoen Pokphand Foods Pcl (CPF), plans to invest USD 20 million to build a new food processing plant in Vietnam. The move is in line with the company’s strategy in 2015 to advance toward food processing and ready-to-eat food businesses. Montri Suwanporsi, President of CP Vietnam revealed that the new and third plant is now under construction and is expected to be completed in 2016. “With the new plant we will be able to grow our market share to 20% in three to five years, from around 6-8% at present,” Mr Montri said.
|Committee to meet on Thai egg price issue|
[09 April 2015] Thailand’s national committee on policy and measures to assist farmers will meet today to consider measures on tackling the low egg price problem, said Deputy Director General of the Department of Internal Trade Ittipong Kunakonbodin. The Egg Board earlier agreed on measures including exports of surplus eggs and early removal of spent hens. Compensation of THB0.50 for each egg exported and THB 40 for any spent hen removed earlier but not older than 70 weeks was suggested (1 USD = THB 32.60). The measures need funding and the national committee is expected to request for a budget for the program. More recently, egg price has improved with declining production as some farmers have succumbed to losses while the hot weather has reduced productivity.
|Vietnam more open to US beef imports|
[09 April 2015] Vietnam has removed all cattle age and product restrictions on US beef and beef products, provided these items are derived from cattle slaughtered on or after March 27. In 2014, the US exported a total of 2869 tonnes of beef and beef variety meat valued at USD 22.1 million to Vietnam. The US Meat Export Federation (USMEF) said the removal of cattle age and product restrictions is a positive development, especially in a market that is price-sensitive. Thad Lively, USMEF senior vice President for trade access noted that having access to Vietnam for a full range of beef products will allow the US industry to better capitalise on any market access gains resulting from the Trans-Pacific Partnership.
|West Kalimantan to balance egg supply and demand|
[09 April 2015] Indonesia’s West Kalimantan is currently facing a surplus of eggs. Abdul Manaf, Head of Livestock and Animal Health Agency of the province, said normal production in the province is around 100-120 tonnes/day, while current production has reached 160 tonnes. “Local consumption cannot absorb the entire production,” he said. Some egg producers have sold their eggs to markets outside the province, especially to Java. In addition, the local government plans to reduce layer population from now around 3.5 million birds to 2.4-2.8 million birds. “In the last two years, layer population in this province has increased from 2.3 million birds in 2011 to 3.5 million in 2014,” said Mr Manaf. Another strategy would be to stop layer DOC importation from outside the province that has reached around 150,000 chicks/month.
|Bombay High Court asks government to file affidavit on beef ban|
[09 April 2015] The Bombay High Court has asked the Maharashtra state government in India to file an affidavit on the necessity of the beef ban. The first hearing of a string of petitions that challenged the new law, which banned sale and possession of beef in Maharashtra was held on April 6. The division bench of Bombay High Court questioned the government on why its compassion was restricted to cow progeny. To this the Advocate General Sunil Manohar appearing for Maharashtra government said that ‘this is just beginning, and the state may consider taking it further’. After directing the government to file its affidavit in reply, the High Court posted the hearing for April 20.
|Feed still main revenue earner for CP Vietnam|
[08 April 2015] CP Vietnam generated total sales of around USD 2 billion in 2014, 95% of which came from domestic sales and the rest from exports. Considering sales by segments, around 45% of total sale revenues came from feed sales and another 45% from livestock operations while its food business accounted for 6-8% and the balance was others. This year, CP Vietnam targets its food business to grow 30% through marketing channels including supermarkets and modern trade stores as well as CP Shop and CP Fresh Mart stores.
|Asian markets import less US pork|
[08 April 2015] US pork exports to its main markets in Asia was down 16% in the first two months of this year, according to the US Meat Export Federation (Usmef). Total exports to Japan, Hong Kong/China, South Korea, Asean, and Taiwan reached 154,832 tonnes for the period compared to 184,676 tonnes a year ago. Export value also tumbled 14% to USD 489.7 million to USD 571.7 million during period in review. Volume and value of shipments to South Korea grew by 58% and 77% respectively as they did in Taiwan, however these were not enough to offset the drop in the other key Asian markets. Export volume and value to Japan both fell by 9% and 16%, Hong Kong/China 45% and 45%, and Asean 47% and 50%.
|Indonesia slammed for slave labour in fishing|
[08 April 2015] The US has threatened to stop importing fish and seafood from Indonesia if they are proven to be slave-caught. Catherine A Novelli, US Under Secretary for Economic Growth, Energy and the Environment, said that the US condemns forced labour and related practices. Stories about slave workers surfaced following an Associated Press report. The news agency conducted a year-long investigation into the fate of foreign fishermen in Aru, Maluku – Indonesia. About 4000 foreign fishermen, mostly from Myanmar, are employed by PT Pusaka Benjina Resources (PBR), a joint venture with Thai investors in Aru. They are forced to work under poor conditions. The Indonesian government, has ordered PBR to stop its operations. Most fish caught by PBR in Aru is shipped to Thailand for processing and then exported to the US.
|Yum! Brands commits to deforestation-free palm oil|
[08 April 2015] US-based Yum! Brands that owns QSR chains KFC, Taco Bell and Pizza Hut has announced that it plans to refrain from using palm oil obtained through deforestation. The company said by the end of 2017, it will “source 100% of its palm oil for cooking oil from responsible and sustainable sources.” The expansion of oil palm plantations has been blamed for driving rainforest destruction, particularly in Indonesian Borneo (Kalimantan). Indonesia’s tropical forest area is the third largest in the world, but Indonesia is also one of the world’s largest emitters of greenhouse gasses because of rapid loss of carbon-rich forests and peatlands.
|Belarus suspends poultry imports from India |
[08 April 2015] Belarus has imposed temporary restrictions on imports of poultry from India, according to the Veterinary and Food Control Department of the Agriculture and Food Ministry. The move follows cases of high pathogenic avian influenza in Uttar Pradesh state in India. The ban will cover imports of live birds, hatching eggs, poultry meat, egg powder and other food products from processed eggs. With this, all the previously issued permits to import the products from Uttar Pradesh will be cancelled.
PPA to organise two day poultry festival
[08 April 2015] Pakistan Poultry Association (PPA) in collaboration with the Punjab Livestock department will hold a two day Poultry Food Festival on April 10-11 in Lahore. Dr Mustafa Kamal, Chairman (North Zone) of PPA said that the festival is aimed at creating awareness among the general public on the importance of poultry products, which is the cheapest available meat protein source. “PPA also endeavours to promote egg consumption, which has many health benefits,” he said. According to him, poultry accounts for 40% of total meat consumption in Pakistan and generates employment for about 1.8 million people.
|CP Foods to invest USD500m for expansion in India|
[07 April 2015] Charoen Pokphand Foods India Private Limited (CPF) operating its Five Star Chicken franchise, plans to invest USD 500 million for expansion in India. Sanjeev Pant, Senior Vice President of CPF said that they plan to double the number of Five Star Chicken stores in the next five years and to enter the packaged food business. CPF has 260 Five Star Chicken stores in India and is growing at the rate of 10-15%. According to him, the investment of USD 500 million will go towards expanding shrimp, poultry and food business of CPF.
|Brazil lifts import ban on Vietnam seafood|
[07 April 2015] Vietnam’s Ministry of Agriculture and Rural Development’s Department of Animal Health said Brazil has lifted the ban on Vietnamese tra fish. The department’s Director Pham Van Dong said a number of Vietnamese enterprises are preparing to ship their products to Brazil. Previously, Brazil’s Ministry of Agriculture had requested for Vietnam to draw out a plan for preventing diseases on tra fish. Vietnam’s Department of Animal Health said the requirement was contrary to regulations of the World Organisation for Animal Health, the World Trade Organisation and those in the sanitary and phytosanitary systems.
|Eastern Indonesian pig farmers need training|
[07 April 2015] Results of a survey of pig farming in the east of Indonesia reveal a need for better education of farmers, particularly on pig disease and biosecurity. Pigs provide a secondary income source for smallholder farmers, with the majority slaughtering at their own premises for household meat consumption. Most of the pigs are kept in pens or tethered, while some roam free in the village. Farmers have limited access to animal health facilities and biosecurity is minimal, the researchers found. First-named author, Edwina E C Leslie, and co-authors reported that pig farming is common among smallholder farmers in East Nusa Tenggara.
Food safety focus for World Health Day
[07 April 2015]
Ensuring food safety from farm to plate
This year's world Health which falls today is dedicated to food safety. The World Health Organization (WHO) has declared the slogan for this as 'From farm to plate, make food safe'. “Food safety is a cross-cutting issue and shared responsibility that requires participation of non-public health sectors and support of major international and regional agencies and organisations active in the fields of food, emergency aid, and education,” said WHO in a release. Coordinated international actions are also needed to reign in foodborne disease, it added.
Foodborne diseases cause 351,000 deaths
Nearly 600 million cases of foodborne enteric disease, with 351,000 deaths, occurred worldwide in 2010, 40% of them in young children, a WHO research group noted as it released early findings of a broad analysis of the global burden of the diseases. The WHO’s Foodborne Disease Burden Epidemiology Reference Group’s (FERG’s) figures say that enteric disease cases from contaminated food numbered 582 million in 2010. Twenty-two different diseases were responsible, with Salmonella typhi infections causing the most deaths (52,000), followed by enteropathogenic E. coli (37,000) and norovirus (35,000). Southeast Asia was the site of the second highest disease burden after Africa.
Few countries implement integrated antimicrobial resistance surveillance
The Southeast Asia regional food safety strategy among others objectives, is building links across the region. From the Food Standard and Safety Authority of India’s mechanisms to certify safe food across all sectors to the ‘Clean food, good taste’ certification for street food vendors in Thailand, WHO is working with governments, policy makers, public health professionals, and individuals to build a synergy of safe food. This includes promoting and supporting implementation of laws and standards, improving public awareness and spurring action across various sectors. Despite this, harmonised integrated surveillance of antimicrobial resistance in food-producing animals and food is implemented in only a few countries. While national programs are working to create more reactive programs, a holistic solution must also come from each segment of the food chain, starting with the farmers.
Food safety starts from the farm
Safe food production practices at the farm can ensure that meat, dairy and egg products are well-tended from the source. WHO in its website presented a story about an organic poultry farmer from India, Vivek Kushwaha. His lifelong desire for healthy food ignited a passion to develop a successful organic poultry farm and bring local farmers together to form a network of producers of safe food. His ‘cycle of happiness’ philosophy has drastically improved the lives of the farmers Vivek works with. “They had almost quit farming but are now enthused as they produce the best quality products for the consumers. They also understand that providing healthy food is sustainable and the right thing to do.” WHO’s Antimicrobial Resistance Global Report on Surveillance has defined that resistance to antibacterial drugs has become a worldwide problem for both human and animal health. Irrational use of antibiotics causes antimicrobial resistance in both animals and humans.
SEA urged to make food safety a priority
Over 700,000 children die in Southeast Asia every year due to diarrhoea and several other diseases caused by the impure food and water. “Bacteria, viruses, parasites, chemicals, and other contaminants in our food can cause over 200 diseases ranging from diarrhoea to cancer,” said Poonam Khetrapal Singh, WHO Regional Director for Southeast Asia. She said countries must put in place comprehensive food safety policies and stringently implement it across the food chain. “WHO supports countries to prevent, detect and respond to foodborne disease outbreaks using the Codex Alimentarius, a collection of international food standards, guidelines and codes of practice that include microbiological norms, food additives, pesticides and veterinary drug residues, contaminants, labelling and presentation, and methods of sampling and risk analysis.”
Indonesia lacks adequate food safety standards
Indonesia still has a long way to go before it can ensure food safety as the country severely lacks adequate standards, according to Agustin Kusumayati, University of Indonesia Public Health Dean. “This may be because of a lack of priority [on the government side] to develop them. That’s why it’s hard for us to apply reward and punishment [with food producers]. However, having food safety standards is not enough to ensure consumer safety as food safety involves many stakeholders,” she said. The government is currently working on issuing more Indonesian National Standards (SNI) for food and agriculture products, according to Ita Munardini, Agriculture Production and Marketing Director General of the Ministry of Agriculture. “At the moment, we have about 500 SNIs, but only a few are mandatory. Without food safety standards our producers will not be able to compete [with foreign producers],” she said. Ms Ita said the reason Indonesia still lacked food safety standards was because they are expensive to develop.
|Thailand opts for sustainable corn project |
[06 April 2015] Bangkok Produce Merchandising Pcl, a company under Charoen Pokphand Foods Pcl, or CPF, has signed an MOU with the Agricultural Land Reform Office under the Ministry of Agricultural and Cooperatives to jointly implement a sustainable corn project. This involves transferring good agricultural practice for maize to farmers. The cooperation was prompted by the current smoke problem in the northern region, a major corn production area. Somchai Kungsamutr, President and CEO of Bangkok Produce said the project will promote proper corn planting knowledge and after-harvest management. Ploughing up and over of soil is promoted rather than burning to clear post-harvest waste. The project aims to cover 18,000 acres in eight provinces in the first year with a target for 90,000 acres by 2019.
|Indon poultry firms see profit decline in 2014|
[06 April 2015] Publicly listed poultry firms in Indonesia ended last year with lacklustre financial performances, surging expenses and low prices squeezing revenues. Major players Charoen Pokphand Indonesia, Japfa Comfeed Indonesia and Malindo Feedmill all recorded significant a year-on-year decline in their net profits last year. CP Indonesia saw its net profit plunge by 30.8% to around USD 134.6 million last year from around USD 194.5 million in 2013. Japfa recorded a 48.3% decline to around USD 24.5 million from around USD 47.4 million year-on-year. Malindo, meanwhile, booked around USD 6.5 million in net losses last year, a slump from around USD 18.5 million in net profits in 2013.“Declining prices on the back of DOC oversupply, currency depreciation and fuel-price hikes became the main factors deflating the firms’ financial performance,” said Herman Koeswanto, Mandiri Sekuritas Analyst.
|Betagro opens four food outlets in retail complex |
[06 April 2015] Betagro Group from Thailand has opened four outlets for its food and bakery brands at a new luxury retail complex, EM Quartier, in Bangkok. The restaurants namely the Japanese food chain Pomme-no-ki, the Japanese udon chain Miyatake Sanuki Udon, Little Mermaid bakery and the Singaporean barbequed pork chain, Bee Cheng Hiang. Betagro has invested significantly in the restaurant segment through joint ventures with several Japanese food chains and is expecting to add two to three more brands to its portfolio this year.
|US eyeing more Asian pork exports|
[06 April 2015] As the first quarter of 2015 ends, Joel Haggard, US Meat Export Federation (USMEF) Senior Vice President for the Asia Pacific, offered his insights on factors shaping demand for US pork in key Asian markets. “First, the US dollar is particularly strong and a strong dollar means weak currencies for the importing countries in Asia and also our competitors, including Europe and Brazil. On top of this, we see weak European pork prices in Euro terms,” said Mr Haggard, as quoted by Meat+Poultry. Meanwhile, domestic pork prices in Japan and Korea, two of the US’ major importing destinations, are up 15-20%. “We hope this will translate into overall increased imports,” he said. “We also continue to watch China closely. Imports are up 6% year-on-year despite soft domestic prices.”
|US corn, soybean, wheat stocks up from year ago|
[06 April 2015] The US Department of Agriculture (USDA), in its Grain Stocks report dated March 31, reported that corn stocks stood at 7.7 billion bushels, up 11% from a year ago, the second most in the history for the time of year and above estimates. Both soybean stocks and wheat stocks were up 34% and 6% respectively. In its Prospective Plantings report, also released on March 31, the USDA said it will reduce corn and wheat planted acreage by 2% and 3% from the year before, and increase soybean acreage by 1% from 2014.Soybean planted area for 2015, meanwhile, is estimated at a record high of 84.6 million acres. Compared with last year, planted acreage intentions are up or unchanged in 21 of the 31 major producing states. FT.com said world inventories of grain and oilseeds are “bulging after two years of good harvests”.
|CJ to promote products with less sodium, chemical additives|
[06 April 2015] Korea-based CJ Group plans to widen its processed meat market by promoting new products with less sodium and no chemical additives. The company said the demand for low-salt, chemical-free premium products was rising. “More consumers are exploring ways to lead a healthier life,” said Kwak Jung-woo, a marketing executive of CJ Cheiljedang. “This puts increasing pressure on food companies to reduce the use of sodium and chemical substances. We have led the market with a series of innovative products. We will shake up the market once again with new products that will present customers with healthier life choices.” He said that CJ products contained between 1.0% and 1.5% sodium, less than products made in the US, Europe and Japan.
|Japfa Indonesia acquires 70% of MMP shares |
[03 April 2015] Japfa Ltd has announced that its Indonesia listed subsidiary Japfa Comfeed Indonesia has acquired 70% of the issued share capital of PT Multi Makanan Permai (MMP) on April 1. The acquisition price was around USD 37,066, which was arrived at on a willing-buyer, willing-seller basis, based on 70% of MMP’s net tangible assets as at February 28, 2015. The purchase was financed by internal resources. MMP is into trading of animal feed raw materials. The customers of MMP are mainly self-mixer poultry farmers and smaller local feedmills. The acquisition provides Japfa Indonesia with the opportunity to expand its customer portfolio.
|Vietnam approves GM corn for animal feed|
[03 April 2015] Vietnamese farmers across the country can now plant three varieties of genetically-modified (GM) corn from Syngenta according to a government rule, reported Thanh Nien News. The three varieties are NK66 BT, NK66 GT and NK66 BT/GT, and will be supplied to corn farms nationwide with each variety being distributed to specific regions, said the Ministry of Agriculture and Rural Development. Pham Dong Quang, Director of the Department of Crop Production, said the three varieties are able to resist pest and herbicide as well as produce higher yields. “GM corn will be used for animal feed only and thus, it does not require special labelling,” he said. These developments were in line with a 2006 plan to develop biotech crops as part of a ‘major program for the development and application of biotechnology in agriculture and rural development’. The plan aimed to cultivate Vietnam’s first GM crops by 2015 and have 30-50% of the country’s farmland covered with genetically modified crops by 2020.
|Former Yurun CEO under house arrest|
[03 April 2015] The founder and former CEO of Yurun Food Group, Zhu Yicai, has been placed under house arrest by Chinese authorities, according to a statement posted by China’s second-largest meat company on the Hong Kong Stock Exchange website. Mr Zhu stepped down in 2012 to become Honorary Chairman and Senior Adviser to Yurun's board of directors. A story on the E-Pig (zhue.com) website said Mr Zhu was being investigated by the Communist Party’s Central Commission for Discipline Inspection, which is spearheading a nationwide anti-corruption campaign that has snagged scores of government and business officials. In its statement Yurun said it had no information on the reasons for Mr Zhu’s detention, but said he had no current role in managing the company, although he still owns 25% of Yurun’s shares.
|SEAI urges government to lift ban on shark fin export|
[03 April 2015] The Seafood Exporters’ Association of India (SEAI) has urged the Central Government to lift the ban on sharks fin exports. The Director General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry recently banned sharks fin exports. In a statement, the SEAI said that the ban is counterproductive and affects the livelihood of the economically backward fishing communities. “The order reflects apprehensions of environmentalists that the shark population is fast depleting because they are being caught just for their fins,” the statement added. According to SEAI, shark is not a focused fishery in India and is only caught along with other fish.
Preview of Asian Poultry Magazine, April 2015
[03 April 2015]
Cargill supports farmers to build market share
Cargill Feed and Nutrition Vietnam helps small-scale farmers tackle big challenges not with a general one-size-fits-all answer but with localised solutions which are developed closer to home, RACHAEL PHILIP discovers.
Liuhe taps into growing demand for goose, duck
Duck and goose meat have been on a roll in China for the last 15 years. China’s consumption of broiler chicken has been hit hard by recurrent outbreaks of Highly Pathogenic Avian Influenza, but goose and duck meat have become steadily more popular writes RICH HERZFELDER.
IFMC confident of retail success
The Bounty Fresh Group, one of the leading poultry integrators in the Philippines, has made a name for itself with high quality poultry products. ISA Q TAN reports that its sister company, Inoza Feed Milling Corp, backed by years of producing Bounty’s internal feed requirements, is now gunning to make its mark as a leading feed company in the country.
Rohini Minerals to maintain lead with R&D
With a strong R&D division, Rohini Minerals based in South India aims to improve the quality of its poultry feeds and maintain its competitive edge. ARIEF FACHRUDIN also learns that the company embraces modern technology for its feed milling and quality control facilities.
Utilising cotton seed meal in layer diets
In the first of this two-part article S.V. RAMA RAO and T. SRILATHA* showed that the nutritive value of cotton seed meal (CSM) can be improved by selective dehulling and fortification with neutraceuticals and included in broiler diets at up to 20%. In the second part of this article they write that dehulled CSM can also be successfully used in layer diets.
New generation stabilisers improve Newcastle disease vaccine performance
Asian poultry integrators increasingly rely on hatcheries to administer important vaccines. Pressures to adopt earlier vaccination strategies include injected, sprayed and in ovo programs, each method and antigen imposing its own particular burden application and risk of failure. ZHANG JIANG, VERGIL DAVIS and RYAN IZARD* discuss the potential of new generation stabilizer technologies to protect fragile Newcastle Disease (ND) vaccines from the harmful effects of chlorine. This can allow producers to use ordinary tap water or well water to make spray vaccination more convenient and efficient.
DDGS – Understanding quality & value
Many feed mills and integrators have become frustrated with the variable nature of DDGS. The use of book values has often resulted in reduced animal performance, increased diet costs or both. As a result some companies are simply not prepared to take on the risks using DDGS, while others have continued using, but have taken conservative positions on its nutritional value and inclusion rate. In both instances companies are losing out simply due to the fact that they don’t fully understand the material, through no direct fault of their own. MAX PURSER* outlines some of the considerations to understand specific sources of DDGS to be able to successfully use higher levels of this economical source of nutrients and energy.