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|Crysbro, Bairaha setting up new feedmill|
[01 September 2014] Together with Bairaha Farms, Crysbro Group of Companies in Sri Lanka are setting up a new feedmill. Crysbro Chairman Mohamed Imtiaz told Asian Agribiz that the plant will have an installed capacity of 20 tonnes/hour, but the capacity is expandable to 40 tonnes/hour. The plant will also have six 3000-tonne silos to store corn and soybean. He said the plant will be equipped with a feed milling system from Buhler and the least cost formulation software of BestMix from Adifo. “The plant will be the most modern plant in the country,” Mr Imtiaz said, adding that it is expected to be operational in April 2015.
|Poultry manure more potent for biogas production|
[01 September 2014] Philippine poultry producers can utilise their chicken manure for biogas production, Mr Romel Gozas, VP for Business Development of Bio-Alternative Green Solutions told participants of the Bitrade Poultry Breeder Summit held in Manila, Philippines on August 28. Among the benefits of biogas include the elimination of odour and groundwater pollution, provides a non-polluting and renewable source of energy, and it also is an effective fly control mechanism to name a few. He said unknown to many, poultry manure is actually a more potent source of biogas than pig manure, yielding 130 cu.m/tonne of gas vs 80 cu.m/tonne from pig manure.
|Vietnam, pig farmers targeted in chemical probe|
[01 September 2014] Agencies in Vietnam's Ho Chi Minh City and Hanoi and the provinces of Dong Nai, Vinh Long, Hung Yen and Thanh Hoa plan to conduct investigations into the pig breeders' use of banned chemicals in animal feed according to Vietnam News. Tran Van Quang, head of the Veterinary Department of Dong Nai Province, said that six of more than 20 pig-breeding farms that were inspected in the provinces had been using the banned lean-meat additive Sulbutamol. The price hike of pork had prompted breeders to use the chemical in animal feed, he told the meeting organised by the Department of Livestock Production and the HCM City Department of Agriculture and Rural Development in Ho Chi Minh City recently.
|Greenfileds Milk to double Malaysian sales by 2015|
[01 September 2014] Indonesia’s Greenfields Milk is eyeing the bullish business growth in Malaysia and aims to double total sales to two million litres of milk worth USD 6 million by end-2015. The fresh milk brand, which entered the market in October last year, has so far recorded USD 2.7 million in sales value with four products available in the market -- Fresh Milk, Choco Malt, Whipping Cream and 200 gram Mozzarella cheese. Sally Lum, Head of Marketing for Austasia Dairy Group, distributor for Greenfields Milk, said the growth would be driven by the increasing demand for dairy products, changing lifestyle, better education on dairies, as well as, better and more modern retail operations. She said the product's quality itself, location wise, new variant products, coupled with better technology in chilling and transporting goods would also support the growth target.
|Nepal receives first container of Danish pork|
[01 September 2014] Last month Nepal took delivery of its first container of Danish pork. The 20-foot container had a mixed consignment of pork loins, bones, hams, bellies and spare ribs. It was shipped to Calcutta in India then transported by lorry to Kathmandu. According to Denmark's ESS Food Area Export Manager Lars Bo Hansen, Sanu Khadgi, a wholesaler in Kathmandu ordered the products. “This has been a really exciting job, initiating the first Danish pork meat export to Nepal.”
|17 plead guilty in toxic dog meat scandal |
[01 September 2014] Seventeen men in the Zhejiang Province port city of Ningbo pleaded guilty to charges of stealing dogs, killing them with poison and selling the poisoned meat, according to Shanghai Daily. In another food scandal revealed earlier in the week, Zhejiang Province authorities charged 38 people with selling chicken feet soaked in hydrogen peroxide, used to bleach aging meat. In the dog meat case, two of the dealers were charged with selling 22 tonnes of toxic meat in 2012 and 2013. The dogs were killed with cyanide or succinylcholine, an aesthetic, traces of which remained in the meat. Most of the meat was sold to restaurants, police said.
|Maharashtra Feeds to open new mill in September|
[29 August 2014] India’s Maharashtra Feeds Pvt Ltd, which operates feedmills in North, Central and East India, will commission its seventh feedmill in September. The newest mill, a 250 tonne/day facility, will initially have an operating capacity of 150 tonnes/day. “This is the market we know we already have,” Managing Director Kamal Deep Jain told Asian Agribiz. The company, which started operations in 1993 with only mash feed, has launched about one new mill every year since 2006. “In the last seven years we have been growing at a rate of 40% per year,” he said. The next two years the company will consolidate its operations and plan for the coming years.
|Producers urged to take advantage of preference for smaller birds |
[29 August 2014] One of the strategies that Philippine poultry producers can take to survive in an increasingly liberalised market is to focus on the local consumers’ preference for whole chicken at smaller sizes, Atty Elias Jose Inciong, President of the United Broiler Raisers Association (UBRA) told participants of the Bitrade Poultry Breeder Summit held in Manila, Philippines yesterday. Noting that local producers cannot compete with global players like the US and Thailand when it comes to efficiencies, he said several local players have decided to turn to supply the growing roasted chicken market, which require smaller birds. Although efficiency figures may not hold against other key global players, these producers make up for it by having more production cycles per year and faster turnarounds.
|Russian companies to buys Thai chicken at visit|
[29 August 2014] Three Russian companies visited Thailand recently to buy Thai foods products including chicken and duck, according to Nantawan Sakultanak, Director General of the Department of International Trade Promotion at the Ministry of Commerce. The Russian companies will also explore chicken processing procedures at Charon Pokphand Foods Plc and Betagro, she said. Thailand expects demand for chicken from Russia to increase as sanctions by the US and European Union has forced the country to find alternative sources. A Thai delegation will visit Russia soon to meet with its Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS) to negotiate to eradicate obstacles on meat product imports from Thailand. At present, FSVPS has approved imports from 21 chicken plants in Thailand.
|Malaysia's agri-sector lifts GDP growth|
[29 August 2014] Malaysia’s Central Bank or Bank Negara Malaysia (BNM) said the country’s GDP expanded to 6.5% in Q2 compared with 6.2% in Q1. For the previous corresponding quarter, the GDP grew by only 4.5%. The main contributor was the agricultural sector which grew by over 200% to reach 7.1% compared with only 2.3% in Q1. In fact, the sector posted the fastest growth in the last 10 quarters, averaging 2.2. “The agriculture sector rose by 7.1% year-on-year (yoy) during the quarter, highest since Q3 2011. The growth was broad-based, led by crude palm oil, which strengthened by 14.9% yoy as a result of better yield performance, and by the livestock sub-sector, mostly consisting of poultry, which grew by 6.1% yoy amid higher domestic demand for chicken products.
|Thai investor buys Vinamilk shares|
[29 August 2014] Thailand’s F&N Dairy Investment has bought 15 million shares of Vinamilk (VNM) at a price higher than the Vietnamese company’s actual market value reported Vietnam News. Investors linked to Dragon Capital and a fund managed by VinaCapital reportedly sold a combined volume of 15 million shares to the Thai shareholder. Notably, VinaCapital announced the purchase price at more than USD 5.7, which was 9.7% higher than Vinamilk’s value at the time of the transaction.
|Greenfields Milk to double production by 2016 |
[29 August 2014] Indonesia's Greenfields has imported 1,200 Holstein Heifer cows from Australia in a move to help double annual milk production in the next two years. Greenfields 50-hectares farm in Malang East Java currently has 6,000 pre-bred Holstein cows, producing more than 27 million litres of milk, annually, which are packed and distributed to Singapore, Malaysia, Indonesia, Philippines, Myanmar, Brunei, Cambodia, and Hong Kong. A plan to build a second integrated farm is currently underway with 8,000 new Holstein cows to be imported from Australia. The new 180-hectare farm, expected to be completed by late 2016, would likely double Greenfields' total milk production to 54 million litres per annum.
11th Southeast Asia US Agricultural Co-operators Conference, Danang, Vietnam
Onsite reporting by RACHAEL PHILIP
[28 August 2014]
US Soybean Board predicts bumper crop in 2014/2015
The US Soybean Board expects 2014/2015 to be a record year with soybean production hitting 98.93 million tonnes. Although the year began with low stocks of 3.53 million tonnes, end stocks are expected to touch 8.98 million tonnes. According to Chairman Jim Call, planted hectares in 2014 stood at 32.98 million against 31.21 million. Speaking to Asian Agribiz, he said beans from the north has a lower crude protein content compared to beans from the mid and south US. “We are looking at increasing crude protein content through seed technology. Sometimes the crude protein levels are high but oil levels come down. If we can fix this we get a better market.” He said buyers prefer their soybean shipped out from the Pacific Northwest because of the shorter time compared to the Gulf in the south but end up choosing the latter because of the higher crude protein content of beans from the south.
US farmers prioritise sustainability issues
In the last 20 years US farmers have increased crop yields while decreasing negative environment impacts such as energy, land use, soil erosion and irrigation. USSEC Chairman Randy Mann said US farmers are dedicated to innovation and best practices. For instance, after collecting soil samples, precision chemical application via GPS technology alerts the farmer on which part of the land needs to be fertilised. Speaking to Asian Agribiz, he said the council made it a point to listen to the needs of Asian buyers. “One of the concerns buyers had was that China would take up all the soybeans. This is tough if Brazil suffered a drought. Over the years we have increased our soybean production and yields through hybrids and genetics, which offer better traits. In this way we can meet our livestock demand and have about 61% to export.” Mr Mann retires this year from the council.
Will the industry see multi-year declines in grain prices?
Global corn supplies is expected to surge to roughly 1.15 billion tonnes in 2014 compared to roughly 1.10 billion tonnes in 2013 and 1.00 billion tonnes in 2012. The USDA recently forecasted a flat US ethanol demand into 2022. Will these factors contribute to a multi-year decline in feed grain prices? In his presentation, AgResources Company Chief Economist Dr William I Tierney Jr, estimated average farm price could drop to USD 4.45/bushel in 2013/14, and much lower in the subsequent years. Factors that could damper the drop in prices are extreme weather conditions and China’s policy regarding feed grain prices. “Corn prices will drop but there is an uncertainty on how fast prices will adjust,” he said. Mr Tierney also expects transportation costs to go up as operators of US rail are increasingly opting to transport oil over grain. This could have a spill over effect on barge charges. “Farmers will receive less and importers will have to pay more.”
Buyers, integrators confident of low prices
A quick survey at the conference showed that buyers and integrators were optimistic over feed grain prices for next year. They expect prices to show a noticeable decline after years of tight supply and high prices. “Net prices could come down by as much as 12-15% by early next year because of the ample supply of corn and soybean,” said Dato’ Fong Kok Yong, Managing Director of Malaysian integrator Sinmah Resources Bhd. “The basis will have only a marginal effect on the overall cost,” said Selpha O Trinidad from Longview Agribusiness Solutions. Meanwhile Thomas Milke, Executive Director of ISTA Mielke GmbH, said now is the time consumers should build their stocks. “Consumers are tempted to wait out in a declining market, they are waiting for the market to bottom out as soybean meal is still overvalued,” he said.
|China seizes 30,000t of contaminated chicken feet |
[28 August 2014] Chinese authorities had seized 30,000 tonnes of chicken feet polluted with hydrogen peroxide after police busted nine factories in the provinces of Jiangsu, Anhui, Henan and Guangdong, according to china.org.cn, citing a Xinhua report. Up to 38 people have been arrested so far on suspicion of making or selling contaminated chicken feet which is one of the country's favourite snacks. This latest food scandal in China broke after the tainted snacks were first found in Yongjia County of Zhejiang Province in east China. The factories used hydrogen peroxide solutions as bleach and antiseptic. Hydrogen peroxide has a wide use in the manufacturing and medical sectors as a disinfectant and bleach but could be harmful to health if mixed with food. Police are looking for another 11 suspects.
|KKR takes 18% share in Fujian Sunner|
[28 August 2014] US private equity investor KKR has agreed to pay USD 400 million for an 18% share in Fujian Sunner Development, China’s largest chicken producer, giving it a foothold in yet another industry where the Chinese government is encouraging consolidation. The government has made safety a priority in the meat and dairy sectors following a spate of scandals, and believes vertically integrating the dairy, pork and poultry sectors is a key step in improving overall food safety. KKR has also taken large stakes in China Modern Dairy and COFCO’s pork unit, following a classic China investment strategy by looking for profitable deals that fit in with government policies.
|Asia Pacific second highest feed enzymes market|
[28 August 2014] According to a new report of MarketsandMarkets, the feed enzymes market is estimated to reach about USD 1,280.1 million by 2019. The Asia Pacific market is estimated to have the second-highest CAGR of 7.6% from 2014 to 2019 after Europe. The rest of the world market for feed enzymes is projected to grow at the highest CAGR of around 8.8% from 2014 to 2019.
Asian Meat Magazine highlights in September/October
[27 August 2014]
Raising the standards in shrimp farming
For the fourth year running disease is the number one concern among shrimp producers, surpassing production and feed costs. Last year global shrimp production was some 15% off from 2011. Although a dreaded disease, the EMS is a potential game changer that could revitalise the entire shrimp industry in the region. Producers are learning that diseases like the EMS are manageable, and investment in the industry is necessary to take the industry to the next level, RACHAEL PHILIP and the ASIAN AGRIBIZ team report.
Burapa Farm to create community pork shops
Apart from building a pig slaughterhouse some years ago Burapa Farm 101 owner and Manager Prasit Laungmanee opened a retail shop for pork meat and pork-based products early this year. He wants the company to become the Kitchen of Roiet and for nearby provinces in the north-eastern region, writes NITSARA THONGRUNG.
CJ to develop brand and raise sales by 90%
Last year the chicken slaughterhouse division of CJ Indonesia recorded good business growth spurring the company to consider increasing its sales by 90% this year. ARIEF FACHRUDIN learns that it plans to build a third slaughterhouse and, within five years, a further processing plant.
Fresh Options expands and widens product offerings
Fresh Options has come a long way since its establishment almost nine years ago, expanding aggressively from a small meat shop in Central Luzon into one of the fast-rising meat companies in the country. ISA Q TAN reports where the company is headed and how it plans to get there.
Plus special reports on ProPak Asia 2015 in Bangkok Thailand; the 12th Annual China International Meat Industry Exhibition in Beijing, China and VIV India in Bangalore, India.
|Essar Agro to double capacity of oil plant |
[27 August 2014] Indian premix producer Essar Agro Products’ two-month-old soy-based oil plant in Indore has the capacity to produce 6000 tonnes of oil per year. Managing Director Lucky Bhatia told Asian Agribiz that strong demand from feedmillers and integrators will see the plant double its capacity by December this year. “Our product undergoes a special purification process that removes all impurities and toxic material such as wax, saponifibles, peroxides and moisture,” he said adding that prior to this feedmillers did not have much option and were forced to buy oils that were blended with up to three types of raw material and contained toxic substances and free minerals. Called Booster, the energy concentrate, which promotes growth, can be used as an animal feed supplement for all species.
|Thailand denies rumours about mysterious death of pigs|
[27 August 2014] Thailand’s Department of Livestock Development has denied rumours in social media about the mysterious death of pigs in the major production areas in Nakhon Pathom and Ratchburi. DLD Director General Trissadee Chaosuancharoen said DLD has investigated the farms in the areas and found no proof of this. He confirmed that DLD employs stringent surveillance measures against livestock epidemics and that pig farms are regularly examined and audited. Surachai Sutthitham, President of the Swine Raisers Association clarified that Porcine Epidemic Diarrhoea (PED) virus was the cause of pig mortality but consumer safety is not compromised. The Thai swine industry is working hard to control the PED epidemic, Mr Surachai said.
|Bird flu detected among pheasants in Vietnam|
[27 August 2014] The highly pathogenic H5N6 Avian Influenza virus had been detected in a flock of pheasants in the northern province of Lao Cai's Bao Thang District, Vietnam, Vietnam News reported. Local authorities in Lao Cai have taken measures to prevent the spread, including strict quarantine regulations and inspection of poultry transport and trading. A total of 558 pheasants were found susceptible, out of which 498 cases and deaths were reported and all remaining poultry in affected flocks were destroyed after the virus was detected. The deadly H5N6 bird flu strain was detected for the first time in Vietnam in mid-August in chickens in the northern province of Lang Son on the border with China, and a flock of ducks in the central province of Ha Tinh which borders Laos.
|Japan looks to Indonesian poultry supply|
[26 August 2014] Indonesia and Japan are in talks to resume poultry shipments from Indonesia after a 10-year suspension. The talks began just weeks after the latest food safety scandal involving a Chinese meat supplier caused McDonald’s Corp in Japan to withdraw its full-year earnings forecast. “We expect to export chicken to Japan worth around USD 200 million, or 10% of Japan’s total chicken import market of USD 2 billion,” Indonesia’s Trade Minister Muhammad Lutfi said. “Japanese inspectors are now in Indonesia to inspect production facilities.” Although talks are still ongoing, Mr Lutfi said he was optimistic the ban would be lifted and exports would resume by December 2014. This would benefit poultry producers such as Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Sierad Produce and Malindo Feedmill.
|Godrej Tyson to widen distribution|
[26 August 2014] Godrej Tyson Foods is expanding its distribution network for both fresh chicken and ready-to-eat products especially tier II and III cities. The joint venture between Godrej Agrovet and US-based Tyson Foods currently supplies fresh chicken under the brand name Real Good Chicken in the top seven cities and ready-to-cook Yummies in 62 cities. In the past two years, the company has been investing in cold chain infrastructure to reach out to more stores in tier II and III cities. “The inadequate cold chain infrastructure in India has been restricting us from expanding our market. In the past two years we have provided over 2,000 chillers to mom and pop shops, in these cities to stock our Yummies brand. We have spent around USD 1.6 million on this,” said Godrej Tyson Foods COO Arabind Das.
|Late monsoon delays corn planting in India|
[26 August 2014] Corn planting in India has been affected by the late monsoons. Up till August 24 up to 7.42 million hectares had been planted against 8.01 million hectares last year said Amit Sachdev, India Representative of the US Grains Council. He added that despite the absence of buying pressure the average prices of corn has moved up by 3.93% to USD 222/mt, similar to last year's level.
|Indonesia revokes beef import ban on Japan|
[26 August 2014] Indonesia has revoked a four-year ban on beef and cattle imports from Japan, in a move to diversify its supply sources, an official of Indonesia’s Agriculture Ministry said. Indonesia banned Japanese beef imports in early 2010 following concerns over foot and mouth disease. Indonesia is potentially a new market for Japan’s wagyu beef and may help meet the Japanese government’s goal of increasing agriculture-related exports. Director General of Livestock and Animal Health Syukur Iwantoro said that following inspections and an audit, all importers are now free to buy from Japanese suppliers. “This will reduce Indonesia’s dependency on Australia,” he said.
|South Korea expected to import more beef|
[26 August 2014] South Korea is expected to import more beef next year as domestic cattle numbers continue to fall and beef prices rise. According to the US Department of Agriculture total beef cattle numbers continue to drop as many smaller operations have struggled with high feed prices “coupled with the government plan to compensate farmers that stopped raising cattle”. Meanwhile, an increase in calf prices is causing farmers to retain their cows for breeding purposes. Next year’s beef production is slated to decrease by 7.4% from this year’s level.
Asian Agribiz Poultry Feed Quality Conference 2014
Focus on feed enzyme development and proteins
[25 August 2014]
The second day of the conference saw another eight expert speakers present topics on feed enzyme development and proteins, complementing the first day’s presentations on carbohydrates and fibre and quality assessment by NIR.
Optimising protease use
Although opportunities exist to reduce feed costs with the use of proteases, performance advantages of up to 10% have been reported when diet characteristics e.g. amino acid ratios, energy density etc are aligned to product functional patterns, said Aaron Cowieson, Principal Scientist, DSM Nutritional Products. He concluded that proteases offer enormous potential to the global feed industry and play an important role in environmental and financial sustainability. However, he added that the effects exploited today represent only a small portion of the potential of this emergent feed enzyme technology.
Better FCR with superdoses of phytase
In her paper titled ‘Superdosing phytase – providing more than just phosphorus’, Carrie Walk, Research Manager of AB Vista said superdoses of a highly efficient dietary phytase improved FCR of market age broilers by 5 points, 88% of the time. This is due to nearly complete phytate destruction and the mitigation of the anti-nutrient effects of phytate. However, successful implementation of a superdosing program in broiler diets requires a specific phytase matrix and a highly efficient phytase, able to maintain activity at low phytate concentrations.
Crucial that exogenous enzymes are not added on top of diets
It is crucial that, in feed formulation, exogenous enzymes are not added on top of diets, or given arbitrary fixed matrix values that are independent of the substrate levels and inherent digestibility of the diet to which they are added, said Peter Plumstead, Associate Professor, Monogastric Nutrition, University of Pretoria, South Africa. Rather, nutrient contributions from enzymes can be more accurately derived using empirical models that include a description of the substrates contained in the diet to strategically inform the end user of the biological and economic value of the enzyme product.
Full fat canola seed an attractive energy and protein source
As the price of oil is generally increasing, in most cases it may be uneconomic to supplement poultry diets with oil, explained Reza Barekatain, Senior Research Officer Poultry Nutrition, South Australian Research and Development Institute. “There has been renewed interest in the use of full fat oilseed meals to replace a portion of added feed grade fat as the price differentials between oilseeds, protein meals and extracted oils have changed due to increased oil demand from the biofuel sector. Full fat canola seed is considered an attractive energy and protein source that can potentially substitute supplemental oil in poultry diets,” he said.
Formulate diets on possible differences in AME and digestible amino acids
Addressing recent research on soybean meal (sbm) at Massey University, Basilisa P Reas of the US Soybean Export Council said animal performance is directly related to digestible amino acid and AME contents of sbm. “Nutritionists should, therefore, formulate diets not exclusively on the adjustments to total amino acids based on crude protein contents, but also consider possible differences in AME and digestible amino acids as this is of economic importance. The current practice of using an average value for the AME and digestible amino acids will lead to imprecise feed formulations.
|Sri Lankan demand for chicken down in Q2|
[25 August 2014] Sri Lankan demand for chicken declined in Q2 2014 with the prices of both broiler and DOC declining to a considerable level while the cost of production rose rapidly, poultry producers complained. Poultry Producers Forum’s Joint Co-coordinator Yakooth Naleem, who is also Bairaha Group’s Managing Director, said that there was a lull in the market due to a dip in demand by low and middle-income consumers while demand was stable among high-income segments. “The reason for this was the buying power fluctuation among consumers.” Mr Naleem added that the industry has experienced many months of excess production, as a result of reduced demand for chicken.
|Chinese pork to Russia?|
[25 August 2014] The Russian government, which recently banned pork imports from the US and the European Union, has decided to allow pork imports from China, according to media reports. That might create a worldwide trade shuttle, with China importing pork from the US and EU, while at the same time exporting domestic pork to Russia. Russia’s veterinary service is now preparing a list of approved Chinese exporters, according to an Interfax news agency report quoted by China Daily. While China is a net pork importer, price and regional variations may make it profitable for some Chinese companies to export to Russia. Industry insiders say the most likely route is via China’s western rail route through Xinjiang to Kazakhstan, the shortest route to European Russia.
|Surging Asian demand makes dairy the top earner in US|
[25 August 2014] Last year US dairy farmers generated a record USD 6.7 billion in export revenue, more than corn, poultry, beef or pork exports for the same period. Strong demand growth in Asia for US dairy products was seen as an important driver of growth. This trend, said a report in Reuters, is reflective of yet another wave in the ongoing westernisation of diets across much of the developing world, especially in Asia where a majority of the world’s butter and whole milk powder is consumed. Chinese consumers in particular have developed a taste for milk, yogurt and cheeses to complement their higher intake of meats and other fats. Dairy demand growth has accelerated at a faster pace than demand for grains and meat products over the past five years.
Asian Agribiz Poultry Feed Quality Conference 2014
Carbohydrates & fibre, and NIR dominate Day 1
[22 August 2014]
Asian Agribiz’s annual two-day Poultry Feed Quality Conference opened in Kuala Lumpur yesterday. The conference focused on Carbohydrates and Fibre, and Near-Infrared Spectroscopy on the first day. Today expert speakers will address Enzymes and Protein. The conference hosted over 300 participants from the region and 18 expert speakers.
Raw material variables cannot be avoided but must be managed
Raw material variability is especially high in animal by-products such as meat and bone meal, fish meal and poultry by products. According to Evonik (SEA) Pte Ltd Technical Sales Manager Dr Kiran Doranalli the variables cannot be avoided but they can be managed. “It is important to analyse raw material for nutrient content and this information can be used as a purchasing decision or when selecting suppliers.” He said, after analysis raw material can be classified based on supplier, country of origin or even on crude protein levels. “Once this is done, feedmillers can produce different formulations so as not to compromise on animal performance.” He said it is crucial to communicate the analysis to the purchasing department, nutritionist, quality control and feed managers so everyone is kept in the loop.
New analytical methods for dietary fibre
Analytical methods for the analysis of mono- di- and oligosaccharides as well as available and resistant starch have been available for a number of years, explained Hadden Graham in his presentation titled 'Carbohydrate chemistry, analysis and nutrition'. He added that new analytical methods or combinations of methods for both total and soluble/insoluble dietary fibres in accordance with new international definitions have been developed. These methods can give much more accurate and informative figures than traditional gravimetric methods, and therefore databases need to be developed to include both more classical and newer analysis of a wide range of feedstuffs.
Pelleting does not always mean better digestibility of nutrients
Professor Gonzalo G Mateos from the Universidad Politecnica de Madrid, Spain, reminded participants that birds will eat more if the feed is pelletised and subsequently grow faster but this does not mean that the digestibility of nutrients will improve as feed conversion rate does not always improve with pelleting. “New research indicates that high temperatures used in the pelleting process can reduce nutrient digestibility,” he said. Producers must also control the amount of fibre used in the diet of birds. “Excess fibre will reduce feed intake and digestibility while low fibre intake will reduce gizzard function.” He said fibre intake depends on particle size, type of fibre and the problems faced by the poultry farmer.
Latest formulation tools offer quick results and convenience
In a presentation entitled Money and Time-Saving Formulation Tools Adifo NV Consultant Arpad Zsok said feed formulation tools today must provide easy data management, formulation recipes at the best quality and the lowest cost, translate the optimum recipe into practical products and can integrate with ERP systems. “Advance user interface will feature fast access, one-screen handling which is capable of showing multiple tables such as composition, contribution and analysis on a single screen.” The tools must also be able to provide moisture and enzyme optimisation data. For instance, for enzyme optimisation, it must be able to provide multi-blend formulations for a range of products, multi-plant formulations, which can help reduce ingredient costs, and multi-period formulations cutting across seasons and months.
NIR platform offers accurate nutrient analysis
Nutrient analysis can be done for ingredient testing, in-process testing and final product testing. While wet chemistry testing can take days and is expensive, the NIR platform is a practical, convenient and accurate nutrient management technology. “It is a quick testing method, non-destructive and does not use hazardous chemicals. The machine can conduct multi-component analysis with a single sample. More samples are measured showing a better nutrient profile of the samples compared to wet analysis,” said feed milling consultant Ivan Ward. He said producers must keep in mind the components that contribute to the accuracy of the NIR platform, namely reference analysis, calibration, results interpretation and NIR hardware. “The accuracy of the machine depends on regular maintenance and a decent calibration range.”
Crude fibre concentrate is a good alternative to traditional fibres
Insoluble fibre is a better fibre source as it contributes to faster transit in the bird’s gut compared to soluble fibre, which increases digesta viscosity, slowing down the transit period. According to Manfred Pietsch, Business Unit Manager Animal Nutrition of J Rettenmaier & Soehne GmbH, traditional fibre sources such as rice and wheat bran are easily available and cheap but they are highly contaminated with mycotoxins and contain low fibre levels which are soluble. “One good alternative is crude fibre concentrates, also known as functional fibres, which undergo special milling technology.” The product, he said, reduces mortality rate, increases hatchability and egg production in layers. “It also increases gizzard size, improves starch digestibility and limits feather pecking.”
|Poultry Feed QC opens today in Kuala Lumpur|
[21 August 2014] Asian Agribiz's annual Poultry Feed Quality Conference opens in Kuala Lumpur, Malaysia today. It will see 18 expert speakers address four themes namely enzymes, protein, NIR and carbohydrates & fibre. The conference this year has attracted 330 participants from throughout the region and it will run until August 22.
|Thai eggs price to drop on rising supply|
[21 August 2014] Egg price in Thailand is expected to decline in September-October as higher egg supply is forecast then. Chavalit Cookajorn, Permanent Secretary of the Ministry of Agriculture said that the Egg Board, the core body overseeing egg industry policy and measures, predicts supply will hit 39.2 million eggs per day, up from 38.8 million eggs at present. The Egg Board’s committee on consumption promotion is assigned to introduce measures to boost per capita consumption to 300 eggs per day from 270 eggs per day at present while the committee on price is asked to consider cost of production and set an appropriate price for reference. Benchmark price of egg is now at THB3.30/egg (USD 0.10) while cost of production is around THB2.90/egg (USD 0.09) which Mr Chavalit considers an appropriate price.
|Philippines livestock production value up in 1H 2014|
[21 August 2014] The Department of Agriculture announced that production in the Philippine’s livestock sector grew slower at 0.94% compared to the 2.12% growth in the first half of last year. Cattle, hog and dairy production, continued to increase albeit slower compared to the same period last year, while lower goat production brought down overall growth. Gross earnings in the livestock subsector, however, rose 6.33% to USD 2.735 billion at current prices on increased revenues from carabao, cattle and hog raising. The poultry subsector registered a slower production growth rate of 0.73% against 4.56% in the same period last year on increased production of chicken and duck. Egg production, however, fell 4.18% during the reference period as layers were affected by extremely hot weather conditions. Gross value output of the poultry subsector, however, rose 5.91% to USD2.247 billion at current prices on increases in earnings from chicken, duck, and duck egg production.
|Blockades affect Punjab poultry industry|
[21 August 2014] Poultry production was badly affected by present adverse law and order in Punjab, according to a statement issued by Pakistan Poultry Association (PPA). Blockades hit transportation of DOC from hatchery to poultry farms, broiler from poultry farms to market, poultry feed from feedmills to poultry farms and diesel from filling stations to poultry farms. The statement said the poultry industry faced great difficulties. Raza Khursand, PPA Chairman, said supply-side constrains led to heavy mortality, causing huge losses to owners of poultry farms. He added this would ultimately lead to unavailability of broiler in the market, besides a price hike. He added despite intervention by the Punjab Livestock and Dairy Development Department, transportation related problems could not be resolved, inflicting losses of millions to industry.
|Vietnam is top shrimp exporter to Korea|
[21 August 2014] Vietnam's shrimp exports to Korea skyrocketed 92.2% since the start of the year, according to the Vietnam Association of Seafood Exporters and Processors. As of end June, Korea was the fourth largest export market for Vietnamese shrimp, accounting for 7.7% of the sector’s total export value. In the six month period, exports of white-leg shrimp rose 17% while prawn exports declined by 17.9% and other shrimp products saw a modest rise of 1.2%. The average price of Vietnamese shrimp hovered around USD 11/kg. According to the latest data from Korean Customs, Vietnamese shrimp held a 44.54% market share in the country. Vietnamese shrimp imports were 3.6 times higher than neighbouring China, the second largest supplier.
|CP Indonesia raises Kurobuta pigs|
[20 August 2014] CP Indonesia Business Development Advisor and Swine Specialist Phaitoon N Na Ayudhaya told Asian Agribiz that the company is trying to develop Kurobuta pig farming in Bali. “The population is still small since it’s more like a trial.” Mr Phaitoon said the growing number and brands of Japanese and Korean restaurants in big cities such as Jakarta and Bali has motivated the company to raise these premium the pigs. “This project will be a significant part of our future business here in the coming years.” Kurobuta pork is the most highly priced pork in Japan and comes from the ancient breed of pig known as Black Berkshire.
|Japfa shares up 5.6% on Singapore IPO price|
[20 August 2014] Investors gave Japfa a warm welcome on August 15 with shares in the agrifood company closing 5.6% above the initial offering price following active trading on its debut in Singapore. Japfa shares closed at 84.5 cents each, up from the IPO price of 80 cents after about 68.7 million shares changed hands. “We are pleased to continue using Singapore as our base, to further expand and entrench our leadership position across multiple protein foods,” Japfa Chief Executive Tan Yong Nang said. “With operations in five high-growth Asian markets [Indonesia, China, Vietnam, India and Myanmar], Japfa’s listing presents investors with an opportunity to capitalise on the tremendous opportunities in the fast growing staple proteins market.”
|Indian poultry industry concerned over US chicken legs|
[20 August 2014] The Indian poultry industry has expressed concern over the federal government’s recent proposal to allow duty-free import of chicken legs from the US. The move has particularly ruffled the feathers of poultry farmers in Telangana and Andhra Pradesh who contend that the move would play havoc with the domestic poultry industry. President of Andhra Pradesh Federation of Poultry Farmers D Sudhakar said: “India is the cheapest chicken and egg producer in the world and it contributes significantly to the country’s GDP. In the US, chicken legs and wings are by-products. Importing chicken legs will destroy the domestic poultry industry.” President of the Indian Poultry Breeders Association Dr G Ranjit Reddy added: “Chicken legs are discarded and sold at throwaway prices. Most of these are stored for a long time. The US is planning to dump this here without restrictions or customs duty.”
|Prices of processed and canned meats could rise|
[20 August 2014] Philippine meat processors have warned that the ongoing port congestion in Manila has raised costs and this could lead to higher prices of processed and canned meats as December approaches. Philippine Association of Meat Processors Inc Executive Director Francisco Buencamino said that the congestion has led to additional costs such as refrigeration which can run up to nearly USD 1000/day. Although he said there is enough supply of raw materials, the additional cost may mean price hikes of between 7-12% for processed meat products like luncheon meat, tocino, ham, longganisa, bacon, meat loaf and corned beef in the next few months as the Christmas holidays roll in.
|Deficient monsoon to hit coarse grain production|
[20 August 2014] The deficient monsoon in India this year is likely to hit production of coarse grains such as maize, jowar and bajra. This will add to the financial burden of farmers, who will be forced to pay more for dairy cattle fodder since coarse grains are an important source of fodder. Vice Chancellor of Marathwada Agricultural University, B Ventateswarlu said: “The area and yield of these crops is likely to be significantly affected in Karnataka, Maharashtra, Gujarat and Telangana.” Due to delayed sowing, prices of green fodder have increased from about USD 0.04/kg to about USD 0.06/kg, while prices of dry fodder have increased from USD 0.1/kg to USD 0.15/kg, resulting in an increase in the cost of milk production. Godrej Agrovet Managing Director Balram Yadav said: “Fodder prices have increased 40-50% but milk prices have decreased USD 0.01/litre, adding to the financial burden of farmers.”
|Asia’s growth prospects for 2015|
[20 August 2014] Asia will once again be the engine of global GDP growth in 2015, but the picture within the region is beginning to show signs of shifting. In aggregate, the Economist Intelligence Unit forecasts that the region's economy will expand by 4.5%, the same pace they expect to see in 2014. However, as China's economic growth rate continues to slow to 7% (a growth rate most countries would be happy to achieve), other countries will begin to compete for the title of regional star performer. Asia’s fastest-growing economy in 2015 will be Papua New Guinea (14.8%). Other economies that are swiftly developing, but remain very poor, include Laos and Cambodia.
|Thai broiler chick price rises on Saha Farms return |
[19 August 2014] The price of broiler chick in Thailand has increased encouraged by the resumption of operations at Saha Farms after the court approved its rehabilitation plan late last month, a grain trader familiar with poultry market in Thailand told Asian Agribiz. “Price soared to USD 0.61 per chick (in the week ending Aug. 17). The broiler operation at Saha Farms, will gradually move up,” he said. Saha Farms is expected to receive an additional USD 62 million from its largest creditor Krungthai Bank to facilitate their operation. Its rehabilitation plan is expected to be ready early next year.
|De Heus starts construction of feedmill in Vietnam|
[19 August 2014] De Heus started the construction of its sixth feedmill in Vietnam last month. In March this year, the company started work on its fifth feedmill in Vietnam in Vinh Phuc province, northern Vietnam. The new feedmill is in Binh Dinh province, central Vietnam. The company sees good potential here which will accelerate the sales of its feeds. De Heus said Binh Dinh is a promising farming area in central Vietnam, which is strategically located for transportation by sea and road. The total investment for this project in the Nhon Hoa Industrial Zone is USD 10 million. It has a future capacity of 150,000 – 200,000 tonnes/year and it will produce high quality feed for pigs, poultry and cattle.
|Pilmico completes Vinh Hoan acquisition |
[19 August 2014] Pilmico International Pte Ltd, a wholly-owned subsidiary of Aboitiz Equity Ventures Inc of the Philippines has completed the acquisition of a 70% stake in Vinh Hoan 1 Feed JSC (VHF), one of the largest aqua feed producers in Vietnam. Pilmico President and CEO Sabin Aboitiz said Pilmico, which took over VHF on August 1, would eventually increase its investments in VHF to double its capacity and serve the needs of the Mekong region. Under the deal, Pilmico will acquire the remaining 30% of VHF within five years at a pre-agreed price, for a total transaction value of USD 28 million. Mr Aboitiz said Pilmico is expanding operations in the Asean region as it prepares for the regional economic integration in 2015, and is looking for acquisition opportunities in Vietnam, Indonesia, Myanmar, Thailand, Cambodia and Laos.
|US DDGS, CGM exempt for Malaysia’s agri inspection rulings|
[19 August 2014] Malaysia has agreed to permanently exempt imports of US distiller’s dried grains with solubles (DDGS) and corn gluten meal (CGM) from its new, more stringent sanitary and phytosanitary (SPS) and inspection regulations for agricultural commodities. The decision makes permanent a temporary exemption, granted in May, for the period from July 31 - December 31, 2014. “Southeast Asia, including Malaysia, is a growth market, so this is an important decision,” said USGC Southeast Asia Regional Director Adel Yusupov. “Malaysia has experienced problems with some countries of origin, but US DDGS and CGM are high quality. It is encouraging to see Malaysia recognising this in its regulations.”
|Philippines opens market to Irish meat|
[19 August 2014] The Philippines has emerged as a new market for Irish meat products. This follows news that sanctions by Russia have left the country with surplus meat. The permission to import came after agreements were reached with veterinary authorities from the Philippines. The deal sees permission being granted for imports of beef, sheep meat and pig meat from Ireland. The last time Ireland exported beef to the Philippines was in 2001. At the time the market was worth USD 12.2 million to Irish producers. Last year, the Philippines imported 117,000 tonnes of beef. This figure is expected to rise to 127,000 by 2020. The agreement will see 43 Irish beef processors, 39 pig processors and 29 sheep processors exporting products to the country.
|India needs to focus on value added dairy products |
[19 August 2014] To increase profits, Indian dairy producers need to focus on value-added products (VAPDs) according to a Credit Analysis & Research Limited (CARE) Ratings report. The agency said the share of VADP in the milk and milk derivatives segment is growing currently at around 25% annually, and is expected to grow at the same rate until 2019-20. Profitability in liquid milk ranges from 4-5%, whereas the profitability in VAPDs ranges from 12-18%.
Indonesia’s economic outlook remains encouraging
[18 August 2014]
DBS Bank in their ID: Beyond 2014 report expect Indonesia’s GDP to grow by 5.4% in 2014 (downgraded from 5.8% previously due to disappointing performance in the H1 2014) and 5.9% in 2015, versus actual growth of 5.8% in 2013. President-elect Joko Widodo (Jokowi) takes office on 20 October. While his administration is likely to remain pro-growth, any fiscal boost to GDP growth probably will not arrive until early-2015. Despite concerns of rising nationalism in the economy, DBS thinks Jokowi will be pragmatic in his management on the economy. Higher inflows of foreign investment will not only bring in the much-needed capital but also help to anchor macroeconomic stability and further strengthen technological know-how. These are important to ensure medium-term GDP growth.
The following snapshots describe how Indonesia's animal protein sector is advancing.
Meat processing industry keeps growing positively
The potential of meat processing business in Indonesia is promising. Executive Director of the Indonesian Meat Processors Association (Nampa) Haniwar Syarief told Asian Agribiz that in the first semester of this year the meat processing industry grew by 10%. Growth was dominated by nuggets, sausage and meatballs. Traditional ready meals such as beef rendang and chicken opor also grew significantly, said Mr Haniwar. “This year most of our members are increasing their production capacity and modernising processing to increase production efficiency and product quality. They are confident about market potential.” However, said Mr Haniwar, the price of processed meat products rose 10% during the period due to the hike in power tariff, labour cost and raw materials especially beef. “The industry could register 15% growth in the second half since there will be many festivals,” said Mr Haniwar.
Pig farmers enjoy good live pig price
The pig sector in Indonesia enjoyed a satisfying first half, according to CP Indonesia Business Development Advisor & Swine Specialist Phaitoon N Na Ayudhaya. “The price of live pigs during the period was good around USD 3.1/kg. Production cost was around USD 2.2-2.4/kg," Mr Phaitoon told Asian Agribiz. He expects the good price to continue until the end of the year. “The swine population is well managed as pig farmers associations in different islands actively communicate. Also, demands for pork in places such as Bali continues to increase.” However, according to Mr Phaitoon, in the first semester of next year the price of live pigs will drop as this year’s good price will lead farmers to increase their population. “The associations should control this,” he said.
Demand for processed poultry in Indonesia to rise 20-25% annually
Rabobank expects the demand for processed poultry in Indonesia to rise 20 to 25% annually, as poultry consumption among Indonesians is expected to reach 2.5 million tonnes by 2018. In the latest report, ‘Time to Hatch a Plan for Indonesia Poultry’, Rabobank estimates the two-fold increase in poultry consumption among Indonesian consumers will transform the sector from a backyard farming industry into a professionally managed, integrated production. Driven by the growth in modern retail, which requires high standards in food safety and hygiene, downstream processing is now rising and accounts for 15% of poultry meat consumption. The processed and value-added poultry meat market is estimated at between 160,000 - 170,000 tonnes.
Indonesia poultry meat consumption expected to increase 26%
Per capita consumption of poultry in Indonesia remains relatively low in the region at 7.4kg per annum, even though Indonesia’s per capita GDP stacks up at around USD 3,500 per annum. Rabobank estimates that per capita consumption of poultry will rise to 9.3kg/annum in the next five years in their ‘Time to Hatch a Plan for Indonesia Poultry’ report.
Indonesia growing food service
Indonesia’s fast food chain segment is expected to further expand at over 12% per annum over the next five years, according to Rabobank’s ‘Time to Hatch a Plan for Indonesia Poultry’ report. Major processing companies have been establishing their own modern retail chains, focusing on larger cities, mostly in Java. A good example is CP, which has established more than 125 retail outlets in the Greater Jakarta area.
|Vietnam to raise pangasius exports to the EU|
[18 August 2014] Vietnam is planning to develop a sustainable supply chain of pangasius in order to increase exports to the European Union. Pangasius is exported to 150 countries with total revenue of more than USD 1.8 billion a year, of which the EU accounts for 21% of the total export value. However exports saw a decline of 9% in the first six months of this year compared to the same period last year. Import-Export Management Bureau under the Ministry of Industry and Trade Deputy Chief Duong Phuong Thao said the industry faced weak financial capacity and outdated processing technology. She recommends enhancing communication activities and promoting the image of Vietnamese pangasius in the EU, and linking enterprises and associations in organising distribution activities in the EU. She also proposed that Vietnam define the export price for pangasius via public auctions with buyers, and build a national brand for the product.
|Indonesia, Australia prepare programs under cattle partnership|
[18 August 2014] Indonesia and Australia are slated to soon kick off a bilateral partnership designed to build the capacity of cattle breeders and develop the Indonesian cattle industry in order to achieve better food security. In the partnership’s initial phase, Australia would provide Indonesia with assistance in training breeders, in breeding cattle on oil palm plantations, in developing a semi-pastoral cattle industry and in improving logistics and transportation systems in the cattle sector, said Investment Coordinating Board Chairman Mahendra Siregar. “The cooperation is concerned with how to build Indonesia’s capacity to attain food security, instead of merely relying on trade,” said Mr Mahendra. Under the partnership, Australia is committed to channel USD 60 million to Indonesia over 10 years.
|Pakistan lifts ban on livestock from BSE-infected countries|
[18 August 2014] The Ministry of Commerce has lifted its 13-year import ban on livestock from BSE (mad cow disease) infected countries, removing one of the major obstacles for the US dairy cattle trade in Pakistan. “The ban on the import of live animals from BSE-infected countries shall not be applicable from the countries, which have been declared as ‘Negligible Risk’ by World Animal Health Organization (OIE) and shall be allowed if the animals are only from such herds where no incidence of BSE has been reported for the last 11 years and this fact shall be certified by the veterinary authority concerned of the exporting country,” said the Ministry.
|CPP profit up 80% after strong performance in Vietnam|
[15 August 2014] Hong Kong-based CPF associate, CP Pokphand Co Ltd (CPP) made a profit for the first half of 2014 of USD 112 million, an 80.8% increase compared to the first half of 2013. Revenue grew 5.1% to USD 2,600 million; gross profit margin rose from 11.6% to 15.6%. CPP’s feed sales in China were affected by slow economic growth and low livestock prices, however revenue in Vietnam grew 20.5% as pig prices recovered from their previously low levels in early 2013. CPP’s directors remain “cautiously optimistic” for the full year although earnings growth in Vietnam is expected to return to more moderate levels.
|Two outbreaks of H5N6 in Vietnamese poultry|
[15 August 2014] The Office International des Epizooties (OIE) published a notification on August 12, of two widely spread highly pathogenic avian influenza serotype H5N6 outbreaks in Vietnam. According to Dr Dong Pham Van, Director General, Chief Veterinary Officer, Department of Animal Health, Ministry of Agriculture and Rural Development (MARD), Hanoi, the first outbreak in Lang Son, near the Chinese border, started in April. The second outbreak, further south, in Ha Tinh began in June. This virus appeared at the end of spring, traditionally when avian flu outbreaks in poultry are on the decline. The source of the outbreak is not yet known.
|Thailand’s BJC buys Metro’s Vietnam arm for USD875m|
[15 August 2014] Metro is selling its Vietnam cash-and-carry operations for USD 875 million as the German retailer seeks to focus more on core areas. Berli Jucker (BJC) of Thailand, a consumer goods distributor, will acquire Metro’s 19 wholesale stores and its associated real estate portfolio reported the Bangkok Post. Metro employs about 3,600 people and had sales of USD 692 million in the 2012/13 financial year. According to BJC the acquisition would complement its existing presence Vietnam. Previously, BJC made a foray into the Vietnamese market through a partnership with FamilyMart Vietnam, renaming it B's Mart after it acquired a 100% stake from the former Japanese major shareholders. Currently there are 95 stores.
|Asia increases US pork imports|
[15 August 2014] US pork exports continued to climb in June 2014. Exports to South Korea were up 31% to 77,209 tonnes in the first half of the year and pork muscle cuts to Japan up 3% to 213,653 tonnes. Exports to Hong Kong increased 55% in volume to 71,829 tonnes and a massive 76% in value (USD 492 million) with US beef regaining full access to the region in mid-June, a result which will see ground beef and processed meat added to the eligible list for exports. “USMEF has focused for many years on establishing loyal customers in these markets and impressing upon them the quality and consistency of US pork,” said US Meat Export Federation Chief Executive Philip Seng.
|Promising dairy breeds for Vietnam|
[15 August 2014] According to Vietnam's Ministry of Agriculture and Rural Development (MARD), the improved quality of domestic dairy herds has increased milk yield per 10-month cycle, from 3.25 tonnes in 2001 to 5.60 tonnes in 2013 (higher than Thailand’s average milk yield of 3.2 tonnes and Indonesia’s 3.1 tonnes). Vietnam’s dairy industry is witnessing growth in investment and technology application. According to MARD, as of April 2014, the national dairy herd has reached more than 200,000 cows, including 132,000 Holstein Friesian purebred cows, accounting for 66% of the total.
|Positive outlook for Australia’s lamb industry|
[15 August 2014] Australian lamb exports are forecast to set a new calendar year record this year, reaching 218,000 tonnes, up 2% on the previous record set last year, according to Meat and Livestock Australia’s mid-year prediction released in early August. However, mutton shipments are forecast to decline 7% to 160,000 tonnes. Live sheep exports are also tipped to be up to 2.3 million sheep, up 16.6% on the 1.973 million sheep exported last year.
|Layer farmers in Indonesia stage protest |
[14 August 2014] Several layer farmers in Blitar, East Java – the largest egg production centre in Indonesia, burnt their cages and gave the birds away in protest against the low price of eggs. Advisor of the Indonesian Layer Farmers Association Yoseph Setiabudi told Asian Agribiz that many small-medium layer farmers in East Java are tricked by brokers. “The farm-gate price in East Java is cheaper than in West Java which is around USD 0.26-0.35. On August 11 the price of eggs in Blitar was about USD 1.17-1.21/kg. With increasing production cost – at the moment around USD 1.52/kg – they cannot sustain their business.” Mr Yoseph said the association has met representatives from the Ministry of Trade and the Ministry of Agriculture, “but there is no real action from them to overcome the problem.”
|Saha Farms rehabilitation plan set for early next year|
[14 August 2014] Thailand's Bankruptcy Court recently approved a rehabilitation plan for Saha Farms that will see the integrator follow rehabilitation procedures and receive new cash flow from its largest creditor to continue operation. The court’s order on rehabilitation was officially published in local newspapers. Ernst and Young Corporate Services Limited Thailand has been assigned as the advisor and a planner and is required to complete the rehabilitation plan for Saha Farms in three months from October, meaning that the plan must be ready in January 2015. Meanwhile, Saha Farms’ largest creditor Krungthai Bank (KTB) is expected to extend an additional loan of USD 62 million to the company, after having lent around USD 21.7 million before.
|China bans pork imports from 12 US facilities |
[14 August 2014] China has officially barred pork imports from another six US processing plants and six cold storage facilities in an effort to enforce its ban on ractopamine, the US Department of Agriculture said. Three Tyson facilities and one Hormel facility were among those hit by the ban, which went into effect Wednesday. It was not clear what practical effect the move would have, however, since the USDA recently initiated a requirement that US processing plants be certified racto-free before they can export to China. The USDA lists 33 facilities as “ineligible” to export to China, including the 12 just banned. Only six plants have received certification: four Smithfield Farmland plants, plus Clemens Food Group, based in Hatfield, Pa., and Independent Meat Company, based in Twin Falls, Idaho.
|Godrej Agrovet’s income grows 16% in Q1|
[14 August 2014] India’s Godrej Agrovet reported a 16% growth in total income of USD 179 million for the first quarter of 2014-15. Chairman of Godrej Industries Adi Godrej said: “Innovation drove results in Godrej Agrovet. We introduced several R&D-based products during the quarter.” Godrej Agrovet now has a dedicated R&D centre on animal agriculture in Nashik. The consumer products division, meanwhile, did well outperforming the industry and reported a 12% growth in net sales.
|Vinamilk's Q2 2014 profit drops 14.5% |
[14 August 2014] Vinamilk has announced its consolidated business performance in the second quarter of the year and the first half of the year. In Q2 2014 alone, Vinamilk’s revenues were USD 443.9 million, rising 15% year-on-year and it’s after tax profit was USD 74.4 million, a year-on-year decrease of 14.5%. Reasons for the fall in profit included a Ministry of Finance ceiling price on milk products for children aged less than six, surging input costs, sales and marketing expenses to keep market share and current corporate income tax (CIT) that is higher than the same period last year due to adjustments in tax.
|Upgrade for dairy cooperatives’ infrastructure in Tamil Nadu|
[14 August 2014] Infrastructure and equipment of dairy cooperatives in Tamil Nadu, India will get an upgrade worth USD 6 million, the state’s Chief Minister J Jayalalithaa announced. A range of equipment including cooling, processing and packaging units will be upgraded in several cooperatives in Salem, Erode, Coimbatore, Villupuram and Vellore. The cooperatives will also receive modern labelling units including thermal transfer for overprinting equipment. In addition, the cattle feed plant at Erode milk cooperative will be expanded at a cost of USD 1.8 million to produce 150 tonnes of feed daily. According to Mrs Jayalalithaa, the upgrade will benefit 22.6 million milk producers in the region.
|CPF leads premium sausage segment|
[13 August 2014] Charoen Pokphand Foods Pcl targets to continue to lead the premium sausage segment in Thailand, with sales of USD 11.69 million this year from its premium sausage under the brand Bucher. Vittavat Tantivess, CPF's Executive Vice President for marketing said the Bucher brand, was officially launched recently, to tap into premium sausage segment which is carries a 20% total value of the sausage market worth USD 1.37 billion. At present, CPF holds a 33% share of the premium sausage segment, Mr Vittavat claimed. CPF has set aside USD 3.12 million for marketing to boost sales of Bucher sausages. CPF has introduced three new Bucher sausages namely Schweinewurst, Schweinewurst Chilli and Arabiki Cocktail.
|Indonesian shrimp exports expected to increase|
[13 August 2014] Indonesia will boost shrimp exports to USD 2 billion at end of this year. The production slowdown in a number of producer countries has presented an opportunity for Indonesia to reopen shrimp exports to Russia, reported Indonesia Business Daily. Chairman of Indonesian Fisheries Product Processing and Marketing Companies Association, Thomas Darmawan said the target can be achieved because of production hitches in China, Thailand and Vietnam due to the Early Mortality Syndrome (EMS) and a typhoon which destroyed shrimp pond areas in Guandong and Hainan districts in China. Last year, Indonesia’s shrimp exports reached USD 1.8 billion. Indonesia’s shrimp export volume is currently in the range of 200,000-300,000 tonnes.
|Agriculture Department allays fear of chicken shortage|
[13 August 2014] The Philippine Department of Agriculture said a shortage of chicken is a “remote possibility.” Agriculture Undersecretary Jose Reaño said the country still has some 3 million kilos of chicken inventory, although he admitted that Typhoon Ramassun had affected chicken supply from Southern Luzon. Nevertheless, he said it spared Central Luzon, the biggest poultry producing region in the country. Mr Reaño also noted the delayed arrival of imported chicken, some of which still has not been released from the port. About 700 tonnes of imported chicken are expected to start arriving this month until the middle of September.
|Vietnam pig sector grows steadily|
[13 August 2014] The Vietnam pig market has seen its fair share of challenges in the first half of the year. The sector has had to deal with high feed prices and diseases such as foot and mouth, PEDv and PRRS. But production has grown steadily, said Genesus Inc Business Director Asia Pacific Ron Lane. He points to the recent General Statistic’s Office survey which showed a 0.3% increase to 26.39 million pigs, compared with the same period last year. Market pig slaughter for the first six months increased 1.65% to 1.9633 million tonnes over the same period last year. The increase is attributed to favourable market prices and better management of the PRRS disease.
|Fonterra plans new Chinese hub|
[13 August 2014] Fonterra plans to build a third dairy farm hub in China in a multi-million dollar joint-venture with US-based Abbott Laboratories. The companies have signed an agreement to develop a dairy farm hub, consisting of up to five farms and more than 16,000 cattle, producing up to 160 million litres of milk a year. The USD 300 million deal is subject to approval from Chinese regulators, and the initial farm is expected to start producing in the first half of 2017, with full production the following year.
|Japan growing wagyu markets|
[13 August 2014] Japanese wagyu beef export destinations have expanded. According to Meat and Livestock Australia (MLA) Japan exported 92.2 tonnes of beef, predominantly high-value wagyu, in June, up 24% year-on-year. The beef was sent to 17 markets which included new destinations like Holland, the UK, Belgium and the Philippines. While the total volume remains extremely small, its average value – increasing 5% from June 2013, to USD63/kg – and the government’s geared up efforts to expand the trade, make Japan’s position unique in the global beef trade. Shipments for the first six months of this year totalled 531.2 tonnes, 22% higher than the corresponding period in 2013. Besides established markets such as Hong Kong, Singapore and the US, and new destinations above, product have also been sent to Tajikistan, Bangladesh, and Mongolia.
|Poland woos Asian importers|
[13 August 2014] Polish meat industry stakeholders are hoping to boost exports to Asia. The Union of Producers and Employers of the Meat Industry (UPEMI) hosted a group of Vietnamese and South Korean businessmen for a study tour recently. They conducted talks with Polish meat producers and exporters, attended seminars and visited meat plants. The visit coincides with the start of UPEMI’s three-year campaign promoting the advantages, quality and principles of production of fresh, refrigerated or frozen beef and pork in the European Union. The campaign is directed to customers from South Korea, Vietnam and the US. UPEMI head Wieslaw Rozanski said the initiative was timely as many countries have introduced pork embargoes.
|Trouw Nutrition builds second premix plant in Indonesia|
[12 August 2014] Trouw Nutrition Indonesia today will stage the ground-breaking ceremony of its second premix plant in Pasuruan, East Java. Country Manager Harris Priyadi told Asian Agribiz that the growth of the livestock industry in eastern Indonesia has motivated the company to build the plant. “With the new plant we will be closer to our customers in the eastern region.” Mr Harris said the Pasuruan plant would be equipped with a lab that also offers quality control services for self-mix farmers. “We focus on total animal nutrition solutions. Besides selling premixes, we also help our customers with tests, analysis and formulation services." The Pasuruan plant will be operational in 2015. “The plant may have the same installed capacity as the Cibitung plant [around 16,000 tonnes/year],” said Mr Harris.
|Singapore egg prices up 5%|
[12 August 2014] Prices of fresh eggs from Malaysia have gone up by about 5% in Singapore because of a supply shortage after two farms were suspended in March and last month for health reasons. According to The Straits Times Singapore’s Agri-Food and Veterinary Authority said their eggs were found to have Salmonella enteritidis. The two farms provided less than 6% of Singapore’s supply of 1.68 billion eggs last year. There are currently 21 Malaysian layers farms approved by the AVA. Eggs Import/Export Trading Association Chairman Tan Lau Huah said: “We had to raise prices in order to make up for the fall in supply.” He said Malaysian suppliers also face increasing costs. These include higher wages for drivers, costlier petrol and higher Causeway toll charges.
|Vietnam feed production up 4.5% yoy|
[12 August 2014] Feed production in Vietnam grew by 4.5% to 7 million tonnes in the first six months of 2014 compared to the same period last year. The Red River Delta accounts for 44% of production and feed consumption; followed by the southeast locality at 35% and the Mekong Delta at 16%. In the first half of the year prices of most of the raw materials and feed products dropped compared to the same period last year giving the pig industry a breather, however, general feed prices for finisher market pigs increased 1.5-2.2% to roughly USD 495/tonne. “This is because the lower priced ingredients were stocked in the warehouse as inventory awaiting the higher priced ingredients to be used up. Also freight rates have increased,” said Genesus Inc Business Director Asia Pacific Ron Lane. Feed imports also showed an increase. Some 5.1 million tonnes of feed ingredients were imported between January-June 2014 compared to 3.0 million tonnes in the same period last year.
|New market for Vietnamese pork|
[12 August 2014] Importers from China were active in Vietnam late last year importing cheaper market pigs for the Chinese market. Current low prices in China have stopped trade across the border increasing supply especially in the north of Vietnam. These few months, however, have seen a new market open up for Vietnamese pig farmers. “The Cambodian market has emerged as a strong substitute for China,” said Genesus Vietnam Marketing Representative Meggie Vo. “Several traders have been able to source market pigs for USD 2.59/kg. Those same pigs will fetch USD 0.24/kg more at slaughterhouses in Phnom Penh.” She said export procedure is simple. The local authority of Veterinary Quarantine for Vietnam grants the border crossing for about 700-800 market pigs per day, a sharp increase for Vietnam after Thailand, the former exporter, started exporting to Japan and Europe.
|Avanti Feeds’ Q2 net profit up 80%|
[12 August 2014] India's Avanti Feeds reported a robust 80% year-on-year jump in net profit to USD 4.2 million for the quarter ended June 30, 2014, on the back of strong operational income. The company recorded a profit of USD 2.3 million in the same quarter last year. Avanti Feeds is a leading manufacturer of prawn and fish feeds and a shrimp processor and exporter. The company has established a joint venture with Thai Union Frozen Products from Thailand in shrimp and fish feed and processing business.
|Activists demand ban on cow slaughter|
[12 August 2014] The demand for a ban on cow slaughter and export of meat has gathered steam since the newly-elected Modi regime came to power. The Hindu nationalist Bharatiya Party had promised to end the pink revolution (meat export) and usher in a white (milk) revolution. Activists have given the government until November 9, when Gopastami (the day cows and bulls are worshipped) is celebrated. India’s meat industry is dominated by Muslim-owned businesses.
|Major QSRs in China post supplier information |
[12 August 2014] Five major restaurant chains have posted supplier information on the Internet following a request from the Shanghai city government, which is trying to restore consumer confidence following last month’s food scandal at OSI Group’s Shanghai subsidiary. McDonald’s, Yum, Burger King, Carl’s Jr., Papa John’s and Dicos were among those posting lists of suppliers and ingredients on their Chinese websites at the government’s request. While involuntary, the step was in line with the increasing demand for transparency and traceability among consumers in China and throughout the world.
|Philippine chicken supply tight in August|
[11 August 2014] Philippine poultry raisers admitted that chicken supply in Metro Manila would be tight for the month of August and maybe into September as the industry feels the effect of Typhoon Ramassun, which battered the country last month. Poultry farmers in Southern Luzon, a key production area, lost around five million birds worth around USD 5.7 million from the storm. Meanwhile, Atty Elias Jose Inciong, President of the United Broiler Raisers Association (UBRA) told Asian-Agribiz that some poultry raisers have taken advantage of the tight supply by “going overboard with live prices,” adding that there might be need for government action. The latest UBRA price survey showed that live prices of prime chicken now hover between USD 2.20-2.25/kg, media reports say that retail price of chicken will remain around USD 3.40/kg until September. A meeting between the Department of Agriculture and the poultry raisers is set today to discuss the issue. He added that the supply situation should improve by September.
|Scandal hits McDonald’s Asia region sales hard |
[11 August 2014] McDonald’s reported same-store sales worldwide down 2.5% for July, with sales in the Asia region falling 7.3% following revelations of unsafe and unsanitary practices at a McDonald’s supplier in China. It was the company’s “worst worldwide month in the last 10 years,” according to an analyst for Janney Capital Markets, quoted by meatingplace.com. The supplier, OSI’s Shanghai subsidiary, was closed July 20 by Shanghai food inspectors shortly after a TV program revealed workers using expired meat and other problems. The revelations led to a consumer backlash, but the full effect may not be felt until August, since the scandal only affected sales in the last third of July.
|Russian ban creates competition for US pork in Asia|
[11 August 2014] Russia’s ban on pork imports from the European Union is likely to hurt US exports to China – another illustration of the globalization of the meat industry. Russia closed its pork market to the EU in January, and last week banned importation of a host of other EU and US food products. In the past, US pork prices were lower than EU prices, but Erin Borror, an economist for the US Meat Export Federation, points out that this year the positions have been reversed and the EU price is now 20% below the US price. It’s a simple case of supply and demand – US pork prices have soared due to PEDv, which has reduced supplies, while the EU price is down because Russia used to absorb a quarter of the EU’s exports. EU exports to Asia are now rising as the Asia market replaces Russia as an EU customer.
|Slight increase in Vietnamese pig production in H12014|
[11 August 2014] High prices and disease challenges, especially FMD, PED, and PRRS, hounded the Vietnamese pig industry in the first half, however production has posted a slight increase. A recent survey by the General Statistics Office showed a 0.3% push in pig production to 26.39 million pigs for the period. Market hog slaughter for the first six months was estimated at over 1.96 million tonnes, up about 1.7% over the same period in 2013.
|Unahco to build swine multiplier farm|
[11 August 2014] Univet Nutrition and Animal Healthcare Co (Unahco), a Philippines manufacturer and distributor of animal feed and healthcare products, is putting up a swine multiplier farm in Nueva Ecija in northern Luzon. The company invested around USD 8 million to put up the 20-hectare hog-breeding facility that would initially house 450 breeder swine from Holland. Ground breaking for the project is set for October, with commercial operations expected to start in 2016. The swine breeding facility would supply parent stocks to small hog raisers in Nueva Ecija and nearby areas.
|Technology glitch downs Jollibee branches|
[11 August 2014] A glitch in its new information technology system led to the limited availability of products, including its popular Chicken Joy product, in some Jollibee restaurants in Metro Manila and neighbouring cities, Jollibee Food Corp (JFC) said in a statement. The company added that some 72 company owned and franchised stores, representing about 3.2% of its total network had to close temporarily. “In our estimate, the JFC group has not been able to serve the consumer to the extent of 6% of its normal nationwide sales in the first 7 days of August 2014,” it said. JFC denied that the cause of problem is the lack of chicken supply, saying it has sufficient raw materials, finished products and production capacity to meet the consumer demand for the months ahead.
|Thong Thuan commissions shrimp processing plant|
[11 August 2014] Vietnamese Thong Thuan seafood processing company inaugurated a shrimp processing plant with an annual capacity of 6500 tonnes in the central province of Ninh Thuan this month. The USD 13 million plant, the second from the Thong Thuan Company, will employ 2500 workers to produce high quality products meeting requirements of such selective markets as Japan, Germany, France and the US reports Vietnam News. In the first six months of this year, Vietnam’s shrimp exports generated USD 1.8 billion, more than half the export value of the seafood industry, according to a report by the Ministry of Agriculture and Rural Development. Shrimp exports are expected to continue rising in the second half of 2014.
|Thai chicken exports up 2.6% in first half|
[11 August 2014] The European Union (EU) and Japan have started to import more Thai chicken, especially Japan, which lifted a nine-year ban last December after finding that the kingdom has been free from bird flu, Thai News Agency reported a senior official at the Thai Ministry of Commerce as saying. Combined imports of Thai frozen and processed chicken by the EU and Japan during the first six months this year rose 2.6% equivalent to about USD 1.08 billion, according to Nantawan Sakuntanak, Director-General of International Trade Promotion Department. According to Ms Nantawan several fast food chains, especially the well-known Family Mart of Japan which has more than 10,000 outlets have expressed interests in importing Thai chicken.
Report from USSEC 20th SE Asian Feed Technology and Nutrition Workshop (FTNW), Manila, Philippines
08 August 2014
Protein solubility index a useful tool to predict ME of corn
Corn of various quality may differ in protein solubility or vitreousness, and can be very variable in terms of its nutrient content. This in turn can present a challenge to feed formulators in determining metabolisable energy (ME) of corn. Dr Bill Dozier, Professor at Auburn University’s Department of Poultry Science, said that the metabolisable energy of corn is directly related to its starch utilisation and that the protein solubility index is a useful tool to predict that actual metabolisable energy (AME) of corn. Knowing the AME will allow diets to be formulated more closely and minimise the variation in ME.
Protein synthesis maximised if energy intake is adequate
Protein synthesis in animals will be maximised only if the animal’s energy intake is adequate, Dr Hans Stein, Professor of Animal Nutrition at the University of Illinois, said. Discussing the relationship between energy intake and protein deposition, Dr Stein said that if energy is limiting, amino acids will be oxidized to supply glucose required by the animals, and will thus interfere with estimates of AA needs for protein synthesis. He also said AA requirements should be expressed as ratio to energy and that energy should be the first factor decided upon in diet formulations.
SBM a significant source of metabolisable energy in poultry diets
While soybean meal (SBM) is primarily considered a protein source for poultry, it also contributes 20-30% of metabolisable energy in poultry diets, Dr V. Ravindran, Professor of Animal Nutrition at Massey University explained. However, the apparent metabolisable energy (AME) in soybean meal varies depending on source. As such, an accurate assessment of the available energy of SBM meal is important for precise diet formulations. However, he said there was a strong negative correlation between fibre content vs AME, and this may used as a rough guide to predict AME.
|DeHeus-Wellhope shares begin trading today in Shanghai|
[08 August 2014] Shares in Liaoning Wellhope Agri-Tech Joint Stock Co Ltd, a joint venture between Wellhope and the Dutch Royal De Heus Group, begin trading today on the Shanghai Stock Exchange. Wellhope Agri-Tech has become one of the top 15 feed companies in the world since Royal De Heus bought 15% of the company in 2006. The company sold 80 million A shares of common stock at a price of CNY 5.88 per share, raising a total of CNY 470.4 million (about USD 76 million). The company, based in Shenyang, in the northeastern province of Liaoning, plans to invest the IPO proceeds in expanding and modernizing its facilities in northeastern and northern China.
|Vietnam increases stock of breeding pigs|
[08 August 2014] Vietnam brought in 1431 breeding pigs from January-April this year, records from the General Administration of Customs showed. This number if up by 2.1 times compared to the same period last year. The US accounted for 66.4% of the shipment, Canada for 31.9% and Taiwan for 1.7%. All pigs were cleared at the port of Ho Chi Minh City. Meanwhile the country’s pork imports during the period are also up by 7.14% to some 909 tonnes during the same period last year. The pork came from Australia (43%), Canada (4.9%), Denmark (8.9%), France (2.6%), Germany (19.4%), Spain (5.6%) and the US (10.5%). The bulk, 77.9%, cleared at the Hai Phong port in northern Vietnam, while 22% of were cleared at the Ho Chi Minh port.
|Thailand likely to export more poultry in 2014|
[08 August 2014] The Thai Broiler Processing Exporters Association expects that Thailand would export 560,000-570,000 tonnes of live and processed poultry worth more than USD 2.4 billion in 2014, higher than last year’s exports of 530,000 tonnes worth USD 2.2 billion. Thailand's chicken exports look promising in the second half thanks to higher shipments to Japan and the lifting of an 10-year import ban by the Philippines due to bird flu. Beginning July, Thailand can ship processed chicken to fast-food outlets in the Philippines.
|Vietnam 2nd largest importer of Aussie cattle after Indonesia|
[08 August 2014] Vietnam is the second largest importer of Australian cattle in the region after Indonesia, said market intelligence service BeefCentral.com. From June 2013 to April this year, Vietnam imported 112,982 heads of cattle from the country, Vietnam News Agency reported. Research assistant Tess Marslen indicated in futuredirections.org.au that demand for imported beef has increased exponentially in Vietnam due to expansion of the middle class. Ms Marslen said the growing number of supermarkets and development of meat-oriented chain restaurants have created a huge opportunity for Australia in the live-beef export market, with live buffalo exports to Vietnam also flourishing.
|Vietnam's animal feed production up 4.5% in H1 2014|
[07 August 2014] The total production for the animal feed industry for the first six months of 2014 was estimated at 7.0 million tonnes, up 4.5% compared to the same period in 2013. The Red River Delta accounted for 44% of feed production; followed by the South East at 35%; the Mekong Delta has about 16% and the remaining areas have only about 5%.
|Belfoods sales up 40% during Ramadhan |
[07 August 2014] Sales of Sierad Produce’s Belfoods reached 900 tonnes during Ramadhan (July 2014). Director Awi Tantra said: “During Ramadhan sales of our Belfoods products such as sausages, meat balls and nuggets increased by 40% compared with sales during other months which average 600-700 tonnes.” Mr Awi further said that the contribution of its food division to the company’s total sales is currently about 15%. “We want to increase it by 50% by end 2015.” This year Sierad has targeted to produce 10,000 tonnes of further processed meat products, an increase of 20% from the previous year.
|Chinese meat importer signs USD930m deal with WA processor|
[07 August 2014] A deal estimated to be worth USD 930 million has been signed between China’s Grand Farm and West Australian meat processor V&V Walsh. V&V Walsh plans to export boxed meat to Grand Farm and will require an extra 500,000 lambs and 30,000 cattle per year during stage one of the project. Grand Farm is China’s largest red meat importer, but still only supplies 1% of the Chinese market and aims to increase that level to 3%, reported ABC news.
|Scandal hits McDonald’s sales|
[07 August 2014] McDonald’s Corp admitted its worldwide business forecast for 2014 is “at risk” due to the scandal at one of its Chinese meat suppliers, Shanghai Husi. In a quarterly filing with the US Securities and Exchange Commission, the company said business in China and Japan is “experiencing significant negative impact.” McDonald’s said affected markets account for 10% of the company’s annual revenue, but it could not yet estimate the full impact of the scandal. Meanwhile, media reports said Chinese officials have arrested a sixth Shanghai Husi employee and expanded their investigation to OSI’s China headquarters. OSI said it is conducting its own internal probe as well as providing “complete cooperation” with the investigation by Chinese authorities.
|Novus to launch Cibenza Phytaverse in South Asia|
[07 August 2014] Novus International will launch its next generation phytase, Cibenza Phytaverse, to the South Asia market at the Novus-hosted Enzyme Forum on August 26-27 in Negombo, Sri Lanka. “Novus’s new innovative phytase, Cibenza Phytaverse is specifically designed to unlock more of the hidden nutritional value in feed ingredients for improved animal performance with better feed cost savings,” said Dr Ajay Bhoyar, Novus Senior Manager, Global Poultry Marketing. Trial results showed that the inclusion of the new enzyme in poultry and swine diets can improve weight gain, feed conversion ratios and phosphorus mineralization.
|Indian poultry farmers unable to hike egg prices|
[07 August 2014] Poultry farmers in both Andhra Pradesh and Telangana, India are incurring losses due to high poultry feed prices. They cannot increase the price of eggs as neighbouring states would readily supply at a reduced cost, General Manager of the National Egg Coordination Committee (NECC) Vispi R Batliwala said. Last week, the NECC had appealed to the government to grant a moratorium on payment of interest and loans for a period of one year to provide relief from the crisis. Mr Batliwala said around 70% of poultry farmers’ investment goes towards feed and if subsidies are provided on maize and soy, the losses can be recovered.
|Bunge upbeat on Chinese soy crush prospects|
[06 August 2014] Bunge Chief Executive Soren Schroder said the first half of the year had seen “a negative crush environment” for the company. However, he added, that the situation is improving boosted by recovering profitability among Chinese livestock producers at a time when soybean supplies have been swollen by a record quarter for imports in the April-to-June period. “Fundamental demand for proteins in China is strong. Livestock profitability is back in positive territory and offtake [prospects are] strong.” Rabobank forecast a ‘strong’ recovery in prices of pork, China’s staple meat, in the July-to-September quarter. "For margins, this would “be a transition and the fourth quarter should be good,” said Mr Schroder.
|Japan may lower tariffs on beef, pork|
[06 August 2014] Officials from Japan and the US are exploring ways to strike a deal, possibly this fall, on market access for agricultural products such as beef and pork under the Trans-Pacific Partnership (TPP). A key topic in the talks that started on Monday will be whether the US allows Japan to introduce safeguard measures for beef and pork, reported the Japan Times. Japan has been considering lowering tariffs on beef and pork but demanded the US allows introduction of measures to protect domestic livestock farmers that would limit imports of such products if they surge.
|WH Group shares up 6.5% on first day of trading |
[06 August 2014] Shares in WH Group, the world’s largest pork producer, made a successful debut on the Hong Kong Stock Exchange, rising 6.5% in their first day of trading. WH Group had initially tried to list in April, but that effort fell apart due to investor resistance. The new listing, much smaller and more modestly priced, raised USD 2.05 billion. Shares were issued at HKD 6.20 each, and closed the day’s trading at HKD 6.55. WH Group plans to use the proceeds to help discharge USD 4 billion in debt it took on in 2013 to buy the largest US pork producer, Smithfield Foods.
|CJ Cheil Jedang’s H1 revenue down |
[06 August 2014] Korean-based CJ Cheil Jedang reported that its first-half sales revenue was USD 3.45 billion, down 0.1% from the same period last year. During the same period, the company’s operating profit fell 2.1% year-on-year to USD 180 million, largely due to a decline in the international price of lysine, the amino acid used for animal feed. But its net profit rose 58.2% to USD 72 million. Its processed food division posted sales revenue of USD 1.84 billion during the first half, up 2.4% from the same period last year, thanks to the launch of several new products. In particular, sales of its Bibigo frozen foods contributed to the rise in revenue.
|Indian dairy sector resists free market access to New Zealand|
[06 August 2014] New Zealand’s renewed effort to secure preferential trade access to the Indian market has drawn the ire of the domestic dairy industry. Dairy co-operatives and private sector players are against granting any preferential access in the Indian market through a free trade agreement (FTA) to New Zealand, the world’s largest exporter of milk products. “We are resisting granting any free market access to New Zealand,” said R S Sodhi, Managing Director of Gujarat Co-operative Milk Marketing Federation, which owns the Amul brand. “Today, India is the only country in Asia that’s self-sufficient in milk production. Granting any free market access to New Zealand will not only hit our farmers hard, but will also expose consumers to volatility of world markets,” Mr Sodhi said.
|Australia a premium producer for Asia|
[06 August 2014] Australia must focus on its role as a premium producer and not a general food exporter. The country’s Agriculture Minister Barnaby Joyce said classifying the country as Asia’s food bowl is ‘ridiculous’. Mr Joyce warned that this type of rhetoric can damage Australia’s agriculture, adding that it cannot feed an estimated 3 billion-strong Southeast Asian middle class by 2030. “Indonesian farmers don’t want to hear that the only cattle that will be available will be Australian cattle,” he said. Instead, he said “we’re going to be selling a premium product to a premium market.” He added there were significant opportunities to boost Australian agriculture exports to Southeast Asia.
|Thai chicken exports to Japan to grow 6-7% |
[05 August 2014] Thai chicken exports to Japan is forecast to grow 6-7% this year as the food safety scandal at OSI's Shanghai unit will encourage Japanese importers to search for new chicken suppliers, said Nantawan Sakultanak, Director General of the Department of International Trade Promotion at the Ministry of Commerce. “Importers like Family Mart convenience store chain and restaurants in Japan are showing interest in Thai chicken (to replace supply from China),” Mrs Nantawan said. She foresees that Thailand will exports 13,000 tonnes of raw chicken to Japan this year. This combined with cooked chicken, will raise Thailand's chicken meat shipment to Japan to 260,000 tonnes, up 6-7% from last year. Total chicken exports by Thailand in 2014 is now forecast at 560,000-570,000 tonnes valued at around USD 2.42 billion.
|WH Group shares begin HK trading today|
[05 August 2014] Pork giant WH Group’s shares begin trading on the Hong Kong Stock Exchange today following a successful IPO on the second try. The saga began last year, when Chinese pork leader Shuanghui borrowed more than USD4 billion in order to buy US pork leader Smithfield Farms in a deal valued at USD7.1 billion. An initial IPO effort to pay down the debt came to grief in April because investors thought the price too high – the offer valued the company, renamed WH Group, at 15-to-20 times its projected 2014 earnings. The new, more modest deal values the company at about 11.5 times forward earnings, was heavily oversubscribed when offered last week and raised USD2.05 billion. The company may now sell additional shares that would raise the total to USD 2.36 billion.
|Corn prices in China continue to rise|
[05 August 2014] China’s rejection of genetically-modified corn will cause farmers in the country to pay more for the grain. Kevin Roepke, USGC Director of Trade Development in China, said China has accumulated an abundant supply of corn after years of increasing its production but transportation costs from production areas to areas that use corn make the grain more expensive in China than US corn. By mid-July, China was selling corn at almost USD 155 more per tonne than US corn. China’s Ministry of Agriculture does not approve Syngenta’s MIR-162 trait, made to tolerate higher levels of glyphosate chemicals. In March 2014 China refused over 887,000 tonnes of GMO corn shipped from the US since last November. Last year China destroyed at least three US shipments of GMO corn.
|Jollibee seeks to double earnings |
[05 August 2014] Jollibee Foods Corp (JFC) new CEO, Ernesto Tanmantiong, is looking to double earnings in five years as the company plans aggressive store expansion in China and an acquisition in the US. Mr Tanmantiong said JFC is looking to add another 100 stores during the period to its 400 existing stores in China, saying that the company is “approaching the economies of scale that will give us better growth” in the country. Meanwhile, he is looking to acquire a regional food chain in the US to extend the company’s presence in that country. “Buying a bigger-sized restaurant chain will make us a major player in the US at a faster pace,” he said.
|IMA demands ban on antibiotic use in poultry |
[05 August 2014] The Indian Medical Association (IMA) has demanded an immediate ban on antibiotic use in the poultry industry to prevent antibiotic resistance in humans. “The IMA has echoed the recommendations given by the Centre for Science and Environment (CSE). This includes allowing antibiotic use only to treat sick birds, ban on use of antibiotics in the industry which are critical for humans, and the need to regulate availability of antibiotics and feed supplements,” said a CSE statement. CSE Deputy General Director Chandra Bhushan said that their study has provided evidence of the strong linkage between antibiotic resistance and antibiotic misuse in food-producing animals such as chicken. "The regulatory vacuum is the primary reason why the poultry industry is rampantly misusing antibiotics.”
|Feed plants in Bangladesh busted for using tannery waste|
[05 August 2014] A mobile court in Bangladesh recently sealed off four feed plants in Hazaribagh for using tannery waste in poultry and fish feeds. The waste contains chromium, a hazardous chemical. The court also ordered the agencies concerned to destroy 300 tonnes of feed made with toxic tannery scraps generated from nearly 200 tanneries at Hazaribagh. “We have asked the authorities to file cases against the owners of the plants,” said Executive Magistrate Mohammad Al Amin. Huge amounts of tanned leather off-cuts and shaving dust were seen piled up inside the plant.
|Yum, OSI to strengthen production oversight |
[04 August 2014] Yum Brands and OSI China are planning to strengthen supervision of their production and supply chains in China in the wake of a food safety scandal at OSI’s Shanghai branch, according to media reports. Yum will require suppliers to install monitoring equipment in their production facilities, according to Reuters. The company also plans to improve inspections during unannounced visits and introduce an incentive system for whistle-blowers. Meanwhile, the New York Times reported that OSI was working with Arrowsight, which provides video monitoring of its production in the US, to establish a similar monitoring system in China.
|Kepco to produce value-added eggs|
[04 August 2014] India’s Kerala State Poultry Development Corporation (Kepco) has finalised a proposal to produce a range of value-added eggs that includes cholesterol-free and nutritionally enhanced eggs. Kepco’s hi-tech layer farm coming up at Kudappanakunnu will see the value-added eggs produced through dietary manipulation. The feed will have a strong fishmeal and linseed oil base resulting in eggs with yolks containing significantly lesser cholesterol. Kepco Managing Director KN Noushad Ali said the controlled conditions at the layer farm and the in-house manufacture of chicken feed were ideal factors for the production of value-added eggs. “With further feed enhancements, the eggs can be fortified with vitamin E, iodine or omega-3 fatty acids for cardio-protective, antioxidant and other health benefits.”
|Pakistan’s poultry industry expanding at steady pace|
[04 August 2014] According to statistics compiled by Pakistan Poultry Association (PPA), the industry is growing at a rate of 12% with an annual turnover of around USD 7.1 billion. The sector provides direct and indirect employment to around 1.5 million people. At present, over USD 2 billion worth of agricultural products and by products are being used in poultry feeds. The sector is contributing 1.5% to the country's gross domestic product. “About 5 million broilers are slaughtered in the country every day, and this figure is likely to increase as prices of mutton and beef are becoming unaffordable for the average Pakistani,” said PPA Chairman of North Zone Raza Mehmood Khursand. The sector is producing 1.22 million tonnes of chicken meat and some 10,000 million eggs annually. According to PPA, the per capita consumption of chicken meat and egg is about 6.5kg and 65 eggs, respectively.
|Singapore relaxes import conditions for Irish pork|
[04 August 2014] Singapore has announced that it will now accept pork which has been either born or reared in Northern Ireland. Previously only meat from animals born in the north were eligible for export to Singapore but the criteria now allows meat from animals sourced from across the island of Ireland, including animals born in the south but reared in the north. Northern Ireland Agricultural Minister Michelle O’Neill said Northern Ireland has been able to capitalise on successful inspection by Singaporean officials in July last year. “They were highly impressed with our beef production standards and, as a result, we were willing to renegotiate the already agreed pork certificate in light of this,” she explained.
|Elders to use Indon business style for China, Vietnam |
[04 August 2014] Australian firm Elders wants to replicate the model it adopts in Indonesia for live cattle and meat exports, in China and Vietnam. The company is abandoning its long-standing policy of having to own and operate branches in rural Australia, and instead opening the door to partnerships, franchises, wholesalers and online sales growth. Chief executive Officer Mark Allison said the change offers “multiple options to expand the business geographically without having to put branches in place”. He said in Indonesia Elders brings in live cattle. It has its own feedlot and abattoir, and sells a branded final product. “In China, we already have the portion-size processed meat and top-end brand business. In Vietnam, we just have live export at the moment.
|UK halal food body regains Malaysia’s recognition |
[04 August 2014] The UK’s Halal Food Authority (HFA) has regained recognition from the Department of Islamic Development Malaysia as an accepted Foreign Halal Certification Body after losing the recognition in February this year due to a pork DNA scandal. The HFA said after a rigorous audit of its procedures, certification and organisational set-up by a high-profile auditor from Malaysia, all its certified products can now be exported to Malaysia without any hindrance. According to HFA the Malaysian market was worth millions to the UK halal industry, of which about 70% of certified products go through the HFA.
|Books open for Japfa IPO|
[01 August 2014] Books have opened for the IPO of Indonesian meat processor and dairy farm operator Japfa, which aims to float its shares in a Singapore listing and raise up to USD 199.7 million, according to a FinanceAsia report. Some 248 million shares are being offered between USD 0.6-0.7 per unit, with the shares representing 14.2% of the enlarged share capital. An exercised greenshoe option would add an additional 37.2 million shares and bring the amount raised to USD 198.9 million. Credit Suisse and DBS are leading the deal. The issuer and syndicate will take orders up to August 5, with a listing set for August 15. A six-month lock-up is in place for the issuer and major shareholders. This price range puts the issuer’s market capitalization at between USD 1.07 billion and USD 1.24 billion.
|Record pork prices seen in Q3 and into Q4|
[01 August 2014] Countries that have been affected by the PEDv can expect to see record highs in hog and pork prices for the remainder of Q3 and into Q4 of 2014, Rabobank said in its Pork Quarterly Report. Meanwhile countries that have not been hit by the virus will also see bullish hog and pork prices during the period, as supply tightens coupled with the expected high prices for potential substitutes beef and poultry. The report noted however that while hog and pork prices will also improve in China and Europe, the price hike will not “reach the highs experienced in other countries.” Rabobank analyst Albert Vernooij said that “with PEDv continuing to impact supply into 2015, prospects for the global pork industry remain positive.”
|Thai livestock sector GDP to grow by 2.5% in 2014 |
[01 August 2014] The Gross Domestic Product of the livestock industry in Thailand is expected to grow at 1.5-2.5% in 2014, said the Office of Agricultural Economics (OAE) at the Ministry of Agriculture and Cooperatives. GDP of the sector in the first half of this year grew 2.3% from the same period last year. Favourable weather conditions early in the year supported livestock production. Although the El Nino-like hot weather from April to May distracted growth and productivity of chickens, pigs and layers, the close system applied by many farmers helped minimize the adverse effects. In addition, chicken processors and exporters expanded their production to meet rising demand from Japan and the Middle East. The OAE said the livestock sector will be the main driver for GDP growth in agricultural.
|So Good Food explores automation|
[01 August 2014] In order to improve its operations and capabilities, Indonesia’s So Good Food has signed an MoU with FoodTechIndonesia, a public-private initiative combining the strengths of Dutch companies active in the poultry value chain. A project team of FoodTechIndonesia, headed by GEA Food Solutions, will provide a training program to the management and staff of So Good Food on machinery usage and automation, food processing techniques and packaging. So Good Food, a subsidiary of Japfa Group, is active in manufacturing, marketing and distribution of consumer branded food (meat) products. The company is expanding its production capacity rapidly.
|OSI’s Japan poultry supply business goes to Thai Marfrig |
[01 August 2014] The safety scandal at OSI Group’s Shanghai subsidiary has created an opportunity for a Marfrig Global Foods subsidiary in Thailand. McDonald’s Japan said it is suspending imports of chicken products from China and giving the orders to the Marfrig subsidiary, McKey Food Services Ltd., according to Meatingplace.com. Thailand already provides the bulk of McDonald’s Japan’s chicken product, but the company said it formerly bought about one-fifth of its chicken McNuggets from Shanghai Husi Food Co Ltd, which was shut down after a TV expose showed employees using expired meat and other unsanitary practices.
|Australian exports to Asia to hit 80%|
[01 August 2014] About 80% of Australia’s exports will go to Asia by 2020. The demand for safe and high-quality food, besides education and tourism, makes up a big part of its exports. Gavekal Dragonomics China Consumer Analyst Ernan Cui said foods labelled ‘organic’ in China could now fetch 10 times the price of non-organic food, a significantly higher margin than that seen in western countries. “From the consumer side, more and more people are getting concerned about safety in food consumption, and would like to pay higher premium for foods that they believe is of a better quality,” she said. Ms Cui said the organic market in China was now 12 times the size it was six years ago and Chinese investors had been looking to countries such as Australia for ‘safe’ food, especially meat and dairy products.
Antibiotics in livestock agriculture under scrutiny
[31 July 2014]
The use of antibiotics in livestock agriculture has been under scrutiny for some time in developed countries and this has caught up with Asia in recent years. Antibiotics are added to feed or drinking water to help animals gain weight and lower FCR. However, antimicrobial drugs, in both humans and animals, contribute to the development of antimicrobial resistance and governments around the world consider antimicrobial-resistant bacteria a major threat to public health. Illnesses caused by drug-resistant strains of bacteria are more likely to be potentially fatal when the medicines used to treat them are rendered less effective, revealed the US Food and Drug Administration.
The Asian Agribiz team takes a look at what is happening in the region.
Thailand shies away from antibiotics
In Thailand producers have been shying away from using antibiotics as an AGP for more than 10 years and the mixing of antibiotics in animal feed is prohibited by law. Trissadee Chaosuancharoen, Director General of the Department of Livestock Development told Asian Agribiz that with developments in livestock farming animals grow faster thanks to better genetics and feed. “Adding antibiotics to feed for regular feeding is illegal. It can only be used to tackle disease in animals,” Mr Trissadee told Asian Agribiz. “In Thailand, we follow global trends and have switched to probiotics,” he said. “Our focus now is on preventive measures such as stringent biosecurity, efficient vaccines as well as addition of vitamins and minerals to animal feed.”
Indonesia uses antibiotics prudently
Indonesia permits only 19 antibiotic growth promoters (AGP) for use in feed. Chairman of the Indonesian Veterinary Drugs Association Rakhmat Nuriyanto told Asian Agribiz that this list is reviewed regularly. “We want to decrease the number of AGPs circulating in Indonesia so that the risk of resistance is lower,” he said. He added that the Indonesian government has issued various regulations on the proper use of antibiotics. “We also actively urge veterinary drugs producers, importers and distributors to comply with government regulations on which antibiotics can be produced and marketed.” Mr Rakhmat added that the government plans to ban the use of antibiotics but the implementation will be gradual because “in Indonesia there are still many cases of bacterial diseases because of the humid tropical climate”.
Malaysian farmers reduce use of antibiotics
Farmers and feedmillers in Malaysia have reduced the use of AGPs in their feed. “All forms of feed additives must be registered and only approved additives can be used,” nutritionist Dr Vijaya Raghavan told Asian Agribiz. According to Luheng Marketing Director Chow Khay Hoong, “Farmers are keen to look for alternatives as they do not believe that antibiotics are the cure all. They are aware that antibiotics are not completely effective against virus.” Also farms that export to Singapore maintain high biosecurity levels to keep the birds safe, and strictly follow withdrawal guidelines. On the field AGPs are being replaced by natural growth promoters, phytobiotics and probiotics which, when dispensed correctly, is just as effective, said Dr Raghavan.
Use of AGPs still prevalent in the Philippines
Extensive use of AGPs is still prevalent in the Philippine livestock and poultry industry, even as their use is increasingly being frowned upon. Several industry players told Asian Agribiz that for now, AGP use is likely to remain despite the availability of alternatives. Dr Nancy Romano, Business Development Supervisor Animal Nutrition-Bayer Philippines said that while many producers are aware of the dangers of extensive antibiotic use, many are still using them not only for treatment, but as ‘insurance’ against diseases. An industry player remarked that “for a long time the industry has relied on AGPs in producing meat and people are resistant to change”. He added that “antibiotics have also been used to cover for lack of biosecurity and poor husbandry”. Another industry player said that AGP-free animal production will be “correlated with negative productivity results” thus it is not presently attractive to many livestock and poultry producers.
Commercial players using antibiotics prudently
Most Philippine livestock and poultry producers, especially commercial players, are prudent in their use of antibiotics. Dr Zoilo Lapus of the Philippine College of Swine Practitioners told Asian Agribiz that farms working closely with veterinarians implement the prescribed withdrawal time for antibiotic use. Dr Magdalena Cruz, officer-in-charge of the Bureau of Animal Industry’s Philippine Animal Health Centre agreed, telling Asian Agribiz that the majority of commercial farms, particularly those planning to export, are following protocols and that “antibiotic residue testing is routine for these farms”. The problem, she said, is prevalent with backyard hog farmers, most of whom “still apply antibiotics injudiciously”. Dr Cruz revealed that there is a multi-agency project on antimicrobial resistance and expressed hope that “information dissemination on the harmful effects of injudicious use of antibiotics/antimicrobials be massive”.
India urges ceasing use of antibiotics in premix
The Drug Controller General of India and the Agriculture Ministry have directed state governments to stop the use of antibiotics and hormones as growth promoters in animal feed. They have also called for the strict implementation of a 2012 law, which mandates a gap between the time an animal is given a drug for medical purposes and sale of food products from that animal. “Regular feeding of antibiotics has serious consequences on humans as residue of antibiotics may accumulate in milk, meat and eggs,” the ministry said. The poultry industry claims that implementation would pose a huge challenge but admits that if it is strictly enforced, the industry may take a hit. “The production cost will go up and productivity might fall. Bacterial diseases, particularly relating to E Coli and salmonella, might return,” said B Soundararajan, Chairman of Suguna Holdings. He added that the use of antibiotics in the Indian poultry sector is not alarming.
Antibiotic-free reputation leads to premium price in China
Overuse of antibiotics in China’s animal husbandry industry presents an opportunity for producers who can persuade consumers that their meat is antibiotic-free, according to traders at Zhengzhou’s giant wholesale meat market. “Almost everybody is using antibiotics, except for a few small companies,” a trader told Asian Agribiz during a visit to the market, where imported and domestic meat for several hundred million residents of Central China is bought and sold. “If buyers believe your meat is antibiotic and hormone-free, you can charge 10-15% more for the meat,” said the trader, who buys for Xinnian, a small meat company with about 50 stores in the Zhengzhou area.
Haikou tests pork for antibiotics
The city of Haikou’s decision to test pork for traces of antibiotics is another indication that Chinese authorities are taking the problem of antimicrobial resistance (AMR) more seriously. A study by Prof James Tiedje, Director of the Centre for Microbial Ecology at Michigan State University, showed last year that pigs raised on antibiotics in China had generated 149 unique genes that reduced antibiotic effectiveness. Mr Tiedje was invited to do the study by Chinese scientists worried about AMR’s threat to human safety. Haikou, capital of the southern island province of Hainan, became the first city in the province to test pork and pig offals like liver for antibiotics this summer. The AMR problem was also discussed recently at a conference on Poultry Meat Products Technology Innovation in Guangdong Province, which borders Hainan.
|AS Putra expands into breeding, hatchery operations |
[30 July 2014] Indonesia’s AS Putra is to add broiler breeding and hatchery operations to its established poultry business in West Java, with a significant investment in SmartPro modular single stage hatchery technologies from Pas Reform. Director Aif Arifin Sidhik told Asian Agribiz that the installation would start in August 2014. “We target to start operations in early September. Initially we will produce around 115,200 DOCs/week. But the number of machines will be increased to 12, which totally will produce around 460,800 DOCs/week,” said Mr Aif, adding that the DOC produced will fulfil 30% of internal needs over the next three years. First established in 1986 as an egg producer, AS Putra began broiler production in 1997. Today, the company raises 1.5 million chickens each week, for distribution throughout Java and Southern Sumatra, with DOC sourced from various producers. Mr Aif revealed that the company plans to venture into layer breeding business. “But before that, we need to increase the capacity of our commercial layer farms first.” Setting up a feedmill is also on his agenda.
|Shanghai Husi now under OSI International|
[30 July 2014] While preliminary investigation is still ongoing, the OSI Group has announced the withdrawal of all products manufactured by Shanghai Husi in China, from the marketplace. It is conducting a thorough internal investigation into possible failures or misconduct on the part of current and former senior management. It has also created a new management structure for China to ensure that operations meet global expectations and standards. The Group’s China operations will be called OSI International China and will become a part of the OSI International umbrella. It will no longer be a decentralised entity. Leadership responsibilities have been reassigned with immediate effect and will include experienced individuals from around the world.
|WH raises USD2.05b in new IPO|
[30 July 2014] China's WH Group Ltd has raised USD 2.05 billion in its initial public offering on Tuesday, reported the Wall Street Journal. This was less than 50% of what it hope to raise in its initial IPO effort in April. The company reportedly sold 2.57 billion shares at a fixed price of USD 0.79. WH Group bought US pork giant Smithfield Foods last summer for USD 7 billion. Its successful second run at an IPO happened amid high stock prices in Asia, buoyed by optimism over corporate earnings reports, WSJ said.
|McDonald’s may get more Thai chicken products |
[30 July 2014] McDonald's Corp has suspended sales of chicken nuggets and other items in Hong Kong following the Shanghai Husi food scandal according to a report from Reuters. In Japan, McDonald's Holdings Co (Japan) also said it would halt all imports of chicken products from China and shift that business to Thailand, increasing purchases from existing suppliers like McKey Foods Services (Thailand) Ltd, a unit of Keystone Foods, and Cargill Thailand. Last year, Thailand supplied 62% of the chicken product imports to McDonald's Japan, with China supplying the remainder, the report stated.
|Corn producers’ calls for investigation of imports from Vietnam|
[30 July 2014] Philippine corn producers have asked the Department of Agriculture to look into alleged technical smuggling of corn from Vietnam. Philippine Maize Federation Inc President Roger Navarro said some 500,000 tonnes of corn arrived in the country purportedly from Vietnam, however the corn actually originated from Argentina and Brazil. He said the shipment should be declared as technically smuggled corn and charged that the importer does not want to pay the proper import duties and taxes for the shipment. Under the Asean Free Trade Agreement, corn imports from Vietnam would incur an import duty of only 5%, while those from Argentina or Brazil will have at least 50% out quota tariffs and duties.
|Milk prices in India to remain stable in the next 1-2 years|
[30 July 2014] India’s Gujarat Co-operative Milk Marketing Federation, the country’s largest dairy products distributor and the owner of Amul brand, has indicated that prices of milk are likely to remain relatively stable in the next 24 to 48 months. “There is definitely some cost pressure. But apart from minor tinkering, prices of milk and milk products are unlikely to go up in three to six months,” said Managing Director R S Sodhi. “Milk production is likely to go up by 30% in Europe. And New Zealand, too, is likely to witness a similar increase in production,” Mr Sodhi said. As a result, prices of milk products have started dropping globally. Domestic prices are higher than global prices, rendering exports unviable. India exported dairy products worth USD 553 million in 2013-14, according to the ministry of commerce and industry data.
|GFPT to expand production by 10%|
[29 July 2014] Thailand’s GFPT plans to invest around USD 31.44 million to increase production capacity of fresh chicken by around 10%, to meet demand in both the domestic and export market, Investor Relations Manager Jutamas Ingpochai said. After the expansion, GFPT will produce 270,000 birds per day, from 250,000 birds at present. Ms Jutamas also said that the company is looking to extend its reach to export markets in Malaysia and Singapore and will export its products to these market this year as well as look for opportunities to expand its market in Europe. GFPT sells 80% of its products in the domestic market. Ms Jutamas expects the company to generate around 8-10% growth this year from a sales revenue of USD 5.41 billion in 2013.
|FMD confirmed in South Korea|
[29 July 2014] Two months since getting its FMD-status free declaration for the World Organisation for Animal Health, South Korea’s Ministry of Agriculture, Food and Rural Affairs has confirmed a new outbreak of foot-and-mouth disease (FMD). About 600 pigs were affected in a farm in Uiseoung, North Geongsang Province and will be culled. The Ministry said the outbreak was caused by the Type O strain of the virus, one of three types against which the country vaccinates its pigs, and that it is unlikely to become widespread. The outbreak occurred in unvaccinated pigs.
|McDonald’s stays with OSI in China |
[29 July 2014] McDonald’s China said it will continue sourcing meat from OSI in China despite the food safety scandal. Meanwhile, the deputy secretary-general of the China Meat Association, Gao Guan, said the Chinese government doesn’t have enough trained inspectors, and relies on media exposes such as the Dragon TV program that showed outdated meat being processed at OSI’s Shanghai subsidiary. Authorities have closed the subsidiary, but McDonald’s said it would continue to source from OSI’s subsidiaries in Henan and Hebei provinces. Meat industry insiders in China said McDonald’s had little choice but to continue sourcing from OSI, because it would be difficult to guarantee that another supplier would be safer. Yum Brands, parent of KFC and Pizza Hut, said it would completely halt sourcing from OSI, but OSI is not one of Yum’s key suppliers.
|China could import up to USSD1.2b beef from Brazil|
[29 July 2014] Brazil’s Ministry of Agriculture predicts beef exports to China could reach between USD 800 million to USD 1.2 billion next year, nearly 20% of its exports, following the recent announcement that China was ending its 18-month-long ban on Brazilian beef. China suspended imports in reaction to an atypical case of bovine spongiform encephalopathy in the country. By end 2012 sales to China hit USD 37.7 million/year, up USD 2.5 million in 2009 when the market first opened. Brazil said the reopening of the market will mean that exports to Hong Kong will decline. Hong Kong was the top export market for Brazil beef in the first half of the year totalling 192,000 tonnes worth USD 794.5 million. Brazil has eight plants approved by China for export. Another nine are in the process of being approved this year.
|Modern International focuses on expansion in Jakarta |
[29 July 2014] Modern International, the operator of 7-Eleven in Indonesia, will focus on Jakarta for expansion. General Manager Budiasto Kusuma said: “We have no plans to expand beyond Jakarta yet. Most of our ready-to-eat meals are produced at our own plant. So if we want to expand to outside Jakarta, we need to ensure the supply first by building new plants located in the regions. It takes time to realise this.” This year, Modern International will only focus on adding new outlets, Mr Budiasto said. At the moment the company operates 170 outlets and plans to add 35 new outlets by the end of this year.
|Indonesia looking for new shrimp markets|
[25 July 2014] The European Union’s shrimp market is getting tougher in terms of rules. Processors and exporters not only have to meet the standards set by the EU, but also by associations and NGOs. Chairman of the Indonesian Fishery Products Processing & Marketing Association (AP5I) Thomas Darmawan told Asian Agribiz that at the moment to enter the EU market processors and exporters must also have what is called a ‘private certificate’. “This certification costs about USD 60,000-75,000. Couple that with the audit process and the cost could reach USD 100,000. It is certainly difficult for small and medium scale processors and exporters.” Mr Thomas added that this cost is not positively correlated with the selling price. Indonesia’s shrimp exports to the EU continues to decline. Mr Thomas said that processors and exporters are looking for new markets, especially Russia, China and Asean countries.”
|CP and Itochu establish a strategic alliance|
[25 July 2014] Charoen Pokphand Foods Public Co Ltd is to sell a 23.75% stake in Hong Kong-listed CP Pokphand Co Ltd to Itochu Corp of Japan. CPF and subsidiary CPF Investment Ltd will receive USD 850 million for 6,017,959,308 shares leaving CPF with a stake in CPP of around 54%. CPP operates many of the Charoen Pokphand Group’s investments in feed, livestock and aqua product businesses in China and Vietnam. In a related move the Charoen Pokphand Group and associates will acquire a 4.9% stake in Itochu Corp worth just over USD 1 billion.
|WH Group looking for USD2b in new offering |
[25 July 2014] WH Group will attempt to raise about USD 2 billion on the Hong Kong Stock Exchange in a scaled-down public offering on August 5, the company said in a statement on Thursday. Last April investors turned their noses up at a far larger and more expensive deal, which was withdrawn before listing. The new offering is likely to be fully subscribed when it debuts, analysts said. The offering values the company at about 11.5 times 2014 earnings, rather than up to 20 times as previously. In addition, none of the large current shareholders, including Goldman Sachs, Temasek Holdings and CDH Investments, will attempt to sell their shares and dilute the market. The deal is also being managed by just two investment banks, rather than the 29 in the first offering. WH Group needs IPO money to pay down some of the debt it took on when it bought US pork giant Smithfield last year in a deal valued at USD 7.1 billion.
|Vannamei shrimp boosts India’s seafood exports|
[25 July 2014] Indian seafood exports are estimated to increase substantially due to higher demand for vannamei shrimp as other countries in Southeast Asia battle with EMS. Marine product exports crossed all previous records in volume, rupee value and US dollar terms largely due to impressive performance by aquaculture exports, according to Anwar Hashim, Managing Director of Abad Fisheries and former President of the Indian Seafood Exporters Association. Vannamei exports grew to 175,071 tonnes from 91,171 tonnes worth USD 1.9 billion from USD 731 million in 2012-13. There was a growth of 92% in quantity and 173% in dollar terms. More than 44% of Indian vannamei was exported to the US followed by the EU, Southeast Asian countries and Japan.
|Authorities arrest OSI staff |
[25 July 2014] Chinese authorities have arrested five staff of OSI's Shanghai subsidiary following accusations that the company processed and sold expired meat, according to the official Xinhua news agency. It said authorities had re-inspected OSI's other operations in China and “found no issues.” Nevertheless, McDonald’s and Burger King said they were dropping OSI as a supplier in China, and Yum, parent of Pizza Hut and KFC, said it was dropping OSI in China and in the US and Australia, according to the Wall Street Journal.
|Carrefour Indonesia selling beef at lower price|
[25 July 2014] Trans Retail Indonesia, the operator of Carrefour in Indonesia, is selling beef at USD 7.2/kg, much cheaper than USD 8.3-8.7 in traditional markets. Head of Public Affairs Satria Hamid said the company cooperates with one of the largest feedloters in the country Bina Mentari Tunggal for the beef supply. “We have procured some 3000 heads of Brahman cattle to ensure supply to our outlets this Ramadhan.” Mr Satria added that the cattle were imported by Bina Mentari from Australia and then were raised in Subang, West Java for two months before slaughter. “We chose Bina Mentari because they apply good animal welfare standards and have a modern slaughterhouse that will ensure quality and safety of the beef produced.”
|Indonesia’s shrimp products export increasing|
[24 July 2014] Besides exporting whole frozen shrimps, Indonesia also exports further processed shrimp products such as breaded shrimp, tempura, nuggets and shrimp balls. Chairman of the Indonesian Fishery Products Processing & Marketing Association (AP5I) Thomas Darmawan told Asian Agribiz that the majority of these products are exported to the US. “The export value reached USD 12.5 million in 2012, and then increased to USD 20.5 million in 2013.” AP5I has 168 companies that are members. Of the total, Mr Thomas said some 40% focus on producing and developing products for export and local markets. “Local demand is also increasing by about 20% annually,” said Mr Thomas.
|Infrastructure damage hits poultry and livestock raisers|
[24 July 2014] Poultry and livestock raisers from Southern Tagalog, one of the biggest production areas in the Philippines, have suffered infrastructure damage from Typhoon Rammasun that hit the country last week. Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that many poultry houses, pig houses and feedmills had roofs blown away and suffered from floodwaters, which damaged stocks and raw materials. The typhoon also led to power outage that also affected water supply in the region. He also said there were reports that the egg producers in Batangas suffered heavily, with many houses collapsing and production dropping due to the week-long power outage. As yet, there is no official estimates of the value of the damage to the industry.
|OSI Chairman apologises to customers|
[24 July 2014] OSI Group Chairman and CEO, Sheldon Lavin has apologised to customers in China for the food safety breech that led to the closure of the Husi Shanghai plant. "What happened here is completely unacceptable and I am appalled that it ever happened in the company that I own. On behalf of Husi and OSI, I sincerely apologise to all our customers in China. We will bear responsibility and will make sure this never happens again," Mr Lavin said. He added that experts from the OSI Group will work with the local team to resolve this issue. "We operate our OSI facilities around the world at the highest standards, so to be let down by what has happened here is extremely distressing."
|Asia Pacific to lead feed enhancers & modifiers market|
[24 July 2014] The global feed palatability enhancers & modifiers market was valued at USD 2,577.8 million in 2013 and is projected to grow at a CAGR of 3.5% from 2014 to 2019, according to a US market research and consulting company MarketsandMarkets. In 2014, Asia-Pacific is estimated to lead the global market with the highest share, followed by North America and Europe, in terms of value. Flavours are feed additives that are used to enhance the taste of feed to stimulate intake. Sweeteners, meanwhile, are products used to sweeten the feed and are used as a substitute for sugar.
Key take-aways from seminar on ‘Grain inventory and silo management’
Organised by US Grains Council in Jakarta, Indonesia
[24 July 2014]
Challenges, factors affecting grains storage in the tropics
Storing grains in the tropics is not as easy as in the subtropics, said USGC Technical Consultant in Southeast Asia Dr Budi Tangendjaja. Specifically for corn, repeated handling of exported corn causes more breakage and dust, while ambient temperature and relative humidity that is higher than in the country of origin pose challenges. Besides, there are factors affecting grains storage such as condensation, weather, moisture movement, hot spots, mould, insects, and shrinkage and moisture differences. Dr Budi told Asian Agribiz that in Indonesia many feed millers store their corn for up to two months. “So to successfully store corn, they should understand the characteristics of the grain and the environment and apply proper practices and techniques.”
Metal silos not recommended
Dr Carlos Campabadal, Program Specialist and Instructor at the International Grains Program of Kansas State University, suggested that feedmillers in the Tropics should not store DDGS in metal silos because DDGS has poor flowability and can cake with the metal walls of silos. Dr Campabadal said: “Feedmillers can use flat storage, like warehouses with concrete or galvanised steel walls that have open space and good ventilation.” He also urged feedmillers to buy good quality DDGS and store it for no more than a month. “If the DDGS bought has mould or insects, use it as fast as possible.”
Integrated management program to control pests
Pests such as insects, rats, fungus and bacteria are present in grain storage facilities and feedmills. Dr Carlos Campabadal said to control the pests, feed millers should apply what is called integrated pest management program that includes inspection, monitor, action and evaluation. “The goal is to prevent pests gaining access to food, water and shelter. The aim should be to keep pest levels below the acceptable limit, using different measures and using pesticides as a last resource.”
AFB1 major contaminant in the tropics
Feedmillers in the Tropics should be concerned about mould and mycotoxins in stored grains, said Dr Budi Tangendjaja. “Different moulds can grow in the field and also during storage.” Dr Budi said that the major contaminant in the tropics is aflatoxin B1 (AFB1). From his research in Indonesia he found that 100% of the corn tested were contaminated by mycotoxins, especially AFB1. However, Dr Budi said that mycotoxin problem can be minimised through prevention during pre and post-harvest, adsorption by using adsorbents or binders, and good feeding strategies on the farm.
|Indonesian shrimp processors need more raw material|
[23 July 2014] Indonesian shrimp processors and exporters are currently in a dilemma. The US has not imposed anti-subsidy and anti-dumping tariffs so there is a big opportunity for Indonesia to increase shrimp exports but raw material (shrimp) supply is a challenge. They require more than 450,000 tonnes of vannamei shrimp each year, while local is only about 280,000 tonnes. “Productivity has not increased significantly and is unable to meet export demand,” Chairman of the Indonesian Fishery Products Processing & Marketing Association (AP5I) Thomas Darmawan to Asian Agribiz. Mr Thomas said that the government should allow the import of shrimp from other countries as is done by Vietnam. “Vietnam’s shrimp production is still affected by EMS. However, the processors there are allowed to import shrimp from India and Ecuador and this keeps their shrimp exports strong.”
|Thailand launches measures against EMS|
[23 July 2014] Thailand will proceed with three main activities to tackle the Early Mortality Syndrome (EMS) disease which continues impacting the country’s shrimp industry, said Chavalit Chookajorn, Permanent Secretary, Ministry of Agriculture and Cooperatives. EMS cut Thai shrimp production to 256,000 tonnes in 2013, down from 480,000 tonnes earlier year. The three activities include; importing quality parent stock of vannamei and urgently improving 10 hatcheries belonging to the Fishery Department with the aim to produce 100,000 broodstock; upgrading efficiency of laboratory screening, preventing and surveillance and diagnosis of the disease and finally, increasing the production capacity of Effective Microorgarnisms to revive Ocean shrimp farming along the coast. The National Council for Peace and Order (NCPO) has approved around USD 504,702 for these activities and the ministry will seek an additional USD 2.51 million from the national budget, Mr Chavalit said.
|China ends embargo on Brazilian beef |
[23 July 2014] China has ended its official embargo on Brazilian beef imports, which were blocked at the end of 2012 because of BSE (bovine spongiform encephalopathy). Brazilian authorities said the change followed Chinese President Xi Jinping's visit to Brazil last week. Eight Brazilian abattoirs are already licensed to export beef to China, and authorities are hoping to get clearance for another nine abattoirs in the near future. The change in policy may lead to increased shipments, but even after the embargo was put in place Brazilian beef continued to flow into China via the Hong Kong 'grey channel'. In the first five months of this year Brazil exported 94,759 tonnes of beef worth USD 427 million to Hong Kong, according to Trademap, a trade statistics website. The vast bulk of that beef ended up in mainland China.
|NECC seeks moratorium on loans to poultry farmers|
[23 July 2014] India’s National Egg Coordination Committee (NECC) has appealed to the government to grant a one-year moratorium on payment of interest and loans by poultry farmers. This will help farmers who have been facing high feed raw material prices for the past two years. In the past two years, the price of soybean meal has been rising and has now reached unaffordable levels, due to various reasons like forward trading, exports, speculation and manipulation of price by traders and multi-nationals, said NECC in a release. A significant number of small and marginal farmers, representing 20-30% of the industry, have eased operations the release said.
|India develops biofloc technology to combat EMS|
[23 July 2014] India’s Central Institute of Brackishwater Aquaculture (CIBA) in Chennai has fine-tuned a technology called biofloc that substantially reduces the nitrogenous metabolites like ammonia, nitrite and nitrogen level through in-situ bioremediation. “Besides reducing the nitrogen level, the technology will also reduce input costs and combat diseases such as early mortality syndrome (EMS) in shrimp,” said Dr Akshaya Panigrahi, CIBA Principal Scientist. Dr Parnigrahi said while shrimp reared under non biofloc reached 25-30g in 130 days, they grew to 36-40g in the same period under biofloc farming.
|McDonald’s Japan stops sale of nuggets|
[23 July 2014] A Tokyo-based spokesman for McDonald’s Japan said the restaurant chain had sourced about 20% of its McNuggets from a China unit of US food supplier OSI Group. Around 500 of McDonald’s restaurants in Japan, a sixth of the total, had temporarily stopped selling McNuggets while the company obtained alternative supplies, he added. Meanwhile KFC, Pizza Hut and McDonald’s chain in Malaysia and Singapore said they do not import meat from the company. “Shanghai OSI does not supply any products to KFC and Pizza Hut in Malaysia. Food safety is our number one priority,” QSR Brands said in a statement. QSR is the operator of KFC and Pizza Hut in Malaysia.
|Indonesia to build pig slaughterhouse in Pangkalpinang |
[22 July 2014] In 2015, Directorate of Veterinary Public Health and Post-Harvest of Indonesia’s Ministry of Agriculture plans to set up a semi-automatic pig slaughterhouse in Pangkalpinang, Bangka Island as a pilot project to meet hygiene and food safety standards. “The Pangkalpinang slaughterhouse will have an installed capacity of 50 heads/day. We as the central government will provide funds for the building, equipment and cooling and storage facilities, while the land will be provided by the local government,” Mr Arief Wicaksono, Section Head of Hygiene and Sanitation Inspection told Asian Agribiz. In 2010 the directorate renovated the pig slaughterhouse in Manado, North Sulawesi. Then in 2011, it allocated around USD 103,000 to set up a 50 heads/day pig slaughterhouse in Timika, Papua. “In 2015, we will dedicate more efforts to improve the pig slaughtering sector in Indonesia,” said Mr Arief.
|Chinese authorities shut OSI subsidiary |
[22 July 2014] Shanghai authorities closed a meat processing company that supplied fast-food giants McDonald’s and KFC following a televised report that the supplier falsified expiration dates, used rotten meat and reused rejected products. McDonald’s and Yum Brands, parent of KFC, said Monday they would no longer use the supplier, Shanghai Husi Food Company, and issued apologies to Chinese consumers. Shanghai Husi is a subsidiary of US-based food supplier OSI. The shutdown followed a report on Shanghai Dragon TV that, among other things, showed Husi employees using meat that had fallen to the floor, putting out-of-date meat back into a refrigerator and hiding expired meat during an inspection by staff from McDonald’s. No injuries or illnesses were reported from consumption of tainted food. Media reports quoted staff at OSI’s US headquarters and at OSI’s offices in Beijing and Shanghai as saying the company is cooperating with the investigation.
|Initial damage from typhoon at USD 53.4 million|
[22 July 2014] The initial estimate of agricultural damage from Typhoon Rammasun in the Philippines has been pegged at around USD 53.4 million, Philippine Agriculture Secretary Proceso Alcala said. The fisheries sector posted the biggest loss at around USD 18.6 million, as fish cages in various provinces hit by the typhoon were damaged. Meanwhile, the corn sector reported losses of about 42,448 tonnes valued at around USD 9 million. The livestock industry posted minimal losses in terms of animals, however infrastructure damage is estimated at around USD 2.8 million. Mr Alcala noted that these are just initial estimates and that the value may go up further in the coming days as the agency completes its assessment.
|KFC’s China rebound marred by closure of supplier |
[22 July 2014] KFC’s China sales rose sharply in the second quarter, continuing a dramatic rebound as demand recovers from last year’s avian flu scares. The good news was marred, however, by reports that a major KFC suppliers was being shut down for using rotten and outdated meat in some of its products. The Chinese poultry industry has been struggling with immense losses because of the flu crises, and KFC's business is an important indicator for the industry. Yum Brands said same-store sales in its KFC China unit rose 21% in Q2, following an 11% rise in Q1, and making up for a 15% decline in 2013. KFC China has upgraded many of its outlets in response to the avian flu crisis, installing free wifi, soft lighting and wooden furniture. World Cup promotions contributed to the surge, as did the fact that many restaurants were open 24 hours during the World Cup. After its Shanghai supplier was shut down on Monday, KFC issued an apology to consumers, and it was not immediately clear what the scandal’s effect on business would be.
|Global pork market to grow by 13% by 2018|
[22 July 2014] The global volume of fresh pork sales reached 89 million tonnes last year up 3% on the previous year. Asia Pacific continued to account for the bulk of this figure, with almost 60.9 million tonnes of the total, according to Euromonitor International. Consumption in Asia-Pacific, it said, is driven by China with the country accounting for 82% of regional volume sales. Volumes rose 16% over 2008-2013 compared to 12% globally. This, despite the series of food safety issues surrounding Chinese pork in recent years. For 2013-2018 global pork sales are expected to grow by 13%, an increase of some 11.2 million tonnes, by 2018. Most of this rise will be seen in the emerging markets of Eastern Europe, Asia Pacific and Latin America where population growth will support volume growth.
|Milma raises milk price |
[22 July 2014] The price of milk supplied by Milma in Kerala, India has been raised by USD 0.05/litre. This increase took effect yesterday, July 21. Chairman of the Kerala Cooperative Milk Marketing Federation PT Gopala Kurup explained that domestic procurement of milk that was about 673,000 litres/day in 2010 has increased to around 1.02 million litres at present, a record in the history of Milma. Kerala expects to achieve self-sufficiency in milk production in another two years if farmers are given a good price, he added. Mr Kurup said sales of Milma had gone up from approximately 1.13 million litres/day in July 2013 to 1.23 million litres in July 2014. The sales turnover of Milma in the 2013-14 fiscal year was USD 361 million, 80% of which went to farmers for milk collected.
Top industry updates in Asian Poultry Magazine, August 2014
[21 July 2014]
Betagro invests in opportunities in the south
Betagro has not only opened a new poultry processing plant in Southern Thailand but is also upgrading its hatchery and layer farm operations there, writes NITSARA THONGRUNG. This investment is in view of the robust market for poultry meat in this region as well as the attractive export prospects.
Kee Song scores with antibiotic-free farming
Kee Song Brothers Poultry Industries holds a 15% market share in Singapore. The company is enjoying good sales for its two previously launched premium chicken products. Spurred by this the company, which owns eight farms in Johor, Malaysia, has launched its third range of premium chicken, writes RACHAEL PHILIP.
Poultry leads growth in Indian feed industry
The poultry industry in India has seen the largest growth, with an annual production increase of 8% between 2002/03 and 2012/13, reveals Rabobank’s PAWAN KUMAR. It accounts for 58% of the total feed market, with consumption increasing at 7-8% annually between 2007/08 and 2012/13.
Retail lends weight to Red Dragon’s bottom-line
Two decades since putting up its poultry operations, RDF Feed, Livestock & Foods Inc (RDFFLFI) is modernising its broiler facilities as an effort to further improve efficiencies to meet the growing demand of its fast expanding meat retail business, writes ISA Q. TAN.
Carbohydrases enhance value of soybean meal
A series of in vitro and in vivo studies was conducted to measure the degree of nutritive enhancement of soybean meal by a multi-carbohydrase enzyme. KEVIN LIU explains that the enzyme hydrolysed 57% of the extracted non-starch polysaccharides and increased the energy by 4.5% or 105 kcal ME/kg.
Xylanase improves performance of low-energy broiler diets
Added xylanase enzyme may allow the use of low energy broiler diets, claim FARHAN AHMED and USAMA AFTAB.
Betaine increases chick hatch percentages
DAVID CADOGAN discusses a trail in Australia that strongly suggests betaine improves the number of hatched chicks in broiler breeders.
|Vietnam to focus on abattoir hygiene|
[21 July 2014] Vietnam’s People’s Committee will be watching the operations of small abattoirs in and around the city to ensure that they conform to hygiene standards. Thanh Oai district’s People’s Committee Chairman Nguyen Hong Yen said that plans for a 4.4ha public slaughterhouse complex were approved by the city administration in 2012, however, the district has yet to receive the USD 1.6 million required to build the complex from Ha Noi People’s Committee. “The abattoir will be ready in 2015 if the city administration transfers the money for land clearing and primary infrastructure now,” he said. According to the Ha Noi Department of Industry and Trade 70% of meat produced at household abattoirs in Vietnam fail to meet hygiene and food safety standards. The local media reported that it is common to find poultry, pigs and even cattle killed and prepared for market by members of one household inside or outside their home. The practice is illegal.
|New, modern pig slaughterhouse in West Jakarta|
[21 July 2014] The Jakarta provincial government-owned company PD Dharma Jaya is currently setting up a new pig slaughterhouse, located not far from its old slaughterhouse in Kapuk, West Jakarta. Head of Marine and Agriculture of Jakarta province Djarmuni said the new slaughterhouse will use modern technology from Germany with an installed capacity of 1000 heads/day. In addition, the slaughterhouse will be equipped with modern waste treatment installation. “The building process is targeted for completion by the end of the year,” said Mr Djarmuni. Construction of the new slaughterhouse follows a public demonstration complaining about bad smells of the old slaughterhouse. Some waste from the old slaughterhouse also polluted the surrounding environment. Once the construction of the new slaughterhouse is finished, the old slaughterhouse will be closed.
|WH Group protests defamatory Online 'smears'|
[21 July 2014] A subsidiary of pork giant WH Group, which is planning to list on the Hong Kong stock exchange, says it has filed a police complaint about online videos and messages that claim the group is suffering losses and that the chairman is ill, according to Caixin, a well-known financial information service. One of the videos, which emerged online in June, purports to show workers at “a big American meat producer” using rat meat to make ham sausages, Caixin said. Online messages have predicted second-quarter losses and said that WH Group Chairman Wan Long is ill. The company denies all the allegations, adding that Wan Long is in good health, and characterised the online videos and messages as a 'smear'. WH Group acquired US pork giant Smithfield last year, and earlier this month filed for a planned listing in Hong Kong.
|Indonesia revises corn, soy output target|
[18 July 2014] Indonesia’s Ministry of Agriculture has revised its target for national corn and soybean production. Director General of Food Crops Haryono said that it has been revised from 20 million tonnes to 19 million tonnes, while soybean from 2.7 million tonnes to 1 million tonnes. Mr Haryono mentioned that the revision was due to concerns over natural calamities including El Nino. As a consequence, corn imports will escalate in the second semester, he said. The Indonesian Feed Millers Association predicted that corn imports in the second semester would reach 1.85 million tonnes, much higher than 1.3 million tonnes in the first semester.
|Aqua feed shows promising outlook in Thailand |
[18 July 2014] Demand for aqua feed in Thailand is expected to grow in future, with industry participants estimating that farming of smaller animals including fish and shrimp will grow. According to Pornsilp Patcharintanakul, President of the Thai Feed Mills Association, demand for large animal feeds such as cattle, will decline in the next 18 years while demand for smaller animal feeds such as chicken, duck, fish and shrimp will increase. He forecast aqua feed demand to total around 2.06 million tonnes per year around 2028-2032, from 1.3 million tonnes at present. Also, aqua feed raw material sourcing is changing in Thailand, with raw material sourced from farming increasing by 6.9% per year while sources from natural fishing declining by 5.8% per year.
|New cattle slaughterhouse in East Nusa Tenggara|
[18 July 2014] Realising the promising potential of cattle slaughtering in Indonesia’s East Nusa Tenggara, fish processor and trader Segarau Bahari has diversified into cattle slaughtering. In early June, the company commenced the operations at its new cattle slaughterhouse in Kupang. Slated as the most modern cattle slaughterhouse in the region that is equipped with blast freezers and cold storage, it slaughters some 50 heads/day currently. Vice Director Sayfril Bustaman said every week the company sends around 16 tonnes of frozen beef under the brand ‘East-NT Beef’ to Jakarta. “In the near future, we will also export the beef to Brunei. Potential importers from Brunei have inspected our facility.” Segarau Bahari cooperates with local farmers to secure its cattle supply. According to Indonesia’s Ministry of Agriculture, in 2013 the population of cattle in East Nusa Tenggara reached around 823,000 heads.
|US corn price could decline|
[18 July 2014] The US Department of Agriculture, in its weekly report unexpectedly raised its condition rating for the US corn crop to 76% good to excellent. Condition ratings for soybeans held steady at 72% good to excellent, with both crops off to their best start since 1994.However, importers are said to be cautious about booking deals for US corn because they think prices will continue to decline said. However, private exporters struck deals to sell 120,000 tonnes of US soybeans to top importer China for delivery in the 2014-15 marketing year, which will start on September 1.
|Hong Kong looking to Namibia for beef supply|
[18 July 2014] Hong Kong is looking to import beef from Namibia later this year. According to Namibia’s Honorary Consul in Hong Kong Henry Chan a team of government officials will visit Namibia next month to check on the condition of farms and abattoirs. Namibia exports most of its beef to the European Union but is now turning its attention to the fast-growing Asian market, especially China. In Europe the preference is for steak and premium products, but in China, consumers buy all cuts - including offal. Mr Chan also said Namibian oysters are doing well in Hong Kong, urging producers to increase their export especially at the end of the year when there is a big demand for the product.
|Cargill Indonesia launches new broiler pre-starter feed|
[17 July 2014] Cargill Feed and Nutrition Indonesia recently launched a new broiler pre-starter feed ‘Immuno Brooster’. The feed is an ‘early birth nutrition’ feed that was developed with the latest technology from Cargill. Marketing Director Totok Setyarto told Asian Agribiz that the first seven days are crucial in a broiler as the bird’s immunity and digestive system have not developed well. “Good nutrition is needed during this crucial phase.” The feed also contains specific ingredients that stimulate the colonisation of good bacteria. This in turn will improve the immunity of the birds. The feed is pelleted. Trials conducted by Cargill proved that the short cut pellet gives better results in terms of feed intake, body weight gain and feed efficiency.
|IFFO confirms CPF’s responsible sourcing |
[17 July 2014] Charoen Pokphand Foods (CPF) of Thailand is among two Asian companies certified under the International Fishmeal and Fish Oil Organisation’s Responsible Supply (IFFO RS) Chain of Custody standard. This confirms that they source approved RS fishmeal and fish oil from factories meeting this demanding standard, by using approved raw materials and manufacturing to the best industry practices, IFFO stated in a press release. Another Asian company certified to the IFFO RS Chain of Custody is Zhonghai Ocean Science & Technology Co Ltd of China. CP and IFFO are also working closely with a number of interested parties in Thailand, India and Vietnam to improve the management of fisheries.
|India procures more wheat|
[17 July 2014] India is taking steps to address the threat of El Niño and the resulting decline in food production. Government agencies may procure 8% more wheat this year to maintain stocks and prevent inflationary pressures if El Niño happens. In recent months, India had released 11.5-12 million tonnes of wheat. India’s Associated Chamber of Commerce and Industry (Assocham) has recommended that the government immediately announce steps to control food inflation. “The government needs to make some key announcements on supply and logistics management including warehousing,” said Assocham.
|Pakistan struggles to reclaim Saudi seafood market|
[17 July 2014] Pakistan is struggling to reclaim its place in the Saudi Arabian seafood market as exporters blamed the government’s regulatory and inspection department for low quality and poorly packaged fish and shrimp. The country lost this market after an inspection team from Saudi placed restrictions on Pakistani seafood items. Pakistan's seafood exports grew by 15.25% from July-May 2013-14 to a record high of USD 335.7 million. “But statistics show that the main export is chicken-meal that is a product of undersized shrimp and fish which the fishermen catch illegally,” said Chairman of the Pakistan Fisheries Exporters Association, Faisal Iftikhar.
|India’s value added dairy products segment to grow by 25%|
[17 July 2014] The share of value added dairy products (VADP) in the milk and milk derivatives segment in India is expected to grow by around 25% till 2019-20, Care Ratings said. The profitability in liquid milk ranges from 4-5%, whereas the profitability in VADPs ranges from 12-18%, attracting private participation in the industry. The Indian dairy industry is witnessing growth backed by the rising consumption and higher margins in the VADPs. Demand is likely to reach 200 million tonnes by 2022 from 132 million tonnes in 2013, the report said. The development of processing and packaging technology along with improvements in retail and cold storage infrastructure has increased the shelf life of dairy products.
|Nisarg Animal Farming to set up pig nucleus farm|
[16 July 2014] Nisarg Animal Farming Pvt Ltd, the distributor of JSR Genetics Ltd for India, is planning to set up a pig nucleus farm in the north-eastern part of India. Managing Director Mark Garvin told Asian Agribiz that the nucleus farm will supply pigs with good genetics to farmers in the country’s north-eastern region. “The nucleus farm will raise 2000 heads of JSR GGP Genepacker dam line. We will import the sows from the UK this year. We are working towards getting the import permit and health certificate.” Mr Garvin added that pig farming in the country offers promise. Northeast India covers the states of Arunachal, Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura—the main pig production centre and the main hub for pork consumption in India.
|Malaysia to produce 50,000 tonnes of shrimp in 2014|
[16 July 2014] Malaysia will see its shrimp production growing steadily this year after the drop from a peak of roughly 105,000 tonnes in 2010 to a low of about 45,000 tonnes last year. Star Feedmills (M) Sdn Bhd General Manager for Marketing Hiew Yee Wei predicts that production will reach 50,000 tonnes this year and grow another 20% in 2015. “Malaysia’s shrimp industry is on the road to recovery after EMS. Farmers are using specific culturing technology to improve their yields,” he told Asian Agribiz. “The training offered to our customers has helped them beef up on good practices.” Star Feedmills is a subsidiary of Charoen Pokphand Foods (M) Sdn Bhd.
|Vietnam’s first Kobe cows developing well|
[16 July 2014] Vietnam’s first generation of Kobe cows will reach their full weight of 800-1000kg in about 14 months, said Kobe Cow Vietnam JSC Director Nguyen Tri Duc Vu. The cows, farmed at the Central Highlands city of Bao Loc, are now 18 months and weight roughly 500kg. The company, a joint venture between Vietnamese farmers and their Japanese partners, used US-imported Kobe cow DNA and bred the first generation two years ago. “In the first phase, the death rate of the calves was as high as 20%,” he said. “But over time we learned how to deal with it.” While Kobe beef can sell for up to USD 170/kg in Japan, Mr Vu told the local papers that selling the meat for USD 100/kg is more than enough in Vietnam. “That price will bring in nearly USD 50,000/cow as we can use only 500kg of meat from it,” he revealed.
|FAO-OECD expect crop prices to decline|
[16 July 2014] The recent fall in prices of major crops is expected to continue over the next two years before stabilising at levels above the pre-2008 period, but markedly below recent peaks, according to the latest Agricultural Outlook produced by the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organisation (FAO). In a special focus on India, the Outlook projects sustained food production and consumption growth, led by value-added sectors like dairy production and aquaculture. Investment in production technology and infrastructure together with subsidies in a range of areas have contributed to strong output expansion over the past decade, the report said, and pressure on resources is expected to reduce production growth rates over the coming years.
|Feed acidifier market projected to be USD2.6b in 2018|
[16 July 2014] The market for feed acidifiers, by type was worth USD 1,949.9 million in 2012 and is projected to be USD 2.6 billion in 2018, growing at a CAGR of 5.2%. The feed acidifier market is growing steadily due to increase in demand for protein-rich products and increasing meat consumption. The other driving factors for the market are the increasing awareness among farm owners towards the role of feed acidifiers in bringing the overall feed cost down and the increasing use of acidifiers in treating animal diseases. Asia Pacific and Europe are the largest consumers of feed acidifiers in the world. Key participants in the global feed acidifier market are BASF, Kemira, Kemin Industries, Impextraco and Yara International.
|India scraps incentive on milk powder exports|
[16 July 2014] With milk prices rising, India’s government recently decided to scrap the incentive on export of skimmed milk powder (SMP) to boost domestic supply and cool prices. With possibility of shortage of fodder in view of a deficient monsoon affecting milk production, the Cabinet Committee on Economic Affairs (CCEA) decided to withdraw the 5% incentive offered to SMP exporters. Reacting to the development, Amul Managing Director RS Sodhi said, “The move will not have much impact as international prices of SMP are higher than the domestic rates.” He said the country exported about 120,000 tonnes of SMP in 2013-14 fiscal for about USD 499 million. However, he said that the exports are low due to bullish domestic prices.
|Early bird registrations close on July 16|
[15 July 2014] The special rates accorded to participants of Asian Agribiz's Poultry Feed Quality Conference will end tomorrow, July 16. The conference will take place on August 21-22 at the Aloft Hotel in Kuala Lumpur Malaysia. It will field will 18 speakers who will address four themes namely carbohydrates with a fibre focus, feed enzyme developments, protein sources (SBM and canola) and quality assessment by near infrared spectroscopy. More details here.
Stormy prices likely due to weather
[15 July 2014]
With warming surface temperatures and light winds in the Pacific Ocean, scientists are predicting a return of El Niño. Characterised by heavy rains in some parts of the world and drought in others, it could have a strong impact on grains production and pricing. Historically, El Niño has led to dry conditions in Australia, India, Malaysia and Indonesia, while wet conditions tend to be seen in South America, Central America and parts of the US. Fear over the effects of El Niño is working its way into commodity price predictions. Currently, US investment managers are expecting increased prices in all 16 major agricultural futures markets, according to US Commodity Futures Trading Commission data. While El Niño is expected to have an effect on grains markets this season, only time will tell what the impact will be.
El Nino may raise market volatility
Global feed prices are expected to decline in Q3 and Q4 based on current fundamentals and a good crop outlook for wheat and soybeans, Rabobank reported in its recent Poultry Quarterly Q2 report. Despite this positive outlook, the possible return of volatility in feed prices remains a threat to the poultry industries in all regions as stock levels remain low. Global grains and oilseeds prices have recently increased and old crop grain markets are currently tighter than expected. In addition, ongoing concerns about the situation in Ukraine and the potential threat of an El Niño event are creating some market volatility.
Indonesia has not seen El Niño’s impact
Secretary General of the Indonesian Feed Millers Association (GPMT) Dr Desianto Budi Utomo, told Asian Agribiz that with El Niño, “national corn production may fall by about 10-25% and Indonesian feed millers will have to import more corn." GPMT Chairman Sudirman FX told Asian Agribiz that until the beginning of June, Indonesia had imported 1.2 million tonnes of corn. “If there El Niño is severe, corn imports this year may be more than 3.6 million tonnes.” However, Mr Sudirman said that higher prices would not last long as local corn prices always adjust to the price of imported corn. Mr Sudirman said the global price of corn is declining as supply from Latin America is abundant. “But we do not enjoy the lower prices because of currency depreciation.”
Philippine corn prices follow world trend
Prices of Philippine corn are now more dependent on prices of substitutes in the world market rather than the availability of local supply. Several industry observers told Asian Agribiz that unlike in the past when corn prices would be down during harvest season, these days corn prices remain fairly high even during harvest if prices of substitutes like feed wheat in the world market is high. An official from a feed company told Asian Agribiz that prices of raw materials are on an uptrend, and that most feed manufacturers implemented price increases effective June.
Malaysian farmers cool over hot weather
The El Niño may not have a strong impact on imported raw material feed prices. As such poultry and pig farmers in Malaysia, who import 100% of their raw material, do not think that feed prices will increase much in the next few months. Currently they are enjoying low prices, thanks to good production in North and South America. “We have sufficient supply this time,” said layer farm Selasih Aman Sdn Bhd General Manager of Operations Brian Lim. Federation of Livestock Farmers’ Association of Malaysia Pig Unit Chairman Chuang Hock Meng concurs. He said pig farmers are not worried about rising prices. The dry conditions, however, can affect the performance of poultry and pigs in the country. This may cause production prices to increase, affecting the ex-farm prices of livestock.
Delayed rain encourages high corn price
Livestock producers in Thailand are still facing high feed cost as price of grains such as corn, the main raw material for feed, is high. President of the Thai Feed Millers Association Pornsilp Patcharintanakul said that cost of feed raw material this year will generally be higher than the year before, with corn price expected to outpace last year’s level due partly to drought. For soybean meal, drought will also affect production. Wholesale price of corn in Bangkok is around USD 0.308/kg. Soybean meal, price is forecast to continue to stay high at around USD 0.616/kg, Secretary General of the Thai Feed Millers Association Boontham Aramsiriwat estimated. "Feed prices may decline around September when the new corn crop enters the market,” Mr Boontham told Asian Agribiz.
Monsoons arrive late in India
With the onset of summer, hot and dry conditions swept across many of India’s key agricultural areas, delaying the onset of the monsoons and leading to speculation over production and prices for summer crops. Late pre-monsoon rains delayed planting of various crops. If below average production materialises with India’s summer crops, prices for these commodities will increase accordingly. Amit Sachdev, Representative of US Grains Council in India told Asian Agribiz: “Based on the information available, high temperatures and lack of water could delay sowing. Unless there is proper soil moisture, farmers have been advised not to sow any crops. We do expect some issues with grain production such as corn and soy in central and some parts of south India, but still as the deviation will only be 6-7%.”
Shippers eye freight trade boost
Weather patterns could disrupt shipping patterns and raise freight costs. “Disruptions are often favourable to the freight market,” said Khalid Hashim, Managing Director of Precious Shipping, one of Thailand’s largest dry cargo owners. While countries in Asia are scrambling to reduce El Niño’s impact, shipping markets expect trade flows will be affected. “The weather changes could lead to changes in trade of agricultural commodities,” said Marc Pauchet of shipbrokers ACM. “Grains and other agri-bulks are sensitive to rain as they cannot be loaded or discharged in wet conditions. This could potentially lead to heavy congestion at ports and increase waiting times,” said Burak Cetinok of consultancy Hartland Shipping. “In theory, this would have a positive impact on freight rates.”
|WH Group official revives IPO|
[14 July 2014] International pork giant WH Group has officially revived plans for a Hong Kong stock listing, less than three months after withdrawing a previous IPO because investors thought the deal too pricey. The new offer seeks to raise USD 2-3 billion, according to sources quoted by the Financial Times, less than half what the company had hoped to raise in April. The new offering is also being managed by just two banks, Bank of China International and Morgan Stanley. WH Group Chairman Wan Long reportedly blamed the earlier failure on the fact that 29 banks were involved, creating confusion among investors. The new capital will help pay back more than USD 4 billion in debt that Chinese pork producer Shuanghui International took on when it bought Smithfield, the largest US pork producer. The joint company was renamed WH Group.
|Demand for shrimp seen to boost Indian seafood exports|
[14 July 2014] Indian seafood exports are estimated to increase substantially due to higher demand for vannamei shrimp as other countries in Southeast Asia battle the early mortality syndrome (EMS). In the 2013-14 financial year, exports of marine products reached an all-time high of USD 5007.7 million. Total seafood exports in FY13 was 928,215 tonnes valued at USD 3511.67 million. Marine product exports crossed all previous records in volume, rupee value and US dollar terms largely due to impressive performance by aquaculture exports, said Anwar Hashim, Managing Director of Abad Fisheries and former President of the Seafood Exporters Association of India. “Production of vannamei has helped Indian export remain competitive. EMS in other countries helped India capture a larger share and hopefully we will see better performance this year,” he added.
|Troubled Vion hopes for help from China|
[14 July 2014] Troubled Dutch meat processor Vion, Europe’s second largest pork producer, is hoping to get help from investors and strategic tie-ups in China, according to new CEO Michiel Herkemij. Vion, which is owned by the Dutch farmers’ cooperative ZLTO, suffered an operating loss of USD 189 million last year. In an interview with Reuters, Herkemij said an ongoing restructuring program in Europe would cut up to 10 factories and cost of around USD 205 million. Herkemij said he was open-minded about the source of new external financing, and gave no details of any specific deals that might be in the works.
|India logs record milk production |
[14 July 2014] India recorded peak production of milk at 132.43 million tonnes in 2012-13, becoming the top milk producer globally, a pre-budget Economic Survey revealed. Milk production in 2011-12 was 127.9 million tonnes, according to the National Dairy Development Board data. The BJP government’s first economic survey stated that India accounts for 17% of world production of milk. “The average year-on-year growth rate of milk at 4.04% vis-a-vis the world average of 2.2% shows sustained growth in availability of milk and milk products for the growing population,” the survey said. Milk has also become an important secondary source of income for 70 million rural households engaged in dairying, it highlighted.
|Aqua feed market to reach 82kt by 2018|
[14 July 2014] The global aqua feeds market is estimated to reach 82,390.5 kilo tonnes by 2018. It has grown exponentially in the last few years and a similar trend is expected to follow over the next 5-7 years. Asia Pacific and Europe are the leading consumers of aqua feeds – together accounting for more than 70% of the consumption on a global scale. Asia Pacific is estimated to be the fastest growing region in terms of revenue. Growth is particularly high in countries such as China, Japan and Indonesia. Fish accounts for the maximum consumption of aqua feeds.
|Taiwan strengthens bird flu prevention|
[14 July 2014] Changhua County in Taiwan has introduced new equipment that will help keep chicken raising areas free of the bird flu virus, the China Post reported. Deputy County Magistrate, Lin Tien-fu, said that the Changhua’s Animal Disease Control Centre revealed two new vehicles for disinfecting farms where domesticated birds are raised, in addition to the four vehicles already in service. While there have not been any reports of major outbreaks of the bird flu in Changhua, the county would stay vigilant as Taiwan is situated on routes travelled by migratory birds, the report cited.
|AA Meat Shop hopes to have 40 outlets by year end|
[11 July 2014] AA Meat Shop Sdn Bhd, which operates the An Xin Healthy Meat Shoppes, is expanding rapidly and hopes to have a total of 40 outlets by the end of the year,” Deputy General Manager Whitney Gan told Asian Agribiz. Currently it has 23 outlets in both standalone and in modern trade formats. A division of the CP Group, many of the company’s ready-to-cook chicken products are from the CP brand. “CP items see strong demand from our existing customers due to the quality of the products itself and from the good reputation of the company,” she said.
|China reduces anti-dumping tariffs on US chicken |
[11 July 2014] China has reduced anti-dumping tariffs that penalised US chicken exporters, but the new rates are still set at a substantial 46.6% to 73.8%, according to media reports. The rates vary by processor, with the highest rate falling from 105.4% to 73.8%. The US appealed the original rates to the WTO, which agreed that rates set for different companies were inconsistent, with Tyson for example paying a rate of 50.3% while others paid much more. The Chinese also lowered anti-subsidy taxes, which had varied by processor from 4-30.3%. The taxes, which are added to the anti-dumping tariff, are now set in a much narrower range of 4-4.2%. US chicken exports officially dropped 90% following imposition of the tariffs, but importers told Asian Agribiz that US chicken paws remain popular in China, and that substantial imports had continued via the Hong Kong “grey channel.”
|CPF offers to invest USD166m in Andhra Pradesh|
[11 July 2014] Charoen Pokphand Foods (CPF) from Thailand has offered to invest USD 166 million in India’s Andhra Pradesh state. The company is looking at setting up chicken processing and fish and shrimp feed units, officials said. The offer was made when CPF Vice Chairman Chaiporn Montha and Director Kwan Chai called on Andhra Pradesh Chief Minister N Chandrababu Naidu recently. The chicken processing plant is proposed in Chittoor district, while the fish and shrimp feed plants in East Godavari and West Godavari districts.
|Penang to ban slaughter of chicken in wet markets|
[11 July 2014] Malaysia’s halal authority is set to tighten the rules on religious slaughter in wet markets in Penang because of environmental and food safety concerns. State Religious Affairs, Domestic Trade and Consumer Affairs Committee Chairman Datuk Abdul Malik Abdul Kassim said action would be taken against those who do not abide by the rules and regulations provided under Syariah law. “I get disappointed when Muslim chicken slaughterers are perfunctory about cleanliness and do not follow the standards that have been set according to Islamic law,” he said. One of the steps to be taken is to ban the slaughtering of chickens at wet markets. “This step is to overcome environmental issues such as unpleasant smell and clogged drains.”
|Good US corn and soy progress|
[11 July 2014] The USDA’s latest Crop Progress report said that 75% of US corn is in good to excellent condition, virtually unchanged from last week and well above last year’s report of 68% in these same conditions. Looking at historic data, corn conditions in 2014 had surpassed reports from the last 15 years, topped only by those reported in 1999. Soybeans are also doing well, with 72% of the crop in good or excellent condition. This is unchanged from last week’s report and a 20-year high.
|Thailand runs preventive x-ray for AI |
[11 July 2014] Thailand’s Department of Livestock Development (DLD) introduced a proactive surveillance campaign that aims to x-ray for the Avian Influenza virus throughout the country. Although there has been no bird flu outbreak in Thailand for more than five years, the virus is present in several neighbouring nations. DLD came up with this to prevent a possible recurrence of the disease in the country, said DLD’s Director General Trissadee Chaosuancharoen. Under the campaign, DLD will check for the virus across the country and if found, disinfection and eradication will be carried out immediately. Collection of chicken and duck samples across Thailand will run until end July.
|AA Meat Shop to offer Kurobuta pork in August|
[10 July 2014] AA Meat Shop Sdn Bhd, which operates the An Xin Healthy Meat Shoppes, will introduced its Kurobuta range of pork in August. “We will be the first outlet to introduce pork from the breed of black pigs in Malaysia,” Deputy General Manager Whitney Gan told Asian Agribiz. The company, which obtains all its supply of pork from sister company Chau Yang Farm Sdn Bhd, a division of CP Group, will target high earners who are willing to pay top dollars for speciality pork such as this. “The Kurobuta pork will be priced about double the price of regular pork. Some 20-50 black pigs will be slaughtered per week, depending on market demand,” she said. The Kurobuta pork, from the Berkshire breed, is prized for its rich flavour, texture, juiciness and tenderness.
|Malindo tops feed capacity by 50%|
[10 July 2014] Malindo Feedmill plans to strengthen its poultry feed business by increasing its production capacity by more than 50% from its current output of 900,000 tonnes/year. The company has set up a new feedmill in Semarang Central Java and will establish another one in Makassar. Director Rewin Hanrahan told Asian Agribiz that the Semarang feedmill would have a production capacity of 360,000 tonnes/year, while the company is targeting the same production capacity for the Makassar feedmill. The construction of the Semarang feedmill is nearly completed and once the facility is up and running, the company’s output capacity will increase by 50%, according to Corporate Secretary Rudy Hartono Husin. Another 20% increase, meanwhile, will come from the Makassar feedmill construction of which will commence in the fourth quarter of this year and will be finished in 2015.
|French sausages and ham to be sold in China later this year|
[10 July 2014] According to French pork association Inaporc French products such as saucissons secs (dry sausages), jambons cuits (heat processed pork meat or cooked hams) and jambons secs (cured pork meat or dry cured hams) are some of the processed products that could be exported to China from France later this year. “So far three plants are ready to export products to China, but we have to wait until all the administrative procedures are completed before we are allowed to export. We expect more plants to be export-ready in the next few years,” a spokesperson told Asian Agribiz. “We expect a volume of trade of a few thousand tonnes in the first year.” The first batch of products will be sent to upmarket restaurants, hotels and supermarkets like Carrefour and Auchan.
|Tamil Nadu offers support for poultry farming|
[10 July 2014] India’s Tamil Nadu state government’s ambitious plan to popularise poultry farming in the non-traditional areas of the state has started yielding dividends. The plan offers farmers a 50% subsidy for rearing 5000 birds. The National Bank for Agriculture and Rural Development will bear 25% of this subsidy. Besides helping and guiding farmers to avail bank loans to the tune of USD 14,000, the Department of Animal Husbandry will provide technical assistance to set up the unit. Less than two years after the launch of the scheme, more than 50 poultry units have sprung up in different parts of Karur district.
|Growth in dairy sector through acquisitions and tie-ups |
[10 July 2014] Stagnant sales volumes was seen in most OECD (Organisation for Economic Cooperation and Development) dairy markets in 2013, with acquisitions featuring as an attractive route to grow sales. In 2013, joint ventures were announced between Mengniu and Whitewave and Cofco and Danone while Yili announced a partnership agreement with Dairy Farmers of America. Mengniu took a stake in China Modern Dairy to secure raw milk supply. A further joint venture is pending between Friesland Campina and Huishan. Many markets will not return to the rapid growth rates seen before 2008. In this context, mergers, acquisitions and joint ventures will remain a key avenue to growth and profitability, wrote analyst Tim Hunt in the Rabobank Global Dairy Top-20 report.
|Amrit Group to set up poultry hub in West Bengal|
[09 July 2014] India’s integrated poultry firm Amrit Group will set up a poultry hub in West Bengal that includes a feedmill and a processing unit, as part of its USD 83.7 million expansion for the next two years. “Both the feedmill and processing unit in the poultry hub that we are setting up will be ready in the next few months. These units will be then expanded in a phased manner over the next two years,” COO K Ravindran said. The company also plans to export processed and ready-to-cook poultry products under its brand Fresco Pollo. The company is set to enter the West Asian market by this year.
|China’s beef import volume remains high|
[09 July 2014] China’s beef imports reached 101,000 tonnes in the first four months of 2014, an increase of 34% year-on-year, but lower compared to the astonishing growth of 380% in 2013. Even with this volume, beef imports to China are historically very high, Rabobank’s Beef Quarterly Q2 2014 pointed out. The global beef market meanwhile is expected to regain its positive momentum in the third quarter of the year once the current and temporary high supply has worked through the system. This will support further strengthening of prices, as supply of competing animal protein tightens. “For processors the current stabilisations gives them room to regain margins but prospects are less positive due to the approaching tight supply in most producing regions,” said Rabobank’s Analyst Albert Vernooj.
|Meat One opens outlet in Islamabad|
[09 July 2014] Meat One, a chain of specialty meat shops has opened its first outlet in Islamabad, Pakistan. The upscale meat chain that offers 60 varieties of beef, chicken and mutton cuts is well-established in Karachi where it operates 12 outlets. Meat One is known for its fresh and hygienically prepared meat products. Kamran Ahmed Khalili, Chairman and CEO of Al-Shaheer Corporation, the parent company, said: “Meat One’s popularity in Karachi and Lahore is testament to our superior quality and taste. We have always gone the extra mile to ensure our products are fit and fresh for public consumption. Growing demand encouraged us to take our products to other cities in Pakistan, so consumers have a healthier and fresher alternative.”
|India’s Panchamrut Dairy in expansion mode|
[09 July 2014] The Panchmahal District Cooperative Milk Producers Union Ltd better known as Panchamrut Dairy will inaugurate a new dairy plant and expanded capacity of its cattle feed plant. The new dairy plant that will provide raw milk packets under the Amul brand is at an investment of USD 13.3 million. With the new milk plant, Panchamrut Dairy will be able to process an additional 430,000 litres/day in the first phase, said Managing Director Suresh Patel. Meanwhile the cattle feedmill at Khandiya near Godhra has been expanded with an investment of USD 3 million. The cattle feedmill at Khandhiya currently operates at a capacity of 100 tonnes. An expansion for another 400 tonnes is underway at the factory.
|Vitarich plans focus shift|
[09 July 2014] Philippine feed manufacturer Vitarich Corp hopes to increase its focus on its food business once it exits its court-approved rehabilitation plan, which may happen in September this year. Executive VP and COO Ricardo Manuel Sarmiento said the company plans to launch its ‘golden dory’ product in a couple of months, which it hopes will replace imports of cream dory. Vitarich currently has partner farms for pangasius fish in Rizal and Pampanga province. Mr Sarmiento also said that he expects its feeds business, which currently represents about 60% of the company’s operations, to see higher sales.
|Australia’s Asia Pacific food bowl plan unrealistic|
[09 July 2014] Australian experts said a plan for the nation’s north to become a food bowl for Asia’s growing middle class is not realistic. Australian Agricultural Company Chairman Donald McGauchie said in order for Australia to cater for Asia’s future food needs it needed to double its production across the whole country. Experts said poor soil quality and limited water supply are major obstacles. “We can increase our food production in northern Australia, but whether we can increase it to the extent that it can actually feed billions of people, I think that’s doubtful,” said retired Major General John Hartley, CEO of Future Directions International.
|Japfa planning USD250m Singapore offering|
[08 July 2014] Japfa Ltd controlled by Indonesia’s Santosa family, plans to raise at least USD 250 million from an initial public offering in Singapore, said people with knowledge of the matter. The company is currently gauging investor demand for the share sale and plans to start marketing it this month, said the source. Credit Suisse Group AG and DBS Group Holdings Ltd are managing the offer, they said. Japfa breeds and processes chicken, pork and beef. It also operates dairy farms in China and distributes brands including Greenfields milk in Southeast Asia and Hong Kong. The company’s Jakarta-listed unit, PT Japfa Comfeed Indonesia currently has a market value of USD 1.1 billion.
|Thailand to introduce new pig farm standards |
[08 July 2014] Thailand’s National Bureau of Agricultural Commodity and Food Standards (ACFS) is in the process of drafting a new good practice standard for pig farming in Thailand to conform with present international standards that include rules on animal welfare and food safety. ACFS’s Secretary General Sakchai Sriboonsue said pig farming knowledge and technology has changed a lot since that last standards in 2009, with importing countries introducing more stringent regulations and conditions. “The new standards will feature better guidance and will apply to all farm sizes,” said Dr Sakchai. The draft of the new standard is now at with industry stakeholders prior to its presentation to a committee on agricultural for final approval.
|India's beef exports rise 31% in 2013-14|
[08 July 2014] Beef has become an important foreign exchange earner for India with a 31% increase in quantity and 52% rise in value terms in 2013-14. India was ranked the second largest beef exporter in the world with a 20% market share after Brazil, according to a USDA report. Data from the Agricultural and Processed Food Products Export Development Authority (Apeda), revealed that beef exports totalled 1.4 million tonnes worth USD 4.4 billion last year. The country exports mostly to South East Asia and Middle East. Apeda Chairman Santosh Sarangi said that Vietnam is the largest buyer of Indian buffalo meat, followed by Malaysia, Egypt, Thailand and Saudi Arabia. “The main reasons for growth in exports were the emergence of more state-of-the-art abattoirs and price competitiveness of our meat.” With the opening of the Chinese market, beef exports to China could see a big jump, he added.
|Rejected US corn total reaches 1.25mt |
[08 July 2014] China has rejected about 1.25 million tonnes of US corn since late last year because the shipments contained MIR 162, an unapproved genetically modified strain of corn. China rejected all shipments that contained traces of MIR 162, even if it was mixed with other approved strains, according to Lu Chunmin, spokesman for the Chinese quarantine authority. MIR 162 has been cleared by a preliminary Ministry of Agriculture committee, but that does not mean it will win permission to enter the market. China accepted shipments containing MIR 162 for several years while the MOA was evaluating the strain, but began rejecting shipments following last year’s bumper harvest. Industry sources say the government now has 40 million tonnes of corn in storage, and is not eager to permit imports at this time.
|Indonesia aims to rely less on cattle from Australia|
[08 July 2014] Both Indonesia’s presidential candidates, Prabowo Subianto and Joko Widodo, have promised the country will rely less on Australian cattle imports, in the final debate before polling booths open on Wednesday, July 9. Answering a question about Indonesia’s beef prices, which are among the highest in the world, Mr Prabowo said the country’s domestic cattle industry needed to be strengthened. “What we need to do now is to raise the ability and the capacity of our farmers to increase the amount of livestock in Indonesia,” Mr Prabowo said. “The problem is that bringing cows over for instance from East Nusa Tenggara is often more difficult than bringing in cows from Australia,” he said. Mr Joko, for his part, also advocated a phasing out of imports. He advocated the importation of carcasses versus processed meat. “We can bring the carcasses over, and cut them up here. Thus we can have a range of prices. Not right now, where everyone must buy the [expensive] meat.”
|Researchers find new strains of bacteria good for probiotics |
[08 July 2014] In a study published in the Pertanika Journal of Tropical Agricultural Science, researchers from Universiti Putra Malaysia and Universiti Teknologi Mara in Malaysia reported that three strains, belonging to the species Lactobacillus salivarius, would probably be able to survive and colonise the gastrointestinal tract of chicken as they exhibited good tolerance to acid, bile and pancreatic enzymes as well as a strong ability to adhere to the intestinal wall. In this study, YW Ho and colleagues isolated, identified and assessed Lactobacillus strains from chicken intestines, with a view to selecting potential probiotics.
|Developments in NIR to be presented at conference|
[07 July 2014] Rapid and accurate assessment of ingredient and feed quality is vital for minimising feed cost and achieving more consistent poultry performance. NIR instruments, calibration software and analytical range have come a long way in the past 30 years. Learn more from three experts at Asian Agribiz’s 2014 Poultry Feed Quality Conference. In the NIR session they will address successful commercial application and exciting future developments. Registration and conference details here.
|Poultry producers shift focus|
[07 July 2014] After suffering heavy losses in the third quarter of 2014, some poultry producers in the Philippines have decided to shift part of their operations, even as high as 80%, to cater to the HRI (hotels restaurants, institutions) segment that demands birds that weigh about 1.4-1.5kg, United Broiler Raisers Association President Elias Jose Inciong told Asian Agribiz. He noted that although FCR for the smaller birds is not as efficient, some producers find some advantages. “Instead of harvesting at 33-34 days, [they] harvest at 27-28 days, allowing them seven cycles a year, and less working capital as the birds don’t have to be grown to higher weights.” Plus, the HRI segment is a more stable market.
|Allana starts work on Ethiopian meat processing plant|
[07 July 2014] The Allana Group from India, said work on a USD 20 million meat processing and exporting plant in Ethiopia has commenced. As the first and largest in Africa, it will position Ethiopia as the ‘hub of meat in East Africa’. The plant will start production by September 2014, slaughtering around 200 cattle (25 tonnes) and 5000 sheep/goat (50 tonnes) a day. Initially it is expected to produce 75 tonnes of boneless meat daily for export. “We hope to develop a capacity building program, which benefits not only our project, but the Ethiopian meat sector as a whole,” said Aman Khan, head of Allana Group in Ethiopia.
|Japanese wagyu returns to European market|
[07 July 2014] A cooperative of Japanese farmers celebrated the launch of Japanese wagyu beef back into the European market with a tasting session at a restaurant in London. The EU imposed a ban on Japanese beef in 2001 after an outbreak of BSE in the country. The ban was lifted in 2013 and now, with the first processing facilities pending approval for export to the EU, Japanese producers are hoping to generate strong demand across the continent. The National Federation of Agriculture Cooperative Associations (Zen-Noh) Executive Vice President Yoshimi Nakano said the association had already opened a representative office in London in March. Japan Times said it is eyeing upmarket restaurants and food stores in Britain, France, Germany, Spain and Italy.
|Indian government to develop new aquaculture growth policy|
[07 July 2014] The Indian government is planning to develop a policy for aquaculture growth in the country. “‘Blue growth’ is an important area for sustainable food security. The oceans and the inland waters of our countries offer excellent scope for blue growth,” said Agriculture Minister Radha Mohan Singh. He promoted sustainable growth but admitted that the sector is confronted with “serious inadequacies of planning, funding and management”. India is ranked second in global fish production, inland capture and aquaculture, and seventh in marine capture production/fisheries. Total production was an estimated 9.51 million tonnes. On a global scale, India’s aquaculture accounts for 6.3% of the worlds.
|Meat sector to develop with packaging technologies |
[07 July 2014] New packaging and processing technologies are extending the shelf-life of fresh and processed meat. Food producers can expect better sales and margins, lower environmental costs and product premiumisation if meat is properly packaged, said a report from Rabobank entitled Meat Packaging to Extend Shelf Life. “While consumer preference for fresh over frozen to date has limited sales to mostly regional markets, this could change,” noted the report. Packaged chilled meat and ready-to-eat meat has seen the fastest growth in China of an estimated rate of 20% per year.
Asian Meat Magazine, July/August 2014
[04 July 2014]
Keep up-to-date with progress in meat processing.
Exporting a reality for PFA
While the Pig Farming Area in Sarawak is set to raise the benchmark for pig farming in the country, its abattoir and meat cutting plant – built to comply with export standards – could soon be the first facility in the country to export frozen pork. RACHAEL PHILIP learns that the facility was recently inspected by Veterinary Authorities from an importing country.
CJ to develop brand and raise sales by 90%
Last year the chicken slaughterhouse division of CJ Indonesia recorded good business growth spurring the company to consider increasing its sales by 90% this year. ARIEF FACHRUDIN learns that it plans to build a third slaughterhouse and, within five years, a further processing plant.
QL Livestock Farming courts ISO endorsement
East Malaysian poultry integrator QL Livestock Farming Sdn Bhd hopes to clinch the comprehensive food safety management systems’ ISO 22000 certification for its slaughterhouse by the end of the year. It will then be the only poultry processing plant in the state to have it. The certification will also justify the opening of its fourth broiler farm, RACHAEL PHILIP writes.
Low pressure portioning for higher quality products
Low pressure portioning, allows for effective portioning at higher temperatures with minimal damage to the original meat structure and texture. Processors now can produce a wider variety of end products that have consistent shape and weight, show little defects and are produced at a lower price per kilo, write MAARTEN VAN ZOELEN and MARK BOOM*.
|Philippines produce sufficient corn in 2013|
[04 July 2014] Philippine corn production in 2013 was sufficient to meet the demand of the local feed and livestock industry, a high ranking Agriculture Department official said. Agriculture Assistant Secretary and concurrent National Corn Program Director Edilberto de Luna said with high-yielding seeds and new technology, the country’s corn yield has grown from 3.2 tonnes/ha to 4.2 tonnes in the past few years. The higher output, he said, allowed the Philippines to save some USD 1.4 million in corn imports between 2010 and 2013.
|Ban on Australian chilled beef is lifted |
[04 July 2014] China has lifted its ban on imports of Australian chilled beef, according to an announcement on the AQSIQ website. Chilled beef imports from Australia skyrocketed to 11,068 tonnes in 2013, up from 847 tonnes in 2012. However, the trade was cut off abruptly to zero in 2013 Q4 when China said Australian exporters were only licensed to export frozen beef, and the licenses did not cover chilled beef. Australian exporters went through the licensing and certification process again for chilled beef, and approval was granted earlier this week.
|Chicken supplies assured for Ramadan|
[04 July 2014] Adequate supplies of chicken at fair prices have been assured by officials in Pahang, Malaysia's third largest state. Supply of chicken meat throughout the fasting month of Ramadan and Hari Raya Aidilfitri in Pahang has been assured with the price remaining at USD 2.6/kg and below, reported Bernama. Chairman of the State Committee on Cooperatives, Entrepreneurship and Consumerism Datuk Shahiruddin Ab Moin said 90-120 tonnes of chicken were needed in the state daily and the requirement increased 100% during Ramadan and the Hari Raya festive season. Mr Shahiruddin said there were 384 registered poultry farms in the state with 25 wholesalers supplying more than 90 tonnes of chicken meat daily throughout the state.
|Protein sources continue to dominate discussion|
[03 July 2014] Register early for the 2014 Poultry Feed Quality Conference to learn more about the latest, on-going research on the nutritional quality of soybean meal, the dominant protein source for poultry feeds. The latest developments on soybean meal quality from Europe and the region will be presented by two speakers in the protein session. Recent research from Australia on whole canola seed, a potential protein source for poultry with high metabolisable energy from its oil will be presented by a third speaker. View details here.
|SHH's acquisition of Farm’s Best will facilitate trade|
[03 July 2014] Shandong Hua Hui Food Ltd's (SHH) reverse takeover of Malaysia’s Farm’s Best Bhd will make the Malaysian integrator a Chinese-owned company. “When the deal is completed, because Farm’s Best will be a Chinese-owned company, it would facilitate SHH's exports to Malaysia,” Farm’s Best Corporate Affairs General Manager KT Hoh told Asian Agribiz. He said products such as raw frozen chicken breast meat, unpopular in China, could find its way to Malaysia. “Farm’s Best will be able to expand its customer base through access to the China market through SHH,” said an announcement from the company. According to the announcement the merger would also help fully utilise Farm’s Best existing poultry processing plant which is currently under-utilised, to export processed and further processed chicken products to China.
|Amrit Group launches layer breeder division|
[03 July 2014] Indian broiler integrator Amrit Group has ventured into the layer breeding business, partnering with US-based Hy-Line. It launched its first batch of chicks in Namakkal, Tamil Nadu. In financial year 2014-15, the group said it will first focus on the three major poultry producing states in south India – Tamil Nadu, Andhra Pradesh and Karnataka – for layer breeders. It then intends to expand to the north and north eastern states. The company aims to capture a market share of 30% by 2017-18, a statement from company said. “By partnering with Hy-Line International we have introduced the Hy-Line breed that is designed for excellent livability, superior feed efficiency and good egg quality, increasing the potential profit of the growers,” said Chief Operating Officer K Ravindran.
|US buyers should support Thai shrimp packers|
[03 July 2014] Buyers should support the Thai shrimp industry and not walk away, said Todd Rushing the co-founder of supply platform Shrimp Trader. “I’ve been reading how some importers and customers are walking away from Thailand,” said Mr Rushing. “I feel this does more harm than good. It was sad seeing the Thai production lines operating at 25% capacity. Sadder yet, will be seeing these hardworking people lose their jobs if US buyers pull out,” he said. “Rather than abandoning Thailand, I’d like to see some buyer step up and say 'we support the Thai shrimp industry and will work with them on combating TIP atrocities',” he said. Thailand was downgraded to Tier 3 on the US State Department’s Trafficking in Persons (TIP) report.
|Revenue in processed poultry meat market to reach USD251b |
[03 July 2014] The global processed poultry meat market has grown exponentially in the last decade and this growth is expected to continue, Research and Markets latest release revealed. The market is estimated to fetch USD 251 billion in revenue by 2018 with a projected CAGR of 5.9%. In 2012 the market was worth USD 180 billion. Factors such as the increasing demand for protein rich convenience food and busy lifestyles of two-income middle-class families of developing countries are driving the market for processed poultry meat. The ever-growing population, especially in developing nations, and their increasing income are expected to result in a rise in demand for food, both, fresh and processed.
|Global dairy prices to improve in Q4|
[03 July 2014] Global dairy prices softened considerably through Q2 as a result of improved milk production in export regions and the easing of forward purchasing by China. “The pull back in Chinese purchasing has been particularly significant, with evidence that the Chinese industry has accumulated excess inventories after a period of vigorous buying, improved local milk production and weaker local sales. Current prices in the international market have dropped below what we see as sustainable in the medium term,” explained Rabobank analyst Tim Hunt in the Dairy Quarterly Q2 report. “We expect little improvement in prices until late in 2014 or early 2015,” he added.
|Malaysian producers and retailers prefer modern abattoirs|
[02 July 2014] Although there still are a number of Malaysian pig farmers who slaughter their pigs at poorly-maintained backyard set ups there are many other farmers and pork sellers that choose to have their pigs slaughtered at a modern abattoir. “They prefer the modern pig abattoir because they want the freezing facility,” Chuang Hock Meng, the Pig Unit Chairman of the Federation of Livestock Farmers’ Associations of Malaysia, told Asian Agribiz. About 90% of pork is sold at wet markets where pork is displayed on countertops and left hanging on hooks throughout the operating hours. “The freezing facility gives the pork a longer shelf life, it reduces the smell and flies at the retail point,” he said. In Peninsula Malaysia pork is sent to Tip Top Meat Sdn Bhd in Rawang, the country’s first modern pig abattoir, about 50km from Kuala Lumpur.
|Poultry prices to take-off|
[02 July 2014] Rabobank's Poultry Quarterly Q2 has recorded a bullish trend driven by relative price support from high beef and pork prices alongside demand recovery and a more balanced supply and demand situation in most regions of the world. This is expected to lead to an improvement in profitability for the global poultry industry. "Under improved global market conditions, a slight increase in global chicken prices is expected," commented Analyst Nan-Dirk Mulder. "We see an increasingly balanced market, where supply discipline is more the order of the day and improving margins will be the likely result. However, markets remain volatile and any change in fundamentals, especially from the supply and feed side, will impact global prices. Suppliers should look to keep production growth disciplined," he said.
|Thai shrimp exports to decline 20% this year|
[02 July 2014] The total value of shrimp exports will probably drop by 20% this year as the decline continues for the third consecutive year, the Kasikorn Research Centre warned. The centre issued the forecast as the value of shrimp exports in the first five months of this year amounted to only USD 691 million, a 22% decline year-on-year. The fall happened in all main markets, namely the US, Japan, Europe and Southeast Asia. However, exports increased in some markets such as Germany, Hong Kong and South Korea, the research centre reported. The main cause of shrinking exports is the early mortality syndrome, which has affected Thai shrimp production since 2012. Another cause is the negative image of shrimp export sector in the eyes of foreign buyers, due to alleged abuse of foreign workers and human trafficking in the industry, the Bangkok Post reported.
|Malaysia hopes to produce 2 million tonnes of fish/year|
[02 July 2014] Malaysia is on its way to achieving its target set under the National Agro-Food Policy (2011-2020) to produce 2 million tonnes of fish/year. According to Agriculture and Agro-based Industry Minister Datuk Seri Ismail Sabri Yaakob this policy has been put in place to address the issue of food supply in Malaysia. “So far, we have achieved 20% of this target. The remaining 30% can be achieved if all quarters cooperate in efforts to empower the aquaculture industry in the country,” he said. “The focus is on aquaculture activities and no longer merely on marine catch because of several factors, like global warming which has impacted marine life.” Food fish production last year stood at 1.74 million tonnes, valued at USD 3.29 billion. The total value of fish and fish products traded was USD 1.8 billion, contributing 1.3% to the national gross domestic product and 12.5% to the agriculture GDP.
|Indian poultry industry asks for differentiation|
[02 July 2014] The USD 10 billion poultry industry in India is seeking government support for a safer chicken industry in the country. The industry is requesting that the government differentiate value added meat from modern units from freshly slaughtered birds when it comes to taxation and allocation of funds for the Poultry Technology Upgradation Fund. Addressing delegates at Meat Tech 2014, Suguna Foods Managing Director GB Sundararajan said: “There exists a Poultry Technology Upgradation Fund but no allocation has been made.” He said that the industry requires a yearly minimum of USD 17 million to be allocated for the scheme and the government has to invest in developing the cold chain.
|Low local demand hampers growth of equipment market |
[02 July 2014] The processed poultry equipment market, valued at USD 2.7 billion in 2012, is projected to grow at a CAGR of 6.7% from 2013-18, Research and Markets latest release revealed. The major constraint of this market is the small and medium organisations in Asia-Pacific, Latin America and South Africa that cater to the local market which cannot afford costly equipment. Lack of awareness among the processors about the technological advancement is another restraining factor. The trend in the processed poultry equipment market is shifting towards convenience food, hygiene, safety and custom fillets. R&D activities especially in Europe, to develop low-cost production techniques are expected to add pace to the growth rate of the processing equipment market.
These headlines and more in Asian Poultry Magazine, July 2014
[01 July 2014]
Udomchai downsizes for better results
While many layer farmers in Thailand are fighting to survive with the frequent fluctuation in egg price, Udomchai Farm has stayed afloat with a small organic free range egg operation. Focusing on quality, not quantity, the farm opted for smart farm management and premium feeding to promote flock health and generate quality eggs, writes NITSARA THONGRUNG.
FRESHmart pioneers modern chicken retail
FRESHmart is a pioneer in West Kalimantan, Indonesia, for its chicken meat retailing operations. At the FRESHmart shops, consumers find quality chicken and chicken meat products in chillers and freezers within a clean and comfortable shopping environment, writes ARIEF FACHRUDIN.
What if poultry was the new fish?
The ability to enrich eggs with DHA, Omega-3 PUFA provides the egg industry with a unique opportunity to produce an innovative, quality and value-added premium product claims ALEX TSAPPIS.
Ten years of vaccination against AI in Asia
MARCELO PANIAGO analyses the use of avian influenza vaccines in Asia and discusses some critical points related to it as the base to evaluate their use as an auxiliary tool in the control and eradication of avian influenza outbreaks in endemic regions.
|US requires racto-free certification for China-bound pork |
[01 July 2014] New US regulations going into effect today require pork bound for China to be certified ractopamine free. US pork exports to China have already declined because only three US plants earned certification, two of them owned by Chinese giant Shuanghui through their Smithfield subsidiary. The certification program was originally designed for the Russian market, but China asked to be included in January this year. China forbids ractopamine in pork and complained that some US shippers were selling pork from pigs raised on ractopamine. Europe already forbids ractopamine, but US exports are expected to decline until more US plants switch to racto-free production.
|Indonesia confirms cattle imports to secure supply|
[01 July 2014] Indonesia’s Trade Ministry has issued permits for the importation of 167,000 heads of live cattle in the third quarter, which will help with meat supply during Idul Fitri. Of that figure, around 80% will be feedlot cattle and the rest will be slaughter-ready cattle, according to Trade Ministry Director General for Foreign Trade Bachrul Chairi. Mr Bachrul further said that the government has vowed to maintain the price of beef below USD 8.34/kg during Ramadhan and Idul Fitri. The quota for cattle import in Q3 is much lower than 286,100 heads in Q2.
|Jollibee eyes China, US expansion|
[01 July 2014] Jollibee Foods Corp (JFC) from the Philippines seeks to expand especially in China and the US, through acquisitions and organic expansion. JFC Chairman Tony Tan Caktiong said the company is currently looking at an acquisition in the US, saying that this would help speed up the growth of the company’s international business. Meanwhile JFC Chief Finance Officer Ysmael Baysa said its operations in China have hit the 500-branch mark. The country accounts for 20% of the company’s total international sales and 12% of its worldwide earnings. JFC is gunning for a 50-50 ratio of its local and international operations. It will introduce its brands in Canada and Kuwait in 2015.
|Conference to continue focus on enzymes|
[30 June 2014] Understanding and commercial application of feed enzymes continues to be a major research focus. They have greater economic potential than ever for improving utilisation of ever more costly feeds. Enzymes return as a theme at this year’s Asian Agribiz 2014 Poultry Feed Quality Conference. “We have an impressive group of leaders in the field joining us at this conference to update us on developments with protease, phytase and carbohydrases,” said Rex Holyoake, CEO of Asian Agribiz. Get more details here.
|Suguna to buy back IFC stake|
[30 June 2014] India’s Suguna Foods is in the process of buying back International Finance Corporation's (IFC) stake of about 5% in the company. Sources said private equity investor IFC would exit with threefold returns. In 2006, the World Bank’s investment arm had invested USD 11.25 million as equity, according to an IFC disclosure. “We are buying back the stake from IFC and the process will be completed by this November,” said Suguna Foods Managing Director GB Sundararajan. The company had no plans to go for an initial public offering or raise funds from any other private equity fund, he added. This was said to be IFC’s first investment in the Indian poultry sector; its investment was aimed at supporting the company’s expansion and developing global competency. Experts said while private equity funds have expressed interest in investing in the USD 10 billion poultry sector, many family-run companies are not open to this.
|CPF on target for growth despite labour issue |
[30 June 2014] Thailand's Charoen Pokphand Foods (CPF) is confident that it will generate a sales growth of 15% this year despite the 'slave labour' issue that has led to some international customers temporarily suspending imports from the company. CPF’s President and CEO Adirek Sripratak confirmed that the company does not have fishing boats or a fishmeal factory that employs illegal labour and accepts fishmeal only from legal producers that are not involved in abused labour. Mr Adirek said for the U.S. market where CPF has more than 100 customers, only one has suspended purchase and Carrefour stores in some countries have returned to buying CPF products after receiving clarification from the company, while Tesco has continued trading with CPF as usual. CPF said only 0.002% of sales has suffered from this situation.
|Southeast Asia’s record import of corn to continue|
[30 June 2014] In the last 10 years Southeast Asia’s meat production grew to almost 18 million tonnes from 12 million tonnes. Feed production has grown in tandem with this development, noted US Grains Council Regional Director Adel Yusupov. He said there is now a market for 30 million tonnes of corn to be used as raw feed material in the region. “Considering local corn production of 22 million tonnes, last year’s record corn imports of 8.5 million tonnes are totally justified. This trend is likely to continue as the feed industry’s exponential growth has greatly limited any opportunities for local corn production to catch-up with demand,” he wrote in a report. He said global trading houses opening trading offices in Singapore to service the region is “exciting development”.
|China, Australia hope for FTA by year’s end |
[30 June 2014] China and Australia are aiming to sign a free-trade agreement by the end of this year, Australian officials said after talks with Chinese officials. The Australian meat and dairy industries would be major beneficiaries of a deal, because it would level the playing field with New Zealand, which already has an FTA that gives its products as much as 12% price advantage over similar Australian products in China. The two countries are hoping to have a deal ready for signing when Chinese President Xi Jinping visits Brisbane in November for a G20 meeting.
|Odisha to increase poultry production|
[30 June 2014] India’s Odisha State is mulling a poultry policy in a bid to produce 10 million eggs/day and 100,000 tonnes of broiler meat/year by 2020. A presentation on the proposed policy framework was done by Commissioner-cum-Secretary, Department of Fisheries and Animal Resources Development Bishnupada Sethi. Mr Sethi explained that the policy would aim to address various inter-linked concerns through a simultaneous and multipronged action with an emphasis on improvement in production technology and infrastructure, driving capital formation, restructuring the incentives and streamlining the institutions for poultry development. He said that with the National Livestock Mission in place, the state would take advantage of the policy framework and plans to add 6 million new capacities in the commercial layer farming sector.
|Pakistan’s poultry sector grows 8-10%|
[30 June 2014] The current investment in Pakistan's poultry industry has reached more than USD 2 billion and the sector is showing growth of 8-10% annually. It is considered one of the most important and vibrant segments of agriculture in the country, and contributed 1.3% to the GDP in the 2013-14 fiscal year. Sources at the Ministry of National Food Security & Research said poultry meat makes up 28% of the total meat production in the country. Value-added production has increased from USD 1.2 billion in 2012-13 to USD 1.3 billion in 2013-14.
Highlights in Asian Feed Magazine, July 2014
[27 June 2014]
Royal De Heus and Wellhope: A win-win in China
Investing in China is all about finding that right balance. The Royal De Heus Group’s technical knowhow and management expertise paired with Wellhope Agri Tech’s feedmills managing strategy and its sales and distribution advantage has created a winning relationship, RICH HERZFELDER writes
Southeast Asia readies for AEC
With just a year-and-a-half to go before the launch of the Asean Economic Community, Asean member countries are working hard to get their upgraded facilities up and running, accreditation papers in order and farms and feedmill capable to meet rising orders.
iFeed Philippines banks on quality
Just over four years since its entry into the market, the finished feeds division of Easy Bio Philippines Inc has seen its volume rise three-fold. ISA Q TAN writes that the company is not stopping as it looks to tap into growth opportunities in the Philippine market.
Using NIR to establish the quality of feed ingredients
Considering amino acid variation and over-processing effects on amino acid digestibility in swine feed formulations can improve feed quality and prevent loss of animal performance write SHELIA H. RAMOS, H. LIU and C. K. GIRISH.
The true impact of non-starch polysaccharides in pig diets
With a clearer understanding of how NSPs affect nutrient utilisation and how NSP-degrading enzymes can be used to overcome those limitations, PETE WILCOCK and GUSTAVO CORDERO write that it should also be no surprise that the most consistent and reliable results currently come from use of highly targeted, dose-optimized, single enzyme products.
|Thailand clarifies 'slave labour' issue with importing countries|
[27 June 2014] Thailand has introduced an urgent roadmap aimed at clarifying the 'slave labour' issue in the fishery industry with importing countries after the US reduced Thailand to Tier 3 Watch List of the Trafficking In Persons Report in 2014 (TIP Report). Srirat Rastapana, Permanent Secretary of the Commerce Ministry said the ministry, as a core body overseeing international trade, will send delegations to importing countries to clarify that Thailand’s fishery and seafood industries do not use slave labour. Meanwhile, the Thai Fishery Producers Coalition that comprises of the Thai Frozen Food Association, Thai Shrimp Association, Thai Feed Mill Association and Thai Fishmeal Producers Association has reiterated that there is no slavery involved in the shrimp supply chain. It confirmed that child and forced labour will not be tolerated and the group has pledged full cooperation with Thai authorities to fight human trafficking, within the supply chain and in related activities.
|Soybeans, China’s largest agricultural import in 2013 |
[27 June 2014] Soybeans remain China’s largest agricultural import by far, with Brazil and the US being the largest suppliers, according to a USDA analysis of final China Customs figures for 2013. China imported more than USD 38 billion worth of soy in 2013, with slightly more than half coming from Brazil and slightly more than a third from the United States. China's soy imports, chiefly for the animal feed market, are expected to rise again this year. No meat products figured among China’s top imports, but almost USD 1.2 billion worth of processed chicken ranked No. 7 among China’s top agricultural exports, with more than 85% of the chicken going to Japan.
|CP Prima to increase Fiesta Seafood production|
[27 June 2014] Indonesia’s largest shrimp and aquafeed producer Central Proteinaprima, popularly known as CP Prima, this year has targeted to escalate the production of its Fiesta Seafood products such as shrimp nuggets, shrimp roll and ebi fry by 1500 tonnes. Marketing Director Sutanto Sudjaja said the increasing demand for processed shrimp and fish products in the country led the company to increase its production. CP Prima’s Fiesta Seafood products are sold at major retailers and also in institutional markets such as hotels and restaurants. “We target to sell our products at 4000 retailers in Indonesia,” said Mr Sutanto, adding that the products will also be sold at CP Indonesia’s Prima Freshmart retail outlets.
|Namakkal raises egg prices |
[27 June 2014] Namakkal, India's egg basket, has raised egg prices in response to demand from the Kerala and Hyderabad markets. The increase of demand in Hyderabad now has an impact in the price of eggs in Namakkal, said R Chinnaswamy, a distributor in Namakkal. "The price of eggs is around USD 0.05/egg. The ban on fishing in the west coast of the country, such as in Kerala, has increased demand for eggs and generally, demand is high during the rainy season causing prices to rise," said VS Balasubramaniam, Senior Manager - Coordination, National Egg Coordination Committee (NECC) Namakkal Zone. Poultry farms in the Namakkal cluster in Southern Tamil Nadu produce around 31 million eggs/day. About 40% is consumed by the Kerala market and by schools in Tamil Nadu under the free meal program.
|Special price for early registration|
[26 June 2014] As in the past, early registrations for the 2014 Poultry Feed Quality Conference by Asian Agribiz Conferences will enjoy a special price. Early bird registration closes on July 16. The conference will be held at Aloft Kuala Lumpur Sentral that is situated in the new business hub of Kuala Lumpur. It is just about 40 minutes away by train from the Kuala Lumpur international airport. View details here.
|Sierad to increase food production during Ramadhan|
[26 June 2014] To respond to the increasing demand for processed chicken products during Ramadhan, Indonesia's Sierad Produce plans to increase its nugget, sausage and meatball production by 50%. “During normal months we only produce around 1000 tonnes, but during Ramadhan we plan to produce around 1500 tonnes,” Director Aryanus Syahrudin said. “It is estimated that demand for chicken and its processed products will increase by 20% during Ramadhan. So we will increase our supply to retailers and also to QSR chains such as KFC and McDonalds.” Sierad will also increase its products supply in Sumatera, Sulawesi and Kalimantan.
|Short course on maximising animal performance|
[26 June 2014] The 20th SE Asian Feed Technology and Nutrition Workshop organised by the U.S. Soybean Export Council and the U.S. Grains Council in Manila, the Philippines from August 4-7, will help participants understand how to maximize the performance of pigs and poultry by understanding how animals utilise nutrients. Participants will learn how combining ingredients in the most economical way will help meet all energy and nutrient requirements of the animals. For details contact firstname.lastname@example.org.
|WH Group seeks to revive failed IPO|
[26 June 2014] WH Group is looking to revive its Hong Kong IPO only two months after its previous market offering collapsed, according to a published report. US investment bank Morgan Stanley is informally seeking cornerstone investors for a deal priced 20% below the original failed offer, according to a report in the South China Morning Post. WH Group, formerly Shuanghui, needs the funds in order to repay money it borrowed last year to buy Smithfield for USD 4.7 billion. The original IPO collapsed in April because investors thought the price too high. The offering was also troubled by poor market conditions, lack of cornerstone investors, revelations of massive payments to company executives and confusion among the 29 investment banks who got a piece of the deal.
|Godrej Tyson Foods allocates USD10m for capacity expansion|
[26 June 2014] India's Godrej Tyson Foods that markets fresh chilled chicken under Real Good Chicken (RGC) brand and ready-to-eat products under the Yummiez brand has invested USD 10 million on expansion of plant capacities. “We are expecting RGC to achieve a 24% market share in fresh chilled chicken [amongst organised players] and 10% for Yummiez in 2-3 years,” COO Arabind Das said. Last year, the company expanded its plant capacity by 80% in line with its future growth strategy. The company plans to expand its business by investing in chillers and freezers. “We would be investing around USD 1.6 million in the next 2-3 years in chillers and freezers. Last financial year, we invested USD 831,000,” he said. Presently, RGC is available in five cities – Mumbai, Pune, Bangalore, Hyderabad and Chennai – and Yummiez in 60 cities.
|Chicken price spikes in Nepal |
[26 June 2014] Owing to low production in the country amid increasing demand, Nepal Chicken Sellers Association (NCSA) and Nepal Poultry Federation (NPF) have increased the price of chicken by USD 0.15/kg to USD 3.6, effective June 22. Likewise, the price of live chicken has also been raised to USD 2.6/kg from USD 2.5. “The demand for chicken is rising but production has declined by 50% as compared to last year,” said Narayan Hari Khatri, Vice President of NPF. “Daily demand is 300 tonnes while the supply is below 200 tonnes.” Mr Khatri added that the poultry population declined after the government culled over 2 million chickens last year due to bird flu.
Livestock farmers in SE Asia on alert for El Nino
[25 June 2014]
The El Nino weather phenomenon that is expected in the second half of this year could result in drought and higher temperatures. Agricultural and livestock production in the Asia-Pacific region could be affected.
According to the Food and Agriculture Organisation’s Global Information and Early Warning System (GIEWS), the latest meteorological forecast indicates a 70% probability of El Niño occurring during the Northern Hemisphere’s summer and 80% during the autumn or winter.
Although no precise quantitative correlation has been established between the occurrence of El Niño and changes in agricultural production, a general pattern of potential changes in weather conditions and the possible impacts on agricultural production is given. The effect on agriculture will depend on the timing and severity of the El Niño, as well as the crop calendar in a particular region, it cited.
Hot weather hits protein production in Thailand
In Thailand, Geo Informatis and Space Technology Development Agency, a public organisation, forecast earlier this year that the country will experience the most-severe-in 10 years El Nino phenomenon. Hot weather in April and May dented egg supply and pig production in Thailand. Late rains led to a drought in several areas, slashing corn and soybean production.
Profitability will be challenged
Thai pig raisers fear that the health and productivity of swine herds will be challenged. Heat stress will cause the pigs to eat less and result in a weaker immune system, Kiddivong Sombuntham, Secretary-General of the Thai Swine Raisers Association in Thailand told Asian Agribiz. It will take longer for the pigs to reach market weight and thus impact the bottom-line. Growers should start looking at ways to reduce the impact of the warm weather on their herds, he said.
Grain crops affected by late rains
Late rainfall this year has delayed new crop supply to the market by about a month, Boontham Aramsiriwat, Secretary General of the Thai Feed Mill Association told Asian Agribiz. “New supply is expected only in August or later, and if the weather remains hot, next season’s planting will also be affected,” said Mr Boontham. Corn planting area is expected to decline due to the drought and hot weather. The price is hovering at USD 0.31/kg at the moment. “Taking into consideration the current raw material prices, feed cost is staying at a rather high level at the moment,” Mr Boontham said. The Thai Feed Mill Association is surveying corn crop plantation, rain volume and other relevant conditions before coming up with production forecast for this crop year, according to Mr Boontham.
Heat stress will impact productivity
Indonesia’s Meteorology, Climatology and Geophysics Agency predicted that El Nino will begin to roll out this August. Regional Sales and Technical Manager of Novogen Suryo Suryanta said heat stress could lead to a 5% decrease in egg production due to El Nino, he told Asian Agribiz. This could lead to a gently spike in prices, but not to the extent of affecting the purchasing power of consumers. “Demand will remain high due to school holidays and Ramadhan.”
Prolonged drought in Indonesia
CP Indonesia’s General Manager Eastern Region, Syahrir Akil told Asian Agribiz that the most feared effect of El Nino is a prolonged drought that will affect the supply of clean water for farms. “Quality water supply is very important for the birds.” As a precaution, the government and related research institutes have plans for cloud seeding to induce rain and ensure the supply of clean water. “Farmers with open houses should add fans and add vitamin C to the birds’ diet to tackle heat stress. They should also lower the stocking density from 12kg/m2 to 10kg/m2.” In this situation, farmers with temperature-controlled houses will be more secure, he added.
Malaysian farmers prepared
Farmers in Malaysia remember the severe haze and drought of 1998. They know that pigs and poultry in open houses suffer and are most likely prepared this time round, QL Agro Resources Sdn Bhd Director, Dr Ng Siew Thiam told Asian Agribiz. Dr Ng said the problem can be tackled from a nutritional and farm management aspect. “Farmers are advised to market the animals early to bring down the stocking density as pigs and broilers suffer most when they are big in size,” he said. For layer hens, farmers must monitor their body weight to prevent obesity or overweight. They should consider lowering the energy content in the feed while ensuring that nutrient levels are sufficient as feed intake will reduce. He suggests feeding broilers in the evenings when it is cooler, to reduce mortality from heat stroke especially among bigger birds.
Pig supply in the Philippines as usual
Philippine pig producers are on alert although current growing conditions are expected to improve with the coming rainy season, Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz. He noted however, that they will be monitoring the situation especially how El Niño will affect corn production. Previous El Niño episodes have led to less rainfall but stronger typhoons and major corn production areas like Region 2 are located in the typhoon belt. If necessary, he said, animal and feed producers can import substitutes like feed wheat to augment any possible shortfall in corn production.
Corn production on schedule
The Philippine Department of Agriculture (DA) disputed reports of delayed corn planting due to the El Niño phenomenon that is expected to hit the country this year, saying that corn production is on schedule. “Planting in major corn areas commenced in the third week of May,” Assistant Secretary Edilberto de Luna told Asian Agribiz. He said that in the event of El Niño, the Corn Program “has an existing Quick Response Fund for cloud seeding operations and provision of shallow tube wells. Assuming that areas have already been affected by El Niño phenomenon or any other adverse condition, the DA, through the Corn Program, is providing seeds for the farmers to quickly replant.”
|High farm price pushes raisers to sell pigs earlier|
[24 June 2014] High farm prices are pushing some pig raisers in the Philippines to sell their pigs at lower weights, several members of the country’s pig industry told Asian Agribiz, with traders noting that for the past few weeks, prices have been up to as much as USD 3.00/kg for commercially raised pigs. In particular, they say, backyard raisers, which make up the bulk of the industry, have been unloading their pigs at weights as low as 75kg, especially during the last few weeks as the new school year began. Meanwhile, high demand coupled with tight supply has also pushed up piglet prices.
|Self-sufficient Malaysia imports 7.4% more chicken cuts|
[24 June 2014] The Malaysian poultry industry saw a 7.4% increase in imports of chicken cuts and products in 2013 compared to 2012. The imports are likely to jeopardise the viability and sustainability of the local poultry industry which is already suffering from prolonged high cost of production, noted a report from the Department of Veterinary Services (DVS) Malaysia. “Since local sources are more than adequate (about a 128% self-sufficiency for chicken and duck meat) the poultry industry has to innovate and explore export markets especially among Asean member nations in the true spirit of the Asean Free Trade Agreement,” said the DVS report.
|First licensed vaccine approved for PEDv|
[24 June 2014] The USDA's Animal and Plant Health Inspection Service (APHIS) has issued a conditional licence to an Iowan firm for a vaccine that may help in the battle against porcine epidemic diarrhoea virus (PEDv). Harrisvaccines has been awarded the first licence of its kind. Sows will be vaccinated with the intent that they build antibodies and transmit them to their young through their milk. Conditional licences are issued following full safety, purity testing and an expectation of efficacy. According to APHIS, preliminary studies have been promising but Harrisvaccines will continue working towards completing the requirements for a full licence.
|Pioneerindo to add 40 new CFC outlets|
[24 June 2014] Responding the fast growth of chicken based QSR's in Indonesia, Pioneerindo Gourmet International, the operator of California Fried Chicken (CFC) outlets, has allocated USD 7 million as capital expenditure for business expansion. The company said this year it will add 40 new outlets where one new outlet will cost the company around USD 125,000. The company will also renovate its 30 old outlets and upgrade its products quality. With the expansion plan, Pioneerindo targets to achieve a 15% growth this year. Last year the company recorded a total income of USD 33 million.
|Indian authorities keen to phase out antibiotics|
[24 June 2014] The Drug Controller General of India and India’s agriculture ministry have informed state governments to phase out antibiotics and hormones in animal feed. The new proposal also calls for enforcement of existing rules managing the amount of time that an animal received drugs for medicinal purposes and when food products from that animal are sold. One goal of the new program is to make farmers more sensitive to the risks that using antibiotics and hormones in animal feed pose to humans, including reducing their effectiveness in treating human diseases as bacteria become resistant to the antibiotics.
|Britain-China discuss beef, lamb trade|
[24 June 2014] Britain is hopeful that a deal can be reached with China, which would see its beef and lamb exported to the country for the first time in 30 years. China’s 30-year ban on British beef and lamb was imposed due to BSE. A deal with China could be worth up to USD 205 million to the UK economy. British Prime Minister David Cameron's visit to China in December yielded an export deal for pork products worth up to USD 77 million. Negotiations for a new agreement between the Department for Environment, Food and Rural Affairs and the Chinese authorities is expected to realise British beef and lamb supplies to China.
|Fresh insights into carbohydrates and fibre in poultry diets|
[23 June 2014] Asian Agribiz’s 2014 Poultry Feed Quality Conference will start off on August 21 with presentations by three experts on carbohydrates and fibre. Conference Director, Tim Walker said carbohydrates, the major component of feeds, in addition to starch for energy, include fibres that can be beneficial (structural), inert or anti-nutritional (soluble NSP). “The speakers will give us fresh insights into the chemistry, analysis and nutritional characteristics of carbohydrates and provide the latest information on fibre in poultry nutrition. View the conference website here.
|Pork, chicken retail prices to remain high|
[23 June 2014] Retail prices of pork and chicken in the Philippines are likely to remain high at least for the next month, Philippine Department of Trade and Industry Secretary Gregory Domingo said during a briefing of the National Price Coordinating Council. He noted that the hot summer has slowed growth of chickens while porcine epidemic diarrhoea (PED) has tightened pig supply. While the chicken situation is expected to be resolved in about a month, he said that for pork prices, “nothing is definite since we are dealing here with pests, which is also a global problem.” Industry observers have noted that PED has affected many farms in the country, however there has been no official declaration of an outbreak from industry players and the Agriculture Department. However, Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that there will be a softening of prices as demand is expected to lessen with the opening of the new school year, even as the rainy season leads to faster growth of fattening pigs.
|USSEC, USGC present fundamentals of nutrition |
[23 June 2014] The U.S. Soybean Export Council and the U.S. Grains Council are organising a workshop aimed at presenting the fundamentals of nutrition to maximize animal performance. Designed as a short course, it will benefit feedmill managers, nutritionists, and feed formulators in the Southeast Asian animal feed industry. This 20th SE Asian Feed Technology and Nutrition Workshop will be held from August 4 – 7, in Manila in the Philippines. For details contact email@example.com.
|Calata Corp acquires meat supplier|
[23 June 2014] Philippine agribusiness company Calata Corp has finalised its acquisition of a majority stake in Brookfields Meat Inc, a corporation that will take the meat business of the Galicia Group that supplies meat products exclusively to major supermarkets in the country. In a disclosure, the company said it wants to include “the meat business into its existing revenue streams such as feeds distribution business and hog breeding and growing towards the objective of finally achieving its farm to plate model.” Calata plans to aggressively expand its meat business by forging major supply agreements with large supermarket chains, including Puregold, which has more than 200 branches across the country.
|CPF clarifies labour issue with Carrefour |
[23 June 2014] Thailand’s Charoen Pokphand Foods Plc (CPF) is in the process of clarifying the situation with French retailer Carrefour which suspended shrimp imports from CPF after a foreign media alleged the use of slave labour in the Thai fishery sector. Adirek Sripratak, President and CEO of CPF said Carrefour’s decision was made based on misinformation. Mr Adirek confirmed that CPF opposes human trafficking and abuse of labour and will cooperate with all relevant parties to resolve and problems in this sector. He added that the company pays a premium for fishmeal with certification. CPF’s exports to Carrefour accounted for only 0.03% of its sales in 2013, or worth around USD 4 million. Mr Adirek hopes trading with Carrefour will return to normal once the situation is clarified.
|Cargill China boasts of country’s fastest processing line|
[23 June 2014] Cargill China’s poultry processing plant in Lai’an Anhui Province, is fitted with the country’s first 13,500 birds/hour, or 225 birds/minute line. “We wanted to combine the world’s most advanced poultry processing equipment and technology with our own innovative initiatives. The primary processing production lines in Lai’an are among the fastest in the world, with a high level of automation,” said Cargill China President Robert Aspell. The plant is now running at its full design speed. The company hopes to produce some 176,000 tonnes of poultry products per year. The kill and evisceration lines are fully automated, as well as processing of the valuable giblets.
Onsite at Indo Livestock with ARIEF FACHRUDIN
[20 June 2014]
Evonik’s MetAmino plant in Singapore is near completion
Evonik Nutrition and Technical Sales Director for Asia South, Dr Girish Channarayapatna said the company’s 150,000 tonnes/year MetAmino (DL-methionine) plant in Singapore is near completion. “Production will start in the second half of this year. The plant employs the most advanced technology to ensure the product quality meets global standards.” MetAmino is an amino acid used for animal feed, particularly for pigs, poultry and fish. At the show, Evonik showcased its amino acid products and probiotic Gallipro. It also showcased its AMINOProx to predict nutrients from proximate analysis and phosphorus in feed raw materials.
Big Dutchman setting up new warehouse
Big Dutchman Indonesia is currently setting up a new warehouse located in West Jakarta with bigger capacity. “We are targeting completion in the middle of 2015,” said Managing Director Niels Heyer. “With the new bigger capacity warehouse, we will have more spare parts available and we can react faster to give better service to our customers.” Mr Heyer added that the company plans to introduce new layer cages for open sided houses in the near future.
Marel prospers in Indonesia
Marel has introduced several new systems to the Indonesian market. One of them is Aeroscalder. This system bypasses the problem of cross contamination during scalding by passing moisturised hot air at high speed over poultry carcasses. “The Aeroscalder is targeted for regions where water supply is limited, for instance in eastern Indonesia. This system saves up to 75% water and up to 50% power,” said Rudy Hudin, Country Manager for Indonesia. Talking about projects, Mr Rudy said that up to June 2014 the company had secured eight new poultry processing projects consisting of six greenfield projects and two upgrading projects. “We are happy that our business in Indonesia is quite successful.”
Trouw Nutrition to conduct mycotoxin surveillance
Trouw Nutrition Indonesia plans to conduct mycotoxins surveillance on local corn this year. Country Manager Harris Priyadi said the company will track mycotoxin contamination of local corn starting from post-harvest to warehouse. “We will take samples from different locations in Indonesia and then test it on the spot with specific rapid test kits,” said Mr Harris. “Through the surveillance, we will get actual data including the intensity of mycotoxin contamination from post-harvest to warehouse. This data would be valuable in helping us provide the best solutions to farmers in controlling mould and mycotoxins especially with home mixed feeds.”
Vi-COR introduces Aviator
Vi-COR introduced its refined carbohydrate Aviator that replaces products in poultry diets that contain mannan oligosaccharide and beta glucans. Asia Business Manager Maggie Chuang said the product naturally enhances immunity, improves gut health and feed conversion, and reduces the cost of production. “The product is available in three different concentrations namely dry, liquid and soluble concentrated powder, giving flexibility to poultry producers to add in feed rations or through drinking water.” In Indonesia, Aviator is distributed by Catur Nawa.
Kurnia Cipta launches I-Coop Eco Poultry House
Indonesia's Kurnia Cipta Mandiri Abadi launched its I-Coop Eco Poultry House with full-galvanised frame, sandwich wall panel and floating ceiling system. The system is easy to install, offers low maintenance, energy saving and is well priced, said Director Sugiarto Kurniawan. “I-Coop is specifically designed tropical climates. It has been tested at our trial centre in East Java with satisfying results. It took several years to develop and test the product before launching it,” Mr Sugiarto said, adding that the company has sold some units to broiler farmers and breeders in East Java. “PT Anugerah Dwidaya Agung, the distributor of Chore-Time and Jansen Poultry Equipment, will help us to promote I-Coop across the country. We are also ready for orders from foreign countries,” he added.
Medion cooperates with Greenvet in Vietnam
Amalia Jonas, owner of animal vaccine and pharmaceutical company Medion based in Bandung, revealed that the company has signed a cooperation agreement with Vietnam's Greenvet for animal pharmaceutical production in Vietnam. Greenvet has been importing and distributing Medion products in Vietnam for five years, said Mrs Amalia. “Greenvet has built a production plant in Hanoi.” In the agreement, we will share our knowhow and transfer our technology. Initially, the plant will only produce vitamins for poultry, then will go on to produce veterinary medicines for pigs. This is a new milestone for our international business," she said.
Onsite at China International Meat Industry Exhibition (CIMIE)
with RICHARD HERZFELDER in Beijing, China
[20 June 2014]
Rising labour costs driving meat industry to automation
The rising cost of labour and the demand for better hygiene in the China market is creating opportunities for companies that manufacture the most sophisticated meat processing equipment, according to numerous exhibitors at CIMIE. “When labour was cheap, there was no need for a lot of automatic equipment,” says Michael Schomber, General Manager of Banss (Shanghai). “But with wages and required social benefits going up, we are selling more automatic equipment.” The IFR Innovative Food Robotics pig splitter with chopping tool, which uses lasers to correct for carcass irregularities and off-centre hangs, is popular in China, said Schomber.
Vemag promotes new concept in online ordering
Vemag is promoting a new concept in convenient ordering with its “sausage-linker.com,” which can be ordered online and shipped directly to a customer. The two-tonne/hr capacity machine comes on a wooden skid that can be removed without having to lift the equipment. Initial assembly instructions are right on the packaging, and an installation wizard guides the buyer through set-up, according to Matthias Becker, General Manager at Vemag China. “It’s good for small butcher shops,” Becker said.
Tipper Tie assembles locally
Tipper Tie has is assembling some of its machinery in China to reduce cost for the local market. “The core part is imported, but the machine is assembled here. The customers get the same quality and service, but it enables smaller customers to work with our systems,” said Andreas Plassmeier, Senior Consultant and Sales Manager for Asia/Pacific. The control panels on Tipper Tie’s vacuum and rotary vane fillers and on its emulsifiers can handle many Asian languages, which enables operators and consultants who may not understand each other to communicate via the panel’s language capacity.
Handtmann ready to introduce new automatic linking line
Handtmann is introducing its new AL-PVLH 246 automatic linking line to Asia this month. Artificial cellulose and collagen casings are more common in Asia than in Europe, and the new machine can load artificial casings automatically, reducing labour costs. According to sales director Uwe Kessler, it takes only a minute to convert the machine to natural casings, which still require manual loading. The 246 also has the first triple-nozzle revolver, guaranteeing maximum performance in sausage production.
Poly-Clip introduces basic double-clipper to China
The FCA80 is a basic version of Poly-Clip’s market-leading line of double clippers that offers essential functionality and reliability without the need for extensive practice and training. The simple version has almost no electronics and is easier to operate than Poly-Clip’s higher-end machines, according to Doris Bregulla, head of international marketing for Poly-Clip. The robust, stainless-steel design takes a range of calibres from 38mm to 160mm, and runs at up to 125 cycles per minute.
Autotherm’s defrosting rooms find takers
Chinese companies are beginning to realise the advantages of Autotherm’s sophisticated defrosting room technology over standard microwave tunnel-continuous systems, according to Sales Manager Norbert Hoffman. “With continuous tunnel systems, you need to put the product on and take it off, which means the labour cost for several workers,” said Hoffman. “But with a defrosting room, you bring in the amount you want, you leave it in there overnight, and you pull it out in the morning, in time for your work shift. You get the whole amount in one step.”
CIMIE road warriors say too many shows in one month
There are five major Asia-Pacific meat processing and packaging exhibitions this June, and the continuous grind of travel and sales pressure is wearing people down, international exhibitors told Asian Agribiz at CIMIE Beijing. Exhibitors who want to hit every show have been to Japan, then Bangkok and now CIMIE, to be followed by Melbourne and Taiwan. Exhibitors said the schedule does not leave enough time between shows to ship equipment, nor to make key customer follow-up visits. But it forces key sales and technical personnel to spend more than a month on the road, away from the home office and their families. Exhibitors said however, that they feel compelled to make a showing, lest customers think they have disappeared from the market.
Onsite from Indo Livestock with ARIEF FACHRUDIN
[19 June 2014]
CJ Indonesia expands in upstream, downstream sectors
CJ Indonesia is in expansion mode, said General Manager Sales and Marketing of CJ Superfeed, Tevi Melviana. The company has four feedmills in North Sumatera, Lampung, Serang and East Java with a total installed capacity of 1.2 million tonnes/year. “We plan to increase the capacity to 2 million tonnes/year. We are setting up a new feedmill in Central Java and we are looking for other potential areas for new feedmills,” said Mr Tevi. In the downstream sector, the company already has two chicken slaughterhouses and plans to build a new one this year. “Within the next five years, we will build a further processing plant as part of our integration project to increase efficiency along the value chain.” Mr Tevi revealed that Indonesia last year posted the largest turnover of CJ’s international poultry business. “The group may invest in a poultry r&d centre here to support our business in Indonesia and other countries.”
Sujaya Group receives Indo Livestock Award
West Kalimantan based poultry integrator Sujaya Group has received the Indo Livestock Award for its efforts in building an integrated poultry business in West Kalimantan Province. Director Johannes Salim said the award is a milestone for the company that will push the entire team to work harder and better. Mr Johannes said Indo Livestock provides the best platform for the company for promotion of its DOC, feeds, and veterinary drugs to poultry producers in Java. “This is in line with our expansion plan in Java.” Mr Johannes revealed that the company is developing a vertical integration business in Serang and West Java. “We already have a feedmill in Serang which was put into operation recently. Now we are building broiler and layer PS breeding farms in Sukabumi, West Java. We will also build a slaughterhouse and further processing plant in this region.” Once the integration in Serang and West Java is completed, the company will set up another vertical integration business in Central Java and East Java.
Malindo launches new broiler finisher feed
One of the largest poultry integrators in Indonesia Malindo Feedmill launched a new broiler finisher feed under the brand ‘Sumo’. Director Rewin Hanrahan said the new feed was developed to help broiler farmers increase their efficiency and profits. “Many broiler farmers still apply one phase feeding strategy, or only one feed type from DOC to harvest. With this new finisher feed, we also want to educate growers on the 3-phase feeding strategy which consists of pre-starter, starter and finisher.” Talking about the company’s expansion, Mr Rewin said the construction of its new feedmill in Semarang, Central Java is near completion. “The Semarang feedmill is expected to start operating in a few weeks. It has a production capacity of 360,000 tonnes/year.” Malindo will also set up a new feedmill in Makassar, South Sulawesi with a capacity of 240,000 tonnes/year, expandable to 360,000 tonnes/year. “Each plant entails an investment of around USD 16.9 million,” Mr Rewin added.
Mabar taps into markets in Java
North Sumatera based poultry and fish integrator Mabar Group took the opportunity at the event to promote and expand the market reach of its processed chicken products. Through its subsidiary Expravet Nasuba, the company produces and sells whole chicken and its portioned cuts and processed chicken products like chicken balls, nuggets and kaki naga. Area Sales Manager, Khomeini said the products are sold in Jakarta. “We target to cooperate with other big retailers and also mini markets in Jakarta. We also want to enter the markets in other big cities in Java.” Operations Director, Benny Susanto said the company operates a vertical integration business in North Sumatera with a head office in Medan. “We have broiler and layer breeding farms, a 30,000 tonnes/month animal feedmill, a 3000 birds/hour chicken slaughterhouse and a further processing plant.” Mr Benny revealed that the management plans to venture into Java and build a vertical integration business.
Moba introduces Omnia PX
Moba introduced a new egg grading machine Omnia PX at the show. Area Sales Manager Teddy Wong Wei Suei explained that the Omnia PX features a complete hygienic program during runtime, as well as a post-production cleaning concept. “Omnia PX is the first machine in which all egg-touching parts are continuously disinfected during production. The rollers, weighing, transfer and transport carriers in the tracks are treated with UV-C light that reduces the growth of bacteria.” Mr Teddy said the machine was developed in response the increasing demand for food safety and efficiency. In Indonesia, Moba’s egg grading machines are gaining ground. “We sold units to egg producers in North Sumatera. Egg producers in Java have also shown interest,” said Mr Teddy.
Zoetis introduces coccidiosis management initiative
Zoetis introduced a new, science-based initiative ‘Rotecc Coccidiosis Management’ to help poultry producers in Indonesia develop more strategic, cost-effective and sustainable programs for battling coccidiosis. According to Zoetis Marketing Manager for Indonesia, Ulrich E Ginting, coccidiosis is a common intestinal disease of poultry that is caused by Eimeria. Mr Ulrich explained: “Rotecc is built on best practices widely accepted by the poultry science community for coccidiosis management. This includes not using the same in-feed anticoccidial for too long, rotating among products from different classes, resting each product and using a synthetic anticoccidial once yearly to clean up coccidia and help reduce infection pressure.”
Kemin promotes ButiPEARL
Kemin promoted its encapsulated butyric acid ButiPEARL. Kemin Country Manager for Indonesia Chutaemil Marom said the product contains 50% calcium butyrate that improves intestinal villi growth throughout the intestinal tract. The improvement in villi growth increases absorption of nutrients. According to Mr Chutaemil, the product is special because Kemin’s spray freezing encapsulation MicroPEARL allows the release of butyric acid throughout the intestinal tract of the bird. “The encapsulation also makes the product stable and resistant to pelleting and mixing.”
Biomin promotes phytogenic feed additive
Biomin Indonesia took the opportunity at the event to promote its phytogenic feed additive Digestarom that improves growth rates and FCR and reduces feed cost. COO of Biomin Indonesia, Yatie Setiarsih said the product contains a unique blend of herbs, essential oils and functional flavors. It works by influencing absorption and utilisation of dietary nutrients, thus supporting digestibility and feed efficiency. “The product is doing well in Indonesia since the interest in natural products is increasing,” Mrs Yatie said.
Ceva Indonesia launches ‘Stop the Gumboro cycle’ campaign
Ceva Animal Health Indonesia launched its new campaign ‘Stop the Gumboro cycle’. Country Manager Edy Purwoko said the company is the market leader for Gumboro/IBD hatchery vaccine. "The launch of the new campaign will strengthen our leading position in controlling the disease,” he said. Of the campaign, Mr Edy said the company launched a new Transmune website that provides the latest scientific information about the epidemiology and control of Gumboro disease. Mr Edy claimed that Transmune IBD is the only hatchery vaccine that stops re-infection and protects against all strains of Gumboro.
Idena showcases innovative products
French based animal nutrition and premix company Idena is showcasing its innovative products for poultry, pig and ruminants at Indo Livestock. Asia Area Manager Virginie Hervy said that Indonesia is an interesting market for the company. “We are here to find the best distributor for our innovative products and then together address the market.” For poultry, the company offers PONTIPlus which is a feed adjuvant that improves layer performance and egg shell quality. For ruminant, meanwhile, the company offers Valkalor that increases the energy from starch transformation then makes it available for the animal.
|Kaona Poultry plans news processing plant|
[18 June 2014] Kaona Poultry Co Ltd, a broiler integrator in Ubon Ratchathani province in the northeast of Thailand, plans to invest in a new processing plant that will upgrade the company’s slaughtering capacity to 100,000 birds per day from 70,000 birds/day at present. “We will start construction of the new plant around the middle of next year. The new facility will cost around USD 15.4-18.5 million,” Suchet Triyanggulsri, Vice Managing Director, told Asian Agribiz. The new plant, which will replace the existing one, will have automated lines to help the company reduce its reliance on human labour, he said. Kaona exports around 90% of its products, to Europe and Japan.
|CPF to audit its entire fishing operations |
[18 June 2014] The Thai fishing industry has come under global scrutiny following revelations of slavery in its supply chain. An investigation by UK newspaper the Guardian revealed that workers who have been forced to work for no pay for the production of seafood sold by major British, US and other European retailers. It said that Charoen Pokphand Foods (CP Foods) buys fishmeal from some suppliers that own or buy from fishing boats manned with slaves. CP Foods, in response, issued a statement saying fishmeal made up less than 10% in its production of fish feed for its prawns. Currently, it sources the fishmeal to make fish feed from 55 independent fishmeal processing plants of which 40, or 73%, are certified. To improve the situation, CP Foods said it will audit its entire operations and will implement independent spot checks to ensure that its supply chain is and continues to be slave-free.
|Rabobank extends expertise to Vietnam|
[18 June 2014] Vietnam's Sacombank is set to play a leading role in the food and agribusiness (F&A) sector in the country following a memorandum of understanding signed with Rabobank yesterday in Hanoi. The MOU will see Rabobank share its F&A banking expertise and know-how with Sacombank through technical co-operation with Sacombank in order for Sacombank to become a leading bank in the food & agribusiness in Vietnam. Corné de Louw, Senior Project Manager Agribusiness of Rabo Development said the partnership supports Rabobank Group’s development mission to assist financial institutions to improve rural access to financial services.
|New convenience store chain to rise in the Philippines|
[18 June 2014] Philippine retail giant Puregold Price Club Inc (PPI) has signed a joint venture agreement with Japan’s Lawson Asia Pacific Inc and Lawson Asia to establish a network of 500 Lawson convenience stores around the Philippines. Under the deal, Puregold is expected to invest around USD 56.8 million in the project and will own 70% of the JV while the two Japanese companies will hold the remaining 30%. Lawson is a leading convenience store chain in Japan that also has a presence in China, Indonesia, Thailand and Hawaii. The Philippine convenience store sector is currently dominated by 7-Eleven with more than 1000 outlets all over the country.
|USDA announces new China export rules |
[18 June 2014] The USDA’s Food Safety and Inspection Service (FSIS) has announced new requirements for exporting US pork and pork products to China. “Pork and pork products with FSIS export certificate issuance dates on or after July 1, 2014 must be produced according to the Ractopamine Control Program below. Pork casings intended for processing (selection for size and quality) in China and subsequent re-export are exempt from the ractopamine residue control program,” FSIS wrote. FSIS also added three plants not eligible to export to China until further notice, including Tyson Fresh Meats Inc, in Waterloo, Iowa; Transcontinental Cold Storage in Sioux City, Iowa; and Seaboard Foods in Guymon, Oklahoma.
|Taxes push poultry prices up in Pakistan|
[18 June 2014] Pakistan’s budget 2014-15 has suggested the imposition of a 5% tax on poultry raw material imports as well as imports of soybean meal. This will hit not only general public in terms of high prices of chicken and eggs but also the poultry industry as it will raise the cost of production. Chairman Pakistan Poultry Association (Northern Zone), Raza Khursand said the proposed taxes on poultry products are unjustified. He said that in all developed and under-developed countries including neighbouring India, there is no taxation on food items. He added that if government is serious about providing affordable animal protein to the people, it should withdraw the proposed taxes.
|CP Prima allocates USD31m for capex|
[17 June 2014] Indonesia’s largest shrimp and aquafeed producer Central Proteinaprima, more popularly known as CP Prima, has said that the company has allocated USD 31 million for this year’s capital expenditure. The funds will be used for maintenance and expansion of the company’s assets. According to Director Surdjaja Sutanto, around USD 8 million will be allocated to set up a fish feed plant in Surabaya, East Java with a production capacity of 40,000 tonnes/year. Next to that the company will use some to develop its shrimp, pangasius, tilaphia and catfish breeding farms.
|China, India remain ‘high potential’ markets for CPF|
[17 June 2014] Considering their combined population of 2.5 billion, China and India are “high potential” markets for Thai agribusiness giant CPF. “China is evidently our largest overseas operations and will continue to be. In India we intend to focus on our poultry and food business,” said CP Foods CEO Adirek Sripratak in an interview with Feed Navigator. He said that despite the slight decline in the China feed market last year due to the avian flu virus, the increase in Swine feed consumption more than offset the decline in poultry feed. Feed revenues in China increased by 6% in 2013, with swine feed accounting for half of the total feed revenues.
|Indian PM places emphasis on technology|
[17 June 2014] Proper management of agricultural products and the use of technology can help fight food inflation, new Indian Prime Minister Narendra Modi said. “There is enough food in the country. What is required is proper management,” Mr Modi said in his maiden speech in Parliament. He said efforts should be made to gather “real-time data” of agricultural products that would help regulators take the required action to manage prices. He indicated that the Food Corporation of India (FCI) could be restructured for better management of agricultural produce and suggested three different entities for procurement, storage and distribution. “Agriculture needs to be modernised. We have to take measures to enhance productivity of our land,” the Prime Minister said.
|Indian feed prices trending downwards|
[17 June 2014] Prices of a few poultry feed products in India decreased by USD 0.17-0.6 for a 50kg bag on June 12, following a continuous drop in cost of production in the last few days, according to Aditya Mishra, a commodity expert. “A fall in soybean meal mainly led feed prices down. Feed prices may continue to rule around current levels without any fluctuation in the coming days.” In the physical market, soybean meal eased by USD 16.76 and sold at USD 682 a tonne. Prices of broiler and layer concentrate went down by USD 0.17 for a 50kg bag each and sold at USD 26 and USD 20.5 for a 50kg bag, respectively. Pres-tarter mash dropped by USD 0.6 and sold at USD 28.5 for a 50kg bag while broiler concentrate quoted at USD 37.8 for a 50kg bag.
|China, Romania to advance collaboration |
[17 June 2014] Government officials from China and Romania have agreed that livestock is a priority area for cooperation between the two countries. Earlier this month Chinese Minister of Agriculture Han Changfu met Romania’s Deputy Prime Minister and Minister of Agriculture and Rural Development Daniel Constantin. Both parties are keen to develop agricultural collaboration. Priority areas of cooperation include livestock, through the investment of trade of cattle, sheep and pigs, as well as investment and trade in the processing and marketing of agricultural products such as pork and other meat products.
|AustAsia boosting Greenfields milk exports|
[17 June 2014] AustAsia, which is two-thirds owned by President Director of Japfa Comfeed Indonesia Handojo Santosa and one-third owned by Cargill’s Black River Asset Management, is boosting exports of its Greenfields milk with more than half of its annual sales of 27 million litres going to Singapore, Hong Kong, Brunei, Malaysia and the Philippines. This output is expected to double by the end of next year, reported the Financial Times. Eager to exploit the opportunities afforded by Asia’s growing appetite for dairy products, AustAsia is expanding in China and Indonesia. Head of Sales and Marketing Jan Vistisen said: “With our expansion in Indonesia and China we can put our products into most of Asia.” The 27 million litres of milk that AustAsia will produce this year has a retail value of around USD 65 million. Sales will more than double by the end of next year, alongside production.
|Practical, usable information for producers at poultry feed conference|
[16 June 2014] The 2014 Poultry Feed Quality Conference organised by Asian Agribiz Conferences in conjunction with its Asian Poultry Magazine, will bring together a group of 18 expert speakers to address four themes with carefully selected papers put together to provide practical, usable information for Asian poultry producers. They are carbohydrates with a fibre focus, feed enzyme developments, protein sources (SBM and canola) and quality assessment by near infrared spectroscopy. Adding depth to the conference will be a ‘hot topics’ session. View the conference website here.
|Thailand's DLD introduces e-service for animal transportation|
[16 June 2014] Thailand’s Department of Livestock Development (DLD) has introduced an innovative online service for issuance of permits to transport animals and carcasses. The newly introduced e-Privilege Permit allows relevant private operators to apply and receive online the permit for transportation of their animals and carcasses. Trissadee Chaosuancharoen, DLD’s Director General said the new online service is a step forward in efficiency. Modern trade operator Tesco Lotus was the first to employ this system, Mr Trissadee said.
|CPF’s gets a grip on EMS|
[16 June 2014]The shrimp industry across Asia is severely challenged by the early mortality syndrome (EMS) but CPF said it has managed to solve some of the issues and has made progress in bringing efficient shrimp production back to the company, Thailand and the region as a whole. “We have been effective in preventing the disease. However, as we have learned over the past year, EMS is caused by bacteria, making the protocols that work against a virus ineffective,” said CP Foods CEO Adirek Sripratak. He said CPF has employed a proactive research and development approach to learning about the basic causes of EMS. “We have taken a number of specific steps in response to what we have learnt in order to minimise the bacteria density and maximise the fitness of the shrimp.”
|WH Group to acquire Spanish meat company|
[16 June 2014] In a move to enhance its global expansion China’s largest pork producer WH Group Ltd has teamed up with Mexico’s Sigma Alimentos SA to acquire a 98.3% stake in a leading Spanish packaged meat company, Campofrio Food Group SA de CV. According to China Market Research Group's James Roy the deal gives WH a stronger position in overseas pork production, which will be important as demand for meat in China continues to grow. He said Chinese food companies are acquiring managerial experience and learning international practices through the acquisition of established foreign brands.
|Bowman Ingredients establishes base in Thailand|
[16 June 2014] UK-based food coating company Bowman Ingredients has created a new joint venture company in Thailand called Bowman Ingredients Thailand to increase its global presence. According to Bowman the Thai business will be dedicated to supplying breadcrumbs, batter mixes and dry mix marinades for products including poultry and fish across Southeast Asia. “The value-added food market across Southeast Asia has seen growth of over 10% year-on-year with further expansion predicted,” said Sales Director Richard Easey said. The Thai firm will operate from two manufacturing sites in the Kabinburi Industrial Zone, east of Bangkok.
Onsite at Propak Asia 2014 with RACHAEL PHILIP
[13 June 2014]
Producers scout for automation as AEC nears
The popularity of food processing machines that promote automation is growing. Medium and large sized food producers see the urgency in automating their systems to promote hygiene, save time and labour. “The food business in Thailand has been developing in the last three year. Customers want to replace or expand machines to overcome the shortage in labour which will intensify when AEC kicks in. Also the ready meals category is growing as consumers see convenience and easy meal solutions,” K&W Managing Director Khanchit Toomaneechinda said. “Companies like CP are intensifying automation to reduce their dependency on labour. Packaging too is becoming more attractive and modern.”
Machines for specialised tasks hit the show
The trend in automation was also highlighted with specialised machines at the show that can help with specific jobs. The chicken middle wing splitter from US-based Prime Equipment Group, stood out. “This machine is for factories that make certain ready-to-eat grilled and fried products mostly intended for the Japanese market,” said Forefront FoodTech Sales Manager Somsuda Sriwattananont. “Splitting the middle wing is a labour intensive job, and automating the process cuts time and reduces contamination,” she added. The machine, which can process 240 pieces/minute, does a clean job because instead of blades separating the bones, which can leave pieces of bones in the meat, it wedges the joints, leaving a clean split.
Multifunctional machines save space
Customers are looking for compact and multifunctional machines that help them save on space, said Kolbe General Manager Thomas Hagmeier. The new Kolbe Mincer Grinder is a high performing machine that mixes and grinds fresh as well as frozen raw material up to -18 degrees. “It’s not a machine for big companies but for the mid to small-sized companies. Its excellent size and production capacity will make it popular in Thailand where food production is growing annually,” he said. Among its plus points is that the machine offers flexibility in design, is easy to handle and requires little maintenance for efficient results.
Avure promotes larger sized machine
US-based Avure Technologies offered a larger capacity high pressure processing (HPP) machine at ProPak Asia 2014. Its Vice President of Microbiology and Food Technology Errol Raghubeer said the latest machine is a 525l machine that does not take up more floor space but has larger baskets to hold cooked and packed products for the non-thermal ‘pasteurisation’ process. He said the uptake of HPP technology is slow in Asia but is growing. He said the company is working with the US FDA to reduce requirements on packaging films so that the technology can be applied to products like shrimp exported from Thailand. HPP technology can be used on a variety of foods such as raw proteins, ready-to-eat meats and seafood, and juices.
Versatility makes Frey’s latest machine popular
Frey Maschinenbau’s latest burger forming machine, the DMFP 92, is a modular system that allows processors to buy the basic machine and upgrade later for larger capacity. Its bestselling point is that besides forming round, square and triangular burgers, it can adapt to produce other products such as vegetable-based and cheese-based products. “The industry is such that producers want to be able to produce and sell a variety of things. Meat is still expensive here and with this machine producers have the option of producing other products too,” said Managing Director Heinrich Frey. Its clean-in-place feature makes cleaning the machine easy and fast so it is 100% ready to process the next product.
|Sierad allocates USD7.6m for expansion|
[13 June 2014] Indonesia’s poultry integrator Sierad Produce hopes to achieve net sales of USD 272 million with a net profit of USD 1.3 million. To achieve the target, Vice President Director Eko Putro Sandjojo said the company has allocated USD 7.6 million for capital expenditure. “This will be used to set up commercial broiler farms in West Java, buy freezers and related equipment for the food division Belfoods, and also increase the number of Belmart outlets.” Director Awi Tantra added that the company plans to purchase 3,000 freezers to strengthen the distribution of its processed chicken products. “We will also channel some for advertising of Belfoods,” said Mr Awi.
|Thai soybean output continues to decline |
[13 June 2014] Thailand’s soybean production has been declining over the past few years, with the production for the 2014/15 crop year expected to fall to 67,316 tonnes from 201,291 tonnes in 2007-2008, said Anan Lila, Secretary-General of the Office of Agricultural Economics (OAE). Plantation areas have dropped from 132,590 hectares in 2007/08 to 39,907 hectares. Last year, soybean production was 70,456 tonnes, down from 84,660 tonnes in 2011/12. Thailand needs around 3.9 million tonnes of soy a year, cited Anan. He added that the Ministry of Agriculture and Cooperatives is encouraging farmers to grow more soy.
|RCCI demands withdrawal of poultry feed taxes|
[13 June 2014] Pakistan’s Rawalpindi Chamber of Commerce and Industry (RCCI) has demanded the withdrawal of taxes and import duty on poultry feed, whose failure would cause a major blow to the production of this essential food items. RCCI President Dr Shimail Daud Arain pointed out that budget document for 2014-15 has recommended withdrawal of all statutory notifications issued in the past. This would lead to the automatic imposition of import duty of 5% besides GST on the import of poultry feed. If the duty and taxes were not immediately withdrawn prices will rise, putting them out of the reach of the common man. Dr Shimail proposed that orders be passed for importing tax-free poultry feed.
Onsite at Propak Asia 2014 with RACHAEL PHILIP
[12 June 2014]
Microwave technology cuts time
Microwave technology to defrost frozen blocks of meat at a further processing plant has many advantages. Among them it cuts the time in the tumbler, said Sairem Managing Director Jean-Paul Bernard. “Instead of 8-10 hours in the tumbler you only need 2-3 hours. This saves time and money, and frees up the tumbler for the next shift,” he told Asian Agribiz. Also, the microwave tunnel allows the processor to control the final temperature, maintaining it at the ideal -4 to -2 degrees. At this temperature there is no drip loss, and peeling off the plastic wrapping from the block of meat is easy. “After grinding you get better quality meat and colour. It comes out of the grinder like pasta. This consistency is good for mixing.”
Bayerische Tech eyes market in Thailand, Indonesia
Malaysian-based Bayerische Tech Sdn Bhd, the only smokehouse producer in Southeast Asia, is expanding its reach beyond local shores. The company, which claims to have 60% of the market share in Malaysia, was at ProPak Asia for the first time. It hopes to sell its products in Thailand via distributor Valiant Enterprise. It is also eyeing the Indonesia market, Managing Director Alvin Ng told Asian Agribiz. The company, which use the German controller Aditec, models its products after Maurer and Fessman. Mr Ng said its smokehouses are generally 30% cheaper than European models and has features that promote better yields.
Time-saving features much sought after among producers
Foodlogistik Managing Director Uwe Saβnowski said the growing ready-to-eat and ready-to-cook category in Thailand will make machines that promote automation more popular. Mr Saβnowski said his potential customers are supermarkets, food producers, catering outfits and hotels, who want a quicker way to make cubes, strips and slices of meat, cheese and vegetables. Furthermore sausages with cubes of fat provide better taste and texture compared to ground fat. The machines have a production capacity range of 200kg-4 tonnes/hour and comes in two versions – the semi-automatic version where meat has to be manually loaded and an automatic version with hydraulic features, which is more hygienic. The brand has been in Thailand for more than 10 years and is distributed by FPT.
|Temasek and CHD invest in Ceva|
[12 June 2014] Ceva Santé Animale has announced that Singapore's Temasek and the leading Chinese investment fund, CHD Investments have come on board as new investors that will support the group in a new phase of development. Ceva is reorganising its capital structure to bolster its international ambitions to become the first independent player within the top five global animal health companies by 2020.Ceva is among the top 10 global animal health business (and the 3rd independent group) and has posted for almost 15 years annual sales growth of more than 12%, reaching USD 947.3 million in 2013, while continuously improving its profitability.
|Healthy soy stocks/use ratio in 2015|
[12 June 2014] The USDA in its current World Supply and Demand Estimates Report has dropped its soybean ending stocks estimate by 5 million bushels, reflecting higher crush projections and increased projected soybean meal exports. Soybean supplies are likely to drop to just 125 million bushels by September prior to this year’s harvest. However, the USDA expects soybean ending stocks to rise to 325 million bushels by September 2015, pushing the stocks/use ratio to over 9%.
|Indonesia to issue cattle import permits|
[12 June 2014] Indonesia’s Trade Ministry plans to issue permits to import live cattle into the country in the third quarter of the year in order to meet the national demand. Foreign Trade Director General, Bachrul Chairi said the government aimed to import 160,000 live cattle. “We are going to issue the permits immediately. Currently we are still communicating with Apfindo [the Indonesian Cattle Feedlots Association] since they want more cattle,” he said.
Spotlight on India’s feed industry
[11 June 2014]
The outlook for India’s livestock feed sector is positive based on growing production and consumption of animal protein and dairy products. Both these industries have been driving an 8% CAGR in the feed industry, according to Rabobank’s ‘Feed on growth’ report.
Only 55% feed requirement met
The poultry industry in India has seen the largest growth, with an annual production increase of 8% between 2002/03 and 2012/13. It accounts for 58% of the total feed market, with consumption increasing at 7-8% annually between 2007/08 and 2012/13. But while poultry feed required is about 22 million tonnes annually, only 55% is met through compound feed and the rest is met through home mixers.
India, one of the largest compound feed markets
Pawan Kumar, analyst at Rabobank Food & Agriculture Research & Advisory and author of the report ‘Feeding on Growth’, said the 8% CAGR in the feed industry has made India one of the largest and fastest compound feed markets in the world, despite the fragmented nature of the sector, composed mainly of home and custom mixers. But with demand rising, the industry is now moving into a consolidation phase with better technology, increased efficiency and greater productivity.
New government is pro-development
“The response to India’s new government is positive as it is pro-development and expected to bring economic reforms. The economy therefore, should recover from the current dip driven by good governance and reforms,” Pawan Kumar told Asian Agribiz. “An improved economy will not only increase the purchasing power of consumers but will also create positive sentiment for consumption. Improved infrastructure will bring efficiencies in supply chain benefitting the end consumers,” he added.
Impressive growth opportunities
Currently only 11 % of cattle feed, 14% of aqua feed and 55% of poultry feed requirements are met through compound feed rations. The current total requirements of compound feed for all livestock is approximately 20.3 million tonnes, versus a potential total feed requirement of 96 million tonnes. This reflects the potential in the sector. The big triggers to achieving this growth are the degree of consolidation, formalisation and industrialisation and the speed at which the livestock sectors in India implement these changes over the next few years.
Steady growth in market of non-integrated producers
With the level of vertical integration increasing every year, especially in the broiler sector, one would expect the market for standalone commercial feed players to shrink in the long run. However, the market of non-integrated producers has been growing as rapidly as that of the integrators. Non-integrated producers have been able to maintain their market share over the last five years.
|S Khonkaen launches new snack and brand |
[11 June 2014] S khonkaen has launched a new meat-based snack under a new brand called “Moochi”. Made from fried lean pork, the company expects to gain around USD 4.62 million in sales of “Moochi” products in the first year. The products will be available in two flavours namely hot and spicy and classic and will be priced at THB20 (USD 0.62) per 16g pack. It can be found in modern and traditional trade stores nationwide. The company also plans to introduce a chicken snack with halal standard accreditation in the third or fourth quarter and aims to export the product to markets in the Middle East, Asia and Europe.
|Viet tra fish exports down 5% |
[11 June 2014] Vietnam’s tra fish exports might reach USD 1.6 billion this year, a reduction of 5% over last year, said the Vietnam Pangasius Association. The country’s tra fish exports faced many difficulties recently because the US had increased anti-dumping tax and several other countries have applied commercial barriers. Also, strong competitiveness from substitutes like cod fish and tilapia also narrowed the tra’s market share. The Mekong Delta farmed over 2,954 ha of tra fish in the first five months this year, a reduction of 19% over the same period last year.
|Odisha raises capital subsidy cap|
[11 June 2014] India’s Odisha government has raised the capital investment subsidy cap to USD 127,000 in a bid to boost poultry and egg production in the state and reduce its dependence on neighbouring Andhra Pradesh. The increase is expected to draw more entrepreneurs to poultry farming which is designated as a commercial agri-enterprise. Currently, the daily domestic egg production in the state stands at 4.5 million eggs against the demand for 6.4 million eggs. The state imports 2 million eggs from Andhra Pradesh.
|Registration open for 2014 Poultry Feed Quality Conference|
[10 June 2014] Registration is now open for the 2014 Poultry Feed Quality Conference organised by Asian Agribiz Conferences in conjunction with its Asian Poultry Magazine. The conference which will feature 18 expert speakers who will address four timely themes will be held this year in Kuala Lumpur, Malaysia from August 21-22. Get more details here.
|India to stop use of antibiotics in feed |
[10 June 2014] Fearing the spread of antibiotic resistance through the food chain, the Drug Controller General of India and India’s Ministry of Agriculture (MOA) have directed state governments to stop the use of antibiotics and hormones in animal feed. They have called for strict implementation of a 2012 law, which mandates a gap between the time an animal is given a drug for medical purposes and sale of food products from that animal. “Antibiotics are also used in feed premixes and the residue may accumulate in milk, meat and eggs,” the MOA said in a directive to state governments. “Consumption of antibiotic contaminated products could result in antibiotic resistance in both animals and human beings,” it said.
|Sierad to sell farm in Tangerang|
[10 June 2014] After its poultry breeding and hatchery assets located in Lebak, Banted were acquired by Charoen Pokphand Indonesia, Sierad Produce now is planning to sell its commercial poultry farm in South Tangerang. The farm has a production capacity of 100,000 DOC/day. According to Vice President Director Eko Putro Sandjojo, the situation in the poultry industry has pushed the company to sell the asset. “At the moment, the margin from commercial farming is only around 8-15% while the margin from the processed chicken business can reach 40%,” he said, adding that the company is in the process of becoming a food company. Mr Eko revealed that in the next five years, the composition of up-stream and down-stream business would be 50:50.
|Cofco to leverage off investors’ networks|
[10 June 2014] Cofco Meat’s new partnership will help diversify the company’s equity ownership and enhance its corporate governance. "Meat is the single-largest food category in China's diet, and meeting this demand is critical to our value chain. Chinese consumers demand that we promote the meat industry and provide safe meat products,” said Ning Gaoning, Chairman of Cofco Group. Speaking of the company’s partnership with KKR, Baring Private Equity Asia, HOPU and Boyu, Ma Jianping, Vice President of Cofco Group and Chairman of Cofco Meat, said: "We believe these investors' extensive global networks, professional local teams and deep operational experience will accelerate Cofco Meat's strategic goal to become the leading provider of China's safe meat products."
|Thailand’s food exports to hit USD30b this year|
[10 June 2014] Thailand’s food exports in 2014 is forecast to grow 5% from last year to reach around UDS 30 billion, said Petch Chinabutr, President of Thailand’s National Food Institute (NFI). The higher exports are supported by an estimated larger amount of rice exports and increase in shipments of shrimp, chicken, tuna, sugar and tapioca, according to Mr Petch. Asean is the major market for Thai exports, taking an annual share of USD 6.2-9.3 billion, followed by Japan. NFI is trying to promote more processed foods exports and upgrades of standard food plants that number between 5000-8000 nationwide.
|Fonterra appoints MD global operations|
[10 June 2014] New Zealand's Fonterra Co-operative Group has appointed Robert Spurway to the role of Managing Director Global Operations, effective August 1. Mr Spurway has more than 20 years’ experience in the food and dairy industries. “In his new role, Robert will lead the integration of our global milk production capacity. While our operations will remain predominantly New Zealand-based it is important to have more options about what products we make and where we make them," Chief Executive Theo Spierings said “Just as we have a team selling ingredients around the world, we also need an integrated approach to global manufacturing in markets where we have a natural competitive advantage and access to local milk pools."
|Cofco Meat to expand with investment partnership|
[09 June 2014] Cofco Meat of China and a consortium of investors composed of KKR, Baring Private Equity Asia, HOPU, and Boyu have formed a strategic partnership aimed at investing in Cofco Meat alongside existing shareholders to build and manage large-scale industrialised hog farms and meat processing plants in China. Cofco Meat is now one of the largest hog producers in China. The company markets its fresh meat and processed meat products under the brands Joycome and Maverick.
|UAE opens market to Philippine chicken|
[09 June 2014] The United Arab Emirates has officially opened its market to fresh frozen chicken from the Philippines, a report by the Philippine National Meat Inspection Service said, adding that early last month, the UAE issued a resolution approving two slaughterhouses in the Philippines to ship fresh frozen chicken to the Middle East. The UAE also approved the Islamic Dawah Council of the Philippines as the competent authority to issue Halal food certificates.
|CP Prima’s 2013 aquafeed sales up 11.2%|
[09 June 2014] Indonesia’s largest aqua feed and shrimp producer PT Central Proteinaprima, more popularly known as CP Prima, announced in its 2013 annual report that the company’s total sales amounted to USD 651 million, a 12.3% increase from the previous year. This was primarily due to increased sales from aqua feed and shrimp products. Aqua feed sales amounted to USD 372 million in 2013, an increase of 11.2% from the previous year. In late 2013, the company put its new fish feedmill located in Lampung into operations. “This increased our fish feed production capacity by about 50,000 tonnes,” said President Director Atanta Mahar Sembiring. The company’s total production for fish and shrimp feed in 2013 reached 395,000 tonnes and 143,000 tonnes, respectively.
|Japfa Indonesia to build new aqua feed plant|
[06 June 2014] Japfa Comfeed Indonesia plans to build a new fish and shrimp feed plant in Medan, North Sumatra, as well as increase the capacity of its fish feed plant in Purwakarta, West Java this year. Japfa Vice President Director, Bambang Budi Hendarto said the company would allocate USD 163.3 million to the expansion project, most of which would cover the construction of the new feed plant. “We will allocate up to USD 42 million to the construction of the new feed plant and redevelopment as well as improvements to our freshwater fish processing facilities,” Mr Bambang said. Japfa is aiming to produce up to 3.1 million tonnes of animal feed by the end of 2014, from 2.6 million tonnes in 2013. Furthermore, its poultry feed sales this year is likely to contribute 20-25% to its total annual revenue.
|Amino acid market to reach USD5.7m by 2018|
[09 June 2014] The feed amino acids market is flourishing due to its increased use in enhancing animal growth. Amino acids these days are used for a wide variety of functions in animal feed. Tryptophan, methionine, lysine, and threonine are some of the amino acids, of which lysine was the dominant amino acid in 2013. The feed amino acids market is projected to reach USD 5,729 million by 2018. The market is currently dominated by Cargill, Evonik, Ajinomoto and Adisseo.
|Mindanao rides on disease-free status in Asean market|
[09 June 2014] The Philippines Department of Agriculture (DA) in Davao, Mindanao is not only working towards addressing the problem on food security but also on the sanitary standards in food production. The department also has value chain analysis that allows farmers to look into the product's end-market -- constraints and solutions -- for Asean integration. DA Davao Director Remelyn Recoter said Mindanao's hog and poultry products have an edge over other Asean markets when Asean integration takes place in 2015 as it is both avian influenza and foot-and-mouth disease free. “This will allow our products to move freely in the regional and international market," she said.
|Betagro’s feedmill wins TPM award |
[06 June 2014] Thailand's Betagro’s BTG Feedmill Co Ltd has won the TPM Excellence Award (Category A). The Total Productivity Management award ceremony was held recently in Tokyo, Japan. The award is given to companies and organisations that successfully apply TPM in their operations. BTG Feedmill which produces broiler feeds is located in Lopburi province and is the first Thai feedmill to receive the award.
|Hong Kong likely to import beef from Namibia|
[06 June 2014] Authorities in Hong Kong have concluded auditing processing plants in Namibia in preparation to import beef from the country. Food and livestock safety audit was carried out in May by the Hong Kong Centre for Food Safety. Namibia Meat Board Manager of Trade and Strategic Marketing Goliath Tujendapi said if the results are good then Namibia will be the first in Africa to export beef to Hong Kong. He said it is likely that mainland China too could open its doors to Namibia beef. Namibia is hoping to export high-end cuts and processed meat products instead of relying on demand for lower-valued beef products sold to South Africa, reported globalmeatnews.com.
|Bairaha sees slight revenue growth in 2013|
[06 June 2014] Sri Lanka saw weak demand for chicken in 2013 while costs rose, as the country emerged from a balance of payments crisis and steep currency depreciation. Bairaha Farms said its revenues rose just 4.6% to USD 23 million in 2013 while direct costs rose 5.6% to USD 20 million. There was a ‘noticeable dip in demand’, while raw material costs were high. “The industry was characterised by many months of glut and excess production,” Bairaha Chairman MTA Furkhan said, adding that the quality of poultry feed also deteriorated due to high prices for raw materials. “These factors heavily impacted the financial performance of industry players with the prices of both broiler and layer DOCs declining steeply, stemming from an industry oversupply coupled with a decline in sales volumes.”
|Grain shipping rates soften|
[06 June 2014] Ocean freight rates for bulk shipping of grain, especially from the US Gulf, have been falling since January as vessel supply continues to outpace demand. Although relatively low, the rates from the Pacific Northwest (PNW) to Japan increased slightly in March, then declined in April and has remained relatively low in May. During May, ocean freight rates for shipping bulk grain from the US Gulf to Japan averaged USD 47/mt, down 15% from the 4-year average. The cost of shipping from the PNW to Japan was USD 21/mt, 15% less than the 4-year average. From January to April, total new orders were up by 86% compared to the same period in 2013, and 165% compared to the same period in 2012.
|Additional corn silage to South Korea|
[05 June 2014] The Philippines is set to increase its corn silage exports to South Korea, Philippine Agriculture Secretary Proceso Alcala said, noting that a memorandum of understanding was signed between Hapchon Livestock Cooperation Union and Filipino groups Benacon Corp and Plougshares Inc for the additional corn silage shipments this year. The MOU also covered other materials like corn, copra mill, palm kernel meal and total mixed fermentation feed. Hapchon is the country’s South Korean client for its corn silage exports. Presently, the Philippines exports around 1000 tonnes of corn silage to South Korea monthly but it expects the volume to go up to 2000-3000 tonnes per month by the third quarter of 2014.
|Malindo’s 2013 DOC sales grows 25%|
[05 June 2014] Indonesia's Malindo Feedmill announced in its 2013 annual report that sales of its DOC increased by 25% from USD 53 million in 2012 to USD 66 million in 2013. Meanwhile, sales of broilers increased by 4% from USD 26 million in 2012 to 27.5 million in 2013. During the year, Malindo set up breeding farms and hatcheries in Java, Sumatera, Kalimantan and Sulawesi. “We remain optimistic of the company’s strong performance in 2014. Management will be more responsive in reading the market potential and exploring creative ideas, as well as in establishing innovative steps to enhance the company’s performance, growth and expansion in the coming years,” said President Director Lau Chia Nguang in the report.
|Thailand drafts new standards for meat transportation|
[05 June 2014] Thailand’s National Bureau of Agricultural Commodity and Food Standards, or ACFS, is drafting a good practice standard for animal carcass and meat transportation for relevant operators to avoid contamination (such as Salmonella and E. coli) during delivery. “At present, many small slaughterhouses still transport their meat and carcasses inappropriately and this is a risk to consumer health,” said ACFS’s Secretary General Sakchai Sriboonsue. Delivery of meat and carcasses in temperature controlled vehicle will be introduced as part of the new standards. ACFS is hearing comments and recommendation from all relevant parties and expect to announce the standards before the realisation of the Asean Economic Community in 2015.
|S Korea likely to lift ban on beef fed with additive|
[05 June 2014] South Korea is likely to allow certain levels of the animal feed additive zilpaterol in beef from mid-July, a food ministry official said, delaying by one month the lifting of a ban on the growth enhancing drug. South Korea had said in April it would ease its zero-tolerance policy on zilpaterol-based drugs, such as Merck & Co Inc’s Zilmax, from June. “The final announcement is expected to be made around July 17 after internally examining any feedback that we get during the notice period,” Director at the Food Ministry Son Seong-wan told Reuters, adding that the notice period would end on June 17. Mr Son said South Korea was likely to allow imports of beef muscle with 1 part per billion (ppb) of zilpaterol and 5 ppb in beef liver.
|Suspicious poultry destroyed in South Jakarta|
[05 June 2014] The Maritime Affairs and Agriculture Agency’s South Jakarta Office has culled more than 6000 chickens, ducks and other birds netted in raids during the first half of the year on suspicion of carrying the avian flu H5N1 virus. The agency’s Monitoring and Mitigation Section Head Nurhasan Mas’ud said that the poultry was taken from prohibited farming areas throughout the municipality. According to a bylaw on poultry distribution and farming, poultry farms must be 25m away from residences, and cages must be kept clean. “We have exterminated more than 6000 birds that we confiscated from prohibited farming areas in 10 districts,” Mr Nurhasan said.
|Hot weather slows chicken production|
[04 June 2014] Philippine poultry producers are feeling the effects of the extreme hot weather in the country, which has extended the growing cycles of chicken. Currently, producers have extended their cycles by about 2-3 days but many still fail to reach the prime size of at least 1.8kg for their birds, United Broiler Raisers Association President Atty Elias Jose Inciong told Asian Agribiz, adding that generally, growing conditions are difficult at this time. He also said that they are verifying reports of mycotoxin contamination in corn supply, noting that if there are problems particularly with mycotoxins in feeds, the birds are more susceptible to heat strokes. He reiterated however that there is no problem with chicken supply. Producers are hoping that the coming rainy season will bring some relief to the industry.
|Security house suggests buy for CPF shares|
[04 June 2014] Thailand’s Thanachart Securities recommended a buy status for the shares of Charoen Pokphand Foods Plc, or CPF. CPF’s shares have underperformed in the SET (Stock Exchange of Thailand) and sector by 24% and 15% as a result of the Early Mortality Syndrome (EMS) disease that hit its shrimp business. “Shrimp production has been increasing as reflected by a drop in shrimp prices from the peak of USD 8.98/kg in December 2013 to USD 7.2/kg now. In Vietnam and Malaysia shrimp production has recovered and we see the same situation in Thailand,” the report stated. CPF shares closed at USD 0.88 Tuesday while the target price by Thanachat is USD 1.04/share.
|Pilmico to acquire Vietnamese aqua feed producer|
[04 June 2014] Pilmico International Pte Ltd, a unit of Aboitiz Equity Ventures Inc (AEV) has signed an agreement with Vinh Hoan Corp (VHC) to acquire 70% of Vinh Hoan 1 Feed JSC (VHF), one of the largest producers of aqua feed in Vietnam. The deal worth USD 19.6 million, is aligned with AEV’s strategy of expanding its core feeds business and expanding into the Vietnamese market. Also under the deal, Pilmico will acquire the remaining 30% of VHF within five years at a pre-agreed price, for a total transaction value of USD 28 million. “We are delighted to have this opportunity to expand our feeds business and to enter Vietnam with such a strong and well respected partner as VHC,” said Pilmico President and CEO Sabin Aboitiz. VHF is the fourth largest aqua feeds producer in Vietnam; while AEV, through its subsidiary Pilmico, produces animal feeds in the Philippines.
|India's seafood exports touch USD 5 billion|
[04 June 2014] Seafood exports from India rose 42% to touch an all-time high of USD 5 billion during the fiscal year ending March 31 2014, thanks to the rise in Vannamei shrimp production and better infrastructure facilities, said Marine Products Export Development Authority (MPEDA) Chairman Leena Nair. Exports stood at USD 3.51 billion during the period under review. MPEDA is targeting shipments worth around USD 6 billion for this fiscal year, she said adding that increased production of Vannamei shrimp, quality control measures and increase in infrastructure facilities for production of value-added products will help achieve the target.
|China’s growth in aquaculture hard to ignore|
[04 June 2014] Global fish production has grown steadily in the last five decades, with food fish supply increasing at an average annual rate of 3.2%, outpacing world population growth at 1.6%, according to the UN Food and Agriculture Organisation’s biennial The State of World Fisheries and Aquaculture 2014. China has been responsible for most of the growth in fish availability, owing to the dramatic expansion in its fish production, particularly from aquaculture. Its per capita apparent fish consumption also increased an average annual rate of 6.0% in the period 1990–2010 to about 35.1kg in 2010. Excluding China, production in the rest of Asia grew by 8.2% per year. The annual growth rate in China, the largest aquaculture producer, averaged 5.5% in the 12-year period.
|Indonesian dairy cattle population drops|
[04 June 2014] Chairman of the Indonesian Milk Cooperatives Association, Dedi Setiadi has predicted that national milk production this year would not reach more than 1.7 million tonnes. Mr Dedi revealed that the increasing price of beef caused dairy farmers to sell their cows as the price of fresh milk is stagnant at just USD 0.38/litre. “The national dairy cow population has been decreasing over the last three year. In 2012 the population was 425,000 heads and this went down to 400,000 heads in 2013,” said Mr Dedi, estimating that the population at the end of this year could decrease to 375,000 heads. He said feed cost increase of around 40% added to the pressure on dairy farmers. “With the increase of feed cost, fresh milk at farm gate should be priced at USD 0.5/litre.”
|CPF plans for new sausage plant in Thailand|
[03 June 2014] Charoen Pokphand Foods Plc (CPF) has plans for a new sausage production plant to tap into growing demand for this convenient food product according to Vice President of CPF Food Products Narek Mangkeo. The new plant is expected to be located in Nakhon Ratchasima province in the north eastern region and products to be produced at this facility will be for both the local and export markets. CPF produces around 7000 tonnes of sausage a month out of its Minburi plant outside Bangkok and its factory in Saraburi province. In 2013, CPF had a 25% share in the sausage market, worth USD 243.4 million.
|Saha Farms bankruptcy hearing this month|
[03 June 2014] Thailand's Bankruptcy Court has called for a hearing of indebted Saha Farms on June 16 as the earlier trial was postponed after around 17 creditors rejected the rehabilitation plan proposed to the court. The creditors, some of whom are corn shipping operators, cited worries on several overdue payments for their services. However, sources involved in the case said they believe Saha Farms will be able to process its rehabilitation plan supported by Krungthai Bank (KTB). Ernst & Young will be appointed as adviser to the rehabilitation plan, if approved by the court. Saha Farms and its company under the group Golden Line Business each owed around USD 400 million to their creditors which include banks, contract farmers and feed raw material merchants. KTB, however, deems the company still holds high business potential given the growing export market for Thai chicken.
|CP Indonesia’s food sales grows 21.8%|
[03 June 2014] Charoen Pokphand Indonesia announced in its 2013 annual report that its food business has demonstrated consistent growth over the years and in 2013, provided the company with sales of USD 198 million. This is a 21.8% increase from the sales of USD 162.6 million in the previous year and accounted for 9% of the company’s total sales for 2013. To tap into the strong revenue potential offered by this segment, the company embarked on a capacity expansion initiative in 2011 to add new production facilities. The company now operates a total of five poultry processing plants. The most recent was built in East Java in 2013 to fulfil the demand for processed chicken products like nuggets, sausages and meatballs in that region.
|Shrimp leads Indon fishery products export |
[03 June 2014] Indonesia’s Ministry of Fisheries and Marine Affairs has said that the value of exports in January and February 2014 increased by 16.1% to USD 667.6 million from the same period last year. In terms of volume, exports reached 200,801 tonnes, an increase of 9.8%. According to the Director General of Fishery Products Processing and Marketing, Saut P Hutagalung, shrimp represented the largest in terms of value and volume, accounting for USD 285 million and 28,000 tonnes respectively. “The US and the EU are increasing their demand for shrimp. We believe shrimp exports will exceed the previous years.”
|Nuscience breaks ground for new plant in Tianjin|
[03 June 2014] Nuscience Group held a ground-breaking ceremony to launch its new project in Tianjin, China. The company plans to build a factory for the production and marketing of premixes, concentrates and specialty feeds in West Tianjin Economic-Technological Development Area (Teda). The new factory will replace its existing facility, and triple its production capacity to 10,000 tonnes/month. It is expected to be operational by mid-2015. Nuscience also operates a facility in Suzhou for the Southern and South western Chinese markets and a trading company in Shanghai. Its other production locations are in Belgium, The Netherlands, Spain, Ukraine, Serbia and Brazil.
|US farm groups suggest keeping Japan out of TPP discussions |
[03 June 2014] US farm groups want Japan to be suspended from the Pacific trade talks if the country insists on keeping tariffs on wheat, rice, dairy, sugar, beef and pork. US and Japanese negotiators will hold meetings in Washington on farm exports and groups representing dairy, wheat, rice and pork farmers said they could still reach a deal. “Failing that, the alternative is suspending negotiations with Japan for now and concluding a truly comprehensive agreement with TPP partners that are willing to meet the originally contemplated level of ambition,” the National Association of Wheat Growers, US Wheat Associates, USA Rice Federation, the National Pork Producers Council and the International Dairy Foods Association said in a statement.
Assessing the AEC-readiness of livestock producers
[02 June 2014]
The Asean Economic Community (AEC) which will be formalised on December 31, 2015 will see trade borders dissolve among the 10-member Asean nations. The Asian Agribiz team in tracking the AEC-readiness of the livestock sector has these snippets from regional leaders to present.
Branding key to success in Asean integration
Livestock and poultry sectors must find a way to compete effectively in the integrated regional market. Superbrands Marketing International Inc President and CEO Harry Tambuatco said branding, backed by quality and value, will help producers survive a price competitive market. He told Asian Agribiz that Philippine livestock and poultry producers must brand their products, but added that producers “need to uphold integrity over controls and regulations” to ensure that pork and poultry products are safe and beyond reproach. However, production and related trade and business costs remain high, and this has pulled down the competitiveness of local poultry and pig producers. Some producers have found that manufacturing niche products can command premium prices in export markets.
Betagro heads in the right direction
Thailand’s Betagro Group is heading in the right direction with its expansion projects aligned to the expected rise in demand when the AEC is rolled out. The company recently launched a new chicken poultry processing plant in Phattalung, southern Thailand, with a capacity of 60,000 birds/day and expandable to 120,000 birds/day in the future. “We believe this plant will be able to produce quality chicken meat and parts catering to strong demand when the AEC is realised,” Group President Vasit Taepaisitphongse said. Apart from supplying to domestic markets in the southern region, Betagro plans to export products from this Phattalung plant to neighbouring Malaysia, Singapore and Brunei. Betagro also has its investments in other Asean countries including a feedmill in Cambodia, which is being constructed.
Indonesia’s poultry industry needs infrastructure improvement
Indonesia’s poultry industry still lags behind Thailand and Malaysia where infrastructure, efficiency and banking support is concerned,” said Indonesian Feed Millers Association Chairman Sudirman FX in reference to the country’s competitiveness in light of regional integration. He told Asian Agribiz that infrastructure improvement should be the first challenge that has to be tackled by the government mainly because of the country’s archipelagic nature. “With good infrastructure transportation costs of products will be cheaper. This in turn will increase competitiveness.” Indonesian Meat Processors Association Chairman Ishana Mahisa, meanwhile, is optimistic that Indonesia’s processed chicken meat products such as nuggets and sausages can compete with imported products from other Asean countries. “We know the local taste preference and the market potential,” he told Asian Agribiz, adding that he hopes the government would pave the way for the meat processing industry to receive a sustainable supply of chicken at a cheaper price.
Indonesia developing fish logistic system
Indonesia’s Ministry of Fisheries and Aquaculture (KKP) and industry players are working hard to increase the country’s aquaculture competitiveness. “Aquaculture is one of the AEC’s 11 priority sectors. Indonesia should play a big role in this regional single market,” KKP Fish Products Processing and Marketing Director General Saut Hutagalung told Asian Agribiz. “We are now developing the National Fish Logistic System in order to increase product quality and safety. With this system, all processes along the value chain will meet national and international standards. Next to that, we are also setting up cold storage facilities in several production areas.” He said Indonesia sees the AEC as an opportunity to work with other Asean countries to tap into larger markets like the Americas, the EU and China.
|McKey plans new further processing plant in Thailand|
[02 June 2014] McKey Food Services (Thailand) Ltd, which is under Keystone Foods, plans to build a new plant that will have a capacity of 30,000-50,000 tonnes. “The construction of the new plant is expected to start later this year and (commercial) operations at the facility is estimated to begin in 2016,” Managing Director Boonlua Thangwatcharapong told Asian Agribiz. The new plant will be fully automated with 2-3 high speed cooking lines. The new facility will raise production from its current capacity of 30,000 tonnes. McKey Food Service (Thailand) exports 80% of its production while the rest is sold locally.
|Malindo’s poultry feed sales up 28%|
[02 June 2014] Malindo Feedmill in its 2013 annual report announced that the sales of its poultry feed division amounted to USD 254.4 million, up 28% from the previous year. Poultry feed sales accounted for 71% of the company’s total gross sales in 2013. During the year, Malindo started construction of new feedmills in Java and Sulawesi. Currently the company operates three feedmills in East Jakarta, East Java and Banten.
|Godrej Agrovet launches R&D centre for feed|
[02 June 2014] Indian feed producer Godrej Agrovet Ltd launched its Nadir Godrej Centre for Animal Research and Development near Nashik, about 200km from Mumbai, complete with separate facilities for broiler, layer and cattle feed trials. It is also equipped to carry out complex analysis like enzyme assay, assessing the impact of different toxins, the efficiency of toxin binders and pathogen assessment, among others. “The industry will have to look at alternatives like value-added agriculture by-products to reduce its demand for agriculture crops in future,” the company said. Besides the work at the centre, Godrej Agrovet is also considering entering the feed pre-mix and additives market.