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4 May 2016
|Betagro confident of achieving USD 4 billion sales target by 2020|
[04 May 2016] Betagro Group is confident of achieving its USD 4 billion sales target by 2020, Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz. The firm posted a consolidated revenue of USD 2.74 billion in 2015. “We will invest about USD 86 million in new fixed assets such as farms and factories,” Mr Vasit said, adding that the Group plans to increase feed capacity in the Southern province as well as chicken production capacity in Lopburi province this year.
|Guangdong Wens to expand chilled yellow chicken processing|
[04 May 2016] China's Guangdong Wens Foodstuff Group said it will focus on processing chilled products for its poultry business this year. The producer of local yellow feather broilers has been supplying chilled chicken to Hong Kong. Its processing business generated revenue of USD 81 million in 2015, down 5.43% year-on-year, accounting for only 1.08% of the company’s total revenue, which saw a 24.57% rise last year. “The segment’s revenue decline is a normal fluctuation for an individual year. We will actively push the meat processing business forward,” Chairman Wen Pengcheng told Asian Agribiz.
|PurelyFresh takes on a new challenge|
[04 May 2016] Singapore’s PurelyFresh online retailer, which entered the market in July 2014, guarantees fresh meat and seafood products, and offers a 100% money back guarantee to unhappy customers. “Our Procurement Team does a great job in finding the freshest supply, but the pressure is on our Fulfilment Team to ensure it stays that way,” Desmond Khoo, Founder and CEO, told Asian Agribiz. “Our Fulfilment Team performs quality checks on all the items before delivery.” The company now wants to source healthy products for its customers. “We are looking at launching antibiotic-free fresh produce as well as expand our organic line,” he said.
|Indonesia limits corn imports to 1mt|
[04 May 2016] Indonesia will limit maximum corn imports for feedmills to 1 million tonnes this year as domestic supply is expected to cover demand, the Ministry of Agriculture said in a statement. Indonesia imported 2.5 million tonnes during January-October last year. The ministry estimated domestic corn production to reach 21.53 million tonnes, higher than last year’s 19.83 million tonnes. State procurement agency Bulog said in February that it would bring in 200,000 tonnes of corn in Q1.
|Taiwan protests against US pork imports|
[04 May 2016] Protestors, including the Chairman of Pingtung County Swine Association rallied against Taiwan allowing imports of US pork containing ractopamine. Pan Chang-cheng, a member of the Taiwan Solidarity Union (TSU) and a Pingtung county councillor, was joined by several dozen TSU members in the protest. Mr Pan said opening the market to ractopamine-laced US pork will not only affect the health of Taiwanese people, but will also pull down prices of Taiwanese pork by 50%, negatively affecting the livelihood of local swine producers.
Asia Pacific Aquaculture 2016
Onsite report by ARIEF FACHRUDIN
[04 May 2016]
Asia Pacific Aquaculture 2016, held in Surabaya, Indonesia from April 26-29, saw stakeholders in the region learn about the latest developments in aquaculture, come face-to-face with new technology and learn what is happening in Indonesia's growing aquaculture sector.
Aquaculture plays important role in feeding the world
With the need to feed a growing global population, aquaculture continues to play an important role as a source of animal protein. According to Rohana P Subasinghe, former Chief of Aquaculture Branch of the FAO Fisheries & Aquaculture Department, aquaculture is the fastest growing food sector and is the most sustainable animal protein. “In 2014, we captured 94 million fish and farmed 168 million fish. In the same period, 50% of the fish we ate came from aquaculture,” he explained. Asia is still the major farmed fish producer with China, India, Vietnam, Indonesia and Bangladesh being the top five producers in the world.
105mt more fish needed by 2030
Globally, fish consumption per capita is more than 19kg. According to Mr Subasinghe, fish consumption will continue to increase. “By 2030, we will consume more fish. We will need about 105 million tonnes more of fish by 2030. This is a challenge,” he said. “We need to improve and better manage marine captured fisheries, and have better & sustainable aquaculture production. We also need to adopt new technology and improve public-private partnerships.”
Shrimp production to increase by 2017
George Chamberlain, Global Aquaculture Alliance President and Integrated Aquaculture International Founder, said growth of shrimp production has slowed due to diseases. However, he said: “Production increases in all major farming nations are expected by 2017, especially in Indonesia.” He mentioned early mortality syndrome (EMS) and enterocytozoon hepatopenaei (EHP) as shrimp diseases with repeated outbreaks in many farming nations. To control EMS farmers in India use what is called ‘shrimp toilet’ to move out sediment. For EHP which is resistant to chlorination, Mr Chamberlain said SPF broodstock, quarantine, biosecurity, vet services and zoning are ways to manage the disease.
Indonesia is 2nd largest aquaculture producer
According to Albert GJ Tacon, independent aquaculture consultant, Indonesia is currently the world’s second largest aquaculture producer at 14.37 million tonnes, with total production valued at USD 10.56 billion. The sector growing at 21% annually. He mentioned that Indonesia is the world’s second largest producer for tilapia, catfish and shrimp with productions of 1.04 million tonnes, 1.10 million tonnes and 598,000 tonnes, respectively. Meanwhile for milkfish, Indonesia is the world’s top producer at 578,000 tonnes.
Indonesia should benefit from alternative feed ingredients
Although Indonesia is a big aquaculture producer, the sector relies on imported feed raw materials, with 50-80% being imported, said Dr Tacon. “As such locally produced feed is highly influenced by world commodity prices and currency exchange rates.” Dr Tacon said many alternative ingredients are available in Indonesia such as rice bran, copra meal and palm kernel meal. However, factors like low protein, high fibre and anti-nutrients limit its use in aqua feed formulation. To better use the ingredients, Dr Tacon recommends fermentation technology with probiotics, as well as enzymes.
Grobest Group to expand operations in Indonesia
Taiwan based aqua feed producer Grobest Group that has strong operations in different countries in Southeast Asia will focus on expansion in Indonesia. Aan Djamaloedin, Sales Manager of Grobest Indomakmur told Asian Agribiz that the company plans to set up its second aqua feed plant in East Java. The Indonesian subsidiary now runs an aqua feed plant in Tangerang, Banten province. The plant can produce 5000 tonnes of aqua feed a month. Mr Djamaloedin revealed that the company may set up internal shrimp ponds and cold storage.
CP Prima modifies existing plants
This year Indonesia’s largest aqua feed producer Central Proteinaprima (CP Prima) will modify its existing plants and add supporting systems. Willson Hendrata, Assistant Vice President for Aqua Feed Production told Asian Agribiz that this will increase CP Prima's production capacity. CP Prima has also adopted automation – from raw materials receiving to formulation – at all plants. “With automation, we only need one operator for one line,” Mr Hendrata said. CP Prima now has seven plants with eight towers (three for shrimp feed and five for fish feed), located in North Sumatera, Lampung, West Java and East Java.
Matahari Sakti targets 15% growth
Indonesia’s aqua feed producer Matahari Sakti targets 15% growth this year. Teddy Njoto, Director told Asian Agribiz that the company has launched a new feed for eel. In Indonesia eel farms can be found in Banyuwangi, Jogjakarta and West Java. The eels are processed into a product called unagi for export to Japan. Mr Njoto said of its total feed production, feeds for freshwater fish is still the main sales driver. He added that the company targets to put its new fish feed plant into operation in Q2 2017. Initially the plant will have a production capacity of 3000 tonnes of fish feed per month.
Evonik launches Aquavi Met-Met
Evonik took the opportunity to launch its Aquavi Met-Met, a new source of methionine specially developed for shrimp and other crustaceans, for the first time in Indonesia. Grant Xie, Regional Marketing Director – Animal Nutrition, told Asian Agribiz that Aquavi Met-Met is a dipeptide made up of two DL-methionine molecules. The dipeptide is far less water-soluble than the individual molecules and, for this reason, does not wash out of the feed as quickly.
CJ promotes fishmeal replacer
With the declining trend in catch fish, fishmeal supply is becoming a hot issue. At the show, CJ Cheiljedang promoted its Aquatide65, a fermented protein concentrate, which is said to be a cost efficient fishmeal replacer. Trial results in white leg shrimp showed that the product can replace 30% of fishmeal in feed. The product is now produced in South Korea but in the future may be produced in Vietnam.
|Huaying to ship cooked duck blood to Australia in May|
[03 May 2016] Henan Huaying Agricultural Development Co., a leading duck processor based in central China, said it has won an Australian permit to export cooked products, with the first shipment of duck blood scheduled to arrive in May. Huaying slaughtered 38.5 million ducks in 2015, and in January this year, it launched the pre-boiling duck blood product that is said to have a high content of protein for meal. “We have set up a subsidiary that specializes in duck blood processing, and hope to develop this ‘small’ product to a ‘big’ segment,” Chairman and CEO Cao Jiafu told Asian Agribiz.
|India’s Republic of Chicken up for sale|
[03 May 2016] India’s businessman and politician Kanwar Deep Singh has put his Republic of Chicken brand of retail outlets and the entire poultry farming chain from breeding to processing, up for sale. Mr Singh has decided to sell partly or fully the stake of his listed entity Alchemist Ltd. “In light of the changing economic scenario and due to the competitive environment the company intends to sell its shareholding in Alchemist Foods,” Alchemist told its shareholders. Republic of Chicken runs over 100 retail outlets in Delhi, Chandigarh, Punjab, Haryana, MP, West Bengal and Rajasthan serving raw, portioned and frozen processed items.
|Malindo's performance to rebound|
[03 May 2016] Indonesian poultry integrator Malindo Feedmill is expected to post a net profit this year after two straight years of losses. This optimistic projection is based on higher purchasing power of people in the country. Last year the company posted a net loss of USD 4.8 million, due to an increase in foreign exchange losses and higher interest expenses. Rudy Hartono Husin, Finance Director said the company has allocated USD 34 million for this year’s capital expenditure, which will be spent on expansion of its feed and broiler breeding businesses. The company plans to build a feedmill in South Sumatra.
|Antibiotics should remain a viable option says AAAP|
[03 May April 2016] Antibiotic use in poultry should be minimized through carefully planned and well-executed preventive practices, according to the American Association of Avian Pathologists (AAAP). The ‘AAAP White Paper on Poultry Welfare and Carful Antibiotic Use’ expressed concerns about the ‘growing trend’ for some food retailers and restaurants to only offer products from flocks raised with no antibiotics. “Farmers may be reluctant to allow treatment of flocks to maintain their ‘antibiotic free’ status,” the association said. “Veterinarians need the ability to make the proper treatment plans for animal health and animal welfare, including the use of antibiotics when warranted as part of their professional commitment and ethical obligation,” AAAP said.
|Prima Meat Packer’s operating profit climbs 11%|
[03 May 2016] Japan’s Prima Meat Packers’ group operating profit climbed 11% to USD 73 million for the year ended March 2016, falling short of the USD 91 million forecast due to inventory valuation losses on imported beef and sluggish demand for gift items. Its sales rose 6% to USD 3.3 billion, topping the guidance by USD 9.2 million, thanks to solid demand for Prima Meat’s flagship wiener brand and growing sales of prepared foods at convenience stores. Demand for ham and sausage sold as year-end gifts slumped after the WHO classified processed meat as a carcinogen in October last year.
|Vilsack touts benefits of trade with Vietnam |
[03 May 2016] Vietnam is one of the fastest growing markets for US food and agricultural products. Exports totalled USD 2.3 billion last year, making it the US’ 11th largest agricultural export market. US Agriculture Secretary Tom Vilsack on a trip to discuss details of the TPP deal with his counterparts in Vietnam touted the benefits of trade with the country. Once the TPP takes effect, the US is expected to cut 90% of the tax lines for goods from Vietnam. Vietnam will also reduce and eventually eliminate tariffs across a broad range of food and agricultural products, which will help put US exports on a level playing field.
|Betagro plans for feedmills in Laos, Myanmar|
[29 April 2016] Vasit Taepaisitphongse, President of Thailand's Betagro Group told Asian Agribiz that the company is planning to construct feedmills in Laos and Myanmar. “In Laos, we are concluding the project plan. In Myanmar, we are studying the feasibility and we need some time to collect information,” he said, adding that the plans should materialise in five years. “Our partners in the two countries want us to jointly develop the food chain and we are ready to invest,” Mr Vasit added. Meanwhile, Betagro Group’s total feed production capacity is around 3-4 million tonnes a year. The firm aims to raises this to 5 million tonnes a year.
|Fujian Sunner eyes 20,000 franchise outlets by 2020|
[29 April 2016] China’s Fujian Sunner Development Co. said it has opened 170 ‘Fresh Delicacy’ outlets so far, as part of a five-year plan to sell the company’s chilled chicken cuts via 20,000 franchised outlets by 2020. Financial Director Lin Qiqing said the program is already profitable as the price of chilled products are 25-50% higher than frozen chicken traditionally produced by the company. “We have an annual slaughter capacity of 500 million birds, and have no plan for any further investment at the moment,” Chairman and President Fu Guangming told Asian Agribiz during an online briefing.
|Price of Indian poultry products rebound|
[29 April 2016] After incurring losses for nearly nine months, India’s poultry sector has become viable thanks to a sharp turnaround in product prices. Chicken and egg prices have increased 25-30% over the past two months, mainly because of a supply crunch. Prices slumped steadily following an oversupply situation that started in July 2015. In February it hit a final low with benchmark broiler and eggs prices at USD 0.9/kg and USD 0.04/piece, respectively. “Unviable prices triggered a cut in production. Besides, mortality has risen to 8-9% with temperatures above 40 degrees. These two factors have supported a rebound in prices,” said Balram Yadav, Managing Director of Godrej Agrovet.
|Feedlot operators reject KPPU’s decision on beef cartel|
[29 April 2016] Following the fines of USD 8.1 million by Indonesia’s Business Competition Watchdog Commission (KPPU) on 32 cattle feedlot operators in the country who allegedly colluded on prices and supply, Nurmalita Malik, a lawyer representing Tanjung Unggul Mandiri (TUM), said feedlots did not fix prices. TUM was fined the most – around USD 1.6 million. Ms Malik said: “Witnesses and documents have shown that there is no cartel and we will challenge KPPU's decision.” The Indonesian arm of Elders said they will work closely with importers to understand and review the impact on its customer base in Indonesia. "The importers believe they have done nothing untoward,” said Cameron Hall, Elders Manager of Livestock Exports.
|Vietnam to stop using infeed antibiotics in livestock by 2018|
[29 April 2016] By end April, Vietnam’s Ministry of Agriculture and Rural Development (MARD) will sign an amended Circular on the use of antibiotics in animal husbandry, which lowers the level of antibiotics allowed in animal feed from 8 - 10ppm per tonne to 5ppm per tonne. "We studied some neighbouring countries and we think that Vietnam may have to stop using antibiotics in livestock by 2018," Hoang Thanh Van, Director of the Department of Livestock Production, MARD said. "We need to prohibit the use of antibiotics and enhance traceability," said Cao Duc Phat, Minister of Agriculture.
|Fujian Sunner says white chicken segment has bottomed out|
[28 April 2016] China's Fujian Sunner Development Co, the largest white feather broiler integrator in China, said the segment has bottomed out from a three-year downturn. “Last year was the turning point as it was the final stage to reduce overcapacity,” the company revealed in its annual report. China started limiting GP stock introduction in early 2014 with the establishment of the White Feather Broiler Alliance. The introduction fell more than 20% to 1.18 million sets during the first year, and plunged 40% to 720,000 sets in 2015. In the first quarter of 2016, China’s introduction of GP was less than 30,000 sets. “It is expected that China’s white chicken segment would take a favourable turn over the next three years due to short supply,” said Sunner.
|Hung Vuong enters livestock feed market with USD 35m feedmill|
[28 April 2016] Vietnam’s Hung Vuong Corporation broke ground recently for a USD 35 million livestock feedmill in the southern province of Long An. The 6.8ha facility is equipped with European technology that allows it to produce 500,000 tonnes of product per year, mainly for its pig farms. “With our new feedmill employing the latest technology, Hung Vuong is setting long-term goals to meet consumers’ demand for safe products and competitive pricing,” said Duong Ngoc Minh, General Director, Hung Vuong Corporation.
|KFC to introduce edible packaging in India|
[28 April 2016] Starting with its Rice Bowlz, US fried chicken chain plans to introduce edible packaging in India soon. Previously made of plastic, the bowls will now be made of tortilla. “This is an India-first innovation and may be adopted in KFC’s global markets,” said Rahul Shinde, Managing Director of KFC India. Mr Shinde said the company has invested heavily in its innovation team and the edible bowl was a result of it. Other items from India that have been adopted in KFC’s global markets are KFC Chizza and KFC Krushers. The QSR chain plans to foray into tier III cities in the near future to boost consumption, said Mr Shinde.
Asian Meat Magazine, May/June 2016 - Highlights
[28 April 2016]
Cooked Meat Sector Report
Asian producers give more attention to packaging
Ready to eat (RTE) products in Asia is where taste, convenience and technology meet to provide quick and hassle free meals. While great strides have been taken to ensure quality meals, the industry is also driving changes on the packaging front for more attractive, safer and cost effective products, RACHAEL PHILIP and the ASIAN AGRIBIZ team learn.
Kerchin stays abreast of market development
Inner Mongolia Kerchin Beef Industry Co is focused on Chinese consumers’ awareness of food safety. The company has installed state-of-the-art technologies to improve the quality, safety and traceability of its products, writes RICH HERZFELDER.
VPF completes value chain for integrated food business
Thailand’s VPF Group, an integrated pig farming operator, is working towards becoming a fully integrated food company. Apart from expanding its pig farms, VPF is working on growing operations at its primary processing and further processing plants, as well as embarking on retail and restaurant businesses, writes NITSARA THONGRUNG.
SBB creates a fad for grilled sausages
Together with its 1000 partners stationed throughout Indonesia, Sosis Bakar Bandung has made grilled sausages popular in the country. As its business continues to grow and production capacity swells, ARIEF FACHRUDIN learns that the company wants to set up a new plant in a new region.
Iffa 2016 to serve solutions for eating trends
Clean labelling gives expression to the demands made by consumers and the retail sector to have products that are as far as possible additive-free. Today careful eaters tend to define themselves more by what they will not eat. These consumers have given rise to a market of ‘free-from’ products, such as lactose-free or gluten-free foods.
|Thaifoods Group opens new chicken sausage factory|
[27 April 2016] Thailand’s Thaifoods Group (TFG) recently opened a chicken sausage factory with a production capacity of 30 tonnes a day in Prachinburi province, efinanceThai reported. Cherdsak Kukiattinun, Chief Operating Officer of TFG said that the firm invested around USD 10.8 million in the factory. The factory is expected to run at full capacity of 10,000 tonnes a year in 2018, Mr Cherdsak said, adding that the firm plans to increase its sales channels to include restaurants and hotels in the fourth quarter of this year and to include modern trade and convenient stores in 2017. TFG also plans to sell its chicken sausage products in Asean markets.
|China ports see pork imports surge in Q1|
[27 April 2016] Major Chinese ports saw a sharp rise in pork imports in the first quarter of 2016, as the local market is still suffering from a shortage and pork prices have remained high. The General Administration of Customs said its Tianjin port in north China imported 75,000 tonnes of pork in Q1, up 93.8% year-on-year. The average import price was flat at USD 1,695/tonne, less than half of the local prices. About 80% of the pork shipment to the Tianjin port during the quarter was from the EU.
|Andhra Pradesh’s egg exports challenged |
[27 April 2016] Layer farmers in India’s Andhra Pradesh will see a decline in egg sales to West Bengal, Bihar, Odisha and Assam, as the governments of these states are offering incentives to their local poultry industries to raise production. Nearly 45 million eggs are produced in Andhra Pradesh daily and 60% is exported to other states.
Asian Poultry Magazine, May 2016 - Highlights
[27 April 2016]
TCRS stays relevant with refreshed menus
In Malaysia chicken rice is standard daily fare that borders on being a delicacy. TCRS Restaurants Sdn Bhd has taken the meal and placed it in a quick service restaurant setting offering ambience, comfort and quality ingredients. Chief Executive Officer Wong Kah Lin tells RACHAEL PHILIP how the company has kept the menu fresh for customers over 16 years.
Branding gives Megha an edge in India
Mysore based Megha Farm has found that branding their eggs has given them an edge in the market. Managed by father-son duo, the company is poised to reach yet another milestone by completing three decades in 2017, writes SM ARUN.
Grimaud’s good productivity wins over Vietnam market
Dao Vu Ban, also known as ‘Ban - the duck king’, owns a 4ha Grimaud duck hatchery in Thinh Dan district in the northern province of Thai Nguyen, Vietnam. He has a flock of 8000 PS that produces 5600 eggs daily. With a hatching rate of 70%, Ban's farm can supply 4000 ducklings to farmers on a daily basis, writes HA THU.
Apayo suggests measures to stem low prices
If the supply of broiler DOC in Indonesia continues to exceed the demand, the resulting lower price of live birds will hamper industry growth in Indonesia’s Special Region of Yogyakarta, writes ARIEF FACHRUDIN.
Promoting eggshell quality with a prebiotic acidifier
Eggshell quality is an important determinant of the profitability of egg production and hatchability. EDI VIANELLO highlights the positive effects of supplementing hen’s diets with a prebiotic acidifier.
Pre-starter feeding for broiler chicks
To fully exploit the genetic potential of poultry, it is important to manage the first week of life successfully and to pay particular attention to feeding. Conditions at the start of broiler production can not only irreversibly affect the chicks' growth but also lower their resistance to pathogens. FRANÇOIS TILLY and ERIC FABRY discuss how the feeding of young chicks is a key factor in achieving good rearing performance.
A solid immune foundation is necessary for a strong ND protection
Infectious agents should be controlled as these diseases cause immune suppression and limit the proper functioning of the bursa, causing economic losses. DEXTER M. ABRIGO reports studies that demonstrates the efficacy of using a modern vectored vaccine, which aside from preventing occurrence of Marek's disease and IBD, also protects the bursa, strengthening the bird’s overall immune status, and enhances the effectiveness of ND vaccines.
Part 1 DL-Methionine – nutritionally the mirror image of L-Methionine
PRADEEP KRISHNAN, ARIANE HELMBRECHT, BEHNAM SAREMI and GIRISH CHANNARAYAPATNA review biochemical and recent growth performance evidence comparing the nutritional value of DL-Methionine (Met) and L-Met.
|EU maintains threat of sanctions on Thai seafood|
[26 April 2016] The European Union is maintaining the threat of a seafood import ban on Thailand due to its inadequate fisheries legal framework and poor monitoring, control and traceability systems. Meanwhile, Thailand has proposed an action plan to address illegal, unreported and unregulated (IUU) fishing. The European Commission said that it is currently evaluating the progress. “The dialogue is proving difficult and there remains serious concerns about the steps taken by Thailand to fight IUU fishing activities,” said the European Commission, adding this means that further action by the Commission cannot be ruled out. The European Commission said a meeting with the Thai authorities in May will be a new opportunity for Thailand to show its commitment.
|Indonesia’s KPPU fines 32 feedlotters over beef cartel|
[26 April 2016] Indonesia’s Business Competition Watchdog Commission (KPPU) has said that 32 cattle feedlotters in the country were guilty of price fixing and curbing the supply of beef in order to manipulate the market in Greater Jakarta. KPPU imposed fines worth USD 8.1 million on the feedlotters. Juan Permata Adoe, Deputy Chairman for Food Processing and Farm Business at the Indonesian Chamber of Commerce and Industry, deplored KPPU’s decision. “We are still working with the government to increase investment and jobs in the industry. But KPPU has taken an opposing position,” he said. Meanwhile, Muhammad Syarkawi, KPPU Chairman said cartel practices in this industry were rooted in the government’s policy to impose quotas rather than tariffs on beef imports. “The companies withhold or reschedule the sale of beef, resulting in an artificial shortage and rising prices, which hurt consumers,” he explained.
|Indian carabeef expected to flow into Indonesia by Ramadhan|
[26 April 2016] Carabeef or buffalo meat can help diversify exports from India and benefit the people of Indonesia, said Nengcha Lhouvum, Indian Ambassador to Indonesia at the ‘Roadshow on Indian Bovine Meat’ recently in Jakarta. Muladno, Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture meanwhile said: “An audit team went to India in September 2015 to inspect abattoirs and research institutions, which confirmed that India has excellent meat processing and quarantine control.” He added the Indonesian government is making efforts to open its market for Indian carabeef by the Ramadan period.
|Maharashtra’s poultry industry faces water scarcity|
[26 April 2016] As India’s Maharashtra continues to face the ravages of drought, the state’s poultry industry has started reporting almost 35% production losses. Ironically, this comes when for the first time in many months, the industry started reporting profits in broiler sales. Prasanna Pedgaonkar, Deputy General Manager of Venkateshwara Hatcheries said districts in Marathwada, Vidarbha, Ahmendnagar and many other areas were witnessing severe water crisis which has led to many poultry farmers temporarily closing their sheds. Maharashtra sees placements of around 35 million birds/month, of which around 5000 tonnes of chicken are supplied to Mumbai alone.
|Necrotic enteritis in broilers: Disease or syndrome?|
[26 April 2016] Out of literally hundreds of pathogenic strains of Clostridium perfringens, one single isolate is enough to trigger a necrotic enteritis (NE) outbreak in broilers, says Steve Davis, DVM, Colorado Quality Research.“We’re learning that in addition to dealing with the large number of pathogenic strains, multiple isolates — each with unique disease symptoms — can be found in the same poultry complex,” Davis told Poultry Health Today which is sponsored by Zoetis. “With the number of C. perfringens pathogenic strains we’re seeing coupled with additional disease pressure from Salmonella and coccidiosis, I think NE can now be classified as a syndrome.” More.
|ND situation in the Philippines easing up|
[25 April 2016] The pressure from Newcastle Disease (ND) is starting to ease up on Philippine poultry producers, a poultry practitioner told Asian Agribiz, thanks in part to government and industry interventions but also the start of the summer season. “The onset of the summer season hastens the inactivation of the virus,” said the practitioner, so it is likely that disease incidence will let up. Nevertheless, poultry players remain on alert against ND, especially in Luzon where sporadic cases continue to be reported.
|Brahim’s products on 7-Eleven shelves in Malaysia soon|
[25 April 2016] 7-Eleven Malaysia Sdn Bhd will work with Brahim’s Holdings Bhd’s 51%-owned subsidiary Brahim’s Sats Food Services Sdn Bhd (BSFS) to increase the convenience store’s range of products. Brahim’s Sats will produce for 7-Eleven Malaysia a range of chilled packaged ready-to-eat products that would be branded under 7-Eleven’s proprietary food service brand of Fresh to Go. 7-Eleven, meanwhile, will provide a central distribution centre for Brahim’s Sats to deliver all products. “We believe this range will be a further attraction to our shoppers,” CEO Gary Brown said.
|Ceva launches live-attenuated IB vaccine in Thailand|
[25 April 2016] Ceva launched a vaccine, called Cevac IBird, for the active immunization of chickens against infectious bronchitis (IB) in Thailand. Ruud Aerdts, Asia Director of Ceva Sante Animale said that IB is an underestimated problem in most countries in Asia because it often goes unnoticed and causes major indirect losses to producers. “IB problems are the second most prevalent and serious disease affecting poultry production in the world,” he said. Cevac IBird is a safe product, which can be used in DOC in the hatcheries. Ceva also offers the vaccination equipment and vaccination services, ensuring proper and convenient hatchery vaccination.
India dairy update
[25 April 2016]
Medium scale farms to be India’s dairy growth driver
Milk procurement is expected to become the single most critical link in India’s dairy supply chain given the strong growth in the organised dairy industry, which has put the focus on raw milk sourcing. According to Rabobank, medium scale dairy farms will be one of the key growth drivers in Indian dairy going forward. Shiva Mudgil, Senior Dairy Analyst at Rabobank Food and Agribusiness Research and Advisory identifies medium scale dairy farms as the emerging trend. “As procurement from small and marginal dairy farmers will increasingly become a challenge for milk processors, the industry will see the emergence of farmer owned dairy farms, with herd sizes ranging from 50-300 cattle,” he said.
Indian private dairy companies see decline in profits
Several private dairy companies in India are experiencing pressure on profit margins owing to a fall in selling prices resulting from aggressive competition from global and domestic dairy companies including government backed cooperatives, even as successive draughts have resulted in demand-supply imbalances in certain regions. Private dairy company Kwality in North India saw its net profit drop to 11.29% at USD 21.3 million in 2015. Similarly, south based private dairy company Creamline Dairy controlled by Godrej Agrovet admitted pressure on their margins. “The failure of the monsoon and non-availability of fodder have also contributed to pressure, hurting our profit margins by 200-300 basis points,” said K Bhaskar Reddy, Creamline Dairy Managing Director.
India’s Mahindra & Mahindra enters milk business
India’s auto to aerospace conglomerate Mahindra & Mahindra has launched milk in Indore in Madhya Pradesh, expanding the offerings from its agricultural division. The milk, which is retailed under the Saboro brand and fortified with vitamin A and D, will also be launched soon in capital Bhopal and other big cities of the state. The company said it has put in place a technologically advanced milk collection supply chain around 70 villages near Indore where it works directly with farmers. “We will process 10,000 litres of milk a day and take it to 50,000 litres a day,” said Ashok Sharma, CEO of the agricultural division.
Milk Mantra Dairy to raise USD30m for expansion
India’s Milk Mantra Dairy based in Odisha is in talks with private equity firm Samara Capital to raise around USD 30 million to fund its expansion. With the funding, the company which already markets ready to drink milk beverage MooShake in markets such as Bengaluru, plans a pan India presence. Founded in 2009, the company collects milk from a network of more than 20,000 farmers across more than 500 villages. It currently has two processing plants at Konark and Sambalpur districts in Odisha. “Companies with strong milk procurement infrastructure and direct farm engagement will be the intended targets for acquisition and partnerships,” said Shiva Mudgil, Senior Dairy Analyst and Vice President, Food and Agribusiness Research and Advisory at Rabobank.
|Hot weather to temper chicken overproduction in the Philippines|
[22 April 2016] Its recent bout with Newcastle Disease (ND) notwithstanding, the Philippine poultry industry continues to struggle with overproduction. “Prices have collapsed because of overproduction and poor demand,” Atty Elias Jose Inciong, President of the United Broiler Raisers Association, told Asian Agribiz. He added that ideal conditions in the first quarter led to higher output. However, the coming of the summer season and the hot weather is likely to temper production as conditions become less than ideal.
|Royal De Heus Group opens 7th feedmill in Vietnam|
[22 April 2016] Royal De Heus Group inaugurated its latest feedmill in Vinh Long province, its 7th factory in Vietnam. The plant will help De Heus Vietnam hit its 1 million tonnes per year total production capacity. In its first phase the USD 30 million plant will produce 250,000 tonnes per year. Vinh Long 2 is its first plant with a river port, which improves logistic of incoming raw materials and outgoing finished products between Vietnam, Cambodia and the Mekong Delta. “The new factory and port are an important next step in our ambition to contribute to development in Vietnam,” Gabor Fluit, Business Group Director De Heus Asia, said. Along with the launch of Vinh Long 2, the company also announced that its Vietnam office operates as the group’s headquarters in Asia.
|Thai Union expands research and development efforts|
[22 April 2016] Thai Union (TU) recently launched a seafood pilot plant, designed to innovate sustainable and value-added products. It is located within the Global Innovation Incubator (Gii), a joint research and development (R&D) collaboration between TU and the Faculty of Science, Mahidol University. “We believe that innovation will contribute to our business growth and help us achieve our USD 8 billion sales target by 2020,” Thiraphong Chansiri, President and CEO of TU said, adding that innovation will further TU's competitiveness, differentiation and capacity in the world food industry. TU has invested approximately USD 5.6 million to expand the Gii work space to twice its initial size and created the pilot plant to further boost R&D.
|HLH Group upgrades Cambodia farm into agri park|
[22 April 2016] Singapore’s HLH Group Ltd has upgraded its existing 10,000ha farm in Aoral District, Kampong Speu Province in Cambodia into a full-scale agriculture park. While a main section of the land bank will be reserved for the cultivation and processing of cassava into chips and starch, the park is also attracting investors to set up integrated livestock farming. “Around 70% will be utilised for farming and processing operations (of cassava). We do not limit ourselves to poultry and pig farms,” Dato’ Dr Johnny Ong, Deputy Chairman and Chief Executive Officer of HLH Group told Asian Agribiz. “Cambodia depends a lot on imported feed. We believe by setting up the agricultural park we will allow more investors take advantage of Cambodia’s growth,” he said.
|Japfa sells its cattle stations in Australia|
[22 April 2016] Australia’s Archipelago Beef Trust has purchased two cattle stations (Riveren and Inverway) for more than USD 60 million from Japfa, Indonesia’s biggest importer of live cattle. The properties in the Northern Territory carry about 40,000 heads of Brahman cross cattle, AFRWeekend reported. Director Luke Butler confirmed the transaction and said he looked forward to working with Japfa on trade. “Riveren and Inverway Stations are a key strategic acquisition targeting the continued delivery of cattle into the growing Asian live cattle export market,” Mr Butler said. Japfa originally purchased the properties from the Underwood family for about USD 35 million.
|Vaksindo focuses on bacterial vaccines|
[21 April 2016] Vaksindo Satwa Nusantara, a subsidiary of Japfa Comfeed Indonesia, is currently shifting its focus from viral vaccines to bacterial vaccines. However, according to Teguh Prajitno, President Director, this does not mean that viral diseases are no longer a concern. “We still produce viral poultry vaccines from local isolates. But we found that there is a need for bacterial vaccines,” he told Asian Agribiz. Vaksindo launched a Coryza vaccine last year. Dr Prajitno explained that this tetravalent vaccine also contains B and C strains from local isolates for better protection against Coryza. In the near future, Vaksindo plans to launch vaccines for E. coli and Clostridium. “Last year we found that necrotic enteritis in breeders was rampant. So we think that a vaccine to control Clostridium is needed,” Dr Prajitno said.
|China demand push up pork price in Vietnam|
[21 April 2016] Prices of oversized pigs has increased 22% since the start of April, as Chinese traders upped their purchase of live pigs from Vietnam. As of the third week of April, prices of live pigs in southeastern Vietnam was around USD 2.30/kg, the highest since the beginning of the year and up from about USD 1.90 before the Tet period. The situation is expected to continue until year end. “There are about 2000-3000 live pigs transferred from Dong Nai to China every day,” said Nguyen Kim Doan, Vice Chairman of the Dong Nai Animal Husbandry Association. “Most of them are oversized weighing about 120-140 kg.”
|DBE Gurney optimistic that Harumi brand will be profitable|
[21 April 2016] Malaysia-based DBE Gurney Resources Bhd and Pexden Holdings Sdn Bhd recently formalised arrangements to produce and market DBE’s Harumi brand of further processed products. Pexden will provide the technical know-how, machinery, production expertise, branding and related software and other advisory services for the Harumi brand. DBE Gurney’s subsidiary DBE Poultry Sdn Bhd will market the products via kiosks, mobile trucks, outlets, restaurants and cafes. “We aim to have 3000 kiosks, 300 food trucks and 30 restaurants by 2018 through franchising. We already have 50 franchise kiosks,” DBE Gurney Group Managing Director Datuk Alex Ding Seng Huat said. Going forward, Datuk Ding said, the group plans to export Harumi products to Indonesia, the Philippines, Vietnam and Thailand.
|Bangkok Ranch invests in new slaughter house and food-processing factory|
[21 April 2016] Bangkok Ranch (BR) plans to invest around USD 25.77 million this year in a new slaughter house and a food-processing factory in Sa Kaeo province, efinanceThai reported. BR is the largest fully integrated duck-meat producer in Thailand. Chonlachart Worawuitthichongsathit, Assistant to CEO at BR, said that the new slaughter house will be completed in 2018 and it will boost BR’s duck meat production capacity in Thailand to 27 million ducks a year, from 18 million currently. BR aims to increase its revenue by 10-15% this year and expects a net profit of USD 18.92 million in 2016, Mr Chonlachart said, adding that Thailand is seeing duck price recovery.
|FamilyMart, QL Resources to extend convenience store reach in Malaysia|
[21 April 2016] Japan’s FamilyMart will open its first store in Malaysia end 2016. Eased foreign investment rules set by the Trans-Pacific Partnership trade deal has allowed Japanese businesses to take a stake of up to 30% in Malaysian convenience store operators. Via an agreement with Malaysia’s QL Resources’ subsidiary, FamilyMart plans to make the maximum allowable investment, giving the Japanese company a direct hand in management. Similar investments of FamilyMart in mainland China, Taiwan and Thailand through joint ventures with local partners has seen the company bringing know-how in product development and logistics cultivated in Japan. The Nikkei Asian Review said it plans to offer about 2000 different products.
|Japfa India to start new feedmill project in Uttar Pradesh|
[20 April 2016] Ardi Budiono, Vice President – Head of Feed of Japfa India, told Asian Agribiz that it is going to start the construction of its 5th poultry feedmill in Uttar Pradesh in July. The project is targeted for completion in October 2017. “The plant will have an installed capacity of 15,000 tonnes/month,” said Mr Budiono. “Uttar Pradesh is one of the biggest states in India with a population of 200 million, and this offers a huge potential for our poultry and feed business. In addition, key raw materials such as corn are abundantly available.”
|China’s Hondo to import Australian cattle for online sale|
[20 April 2016] Chongqing Hondo Agriculture Group, a leading cattle integrator based in southwest China, said it will import Australian beef cattle and presell them via local e-commerce giant JD.com. Parts of the Angus cattle will be presold from April 15-25, and will be delivered to buyers from April 26. The imported cattle will be slaughtered and portioned at the company’s Zhengzhou plant in central China. “The combination of cattle import and e-commerce presale is expected to boost premium beef consumption in China,” said Tang Yishen, General Manager of fresh food operations at JD.com. China’s imports of Australian slaughter cattle is projected to hit one million heads a year after the two countries signed a live trade agreement in July 2015.
|Al Meezan expanding its Karachi feedmill capacity|
[20 April 2016] Pakistan’s emerging feed company Al Meezan Poultry Feeds and Allied Products (Al Meezan) is now expanding the production capacity at its Karachi feed plant from 25 tonnes/hour to 45 tonnes/hour. Abdullah Ahmad Tahir, Animal Nutritionist and Production Manager told Asian Agribiz that the expansion will meet growing demand for poultry and dairy cattle feed in the region. “The project will cost around USD 5 million. We will install modern technology from the US and Turkey,” Dr Tahir said, adding that it will be completed this year.
|China to add 2.67 million hectares of soybean by 2020|
[20 April 2016] China targets to plant 9.33 million hectares of soybeans by 2020, up by 2.67 million from 2015, according to the Ministry of Agriculture. The ministry said in a guideline to promote soybean production, it will also seek to increase average soybean yield to 2,025kg per hectare by 2020, compared with 1,800 kg/ha in 2015. China plans to reduce more than 3.33 million hectares of corn planting by 2020. China imported 81.69 million tonnes of soybeans in 2015, 6.8 times the local production.
|Saudi Arabia bans shrimp imports from Pakistan|
[20 April 2016] The Saudi Food and Drug Authority has banned shrimp imports from Pakistan as a precautionary measure after detecting white spot disease in crustaceans exported from the country. The measure is based on a report of the World Organisation for Animal Health (OIE), which included Pakistan in the index of countries with shrimp affected by the disease. However, Pakistan’s Marine Fisheries Department said it was a misunderstanding, considering that the country produces mainly wild marine shrimp. “White spot disease only occurs in cultured shrimp,” the department said. In 2015 Pakistan exported 189 tonnes of shrimp to Saudi Arabia worth USD 2.2 million.
|Indonesia, Denmark sign agreement on cattle, corn|
[20 April 2016] Indonesia’s government and its Danish counterparts recently agreed to strengthen cooperation in agriculture. At the meeting, Indonesia’s Minister of Agriculture, Amran Sulaiman and Denmark’s Minister of Food and Agriculture, Esben Lunde Larsen signed an MoU in agricultural investment including investments in a cattle farm and corn plantation. Mr Sulaiman said Indonesia will provide land for the cattle and corn investments in Sulawesi, Kalimantan and West & East Nusa Tenggara. He added that Denmark is a right investor and partner since the country has good and modern agricultural technology.
|China’s Muyang eyes joint venture in India |
[19 April 2016] Liu Guangdao, Director and Vice President of Muyang, China’s leading feed machinery manufacturer, told Asian Agribiz that the firm is considering a joint venture with a local feed producer in India. Muyang is now in the process of collecting information and it may finalize its investment and partner next year. “India is a big country and is a potential market for us,” he said, adding that the company has already enjoyed good business in India. Apart from India, Mr Liu said the feed industry is growing fast in Vietnam, Philippines, Indonesia and Bangladesh and meat consumption in these countries keep getting higher and higher. Muyang has sale offices and spare parts warehouses in many countries in Asia. “We can supply service and spare parts very quickly,” he added.
|Vaksindo inaugurates new animal vaccine plant|
[19 April 2016] Vaksindo Satwa Nusantara, a subsidiary of Japfa Comfeed Indonesia, recently inaugurated its new animal vaccine plant and BSL-2 laboratory in Gunung Putri, West Java to tap into increasing demand from domestic and international markets. “Our existing plant in Wanaherang, West Java is running at full capacity. That is why we need a new plant,” Teguh Prajitno, President Director told Asian Agribiz. “All live vaccines and Gumboro vaccines will be produced at the new plant. The old plant will focus on killed vaccines and avian influenza vaccines,” said Dr Prajitno. The new plant cost around USD 8.3 million. The latest and modern technology and equipment such as integrated aseptic filling line and lyophilizing and capping machines ensure quality vaccine production.
|Vissan to serve VietGAP pork at all outlets|
[19 April 2016] On April 15, Vietnam Meat Industries Ltd Co (Vissan) started supplying VietGAP pork at all its retail outlets in Ho Chi Minh and neighbouring provinces. VietGAP pork is produced following good agricultural practices that ensures hygienic and safe pork meat. “We wish to become one of the leading organisations in the VietGAP supply chain to motivate farmers to shift from their old farming model to a new and standardised one like VietGAP and participate in a safe food supply chain,” Vissan General Director Van Duc Muoi said. Vissan currently supplies about 70 tonnes to local markets daily.
|Chinese producers show support for packaging|
[19 April 2016] An enthusiastic standing-room-only crowd of more than 150 Chinese meat industry managers and technicians attended the 2016 Seminar on Cold Meat and Modified Atmosphere Packaging (MAP) in Shanghai recently. Speakers from Multivac, Bemis, DuPont and Linde described how MAP works and how it improves product appearance, extends shelf life and boosts safety. There was more than five hours of presentations at Multivac’s newly opened development and demonstration centre in Shanghai’s Waigaoqiao Free Trade Zone. Currently only a few companies in China use the technology, but its footprint is expanding quickly, according to participants at the seminar.
|QL Resources to bring FamilyMart to Malaysia|
[19 April 2016] Malaysia’s QL Resources is making a foray into the consumer market by tying up with the world’s second-largest convenience store chain FamilyMart. The investment is seen as a move to expand its food business helping it grow its marine products and livestock value chain. “The convenience and proximity retail market is growing and there’s still opportunities for differentiation and additional players,” the company said. Maybank Investment Bank Research noted that the venture could be positive for the group if it manages to differentiate itself from existing competition by offering more food and fresh food lines, which carry better margins.
|Legend Holdings to become seafood leader|
[19 April 2016] Chinese conglomerate Legend Holdings is setting its sights on being a leader in the seafood sector. The Hong Kong based company, which is the majority shareholder of PC maker Lenovo Group, inked a deal with Australia’s largest seafood firm, Kailis Bros in late March. Legend and Kailis have formed a joint venture called KB Food Group – 90% owned by the formers. Legend plans to use this as a starting point to build a seafood industrial cluster with a view to emerge a leader in the Asia Pacific region. Zhu Linan, Legend Holdings President said the company focuses on industries with enormous potential.
|Japfa India inaugurates new feedmill in Bihar|
[18 April 2016] Japfa India recently inaugurated a new poultry feedmill in Bihar, East India. Around 600 dealers and farmers attended the ceremony. Ardi Budiono, Vice President – Head of Feed, told Asian Agribiz that the plant will strengthen its position in India as a leader in quality feed. Mr Budiono explained the plant, construction of which was completed in March 2016, has an installed capacity of 15,000 tonnes/month and is equipped with modern technology. Bihar was chosen as the location for its 4th feedmill since the state has become a key player in the poultry industry in India. “Given the population, economic growth and raw materials availability, the state offers immense opportunity for our feed business,” Mr Budiono said.
|China Meat Association defends pork imports|
[18 April 2016] The China Meat Association (CMA) said the nation should stick to an open policy for the pork sector, in response to a public call to boycott imported pork products to protect the local industry. The arguments emerged in early April after WH Group, the Chinese owner of Smithfield Foods and the world’s largest pork company, said hog prices in China are too high and should decline by a half. WH Group has seen its 2015 net profit up 17.5% by expanding imports of US pork via Smithfield. China’s pork imports in 2015 rose 12.9% to 1.6 million tonnes or just 2.8% of local pork production last year. “Imported pork is competitive for its high quality and low prices,” the CMA said, adding that a lower stock of hogs has caused the high price of locally-produced pork.
|Japfa Indonesia continues buying local corn|
[18 April 2016] Amid the termination of corn imports by the government, Japfa Comfeed Indonesia is currently buying corn from local farmers at USD 0.23/kg, which is slightly higher than the buying price (USD 0.20) of the State Logistic Agency. Boediato Soebijanto, Senior Vice President – Head of Marketing & Sales of Feed Division said the company’s average annual corn need is 1.5 million tonnes. “We purchase around 700 tonnes of corn per day from local farmers with a moisture content of 30-35%.” Regions in South Sulawesi like Sidrap, Gowa and Makassar are the main suppliers to the company.
|Malaysia’s soybean imports forecast to increase|
[18 April 2016] Malaysia is expected to increase its soy imports this year, the US Department of Agriculture’s Foreign Agricultural Service said in a report. Imports increased slightly from 643,000 tonnes in 2014-15 to 650,000 tonnes in 2015-16, and is expected to reach 653,000 tonnes in 2016-17. Malaysia’s 2014-15 soybean imports, valued at USD 307 million, are in line with the projected increase in demand for swine and poultry feed, and also a slight increase in soy for human consumption.
25th National Hog Convention - Bacolod City, Philippines
Onsite with ISA Q TAN
[18 April 2016]
Philippine hog raisers celebrated a milestone with the 25th National Hog Convention held in Bacolod City, Philippines on April 14-16, 2016. While there is cause for celebration, producers united in their call to the government to address the continuing problem of agricultural, and particularly meat, smuggling in the country.
Smuggled meat pulls down pig price in the Philippines
Prices of live hogs in the Philippines has been on the decline, thanks mainly to unfair competition from smuggled pork meat. Vicente Mercado, Chairman of the National Federation of Hog Farmers Inc said at the opening ceremonies of the 25th National Hog Convention and Trade Exhibits that live price have gone down from about USD 2.42/kg in Luzon and USD 2.16/kg in the Visayas and Mindanao in November to the current USD 2.16/kg and USD 1.95/kg, respectively. Most affected, he said, has been the backyard pig farming industry, with more than 80,000 raisers stopping operations and losing their livelihood. He reiterated the united call of hog raisers together with other agriculture sectors for the government to act against smuggling, which he said has been “wreaking havoc” in the agriculture sector.
Small restaurants, eateries getting smuggled meats
These days, it is not only in the wet markets that local hog and pork producers are competing with smuggled meat, but in supplying to small restaurants and eateries as well. An industry player who did not wish to be identified told Asian Agribiz that traders have been offering smuggled meats to operators of small restaurants and canteens and as such demand for locally produced meat from this market has gone down. “This has really affected our market because there are many of these operators that previously were getting their meat from us, but are no longer doing so because they are offered cheaper imported meat.” He also noted that this raises questions on food safety because the smuggled meat may not be certified safe.
Hog raisers remain resilient
Despite the problems that continue to beset Philippine hog raisers, the industry has remained resilient, said the Pork Producers Federation of the Philippines Chairman Eliseo Yu. He noted that the industry has come a long way since the first convention was held in 1991, adding that unity has helped members weather the various challenges that the industry has faced and continue to face. He called on members not to be complacent but to continue to work together for development of the industry.
Ceva launches Cevazuril in the Philippines
Ceva Animal Health has launched Cevazuril for the control of diarrhoea caused by coccidiosis in suckling pigs. Coccidiosis is one of the most common parasitic diseases besieging pig producers worldwide. At the launch, Dr Mark Mombarg, Ceva’s Market Manager Asia for Swine, told participants that toltrazuril, of which Cevazuril is composed, has been proven effective against Isospora suis, the primary pathogen for coccidiosis in piglets, as it acts against all the intracellular development stages of coccidia.
|Thailand's livestock industry prepares for drought |
[15 April 2016] Farmers in Thailand are preparing for a drought, Dr Ayut Harintranon, Director-General of the Department of Livestock Development (DLD) told Asian Agribiz. Small scale farmers who raise cows and buffalo in the north-eastern region, are already feeling the effects of the drought. “We are monitoring the situation. If there is a severe water shortage, we will coordinate with the army and help the farmers,” he said, adding the drought will drive up meat prices this year. Meanwhile, Pornsil Patchrintanakul, President of Thai Feed Mill Association said that the drought hasn't affected corn crops yet. “It will have little impact on animal feed,” he added.
|Bulog to monopolise Indonesia’s corn imports|
[15 April 2016] Through a new regulation on corn imports, the State Logistic Agency (Bulog) is now the sole importer of corn for animal feed in the country. In the regulation, corn imports can proceed after the agency gets an assignment from the central government and recommendation from the Ministry of Agriculture. Meanwhile, import amount is determined and agreed at a coordination meeting with the Ministry of Coordinating Economics. On the other hand, the animal feed industry has slammed the new regulation. Anton J Supit, Chairman of the Indonesian Poultry Companies Association said Bulog should not monopolise corn imports.
|China to expand soybean planting for local meal use|
[15 April 2016] China is planning to expand the area planted for soybeans for local meal use by reducing corn cultivation while leaving the oil-use soybeans to continue reliance on overseas imports. The Ministry of Agriculture will soon release guidance to promote soybean production in China, with aims to improve yield and quality, said Pan Wenbo, Deputy Head of the Planting Industry Management Division at the ministry. “We are not pursuing self-sufficiency but want to meet the growing meal demand,” Mr Pan said.
|Vilomix sees potential for growth in Vietnam feed market|
[15 April 2016] Danish company Vilomix’s first feed production base outside Europe, a partnership with Hung Vuong Corporation, will be built in Long An, Vietnam. To be completed next year it will initially have a capacity of 20,000 tonnes, Peter Iversen, CEO, told Asian Agribiz. “Besides providing high quality products and knowhow, we believe in being close to our suppliers and our customers,” he said, adding that the company produces only customised premixes ensuring that their customers get as much out of the compound feed as possible as well as a perfectly balanced feed for their animals.
|Floodplain conversion may increase Bangladesh’s aquaculture |
[15 April 2016] Bangladesh can increase its fish production by about 0.75 million tonnes by bringing 0.5 million ha floodplains under aquaculture by 2017, according to a study. If the floodplain areas are brought under the coverage of aquaculture by the period, the country will be able to earn additional USD 1 billion. The study suggested conducting a survey to ascertain floodplains and select 0.5 million ha in phases within 2-3 years, from the greater Mymensingh, Sylhet, Faridpur, Khulna, Jessore, Pabna and Comilla regions. According to official data, annual fish production has increased to 3.55 million tonnes in 2013-14 from 2.56 million tonnes in 2007-08.
|High Australian cattle price squeezes Indonesian producers’ profitability|
[15 April 2016] Indonesian cattle importers and feedlot operators said their profitability is being squeezed by record high Australian live export prices. Prices for feeder cattle to Indonesia have risen sharply over 18 months, from USD 2.50/kg to USD 3.90, with importers having to pay over USD 4/kg for delivery. While the wet market price for beef knuckle in Jakarta is currently around USD 8.76/kg, it is not high enough to make a financial return given the current live cattle price, according to William Bulo from Juang Jaya Abdi Alam, a feedlot operator in Lampung. "If the retail price is too high, customers will stop buying beef altogether and find another cheaper protein source."
Modern meat retail picks up in the Philippines
Report by ISA Q TAN
[14 April 2016]
Modern retail is growing in the Philippines, having gone beyond the urban centres into the countryside as regional and nationwide supermarket chains push outwards into the rural areas. Meanwhile, consumers increasingly prefers convenient and accessible stores particularly those that are open after work hours. With this development comes changes in the way meat is sold in the market.
Demand for chilled meat on the rise
Meat shops and supermarkets continue to flourish alongside demand for chilled meat. About 20% of the country’s meat demand is now sourced at these modern retail shops, which sell fresh chilled meats. Noting the meat sold in these stores are now competitively priced compared to wet markets, industry players believe that retail volume in meat shops and supermarkets will grow faster than in wet markets. “More Filipinos are now aware that fresh chilled meat is safer than warm ‘freshly slaughtered’ meat they buy at the wet markets,” an industry practitioner told Asian Agribiz, adding that both the modern retail industry and the government have joined hands to educate consumers on the advantages of chilled meats.
Primal cuts giving way to choice cuts
Although most Filipino consumers still tend to buy primal meat cuts which they later cut into smaller pieces at home according to their needs, many have turned to buying choice or portioned cuts. “If you buy slabs of meat in the wet market, you are getting all the fat along with it because most of the time the seller won’t allow you to just buy the lean part,” Rodrigo de la Peña, who runs a meat shop in Quezon City, told Asian Agribiz. “With portioned cuts, you get more the kind of meat you want, and you don’t have to spend time cutting them up at home, so more convenient and less time-consuming.”
Cherry-picking still the norm
While a growing number of Filipinos are turning to meat shops and supermarkets for their meat needs, many still prefer to cherry-pick parts they want rather than buy pre-weighed and prepacked meat items. This is a holdover from a practice they are used to at wet markets, thus many stores continue to satisfy this preference, allowing customers to pick the parts and amount of meat they want. Another reason for cherry-picking is the fear of getting bad meat. “Many customers still have this mind-set that if they buy prepacked meat, they will find that inside there will be some not so fresh or not so good meat,” said Anthony Lozano of Fresh Options Meat Shops, adding that they tried selling prepacked and pre-weighed meat cuts in the past, but customers mostly ignored them.
Adding value to meat
As consumers increasingly call for convenience and ready-to-cook food products, meat retailers are stepping up by adding value to portioned cuts. It is common to find ready to cook marinated meats, such as those for barbecue and frying. Sold by weight or by piece, consumers are willing to pay extra for these products. Among the value added products are marinated and cured meats, native sausages, and other ready-to-cook meat preparations. “Our franchiser has formulations for these preparations,” a franchisee of one of the leading meat integrators in the country told Asian Agribiz. “So we just buy the mixes and spices from them and do the preparations in our store.”
|CP Prima reports USD91.5m net loss |
[14 April 2016] Central Proteinaprima (CP Prima), Indonesia’s largest shrimp producer, processor and exporter, reported a net loss of USD 91.5 million and accumulated losses of USD 265.5 million in 2015, according to its annual report. As a result, independent auditors said: “These results may cast doubt about the subsidiaries’ ability to continue as a going concern.” The losses stem from the same source as in 2014 - the 2011 halting of shrimp farming in Lampung following the appearance of infectious myonecrosis virus, which decimated production on its main farm. The global decline in shrimp prices and foreign exchange losses in 2015 also negatively affected sales and income.
|Indian researchers develop cheaper shrimp feed|
[14 April 2016] Researchers at the Central Institute of Brackishwater Aquaculture (CIBA) in Chennai, India have developed a locally formulated shrimp feed that cuts production costs by 20%. The feed is branded as Vannamei Plus, and is part of the “Make in India” push by Prime Minister Narendra Modi. The technology is attracting shrimp producers from states like Andhra Pradesh, Gujarat and Kerala. “One kilo of the commercial feed costs USD 2.1/kg to produce while with Vannamei Plus, the cost is just USD 1.4,” said Dr KK Vijayan, CIBA Director.
|Vietnam reports H5N1 avian flu outbreak|
[14 April 2016] Vietnamese officials reported a new outbreak of highly pathogenic H5N1 avian flu to the World Organization for Animal Health (OIE) on Monday. The outbreak began on April 1 in a village in Nghe An province in the northern part of the country. Of 200 birds in the village flock, 100 were sickened by the virus and 50 died. The remaining 150 birds were culled to prevent the spread of infection. Health officials have implemented control measures, such as surveillance, vaccination, and disinfection of affected properties.
|Brazil takes Indonesia to WTO over beef|
[13 April 2016] Brazil has launched a complaint at the World Trade Organization (WTO), to challenge Indonesia over its restrictions on Brazilian beef, the WTO said. Indonesia has 60 days to settle the dispute, after which Brazil could ask the WTO to adjudicate. On other developments, a poultry industry player told Asian Agribiz that it seems that Brazil is likely to succeed in this matter.
|Thailand urges corn farmers to adopt good agricultural practices|
[13 April 2016] Thai Feed Mill Association, Ministry of Agriculture and Cooperatives and Ministry of Commerce are teaming up to encourage corn farmers to adopt good agricultural practices (GAP) and increase corn productivity, Pornsil Patchrintanakul, President of Thai Feed Mill Association told Asian Agribiz. In Thailand, corn planted area is estimated at 2.89 million acres, with 1.46 million acres cultivated in deforested area, he said. “We have so far introduced GAP to 40,000 acres of corn planted area. We aim to increase the number to 790,737 acres within 5 years,” Mr Pornsil said. GAP includes realigning farming systems, reducing fertilizer use and using water efficiently.
|Malaysian-based e-commerce halal meat firm listed on LSX|
[13 April 2016] Malaysian-based DagangHalal, an e-commerce trading platform for halal products, was listed on the London Stock Exchange’s ISDX Growth Market, a market for small but high-growth firms. It listed around 58 million ordinary shares giving the company a market capitalisation of USD 20.5 million. DagangHalal said it plans to use some USD 5 million of the proceeds to “accelerate its growth strategy” by developing its sales and marketing departments as well as exploring new international markets. More than USD 1 trillion is spent on halal food and drink every year. DagangHalal hopes the listing on the LSX will enhance its ambition of becoming the single-platform solution for the B2B and B2C global halal trade.
|Keystone China SVP: QSR sector partners must work together |
[13 April 2016] Equipment makers, ingredient suppliers, food processors and restaurants in the quick service restaurant (QSR) sector need to work together to adjust to changes in consumer eating habits, according to Wu Tong, Senior Vice President at Keystone Foods China. “We are all trying to understand the key changes in eating habits,” Mr Wu told Asian Agribiz. Keystone is keen to work with innovative companies across the whole value chain to develop new approaches that will create value for consumers, he said.
|Increased production cost affects prices in Pakistan|
[13 April 2016] The price of poultry products are still high in Pakistan’s twin cities Rawalpindi and Islamabad. The price of live chicken in the retail market reached USD 1.72/kg while eggs were being sold at USD 0.76/dozen. The high price has been attributed to increased production costs, according to Khalid Saleem Malik, Chairman of the Pakistan Poultry Association (PPA). He explained that production of corn and soybean is decreasing and farmers have to import from Brazil and other countries. He added that the price hike is temporary and due to low supply and higher demand.
|KFC India partners with Mumbai Dabbawalas|
[13 April 2016] Yum! Restaurants, which operates the KFC chain in India, has tied up with India’s Mumbai Dabbawalas to deliver meals as it seeks new points of presence to increase sales. Mumbai’s Dabbawala system is over a century old and is a case study at the Harvard Business School for its low cost and six sigma quality. KFC is the first multinational food service retailer to tie up with it. “We are always on the lookout for the next big idea to engage consumers. We are doing everything that helps us increase our consumer base,” said Rahul Shinde, KFC India General Manager.
|Japfa Indonesia to increase wagyu beef production|
[12 April 2016] Although the beef division of Japfa Comfeed Indonesia still recorded a loss in 2015, it managed to improve its performance over the previous financial year. The division, which is run by Santosa Agrindo, has started selling wagyu beef under the Tokusen Wagyu Beef brand targeting niche segments. Although its sales volume is still small, the product offers better margins. Expected to be a future sales contributor for the beef division, the company plans to increase the production capacity of its wagyu beef.
|India’s GEAC considers GM feed ingredients |
[12 April 2016] While introduction of genetically modified (GM) crops in India remain debatable, some companies in the country have approached the government for approval to clear imports of GM feed ingredients for animals. The Ministry of Environment and Forest Genetic Engineering Approval Committee (GEAC) considered proposals from four companies for these ingredients from China, Brazil, Argentina, Vietnam, Singapore, Malaysia and the US. After considering the proposals, GEAC Member Secretary said that comments of the experts on the proposals are still pending. Experts expressed concerns saying animals are part of human food chain.
|Farmers in China switch from corn to soybeans|
[12 April 2016] Corn growers in China are switching to soybean this year as the government reforms the corn cultivation sector by ending a near decade-old corn price support scheme. China said recently that it will stop its corn stockpiling program and allow markets to set prices. This move is expected to transform the agricultural landscape as farmers shift to more lucrative crops like soybean, rice and peanut. Meanwhile higher soy output in China is expected to hit farmers in top producing countries such as Brazil, the US and Argentina. “Soy prices have picked up and with government soy subsidies, we may be able to make USD 108-124 per ha,” said one farmer to Reuters.
|Danish Vilomix to build first premix plant outside Europe|
[12 April 2016] Danish company Vilomix has partnered Vietnamese food company Hung Vuong Corporation to build a premix and vitamin factory in Vietnam. The plant will supply premix to Hung Voung as well as the open market. Chairman of the Board of Vilomix Holding A/S, Christian Junker sees the deal as Vilomix’s first step towards transforming the company from an international to a global player in the premix and vitamin sector. “We can now test ourselves on a remote market for the first time, where the commercial opportunities are enormous. Vietnam currently has over 4.2 million sows. There are 225 feed producers in Vietnam whom we want to offer products and services to in partnership with Hung Vuong,” he said.
|Aman Feed of Bangladesh to invest in its associate company|
[12 April 2016] The board of directors of Bangladeshi animal feed producer Aman Feed recently decided to invest USD 313,000 in its associate company AKIN Feed, according to a statement posted on the Dhaka Stock Exchange. Aman Feed will invest the said amount in the ordinary shares of AKIN Feed as a sponsor shareholder equivalent to 49% of its initial total paid up share capital. AKIN Feed is a public limited company and its main business is the production of floating fish feed.
Vietnam introduces tougher laws for farmers using banned drugs
[12 April 2016] The use of banned substances in animal farming in Vietnam can now lead to heavier punishment including 20-year imprisonment terms and fines of up to USD 4460, roughly five times more than the current fine. The new law will take effect July 1. Nguyen Van Viet, Chief Inspector of the Ministry of Agriculture and Rural Development, said the use of salbutamol in pigs in particular persists. Official data showed that 20 companies imported a total of 9.14 tonnes of salbutamol into Vietnam last year. Only 10kg were used legally in medicine.
|New food safety institute for Asean |
[11 April 2016] The Asean Risk Assessment Centre for Food Safety (ARAC) was recently launched to oversee the safety of food in Southeast Asia. "ARAC is an important landmark that will contribute towards safe and quality food in the Asean community as well as in facilitating food trade within the region,” Malaysian Minister of Health, Dr S Subramaniam said. The new institute aims to be a regional coordinating centre for independent food safety risk assessment, formulate scientific opinions and provide advice on the safety of food. ARAC will provide the future basis for Asean policies and legislation for the safety of food and feed produced, sold or traded in the region.
|Japfa Indonesia’s sales up 2.3%|
[11 April 2016] Indonesia’s animal protein company Japfa Comfeed Indonesia managed to record sales of USD 1.9 billion in 2015, a 2.3% increase over the previous year. Due to this increased performance, the net profit grew by 33.8% to USD 39.7 million. Animal feed division was still the largest contributor to the sales, with a contribution of 45%, followed by the commercial poultry farm and chicken slaughterhouse division (30.5%), poultry breeding (9.4%), aquaculture division (6.7%) and beef division (4.2%).
|Punjab government supports pig farming |
[11 April 2016] India’s Punjab government is moving to boost the development of pig farming in the state. The Department of Animal Husbandry, Dairy and Fisheries is encouraging youth to raise pigs. Gulzar Singh Ranike, Minister of the department said there are about 230 pig farmers and 50,000 pigs in Punjab. In 2014-15 the state produced about 76,000 tonnes of pork. To support pig farmers, the state government has set up four breeding farms. It plans to sign an MoU with the British Pig Association to ensure more advanced and scientific techniques on the farms.
|S Korea’s CJ CheilJedang bets on edible insects industry|
[11 April 2016] South Korean food manufacturer CJ CheilJedang Corp has signed an MOU with Korean Edible insect Laboratory Knowledge Coop to research and develop food using insects. This market in South Korea is estimated at USD 8.6 million in value, but is growing fast. Insects such as mealworms, grasshoppers, crickets and honey ants, commonly used as food resources, are known to be rich in protein, minerals and unsaturated fatty acids. “The research is still in its infancy,” said Moon Byung-seok, Head of Food Research and Development Institute at CJ CheilJedang. “We aim to develop edible insect food that people feel comfortable eating.”
Livestock Export Program Expo 2016 in Tangerang, Indonesia
Onsite report by ARIEF FACHRUDIN
[11 April 2016]
Indonesia allocates USD98.65m for breeder cow imports
With an aim for feeder beef cattle self-sufficiency, Indonesia this year plans to import 50,000 heads of breeder cows from Australia. Muladno, Director General of Livestock and Animal Health said the cows will be distributed to farmer groups in different regions in the country. “This project will require USD 98 million,” he told Asian Agribiz. Dr Muladno explained that livestock and veterinary experts, feedloters and academics will be enlisted to ensure the success of the project. He added that the government is considering abolishing the import duty for breeder cows which is at 5% currently.
Traders interested in imports from zones within countries
Following the release of the Government Regulation (PP) under the Animal Husbandry and Animal Health that allows import of meat and livestock products from zones within countries, Mr Muladno told Asian Agribiz that several importers have shown interest in meat and cattle imports from India, Brazil, Mexico, Spain and Belgium. “From India, they want to import carabeef, while from Brazil, Mexico, Spain and Belgium they want to import live cattle,” he said.
Challenges in beef cattle breeding
Beef cattle breeding is not easy said Dayan Antoni, Head of Breeding Division of Japfa Indonesia’s subsidiary Santosa Agrindo. 'To succeed feed cost, technical knowledge, calve birth management, economies of scale and financing are crucial. Another challenge is there are no low interest loans, so the government should intervene,” Mr Antoni said. On feed cost, he said palm-cattle integration and pasture based breeding are systems with low feed cost. He revealed that Santosa Agrindo is now developing beef cattle breeding in Kalimantan with a palm-cattle integration system.
GGL’s cattle partnership project progresses well
Gunung Sewu Group’s subsidiary Great Giant Livestock (GGL) is developing its beef cattle partnership project with small scale farmers in Lampung. The project, which was started in 1991, has been progressing well. In its first partnership model, farmers have to have cattle while GGL gives technical assistance and helps to market the finisher cattle. The total population of this model last year reached 2866 heads. In the second model, GGL provides the cattle, gives technical assistance and helps to market the finisher cattle. The total cattle population of this model last year reached 1930 heads, and is expected to increase to 2340 heads this year.
|Danish Vilomix to build premix factory in Vietnam|
[08 April 2016] Danish company Vilomix has partnered with Vietnamese food company Hung Vuong Corporation to build a premix and vitamin factory in Long An, Vietnam. Vilomix will own 70% and Hung Vuong 30% of the factory. Construction is expected to start in May and completed by April next year. To manage the building process Vilomix has formed a new subsidiary called Vilomix Vietnam LLC. The premix plant is intended to meet Hung Vuong’s diversification into pig production. Hung Vuong’s primary focus is on pangasius farming and export. "It aims to farm 100,000 sows with Danish genetics by 2020,” said Vilomix CEO, Peter Iversen. He added that Hung Vuong is currently building a new 500,000-tonne feed factory. Vilomix is expecting to supply premix and vitamins to this plant.
|Thailand to decide on TPP this month|
[08 April 2016] General Prayuth Chan-o-cha, Prime Minister of Thailand, is expected to make a decision on whether Thailand will join the US-led Trans-Pacific Partnership (TPP) at the end of this month. At a dinner in Washington, Mr Prayuth said that there are two relevant international agreements which are Regional Comprehensive Economic Partnership (RCEP) and TPP. “I see a need for us to integrate the region’s economy through RCEP and TPP in a way that is complimentary,” he said. However, Thailand's livestock industry has voiced concerns against joining the TPP, citing severe negative effects to the industry.
|McDonald’s plans for 1500 new outlets in China, South Korea, Hong Kong|
[08 April 2016] McDonald’s Corp plans to open 1500 new restaurants in China, South Korea and Hong Kong. The company said it is looking for partners to help finance the expansion and will give local managers more decision making power to respond to Asian customers. “Asia represents a significant area of opportunity for McDonald’s to blend our global quality standards with local insights and expertise from partners who share our vision and values,” said CEO Steve Easterbrook. McDonald’s currently has 2800 restaurants in China, South Korea and Hong Kong, most of them owned by the company.
|Nepal to step up meat shops surveillance|
[08 April 2016] Nepal’s government will step up surveillance of meat shops and slaughterhouses in Kathmandu. The Ministry of Livestock Development (MLD), in conjunction with thr Ministry of Agriculture Development, and Ministry of Commerce and Supplies, is coordinating the inspection as cases of meat shops selling rotten meat have increased. Shyam Prasad Poudel, MLD Joint Secretary said many meat shops do not follow basic hygiene and openly cull animals on the roadside.
LEP Expo 2016 in Tangerang, Indonesia
Onsite report by ARIEF FACHRUDIN
[08 April 2016]
The LEP Expo 2016 (Livestock Export Program) by Meat & Livestock Australia (MLA) in partnership with the Australian Livestock Export Corporation (LiveCorp), opened in Tangerang, Indonesia on April 6. It aims to provide information on products, services and technology for the meat and livestock industry players in Indonesia to improve supply chain efficiency and animal welfare.
Australia will continue to support Indonesia’s meat, livestock industry
Investments in the beef cattle feedlot sector in Indonesia have been significant in the last few years. The growing population and increased buying power have convinced investors of the potential of the beef market in the country. Opening the expo, David Galvin, LiveCorp Chairman said the Australian counterparts will continue to support Indonesia. “We are here to share information and add value to the supply chain of livestock and meat in Indonesia.”
Jakarta to centralise poultry slaughter
In order to ditch live bird trading in traditional markets and improve veterinary health status, the Jakarta government through PD Dharma Jaya plans to centralise the slaughter of poultry in the capital city. Dharma Jaya this year will set up 12 slaughterhouses – with a slaughter capacity of 1000-1200 birds/hour per unit – in Pasar Palad, an area dedicated for this purpose. An industry player met by Asian Agribiz said the project, which will start in the second semester of this year, needs an investment of around USD 2.8 million. “The slaughterhouses will be managed by 12 groups of poultry traders under the supervision of Dharma Jaya. The slaughterhouses are targeted to process 120,000 birds/day and produce chilled dressed birds,” he said. “This project will be a pilot project for other regions in the country.”
Indonesia’s meat processing industry expects to grow 20%
Indonesia’s meat processing industry is expected to grow at 15-20% this year following economic recovery in the country, said Budi Wahyu Setiadi, Managing Director of Javatec Food Technology. Mr Setiadi told Asian Agribiz that many meat processing companies are confident that the economy will improve this year. "They plan to invest in new equipment, facilities and production capacity expansion at existing facilities,” he said. In addition, “there are also new players who will invest in chicken processing and further processing facilities,” he added.
|BRF opens investment office in Malaysia|
[07 April 2016] BRF SA, a global food company responsible for 14% of the world's poultry trade in 2015, has announced the opening of an office in Malaysia. It will serve as BRF’s national base in Malaysia and underlines the importance of Malaysia to the company. “This office will enable BRF to quickly establish and strengthen key relationships, gather critical information and accelerate our on-going business development and feasibility studies to invest in Malaysia, which will be completed in the next few months,” said Simon Cheng, BRF Asia General Manager. Laurent Levan has been appointed Country Manager (Malaysia) and will head this office.
|Japfa Indonesia allocates USD53m for chicken slaughterhouses|
[07 April 2016] With per capita chicken consumption of only around 9.5-10kg and a population of 250 million, the business prospects of Indonesia’s poultry industry is still attractive. Last year, the gross sales of Japfa Comfeed Indonesia’s commercial poultry farm and chicken slaughterhouse division increased 9.12% to USD 780 million. Triggered by the business prospects, the company plans to set up more modern chicken slaughterhouses this year with an investment of around USD 53 million. The slaughterhouses will guarantee the availability of halal and hygienic chicken meat with good traceability. The company currently has modern slaughterhouses in eight locations throughout Indonesia.
|China’s feed industry going through consolidation |
[07 April 2016] China’s feed industry is currently facing overcapacity and the industry may go through a consolidation phase, Marcel Scherrer, Managing Director of Feed Division at Bühler AG told Asian Agribiz. “Many Chinese customers are now looking for opportunities on how to leverage off this phase,” he said. Southeast Asia sees continuing growth in the feed industry and demand for meat and aqua products are increasing. Bühler see growing demand for capacity in the region, he added. Meanwhile, feed producers are placing more emphasis on safe feed production. “They are looking for ways to produce hygienic feed,” he said, adding that customers are looking for complete solutions and efficient plants.
|Wenger sees potential in aqua feed machinery in Asia|
[07 April 2016] “Business opportunities in Asia are quite high”, Joseph P. Kearns, Vice President of Aqua Feed Division at Wenger told Asian Agribiz. Asia is the aquaculture centre of the world and it is projected that requirement for aquaculture will double over the next 15 years, he added. Wenger manufactures animal feed equipment including aqua feed production equipment. “Our equipment is technically advanced and sophisticated and this allow our clients to maximize earnings while making a superior product,” he said. Meanwhile, Wenger needs to understand indigenous ingredients that clients want to use and design equipment that can use those ingredients effectively. Wenger has a sales office in Taiwan and has agents in many countries in Asia.
|Vietnam closer to receiving chicken from China|
[07 April 2016] Vietnam may soon receive slaughtered chicken from China via official channels if Vietnamese and Chinese animal health agencies reach a consensus on the issue. Farmer associations, however, are uncertain of the effects. Food safety issues and the outbreak of the bird flu virus in China are some reasons. Between September 2015 and February 2016 44 flu cases and 10 deaths were reported. Nguyen Van Ngoc, representing farmers in the east of the southern region, said imports of Chinese poultry products could see a rise in ‘trade fraud’. “More waste chicken and ‘dirty meat’ will flow into Vietnam,” he said.
|Singapore AVA warns against using meat glue to cheat|
[07 April 2016] Using meat glue with the intention to pass off reformed meat as more expensive cuts is not permitted, said an Agri-Food and Veterinary Authority of Singapore (AVA) spokesman. “This is not permitted as it would be potentially misleading to consumers.” Transglutaminase has been assessed to be safe and permitted for use in countries like Australia, New Zealand, Canada and the US, said the spokesman in a report in The New Paper. Singapore allows transglutaminase to be used as a general purpose food additive. “It is allowed to be used as a processing aid, under good manufacturing practice, in processed meat and fish products such as surimi, ham and fish balls to bind proteins together in the meat.”
|Black chicken gains ground in South India|
[07 April 2016] Kadaknath, a breed of black chicken found in India’s Madhya Pradesh, is slowly becoming popular in South India. A Kochi based entrepreneur, K Georgekutty, who has a Kadaknath breeding farm is now helping set up poultry centres in Kerala, Andhra Pradesh and Tamil Nadu. “I also provide the incubator and give guidance to successfully hatch the eggs. Many rural women are gainfully employed in the project, which will soon be launched in Manipal in Karnataka,” Mr Georgekutty said. Scientific studies have shown that Kadaknath has high protein, iron and low fat content and is beneficial for people suffering from asthma, cardiac disease and other ailments. Meat of the black chicken is priced around USD 9.06-10.57 per kg.
|Indonesian feedmillers to import corn directly again|
[06 April 2016] Indonesia will issue rules soon that will allow feedmillers to import corn directly once they have secured approval from the Ministry of Agriculture after imports of the grain were disrupted in 2015. “We can’t stop this. This business needs to make long term plans and policy changes can’t be abrupt,” said Karyanto Suprih, acting Director General of Foreign Trade. Indonesia, which imports corn mainly from Argentina and Brazil, temporarily stopped issuing corn import permits to feedmillers in July 2015, with the government making a broad push for food self-sufficiency and channelling imports through Bulog, Indonesia’s State Procurement Agency.
|More further processing turnkey projects in China|
[06 April 2016] H-Plus Machinery Co, a Shanghai-based meat processing equipment distributor in China which represents more than 20 international brands such as Provisur and Foodmate, told Asian Agribiz that it will focus on further processing turnkey projects in coming years, with more attention to lines for Chinese-style meals. “There is a great potential for automated manufacturing of Chinese-style meals, as China has been speeding up urbanisation, and more young consumers can afford hygienic and consistent meat products,” H-Plus General Manager Peter Sun said.
|CAB Cakaran to venture into biomass energy production|
[06 April 2016] Malaysian poultry integrator CAB Cakaran Corporation Bhd said it hopes its new biomass power generation business will generate 10% of its turnover in two years. The plant will be able to produce about 300 tonnes of biomass waste daily from chicken droppings. “This can produce more than a megawatt of power. The project should commence by the end of the year and is expected to be ready for operation in 2018,” said Managing Director Chris Chuah. CAB Cakaran said the acquisition will enable CAB Amesist Biomass Generation Sdn Bhd, its 51%-owned unit, to operate the plant.
|Fujian Sunner starts cooked meat supply to McDonald's |
[06 April 2016] Fujian Sunner Development Co, an integrated chicken processor headquartered in southeast China, said it trucked about 20 tonnes of crispy chicken drumsticks and McChicken steaks to McDonald’s in late March, making it the first local Chinese supplier of cooked meat products for the fast-food giant. The products were from the company’s Zixi factory in neighbouring Jiangxi province, it said in a statement on April 1. Sunner currently has five processing plants for cooked products, with a combined capacity of more than 150,000 tonnes a year. Sunner has been supplying cooked chicken to major supermarkets like Wal-Mart and Carrefour in China. It also ships products to Japan and South Korea. In 2015, its exports exceeded USD 53 million.
|Thai Union to purchase 40% stake in India’s Avanti Feeds|
[06 April 2016] Thai Union (TU) said it will spend USD 18.93 million to acquire a 40% stake of Avanti Frozen Foods Private Limited India (AFFPL), a shrimp processing unit of Avanti Feeds Limited. TU said that the deal will diversify its shrimp sourcing and add production capacity to meet growing demand. The deal will also help compensate TU’s current raw material shortfall in Thailand. “Avanti Feeds has been a long term partner in India,” said Thiraphong Chansiri, President and CEO of TU. He added that India is becoming an important shrimp processing base for export. Meanwhile, AFFPL is building a new facility at Yerravaram in East Godavari District, which will triple its production capacity to 75 tonnes per day.
|CJ CheilJedang to continue to grow its presence in Vietnam|
[06 April 2016] Despite failing to acquire a 14% strategic stake in Vietnam's state-owned food processing company Vissan, CJ CheilJedang, which owns a farm and four processing plants in Vietnam as well as a retail division, said it will pump another USD 500 million into the country via direct investments and mergers and acquisitions. This will bring its total investments in Vietnam to USD 900 million. It aims to make Vietnam its second largest production hub after China outside South Korea.
|Hormel to triple meat processing capacity in China |
[05 April 2016] Hormel China is expected to add another 50,000 tonnes to its annual meat processing capacity, which currently stands at a combined 25,000 tonnes. This will be realised with the launch of a new facility in eastern China’s Zhejiang province which will be operational at the end of 2016, Swen Neufeldt, President Asia Pacific for Hormel Foods International, told Asian Agribiz. “Probably the biggest difference for the Jiaxing facility is that we will be adding canning capacity. We plan to produce Spam luncheon meat locally in China,” Mr Neufeldt said. All the company’s meat factories are capable of producing a full portfolio of frozen to chilled products, he added.
|Indonesia’s sbm consumption to rise|
[05 April 2016] Indonesia’s soybean meal (sbm) consumption is expected to grow by 8% in 2015/16 and 2016/17, alongside the general growth of feed corn and poultry production, according to a USDA GAIN report. Total consumption is predicted to reach 407,000 tonnes in 2015/16 and 439,000 tonnes in 2016/17. Indonesia does not have a soybean crushing industry, and relies entirely on imports to fulfill its sbm requirement. In 2014/15 the country imported 3.84 million tonnes of sbm, while in 2015/16 and 2016/17 the imports are set at 4.1 million tonnes and 4.3 million tonnes respectively, the report said.
|Packaging helps promote poultry brands in China|
[05 April 2016] Chinese-style meat products are drawing more attention from international providers of processing and packaging solutions, as many of the products are branded and attract a growing number of young consumers. “Most urban consumers in China may try Western meat products once a month, but they consume the Chinese-style poultry products more frequently,” Jens Richter, Managing Director China for Multivac told Asian Agribiz. “The MAP packages are not only a guarantee for food safety and a longer shelf-life, but also a platform for the processors to display their brands in an attractive manner,” Mr Richter said.
|India expected to record single digit shrimp export growth|
[05 April 2016] Following lower international demand and last year’s floods, India’s export growth for frozen shrimp could drop to a single digit this year. India’s Marine Products Export Development Authority said exports of all marine products, of which frozen shrimp makes up two thirds of overall value, hit 421,385 tonnes for the first half of the 2015/16 year. That represents a 14% drop in value and a 4.5% fall in volume compared to the previous period. Several Indian states have cut back their fishing season to meet conservation rules. “This will have an impact on shrimp exports from India,” said Rustom Irani, President of the Indian Seafood Exporters Association, adding that shrimp farming growth has also slowed because of floods and disease outbreaks.
|ChicKing to open 20 outlets across Indonesia|
[05 April 2016] ChicKing, a Fried chicken QSR headquartered in Dubai, UAE recently signed an MoU with Indonesia’s Ayam Top Dubai (ATD) to open 20 ChicKing outlets across Indonesia in the next five years. Hengki Setiawan, ATD President Director said the company plans to open outlets in Greater Jakarta, Bandung (West Java) and Surabaya (East Java) in the next two years. “We will then target outlets in Makassar, Medan, Aceh, Yogyakarta and other satellite cities.” Mr Setiawan said one outlet will cost around USD 120,000-190,000. Halal products will be the selling point for ChicKing.
|South Korea finds AI on duck farm in Icheon|
[05 April 2016] South Korea recently found avian influenza (AI) in ducks on a poultry farm, 80km east of Seoul, according to an official of the Ministry of Agriculture. It came as the first discovery in four months and was been detected 30 days after the country regained its AI free status. The case included a strain called H5N8, which is the same strain that occurred in November 2015. The official said that all 11,604 ducks at the infected farm were culled.
Strong technical program defines Pig Feed Quality Conference
Reports by RACHAEL PHILIP and PAYUNGSAK WIRIYABUNDITKUL
[04 April 2016]
Asian Agribiz’s 2016 Pig Feed Quality Conference that was held in Bangkok Thailand from March 31-April 1 was a resounding success with close to 250 regional and foreign participants. As in the past, the conference featured a strong technical program addressing fundamental themes which can enhance the performance, quality and profitability of your pig and feed production. This year, the theme ‘Science, trials & application’ saw speakers present a strong technical program with invited papers detailing the latest regionally relevant research-based knowledge to address key issues for the Asian pig industry.
SIDAA, more accurate on nutritional quality compared to crude protein
Protein evaluation based on standardised ileal digestibility of amino acids (SIDAA) offers greater accuracy on nutritional quality compared to an evaluation on crude protein and ileal digestibility as what is absorbed from the large intestine is of no nutritional value to the animal. But, amino acids absorbed from the small intestines are of nutritional value. Using this assessment Prof Julian Wiseman’s research to assess the potential for greater inclusion of home-grown legumes such as peas and fava beans as a replacement for soybean meal (SBM) showed interesting results. “Balanced for energy and SIDAA, growth performance and carcass quality on diets based on legumes are no different from pigs fed a diet based of SBM,” he said. Data based on faecal digestible AA meanwhile indicate that performance and carcass quality would have been worse with these raw materials.
Fine-tuning feeding of sow and litter for piglet survival and quality
Piglet survival and quality is influenced by the feeding strategy in the gestation and lactation period. Fetal growth mainly increases from day 70 of pregnancy onwards. René Bonekamp, Swine Specialist, EMEA, DSM Nutritional Products, highlighted the importance of protein and amino acids, fibre, fats and vitamins during this period. “Increasing protein and amino acids between 30-100 days of gestation improves piglet quality,” he said. More fibre in late gestation shortens the birth process by 25 minutes and subsequently colostrum intake of piglets. Fat and fatty acids have a positive influence on the duration of the birth process and litter size. Finally “vitamins such as E and C in combination with selenium can reduce oxidative stress during high productive processes like birth, lactation and mating”.
Digestibility of different soybean products fed to pigs
In her meta-analysis, Juliana A Soares Almeida, Adjunct Professor, Missouri Baptist University, US, determines if standardised ileal digestibility (SID) of crude protein (CP) and amino acids (AA) in different soybean products are different, and if the body weight of pigs influences SID of CP and AA. She said overall, the SID of CP was greater for soy protein concentrate (SPC). The SID of lysine did not differ among SBM 44%, enzyme treated SBM, SPC and soy protein isolate (SPI) when pigs of all ages were included in the analysis. However, there was an effect on body weight because SID of lysine was greater for SPC and SPI when compared with SBM 48% and fermented SBM when pigs were less than 20kg. She said, smaller pigs have lower SID of AA and CP than older pigs.
Adjusting DEB for sow and piglet feed
Heat stress limits feed intake, increases water consumption and impairs the acid-bases balance by losses of electrolytes. Sows, specifically, will see difficult farrowing conditions, stillborn births and low milk production. Young piglets, meanwhile, will experience low growth rates, poor feed conversion ratio and risks of diseases. Gilles Langeoire, Senior Consultant at Gilles Langeoire Consulting, France, said the control of adequate dietary electrolytic balance (DEB) value will reduce the risks of sanitary and economic issues faced in hot climates. For sows, Mr Langeoire proposed adjusting Na bicarbonate and chlorides to achieve 180-200 meq/kg for gestation, 130-150 meq/kg for farrowing and 250-300 meq/kg for lactation. For piglets a balance of around 200 meq/kg will improve feed intake, growth rate and digestibility of dry matter and protein.
Organic acids and plant extracts for better gut health
Nutraceuticals or functional foods such as plant extracts and organic acids are foods with ingredients either naturally occurring or added that provide a health benefit beyond the traditional nutrient value of the food. These have become increasingly common especially after restrictions and bans on the use of antibiotics. They help to maintain technical performance and control enteric bacterial diseases. Graziano Mantovani, Cargill’s Provimi Technology Application Lead for Southeast Asia, said new thinking is now focused on how essential oils and organic acids can be used to improve gut health. “Evidence suggests that the dual mode of action can complement traditional antibiotics by helping to maintain equilibrium in the gut microbial population,” he said.
Lysophospholipids to improve fat digestibility
For the sow feed intake goes down and they eat less after birth. This is a natural process because the sow is tired and stressed but they produce more milk for the piglet, said Dr Chinnadurai Sugumar, Product Manager at Kemin Industries Pte Ltd. “So some nutrient loss from the body is expected,” he said, adding this is called the negative energy balance, which means energy intake is less than energy output. “The only solution is to improve the energy density of the feed. The problem is more fat is not digestible,” he added. Hence, farmers should give lysophospholipids to the sow because they help digest the fat in the sow diets and release more energy. This will help with better meat production, he said.
Feeding strategies to cope with heat stress
Sows nowadays are more productive and efficient. However, they are less tolerant to heat stress, said Dr Bruno Silva, Professor in swine nutrition and production at Universidade Federal de Minas Gerais in Brazil. “We have to work on feeding strategies that can help the sows reduce the negative impact of heat stress,” he said. A reduction in crude protein content, will reduce the thermal effect of feed. Another alternative is to work with feed stimulation. “This includes working with flavours that can help sows increase feed intake under heat stress conditions,” he added. “You will never get a feeding strategy that will actually mimic the same effect of environmental changes,” Dr Silva said, adding that changing the microclimate is the best way.
Taking NIR to enhance pork production profitability
Near infrared reflectance spectrophotometry (NIR) is a cost effective and fast technology for predicting chemical and physical composition of feedstuffs. This allows nutritionists to expand the range of their analysis and get quicker results on the ingredients and feed being analysed. Dr Hadden Graham, Global Technical Director, AB Vista said that the future of NIR lies in development of technology. “It has been a movement from laboratory-based equipment into inline mobile-based equipment,” he said, adding nutritionists can use these hand-held web-enabled applications on the farm and outside the mill. Moreover, nutritionists can put all the calibration on one central computer, trial the NIR machine into that computer. “All you have to do is take a spec of your feed or raw material, download and get back the analysis within five seconds,” he added.
Optimum vitamin nutrition is essential for better performance
Vitamins are essential micronutrients, which are required for optimum health and normal physiological functions such as growth, development, maintenance or reproduction of the animal, said Dr Gilbert M. Weber, Senior Science Fellow, DSM Nutritional Products. Vitamins exercise catalytic functions and they facilitate both synthesis and degradation of the nutrients, thereby controlling the metabolism. Most vitamins cannot be synthesized by the animals and therefore they must be obtained from the feed. In case of a temporary or chronic undersupply with vitamins, Dr Weber said that animals will suffer from subclinical deficiency, impacting on performance, health and welfare. Clinical vitamin deficiency also results in growth depression, deterioration of feed conversion as well as in irreversible serious disorders of various origin, which can lead to death of the affected animal.
Nutritionists have to understand the immune system of pigs
The activation of the immune system will lead to a shift in the metabolism of piglets and negatively impact performance by decreasing feed intake and lowering average daily gain, said Dr Fellipe Freitas Barbosa, Globigen Product Manager at EW-Nutrition GmbH. “Nutritionists have to be aware of these changes and we have to understand that the requirements of the piglets are different when facing a disease,” he said, adding that the immune system has its own set of nutritional requirements. Right after birth and the first weeks after weaning are critical moments for piglets. “We have to use specific immune-ingredients and additives,” he added. At the end, a healthier piglet will always have the potential to perform to its full capacity resulting in higher output, lower costs and therefore higher profit.
|Malaysia’s CAB Cakaran places 9.9% stake with Antoni Salim|
[01 April 2016] Malaysian poultry integrator CAB Cakaran Corporation Bhd announced recently that it will place a 9.85% equity stake, valued roughly at USD 7.76 million, to Indonesian tycoon Antoni Salim’s Singapore-based Plant Wealth Holdings Ltd. From the amount raised CAB Cakaran plans to pay back bank borrowings, use a portion as general working capital and to cover expenses of this corporate exercise. Its Managing Director Chuah Hoon Phong said CAB Cakaran will leverage off Plant Wealth's subsidiary KMP Investments’ market presence in Indonesia in the categories of agribusiness and fast moving consumer goods. This, he said, will facilitate CAB’s growth regionally.
|Blitar in Indonesia to add 5000ha for corn cultivation |
[01 April 2016] The local government of Blitar regency in East Java has plans to add 5000ha of new corn land by 2017 to meet growing demand for animal feed. Palal Ali Santoso, Secretary said the local government has prepared 3500ha of land. “With productivity of 4-5 tonnes/ha, the produce is expected at an additional 15,000 tonnes apart from the current 260,000 tonnes,” Mr Santoso said, adding that current corn production only meets 40% of the total demand for animal feed in the regency. Blitar is the largest egg producing region in Java. Most of the layer farmers mix their own feed.
|Vietnamese look for ‘hometown’ produce amid food safety scares|
[01 April 2016] Reports of food items tainted with banned drugs and food poisoning scares are driving some Vietnamese consumers who live in big cities such as Hanoi and Ho Chi Minh City to source for produce in rural provinces. Consumers are shunning supermarkets and wet markets, and buying meat, fish and rice in bulk from their hometowns. A local daily detailed how some families buy freshly-slaughtered chicken from family-owned slaughterhouses back home and seafood right off fishing boats. Packages of produce also arrive from villages into the cities on trains. Shops are sprouting just outside large cities selling ‘clean food’ straight from local farms.
|Indonesia yet to start importing breeder cattle|
[01 April 2016] Indonesia’s Ministry of Agriculture’s target to import 50,000 heads of breeder cattle from Australia this year has yet to see fruition. The auction process was supposed to have been completed in March, for importers to start bringing in the cattle until August. However, until now the ministry has not announced the auction. Last year the ministry targeted to import 30,000 heads of breeding cattle, but only 22,000 heads were brought in.
|Yum to sell minority stake in China business|
[01 April 2016] Yum Brands is in talks with KKR and other private equity groups to sell a minority stake in its Chinese business, which the US fast food operator plans to spin off this year. People familiar with the matter said that the company behind KFC plans to sell as much as 19.9% in the Chinese unit, valuing its China operations at about USD 10 billion. The decision to sell a stake comes a few months after Yum agreed to spin off its China unit. “We continue to make good progress since we announced the transaction separating Yum and Yum China into two powerful, independent, focused growth companies,” a spokesperson of Yum said.
|Asia needs to combat IUU fishing|
[01 April 2016] The FAO-convened workshop on IUU (illegal, unreported and unregulated) fishing in Kochi, India recently, emphasised the need to combat illegal fishing and strengthen seafood traceability in Asia. Seafood products are among the most widely traded food commodities in the world, with estimates for 2015 placing the value of international fish trade at USD 130 billion. But IUU fishing – estimated around USD 10-23 billion annually, is undermining the industry. IUU fishing could account for up to 26 million tonnes a year, or more than 15%, of the world’s total annual capture fisheries output, speakers at the workshop said.
Victam Asia 2016, Bangkok, Thailand
Onsite reports by PAYUNGSAK WIRIYABUNDITKUL and RACHAEL PHILIP
[31 March 2016]
Victam Asia 2016, the premier event for the Asian animal feed industry, opened in Bangkok Thailand on March 29. Featuring sophisticated technology that is required in the processing and manufacture of animal feeds, the show also covers ancillary equipment and systems that are utilised in feedmilling.
Adifo sees potential in feed formulation software in Asia
Hans van der Waal, Market Development Manager of Adifo N.V. told Asian Agribiz that he sees potential in feed formulation software in Asia. The animal protein industry will see increased competition in the region and feed producers have to improve efficiency by specializing and up-scaling their business. Adifo has a software to capture all the raw material data from different points and streamline this to feed formulation. “Clients will have the most accurate data about their raw materials and they can optimize precisely,” he said, adding the software will help save cost of raw material and generate constant quality.
Arm & Hammer leans on research to market products
Arm & Hammer’s Vi-Cor acquisition 18-months ago has helped the company emerge as an international animal nutrition business with a portfolio that has grown beyond dairy to products for the poultry and pork categories. “After the acquisition we realised that we had to build the research behind some of our products so that our customers can realise the economic benefits of these products,” Scott Druker, Director Animal Nutrition, told Asian Agribiz. The company recently concluded two studies on yeast-based Celmanax that prove that the supplement helps control Salmonella in broilers, and delivers improved egg production and feed efficiency. Mr Druker said the company will launch extended research on its swine category in the next quarter.
Dr Eckel to focus on animal health products in Asia
“We will focus more on animal health product lines, especially Anta Ox, Anta Phyt and also mycotoxin binders in Asia,” Dr Bernhard Eckel, Vice President of Dr Eckel told Asian Agribiz at the show. Anta Ox and Anta Phyt are natural feed additives. Hops and liquorice are key components in Anta Phyt, which boosts feed intake and supports a healthy gut. The European Union has banned antibiotic growth promoters (AGP) in animal feed and farmers only use antibiotics to treat diseases. Although farmers still use AGP in Asia, he sees potential for natural feed additives in this region.
Van Aarsen introduces a new generation pellet mill
Van Aarsen introduced a new generation of pellet mill at the show. Maril van Kempen, Marketing Communications Manager told Asian Agribiz that the firm has developed new technology, which makes the pellet process more efficient. The CU Dynamic pellet mill has two key functions. First, the motor operated roller adjustment enables the operator to choose the desired roller distance to the die. Together with the software, this system offers precise and recipe controlled pellet mill operation. The active roller slip control is another system designed to optimize the pellet mill production rate. This system detects roller slip and activates the system to automatically resolve the slip.
New General Manager for Victam International
Victam International BV, organiser of Fiaap/Victam/Grapas exhibitions, announced that Erik Heemskerk will take over as General Manager of the company on July 1. He replaces Henk van de Bunt, who retires end June. Mr Heemskerk is well known in the exhibitions circuit. “Each exhibition has to be tailored for the industry, and no exhibition has to be the same every year. Our job is to develop, lead and create new standards for the industry,” Mr Heemskerk told Asian Agribiz. According to Mr Bunt, this year’s edition, which ends today, is 11% larger than its 2014 edition making it Victam’s largest show in Asia. The show returns in 2018.
|CJ CheilJedang bid fails, Masan acquires 14% of Vissan|
[30 March 2016] Vietnamese Masan Group’s Anco International Agricultural Nutrition JSC outraced South Korean-based CJ CheilJedang Corp to acquire a strategic holding in state-owned food processing company Vissan at its IPO auction recently. Vissan held its IPO on March 7 where it sold another 14% to the public. CJ CheilJedang’s bid was lower than Anco’s by USD 0.24 per share. According to Vissan’s equitisation plan, the state holds 65% of the company, 14% is held by the strategic investor, 14% by the public and 7% by staff and the trade union.
|CP to set up social enterprise in northern Thailand|
[30 March 2016] Charoen Pokphand Group (CP) plans to launch a social enterprise in Nan province in northern Thailand, said Suphachai Chearavanont, Vice-chairman of CP Group. CP Social Enterprise Nan will urge farmers to reduce corn in mountain areas in Nan province and grow alternative crops that have higher value. “The new enterprise will offer local communities knowledge, technology, management practices and access to markets,” he said, adding that the enterprise will grow environment-friendly crops in reduced areas, reducing deforestation in Nan province. CP Group had been accused of buying corn from deforested areas. Subsequently, Charoen Pokphand Foods' (CPF) subsidiary, Bangkok Produce Merchandising, introduced a corn traceability system at the beginning of this year.
|Cattle farmers oppose Indonesia’s zone based imports|
[30 March 2016] Indonesian President Joko Widodo signed a Government Regulation (PP) under the Animal Husbandry and Animal Health earlier this month, to allow the import of beef and cattle from zones within countries. Responding to this, local cattle farmers said this is inconsistent with the country’s effort to maintain its foot and mouth disease (FMD) free status. Ilham Akhmadi, owner of Bhumi Andhini Farm said: “If the government allows imports from India for instance, it will kill small and medium scale farmers.” Meanwhile, Kurnia Achjadi from Bogor Agricultural University said the government has to tighten import requirements from countries that are not yet free from FMD as this could harm the local industry.
|China reports 11 deaths from avian influenza|
[30 March 2016] China has reported an additional 29 confirmed human cases of H7N9 avian influenza, including 11 deaths, according to the World Health Organisation. Most of the cases were exposed to live or freshly killed poultry, but five cases reported no clear poultry exposure. The cases covered six provinces and included three two-person clusters, including a man in Jiangsu Province who reported exposure to live poultry before he became ill. He was cared for by his sister, who had no known live poultry exposure but was also infected with the disease, raising the possibility of a rare case of human-to-human transmission.
|Indonesia’s copra meal consumption to increase|
[30 March 2016] Copra meal consumption in Indonesia for animal feed is expected to rise to 205,000 tonnes in 2015/16 and 210,000 tonnes in 2016/17, following the general trend of animal feed production growth in the country, according to a USDA GAIN report. Based on copra crush and coconut oil production, Indonesia is expected to produce 515,000 tonnes of copra meal in 2015/16 and 510,000 tonnes in 2016/17. Declines in meal production keep pace with declines in coconut production, the report said.
|Diseases hamper vannamei production in India|
[30 March 2016] India’s Krishna District Fisheries Department reported that last year vannamei shrimp production in the district worth around USD 89 million was infected by white spot and other diseases. At least 11,000 tonnes of vannamei was infected in brackish water ponds across the district. “Lack of quality brood stock is one of the reasons for the diseases in the district,” said A Solemn Raju, Assistant Director at the department.
|Indonesia’s corn exports surge 580%|
[29 March 2016] In the midst of corn scarcity in the country due to corn import limitations, Indonesia’s Minister of Agriculture, Andi Amran Sulaiman claimed the country’s corn exports last year surged by 581%. “In 2014 we exported 37,000 tonnes of corn, while last year we exported 252,000 tonnes with Gorontalo province as the largest contributor with 109,000 tonnes,” said Mr Sulaiman. He hopes farmers, especially in Gorontalo continue to develop corn as their main crop. To support this, the ministry has allocated around USD 724,000 for food crops development including corn in the province.
|Fresh To Home launches its brand in India|
[29 March 2016] Fresh To Home, India’s first e-commerce venture for fresh, chemical free seafood and meat, has announced the official launch of their brand in India. The company unveiled the Fresh To Home marketplace (freshtohome.com), a first of its kind Internet based marketplace that will organise and connect fish and meat suppliers directly to customers. The company also announced the launch of same day delivery operations across two time slots in across 100 locations in Bangalore, said Shan Kadavil, CEO.
|Jakarta to eliminate backyard poultry|
[29 March 2016] Backyard poultry raising will banned in Indonesia’s capital Jakarta by 2017 as part of efforts to prevent avian influenza. The move follows an outbreak of avian influenza in South Jakarta. The virus is reportedly the H5N1 strain. Basuki Tjahaja Purnama, Jakarta Governor asked for backyard poultry farms and slaughterhouses to be relocated outside the city, but a lack of sufficient facilities has slowed down relocation efforts.
|Pakistan imports DDGS from US|
[29 March 2016] Pakistani importers have purchased about 45,000 tonnes of DDGS from the US for animal feed, according to European traders. The purchase was made at around USD 215 a tonne c&f for March/April shipment, they said. Pakistan has purchased DDGS in the past but mainly in small container load consignments.
US Dairy Supply Workshop, Bangkok, Thailand
Onsite report by CRAIGE ALLAN
[29 March 2016]
The US Dairy Export Council (USDEC) recently held a meeting to connect with processors and other dairy product value chain members to discuss the latest market and product developments, and business opportunities. The US is a major supplier of dairy products to Southeast Asia (SEA), with exports increasing substantially from around 1.3 million tonnes in 2010 to about 2 million tonnes in 2015.
USDEC in search of meaningful partnerships
Dali Ghazalay, Regional Director USDEC (SEA) – Marketing, Programs, Operations introduced the USDEC, noting they are not a commodity supplier, rather they are looking for lasting and meaningful partnerships with customers in SEA for specific product applications. She emphasised that the USDEC provides customers a range of free and helpful information including, technical reports, reference manuals, supplier listings and product formulas on their website ThinkUSdairy.org
Global dairy supply update
Tony Emms Regional Director USDEC (SEA) in charge of strategy, cautioned participants to carefully examine suggestions that there is a shortage of milk – the world is not going to have less milk. He said that the weaker Euro is making EU products more competitive. However, unlike the US where the dairy industry is tightly regulated the EU is not homogenous with countries like the Czech Republic and Lithuania producing lower quality products for export. Global dairy product pricing is cyclical, and he expects that generally prices will be low for the next 12-18 months. Mr Emms also commented that despite more Chinese government subsidies in 2015/16 there has been little impact on milk production in China, and that China will continue to be a major importer of dairy products.
US dairy capacities, capabilities and future developments
The audience was surprised when Ross Christieson, USDEC Senior Vice President – Research and Analysis highlighted that the US is the world’s leading producer of cow milk, producing three times the volume of Australia and New Zealand combined. Furthermore, US milk production is forecast to rise by 2-3% annually through 2017, assuring Asian customers of a reliable long-term supply. He observed that while historically US dairy production has been focused on the domestic market, exports, especially to Asia are now a major focus. Over 40% of US milk production is in the western states. Southeast Asia is now the number two export market for the US dairy industry.
US dairy ingredients profile
US producers are focused on investing in new production facilities with increased supply of milk powders and whey-derived products. These facilities have a focus on the higher grade and higher margin dairy ingredients, in particular new fractions such as whey protein isolates and milk protein concentrates, that are demanded in new concept health and wellness food and beverages, as well as in the growing export markets for powdered dairy ingredients, particularly in the attractive Asian market. Mr Emms described the Thai food industry as dynamic with lots of innovation, and sophisticated customers.
Poultry integrators in Malaysia should consider value-added products
[28 March 2016] Poultry integrators who are keen to expand downstream can partner restaurant operators by supplying value-added products. “Instead of raw cut up chilled birds, producers can supply marinated chicken. This will speed things up at the outlets and it is additional throughput for them,” Gaik Wong, Managing Director and co-founder of TCRS Sdn Bhd, operator of The Chicken Rice Shop, told Asian Agribiz. “Farming is capital intensive, and value adding or even opening restaurants is a natural progression, but piggy backing with existing restaurants is a shortcut worth pursuing,” she said.
|AI hits poultry in West Java|
[28 March 2016] Indonesia’s Animal Husbandry Agency in West Java recently reported 43 avian influenza (AI) outbreaks in the province from January to March 21. Doddy Firman Nugraha, Head of the agency said AI (H5N1) resulted in the death of 16,866 birds in nine regencies. “Of this, broiler and layers made up 13,528 birds, 2138 ducks and 1200 quails,” said Mr Nugraha. “We will strengthen the monitoring of poultry and distribution to and from Jakarta,” he added.
|Thai Seafood producers see potential in Myanmar|
[28 March 2016] Some Thai seafood firms plan to set up processing plants in Dawei Special Economic Zone in south eastern Myanmar, the Nation reported. Thai seafood operator Somchai Aimimjit has reserved a four-acre space in Dawei Special Economic Zone and aims to build an ice plant followed by processing plant. Mr Somchai expects more Thai seafood companies to move their operations to Dawei in the next five years, citing Myanmar's huge labour pool. He also expects to gain from investment privileges offered to businesses as well as the European Union’s generalized system of preferences (GSP) offered to labour-incentive industries in Myanmar. EU cut Thailand’s GSP tariff privileges last year.
|Indonesia’s halal certificate cost too high for Aussie exporters|
[28 March 2016] Australian beef exporters are not happy with Indonesia’s country based meat import allocation system and the expenses they must bear to obtain halal certificates. In a recent meeting with Indonesia’s Trade Minister Thomas Lembong in Sydney, Australian businessmen expressed concerns about the notification system and the costs of halal certificates. “Indonesia is now in the process of deregulating several sectors, and we are hoping to modernise our agricultural sector and minimise concerns like this,” Mr Lembong said.
|Chinese revive bid to buy Australian property|
[28 March 2016] A Chinese investment company is reviving its bid to buy Australian agricultural property, but the projected purchase has shrunk by half, the Chinese news agency Xinhua reported. The Australian government rejected Shanghai Pengxin’s previous deal to buy S. Kidman & Co’s holdings because half the 101,000 km2 property was part of the Woomera Prohibited Area, a military testing facility. However, Pengxin has now joined hands with Australian Rural Capital to renew the bid, but exclude the military testing zone. Xinhua also said Pengxin may face competition for the property because a Hong Kong group, Genius Link Asset Management, is also planning a bid.
|Cows go online in India|
[28 March 2016] Over the past few years, since India’s e-commerce boom began, a number of farmers have also taken to popular online market places such as OLX and Quikr to sell their cows and buffaloes. According to Quartz India, a substantial number of them came from India’s tier II and tier III towns. Last year, even goats were sold online during the Muslim festival of Bakra Eid. OLX showed the sales of cows and buffaloes were 1308 heads and 200 heads, respectively. Meanwhile on Quikr, the sales were 246 heads and 56 heads, respectively.
|Indonesia prepares to continue broiler PS culling program|
[25 March 2016] Indonesia’s Ministry of Agriculture is now preparing the legal basis to continue the broiler PS culling program which was suspended due to price control allegations by the Indonesian Business Competition Watchdog Commission (KPPU). According to Muladno, Director General of Livestock and Animal Health, the legal basis can be a Presidential decree or an Agriculture Minister decree that refers to the law on livestock & animal health and the law on food. “Once the regulation is published, we will continue to cull the remainder 3 million PS,” said Mr Muladno.
|Viet pig farmers continue using banned drugs |
[25 March 2016] At least one in 10 swine feed and urine samples turns up positive for banned substances on big farms in Dong Nai. The province is home to 20,000 small pig farms and more than 1500 major breeding centres. It is one of the larger suppliers of pork to Ho Chi Minh City. Authorities in Dong Nai are fighting an uphill battle against the use of banned chemicals as farmers are willing to pay USD 670 in fine and continue using banned products, said an article in Tuoi Tre News. Tran Van Quang, head of the Dong Nai animal health agency, said banned substances in pig breeding farms is a common practice. He added that there was not enough personnel to inspect smaller farms.
|India’s beef, veal consumption expected to increase to 2.3mt|
[25 March 2016] India is the world’s fifth largest beef-consumer, and consumption has been rising steadily. Based on USDA data, India’s beef and veal consumption in 2015 was 2.2 million tonnes, and the figure is expected to escalate to 2.3 million tonnes in 2016. Muslims form the bulk of beef consumers. According to India’s National Sample Survey Office, one out of 13 Indians currently eat beef or buffalo meat. Among the Indian states with the highest beef consumption, the north-eastern state of Meghalaya and coastal union territory of Lakshwadeep top the list. Around 40% of Indian Muslims currently consume beef. Over 26% of Indian Christians eat the meat, according to Quartz India.
|Australian investor plans for integrated meat processing facility in Indonesia|
[25 March 2016] Indonesia's Investment Coordinating Board (BKPM) has revealed that an Australian investor is keen on establishing an integrated meat processing facility in the country with exports as its main focus. “I can’t reveal the value of the investment but the investor has the ability to export 700 containers of frozen meat throughout the world in a week,” said Franky Sibarani, BKPM Chairman. He added that Indonesia was chosen because of its strategic location and halal certification system.
|Poultry farmers in Bangladesh suffer huge losses|
[25 March 2016] Poultry farms in Bangladesh’s Nilphamari district are sustaining huge losses due to an unexpected rise in the price of DOC, feed and veterinary medicines. Sources said there are nearly 2000 small and medium size broiler and layer poultry farms, almost 80% of which have already ceased operations due to severe losses. The sources said the price of broiler DOC is USD 0.64 now, double from a few months ago. At the same time, the prevailing market price of broiler meat is USD 1.15, a drop from USD 1.78 earlier.
|South Korean seafood firms invest in Russia|
[25 March 2016] Several South Korean seafood firms are interested in making infrastructural investments in Russia’s Far East region. Business Korea reported that four South Korean firms are eying potential investments in cold storage facilities as well as feed and dried fish processing plants near Vladivostok. The firms signed an agreement on February 25 to exchange information with Russia’s Ministry for Development of the Russian Far East.
|Betagro to introduce new feed brand in Cambodia |
[24 March 2016] Thailand's Betagro Group which inaugurated a new USD 30 million feedmill in Phnom Penh, Cambodia recently said the plant uses innovative construction technology and is fully equipped with state-of-the-art manufacturing process and quality standards. With a production capacity of 200,000 tonnes per year, it will produce high quality feed for all species. It has some 200 feed customers in the country and plans to introduce a new brand, Farm, especially for customers who operate larger and mid-sized farms, said Betagro President Vasit Taepaisitphongse. Mr Vasit added that the company will step up and expand its production base to respond to the growing feed markets both domestically and within the Asean Economic Community.
|TCRS to consolidate its operations in Malaysia|
[24 March 2016] After impressive growth over the last two years Malaysia’s The Chicken Rice Shop, operated by TCRS Restaurants Sdn Bhd, will consolidate its operations and may only open 10 outlets in the country this year. The company opened 20 and 22 outlets across the country in 2014 and 2015 respectively. “We are consolidating our outlets and are looking to go into places we have not tapped before,” Wong Kah Lin, Chief Executive Office, told Asian Agribiz. The brand has over 80 outlets in Malaysia, which sees some 3000 birds slaughtered daily. A central kitchen enforces rigid standard operating procedures to achieve consistency at all outlets, Ms Wong said.
|Indonesia tightens poultry monitoring due to AI outbreaks|
[24 March 2016] Following the outbreak of a number of avian influenza (AI) cases in several regions, Indonesia’s Ministry of Agriculture announced that it will tighten the monitoring of poultry in the country. “We have advised the Animal Husbandry Agencies in all regions to tighten monitoring of poultry,” said Muladno, Director General of Livestock and Animal Health. He said that AI cases have been identified in three regions, namely Banyuwangi and Lamongan in East Java and Cilandak in South Jakarta. Teams from the local Animal Husbandry Agencies have embarked on vaccination and restricting live poultry distribution to stem the virus spread.
|Poultry breeders in Bangladesh blamed for DOC price hike|
[24 March 2016] DOC prices in Bangladesh swelled to USD 0.83-0.89 for broiler DOC and USD 1.34-1.40 for layer DOC in February-March from USD 0.38-0.44 and USD 0.51-0.57 respectively three months ago. Sector insiders blamed syndication of poultry breeders for the hike. Khandokar Mohosin, Secretary General of Bangladesh Poultry Rakkha Jatiyo Parishad, said: “Both local and foreign poultry breeders have raised the price without showing any cause. The DOC are being sold at 100-140% higher than that of the rate fixed by the government.” Mr Mohosin said the government should look into the matter seriously to stop price escalation.
Onsite from Ildex Vietnam 2016, Ho Chi Minh City, Vietnam
Reports by RACHAEL PHILIP and HA THU
[24 March 2016]
Jefo to grow in Asia out of new Thai office
Jefo, Canadian-based feed additives company, is actively expanding in Asia. Early next month the company will open subsidiary Jefo Thai, which will be its platform for growth in Southeast Asia. “We also plan to open Jefo China within the first half of the year,” Didier Arnaud, Sales Director, Asia, told Asian Agribiz. The company has distributors in Malaysia, Philippines, Taiwan, Korea, Japan, Nepal, Vietnam and Indonesia. The company offers the Jefo Matrix Technology, a micro encapsulation technology, and enzymes, as solutions targeting the gut and intestinal tract of animals.
AgroLogic introduces Vision 24s controller
AgroLogic introduced its recently launched controller called the Vision 24s. With 24 outputs, the controller allows for climate control, bird weighing, egg counting and feed silo weighing, among others. “The system is user friendly with icons and is connected to the Internet via Cellink allowing users to access the program on their smart phones, tablets and computers,” Joel Obodov, Sales and Marketing Director, told Asian Agribiz.
Techna Group to make Vietnam stepping stone to Asean
Vietnam has a strategic position in Techna Group's expansion plan in Asean, Eric Carfi, Director, told Asian Agribiz. The French company opened Techna Nutrition Vietnam in 2012 and is planning to build a factory in Vietnam in 2018. “Currently all our products are imported directly from France. We need to build a factory here in Vietnam to make it our distribution hub for Asean,” he said. Acknowledging the use of banned substance in Vietnam, and diet that reduces the competitiveness of Vietnam’s poultry and pork sector, Techna is offering its natural ingredients to help farmers increase livestock performance and reduce dependence on antibiotics.
|Thailand’s S&P plan for mid-year launch of premium frozen foods |
[23 March 2016] Thailand’s S&P Syndicate will launch premium frozen foods in major cities such as Bangkok and Phuket by mid-year, Pakorn Tiewcharoen, Vice President-Trade Channel at S&P Syndicate told Asian Agribiz. S&P Syndicate runs a chain of restaurants and bakery shops in Thailand and other countries. “We will launch premium ready-to-eat meals, which focuses on imported foods and restaurant-style meals,” he said, adding the new products will be priced at around USD 2.86. S&P will also launch healthy frozen foods (ready-to-eat) during the same period. It will target families and high income earners.
|CJ takes over Chinese amino acid producer|
[23 March 2016] CJ Cheiljedang, South Korea’s leading food and biochemical company, said it has signed a USD 30.6 million deal to take over Ningbo Zhenhai Haide Biochem, a Chinese amino acid producer. The food unit under CJ Group said the deal is aimed at taking advantage of its 40 different amino acid products and global sales network. Founded in 1986 in northeast Zhejiang province in China, Ningbo has been devoted to amino acids manufacturing, research and marketing.
|India exported 2mt of beef in 2015|
[23 March 2016] India topped the list of beef and veal exporting countries in 2015 with exports of 2 million tonnes. The figure is expected to reach 2.2 million tonnes this year, while production is predicted to reach 4.5 million tonnes, USDA reported. According to Quartz India, most of the beef India exports is from water buffalo, which is cheaper than cow meat. The exports give India more foreign revenue than even the aromatic basmati rice, CNN Money reported. Vietnam, Malaysia, Saudi Arabia and Egypt are some of the top importers of Indian beef.
|Australia offers USD8m for Indonesia to breed cattle|
[23 March 2016] Australia recently offered USD 8 million to help Indonesia breed cattle. Barnaby Joyce, Australia’s Agriculture Minister, announced the agreement after meeting with Thomas Lembong, Indonesia’s Trade Minister. The three year project aims to help Indonesia develop commercially viable beef cattle breeding business models, which could increase demand for Australian breeding stock, said Mr Joyce said in a statement.
|Bangladeshi corn farmers concerned about fair price|
[23 March 2016] Corn farmers in Bangladesh are concerned about getting a reasonable price during the peak corn harvesting period in April. Last year the price of corn plunged to USD 0.11 per kg, lower than the production cost. Market experts said global corn prices have declined and feed millers prefer to import corn rather that use local supply as imported corn is cheaper.
|India’s PEC receives first non GM corn cargo from Ukraine|
[23 March 2016] India’s PEC Ltd has received its first cargo of about 40,000 tonnes of corn from Ukraine, trade sources said, despite concerns that the state-run trader could find it difficult to secure supplies from non-genetically modified (GM) crops. PEC firmed up plans to import corn in December last year, marking India’s first such overseas purchase in 16 years. In an international tender competition launched in January, PEC awarded a contract to South Korea’s Daewoo International to supply 250,000 tonnes of yellow non GM corn.
|Betagro opens first feedmill in Cambodia|
[22 March 2016] Thailand’s Betegro Group recently opened its first feedmill in Phnom Penh Special Economic Zone in Cambodia. “Cambodia’s feed market needs approximately 600,000 tonnes per year and has potential to grow dramatically,” said Vasit Taepaisitphongse, President of Betagro Group. He added that the firm invested around USD 30 million in the new facility, which has a production capacity of 216,000 tonnes per year. It will produce high-quality feed for all terrestrial animals such as pigs, laying hens, broiler chickens, laying ducks, native chickens and cattle under the brands Be-lac, Betagro, Bio and Balance. Mr Vasit said Betagro has around 200 feed customers across Cambodia and the firm will introduce a new feed brand called Farm, for customers who are operating larger and mid-sized farms.
|Besides Singapore, TCRS eyes outlets in Myanmar, Indonesia|
[22 March 2016] Malaysia’s The Chicken Rice Shop, operated by TCRS Restaurants Sdn Bhd, said it will focus expansion on just three countries in the next five years. “This year we are looking at two new outlets in Singapore. We are also hoping to get a franchisee in Myanmar. Myanmar has a new government and many Malaysian brands are looking to open outlets in Myanmar,” Wong Kah Lin, Chief Executive Office, told Asian Agribiz. It is also looking for partners in Indonesia who are already in the F&B scene and who understand the importance of quality control and SOPs, and have the infrastructure in place, said Ms Wong. The brand has over 80 outlets in Malaysia as well as outlets in Singapore and Brunei.
|Indonesia to monitor Indian beef imports|
[22 March 2016] The Commission IX of Indonesia’s House of Representatives has sought the help of the Corruption Eradication Commission (KPK) to monitor the Directorate General of Customs and Excise (DJBC) in relation to alleged imports of thousands of tonnes of Indian beef. Mukhamad Misbakhun, a member of the Commission IX, said that Indonesia has not approved imports of Indian beef, but the meat is already circulating in local markets. The DJBC reported that a ship arrived in Tanjung Priok Port, carrying seven containers of Indian beef. The cargo document stated that the contents was processed leather. But customs officers grew suspicious because the supposed leather was stored in reefers.
|South Korea resumes poultry meat exports to Hong Kong|
[22 March 2016] South Korea has resumed exports of poultry meat products to Hong Kong for the first time in nearly two years as the country regained its bird flu free status on February 28. South Korea’s Ministry of Agriculture, Food and Rural Affairs said Hong Kong agreed with its South Korean counterparts to import chicken, duck and other poultry meat products starting March 11. Hong Kong halted imports of South Korean poultry meat products in May 2014 following an outbreak of avian influenza.
Asian Agribiz regional dairy update
[22 March 2016]
Indonesia’s milk production predicted to decrease
Indonesia’s milk production this year is predicted to contract and milk imports are likely to increase. According to Sulistyanto, Head of Business of the Indonesian Milk Cooperatives Association (GKSI) – East Java branch, the high price of beef at USD 8.9/kg has triggered dairy farmers to sell their cows to slaughtermen. He said the population of dairy cattle in 2015 was around 357,450 heads and he believes this figure has since declined. With productivity at 9-12 litres/head/day, last year Indonesia produced 1.4-1.6 million litres of milk/day. This met only 30% of the total requirement of milk processing companies in the country.
Milma to produce organic milk in India
The Kerala Cooperative Milk Marketing Federation (Milma) in India is set to join hands with the Netherlands to produce organic milk. The milk will be produced by rearing cattle in a natural environment, without feeding them synthetic feed or antibiotics. As many as five milk societies in Mullankolli have been identified for the project. “A group of selected dairy farmers will be entrusted with the production of organic milk. They will be given strict directions for rearing cattle. We have to change the current agriculture and dairy practices to produce organic milk,” said KT Thomas, Milma Managing Director in the Malabar region.
Australia’s biggest milk processor looks to Indonesia
Australia’s biggest milk processor, Murray Goulburn, will spend up to USD 300 million beefing up its infant formula operations after securing a long term contract to feed Indonesian babies. The dairy cooperative will supply formula to Indonesia’s Kalbe Nutritionals and American infant nutrition giant Mead Johnson. “Indonesia is an important market for dairy foods. It has one of Asia’s largest paediatric populations with approximately one in 10 people under the age of five,” said Gary Helou, Managing Director. “This represents a future growth opportunity for Murray Goulburn and our high quality dairy food products, including infant formula.”
India's Prabhat Dairy invests in skilled manpower
India’s Prabhat Dairy has signed an MOU with the Directorate of Skills Development, Employment and Entrepreneurship in Maharashtra to develop skilled manpower in the dairy sector, strengthen the training infrastructure related to the requisite skills set as well as by adopting new technology. “Prabhat Dairy will try to ensure enhancement in the employability potential,” said Vivek Nirmal, Joint Managing Director of the dairy company. Prabhat Dairy has two manufacturing units equipped with advanced technology which will ensure operational efficiencies including lower production losses, strict quality control and ability to process large orders.
|EU steps up support to tackle labour abuses in Thai fishing industry|
[21 March 2016] The European Union in collaboration with Thailand’s Ministry of Labour and the International Labour Organisation (ILO) launched a project on “Combatting Unacceptable Forms of Work in the Thai Fishing and Seafood Industry”. The EU contribution to the project is USD 4.15 million. The project will contribute to the prevention and reduction of forced labour, child labour and other unacceptable forms of work in the Thai fishing and seafood processing sectors. “We welcome the firm commitment of the Thai government to move ahead and address the issue with determination,” said Ambassador Sanz, the head of the delegation of the EU in Thailand, adding the program will help Thailand comply with international standards.
|US protests India’s pork import regulation|
[21 March 2016] Buoyed by its victory at the World Trade Organisation (WTO) last year against India’s poultry import ban, the US recently protested India’s pork import regulations, which include a condition that such consignments must be beef free. India has made it clear to the US that the requirement cannot be done away with, as such a move could “hurt religious sentiments and provoke riots”, said official sources. India has emphasised that if the US wants to export pork or pork products to the country, all consignments must come with an official veterinary certificate that the pig was not fed with feed derived from cattle origin ingredients.
|East Java hit by avian influenza|
[21 March 2016] Indonesia’s Animal Husbandry Agency of Lamongan in East Java has vaccinated poultry in several areas in the regency after the death of 735 chickens last week. The agency has confirmed that the death was caused by the avian influenza virus. Sukriyah, head of the agency, said to prevent the virus from spreading, the agency burned and buried the dead chickens. “We have also taken other measures such as mapping of villages in Sukorame sub district potentially infected by the virus,” she said.
|Asia set to buy more US beef|
[21 March 2016] Asian consumers are set to buy more US beef this year as demand shifts away from more expensive Australian supply, said the US Meat Export Federation. Japan, Asia’s largest beef importer, will likely be the region’s fastest growing market for US meat this year, with imports seen rising 9%, said Philip Seng, CEO. Sales to South Korea and Taiwan will also expand, he said. “We have more supplies, and our prices are coming down. There is less Australian product coming into the market. As their prices come up, we are staying somewhat competitive with Australia.”
|Meat and seafood leads cold chain market|
[21 March 2016] The cold chain market was estimated to be valued at USD 167.24 billion in 2015, and is projected to reach a value of USD 234.49 billion by 2020. According to RnR Market Research the primary factors driving the global success of the cold chain market is the growth in international trade for perishable food products and the changing consumer preferences. During the forecast period the cold chain market is projected to grow at a CAGR of 7%. In 2014 the meat and seafood segment accounted for the largest market share due to consumers’ increasing preference for packaged food products.
|More organic selenium needed in poultry nutrition|
[18 March 2016] Poultry diets have to be supplemented with various forms of selenium as the ingredient is not sufficiently present in feeds. Professor Peter Surai, Technical Director for Feed-Food Ltd told Asian Agribiz, that organic selenium is the best form of selenium for animals, and hydroxyl-selenomethionine (selisseo), which is a new form of organic selenium, combines advantages of selenium yeast (for stability) and selenium methionine. Speaking at conference organised by Adisseo in Bangkok, Thailand, he said hydroxyl-selenomethionine is considered the next level of selenium additive for animal production especially for poultry. Mr Surai also said hydroxyl-selenomethionine helps maintain high hatchability and has positive effect on growth of broilers. Selisseo can also improve meat quality during storage.
|Thailand’s DLD defends its poultry industry’s drug compliance |
[18 March 2016] Thailand’s Department of Livestock Development (DLD) said it has banned the use of antibiotics as growth promoters in the livestock sector a long time ago. The therapeutic use of antibiotics is strictly monitored, Dr Sorravis Thaneto, Deputy Director General of the DLD told Asian Agribiz. He was responding to demands made by consumer rights groups for antibiotics-free meats at fast-food chains. He said farms administering antibiotics to livestock must follow withdrawal periods. For the export market “EU and Japan regularly monitor antibiotic residue in chicken. If we fail these standards, we cannot export chicken meat to these countries”, Dr Sorravis said. Thailand is the fourth largest chicken meat exporter in the world.
|Abandoned meat in the Philippines to be destroyed|
[18 March 2016] The Philippines will destroy and bury some 3900 tonnes of meat in 158 refrigerated vans that has been abandoned at Manila’s international port since it arrived in December 2014. The meat is reportedly part of shipments totalling 5000 tonnes that arrived in 203 refrigerated vans but was not released due to lack of required permit from the National Meat Inspection Service. Agriculture Undersecretary for Livestock Jose Reaño said the meat will be first thawed and allowed to decompose before being buried in a landfill to prevent potential diggers from salvaging the meat.
|Sierad confident of exporting processed chicken products to Japan|
[18 March 2016] Indonesia’s poultry integrator PT Sierad Produce is confident of exporting its processed chicken products to Japan soon. Eko Putro Sandjojo, President Director, said the company has fulfilled all requirements made by the Japanese authorities. The company’s farming and processing facilities have also been audited. “We are now waiting for their approval,” Mr Sandjojo said. Chicken nuggets, yakitori and special cuts are some products planned for the export. Previously Sierad had exported chicken meat to Japan. The Japanese government halted imports of chicken meat from Indonesia in 2014 after H5N1 outbreaks in the country.
|Restructuring of Japanese feed industry could boost efficiency |
[18 March 2016] Relevant Japanese agencies will push for restructuring in the local feed industry. Chihiro Shikama, Chairman of Japan Feed Manufacturers Association, however, said resistance to a shakeout is likely as the industry has many small and mid-sized businesses. Japan has 65 feed producers with 115 production facilities. If these plants run 16 hours a day on a two-shift system, capacity is an estimated 50% higher than needed to meet demand that is contracting amid a decline in domestic dairy and livestock farmers, reported Nikkei Asian Review. This inefficiency hits farmers in the form of higher prices. Feed prices are 10-20% higher on average in Japan than in South Korea. Feed accounts for an estimated 70% of costs for hog raising and 50% for dairy farming.
|Japan sees lower shrimp imports |
[18 March 2016] Japan’s frozen shrimp imports continue to decline. Industry sources said persistent poor demand for shrimp along with high prices have kept traders from buying. Unlike in the US, demand in Japan has not recovered from the high prices for shrimp caused by the EMS crisis. A weaker Japanese yen has meant that fewer retailers have reduced prices, while in the US, the strong dollar has led to shrimp price reductions being passed on at retail. Also complicating the shrimp picture in Japan, many food service operations took shrimp off the menu when it became expensive, and it has not been put back on. Import volume in FY2015 (April 2015-March 2016) is predicted to dwindle 6% from the previous year, while consumption volume was reduced only by 2%. This contributed to the liquidating of domestic demand by way of restrained imports.
|Philippine pork producers threaten holiday|
[17 March 2016] Philippine pork producers are again threatening to hold a five-day pork holiday if the government fails to address pork smuggling in the country. The group said the unabated smuggling has resulted in unprecedented losses for local producers. Meanwhile, Pork Producers Federation of the Philippines Chairman Edwin Chen told Asian Agribiz that following hearing on smuggling at the Senate Committee on Agriculture and Food, committee head Senator Cynthia Villar will ask the Tariff Commission to adjust the duties on offal to match that of prime cuts at 35%. Currently, offal is levied a 5% duty, which encourages technical smuggling of pork products.
|Singapore poultry distributors accused of price fixing share ownership links|
[17 March 2016] Most of the 13 chicken distributors in Singapore accused of colluding on prices share similar directors, shareholders or secretaries. For example, several directors of Lee Say Group sit in three other firms, while Ban Hong Poultry and Tong Huat Poultry Processing Factory have the same five individuals on both management teams, and share a secretary with Sinmah Poultry Processing (S). Both Gold Chic Poultry Supply and Hua Kun Food Industry have similar management figures. While this is not prohibited under the Competition Act, lawyers interviewed by local daily Today said these companies should not be holding discussions on prices. Daniel Chia, partner at Morgan Lewis Stamford, said this effectively “forms a cartel”. Andrew Riseley, a competition law expert at Wong Partnership said it is difficult to avoid flouting competition laws if competitors share senior management.
|China’s New Hope launches fund raising channels for future acquisitions |
[17 March 2016] China’s top feed producer New Hope Liuhe Co plans to speed up its acquisitions overseas. According to Chairman Liu Yonghao the company wants to become a top supplier of high-end meat. “We’re accelerating and expanding our overseas acquisitions… launching new fund raising channels to make our sources of financing more diversified,” said Mr Liu. The group launched a USD 460 million fund with the Zhejiang provincial government and the Harvest Fund to lead overseas agriculture acquisitions. It is also raising USD 450 million through the Hosen Capital, which counts Singapore’s Temasek and Japan’s Mitsui as founding investors, as another pool to acquire overseas businesses. Mr Liu did not specify future acquisition targets.
|Thailand’s CPF eyes overseas acquisitions amid weak domestic demand|
[17 March 2016] Thailand’s Charoen Pokphand Foods is eyeing acquisition opportunities overseas as it faces weak domestic demand amid Thailand’s slowing economy. Adirek Sripratak, President and CEO, said growth from its overseas operations, which account for two-thirds of its sales, is expected to be higher than domestic market, especially in Vietnam. Mr Adirek is confident about the firm’s outlook this year, despite a global economic slowdown, including in China. He expects sales and profit to increase 10-15% this year, driven by rising demand and food prices. “Lower raw material prices will help boost margins and profit this year,” he said. The firm plans to invest USD 425.52 million this year, excluding mergers and acquisitions.
|Masan, Korea’s CJ vie for 14% in Vietnam’s food company Vissan|
[17 March 2016] Vietnamese conglomerate Masan Group will be competing with South Korea’s CJ Cheiljedang Corp (CJ) to acquire a 14% stake in food company Vissan. Vissan General Director Van Duc Muoi said Proconco and Anco, subsidiaries of Masan, have each submitted bids. CJ has also done the same, said Mr Muoi. The auction for the stakes will be organised on March 24. Vissan raised USD 41 million during its IPO recently. In an earlier report, Jay Hyun Lee, Chairman of CJ, said Vietnam played an important role in the South Korean group’s global expansion strategy, a connecting point with the Cambodian, Lao and Myanmar markets. Masan, meanwhile, is diversifying its protein platform and value chain after taking over 70% of Anco and 52% of Proconco.
|Japan aims for leaner, more efficient feed industry|
[17 March 2016] Japan’s government plans to root out inefficiencies in the agricultural sector, encouraging realignment in areas such as animal feed to control excessive production costs and bring down elevated prices, reported Nikkei Asian Review. “There’s a supply glut and excessive competition in the compound feed industry,” Agriculture, Forestry and Fisheries Minister Hiroshi Moriyama said. The ministry plans to launch a survey of the feed market. If investigations point towards oversupply the government may use tax incentives to encourage industry realignment, an unusual step for the agriculture industry as the law falls under the jurisdiction of the Ministry of Economy, Trade and Industry.
|China reports 12 new H7N9 cases|
[16 March 2016] Chinese health officials reported two more H7N9 avian flu infections in adults from China’s mainland. The country’s monthly infectious disease report lists a total of 29 H7N9 cases and 15 deaths that occurred in February. Some 10 of these cases had not been previously reported. Xinhua reported a case of H7N9 in a patient, poultry trader from Hubei province in central China. The individual is a being treated for severe pneumonia, sepsis, and multiple organ failure. The Shanghai Health and Family Planning Commission reported an imported H7N9 case in a 79-year-old woman from Anhui, who is currently being treated for the disease. The new cases lift the overall global total from the disease to 764, according to a case list maintained by FluTrackers, an infectious disease news message board.
|Indonesia’s President signs new meat import regulation|
[16 March 2016] Indonesia’s President Joko Widodo recently signed a Government Regulation (PP) under the Animal Husbandry and Animal Health to allow the import of meat and livestock products from zones within countries. The PP will open Indonesian market to beef, other meat and possibly cattle from alternative new sources like India and Mexico. Previously, Darmin Nasution, Economic Coordinating Minister, said more imports are needed to drive down the price of beef, which is currently around USD 8.40 per kg. Meanwhile Amran Sulaiman, Agriculture Minister, said the country needs 675,000 tonnes of beef or roughly 3.6 million of cattle.
|Malaysia hopes to produce antibiotics-free chicken by 2020|
[16 March 2016] Malaysia’s Domestic Trade, Cooperatives and Consumerism Ministry wants the poultry and livestock sectors to produce antibiotics-free chicken by 2020. Currently all poultry farms must observe a seven-day withdrawal period before slaughter to protect consumers. “We do not want antibiotics in our food,” its Minister Hamzah Zainudin said after launching World Consumer Rights Day 2016. This year’s theme, Antibiotics Off the Menu aims to prevent the use of antibiotics and drugs in livestock, including for disease prevention. Earlier, Mr Hamzah spent about an hour visiting the feed processing centre of Dindings Poultry Sdn Bhd in Perak. The company is conducting research with a university in the US on the use of antibiotics on chicken.
|Indonesia’s chicken cartel case enters court trial stage|
[16 March 2016] Chairman of Indonesia’s Business Competition Watchdog Commission (KPPU), M Syarkawi Rauf, said the case of chicken cartel practices in the country has entered the court trial stage. He said 12 poultry companies are suspected to be involved in the case. They allegedly controlled chicken prices in the market. They are also suspected to have planned to cull their broiler PS. According to KPPU data, the 12 companies are Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Malindo Feedmill, CJ-PIA, Taat Indah Bersinar, Cibadak Indah Sari Farm, Hybro Indonesia, Expravet Nasuba, Wonokoyo Jaya Corporindo, Missouri, Reza Perkasa and Satwa Borneo Jaya.
|Duties on Vietnam shrimp sent to US increased|
[16 March 2016] The US has levied higher anti-dumping duties on Vietnamese warm-water shrimp exports during the period of review from February 1, 2014 to January 31, 2015. This decision was taken at the 10th administrative review (POR 10), according to the International Trade Administration (ITA). The POR10 was requested on 51 Vietnamese shrimp exporters, including two mandatory respondents, Minh Phu Group and Soc Trăng Seafood JSC (Stapimex). Mandatory respondents are exporters selected for individual investigation as part of its countervailing duty review. According to the preliminary results of the POR10, sales by Minh Phu Group and Stapimex to the US, were made below normal value and as a result are subject to anti-dumping duties. The duty on Minh Phu Group was initially set at 2.86%, higher than the rate 1.39% in POR9, while Stapimex was subject to a tariff at 4.78%.
|Thai Union explains code of conduct to suppliers|
[16 March 2016] Thailand’s Thai Union (TU) informed its suppliers about the firm’s labour code of conduct and business ethics. The company stressed the importance of compliance and highlighted that suppliers who did not work to meet the standards established would be unable to continue working with TU. “Thai Union’s policy is clear. We do not tolerate human rights violations,” said Dr Darian McBain, TU’s Global Director of Sustainable Development. The code of conduct is an important part of TU’s wider sustainability strategy. Meanwhile, in the last 18 months, TU has terminated relationships with 16 suppliers due to forced labour or human trafficking violations. TU has also reduced the number of vessels it conducts business with from over 2000 to just 400 for better visibility and control of labour conditions.
|Last day to register for Pig Feed Quality Conference|
[15 March 2016] Do not miss out on Asia’s leading pig nutrition forum, Asian Agribiz 2016 Pig Feed Quality Conference, to be held in Bangkok, Thailand, on March 31-April 1. The last day to register is tomorrow, March 16. With four major sessions, this year’s conference addresses the theme ‘Science, trial data, solutions’, bringing together leading local and international animal nutrition experts from the industry and academia. For more information, contact Omthong Tjoa or Sutasinee Lake, at email@example.com, or visit our website. Audio translation of all presentations into Vietnamese will be available.
|Garuda Mulya Farm to venture into pork processing|
[15 March 2016] Indonesia’s Garuda Mulya Farm plans to venture into pork processing in the near future, an effort to reduce its dependency on middlemen and live pig market. Kelvin Jonathan, owner of the pig farming firm based in Solo, Central Java, told Asian Agribiz that competition in the business is getting hard, making the price of live pigs fluctuate often. “I think it’s important for me to immediately start producing ready-to-cook or ready-to-eat pork products,” he said. Garuda Mulya Farm is one of the largest pig farms in Solo. Each month the farm sells around 600 finishers. The farm now raises around 700 sows and gilts.
|Kuwait bans import of Indian poultry products |
[15 March 2016] Kuwait has banned the imports of poultry products from India in the wake of breakouts of avian influenza in some states. The import ban includes live birds, hatching eggs and day-old chicks. According to experts, as India mainly exports poultry products to the Middle East, this decision may impact export prospects in the coming days. In 2014-15, Kuwait imported 24.2 tonnes of poultry products, valued at USD 120,000.
|‘Syngenta will remain Syngenta’ despite ChemChina takeover|
[15 March 2016] China National Chemical Equipment Corporation (ChemChina) has agreed to buy Switzerland-based agrochemicals giant Syngenta for USD 43 billion. Syngenta said the transaction will help the company with its expansion plans in emerging markets, notably in China. Syngenta has also been building its seed business, especially genetically-modified varieties, and now owns the rights to thousands of seed varieties. Syngenta said existing management will continue to run the company, and that it will continue to keep its headquarters in Switzerland. “Syngenta will remain Syngenta,” Michel Demaré, Chairman, Syngenta, said. “The transaction minimises operational disruption; it is focused on growth globally, specifically in China and other emerging markets, and enables long-term investment in innovation.”
|Thailand reasserts its commitment to sustainable seafood supply chain |
[15 March 2016] Comprehensive reforms are taking place in Thailand to make Thai seafood supply chain free from illegal fishing, illegal labour practices and human trafficking, said Pisan Manawapat, Ambassador of Thailand to the US, at the Seafood Expo North America in Boston recently. He said laws and enforcement have been beefed up, victims are being protected and rehabilitated, and criminals have been brought to justice. The Thai Government said there is still room for improvement and believes that partnership with all relevant stakeholders is the way forward. With stringent punishments as well as a growing call for corporate social responsibility, Mr Manawapat said human trafficking and labour abuse problems in the fisheries sector will be effectively addressed.
|13 Singaporean chicken distributors face price-fixing accusation|
[15 March 2016] Thirteen fresh chicken distributors, making up more than 90% of the market in Singapore, have been issued a proposed infringement decision for price-fixing by the Competition Commission of Singapore (CCS), said the Straits Times. The companies are Gold Chic Poultry Supply, Hua Kun Food Industry, Hock Chuan Heng Farm and its sole-proprietor, Hy-fresh Industries (S), Kee Song Brothers Poultry Industries, Lee Say Poultry Industrial and its sole-proprietor, Lee Say Group, Hup Heng Poultry Industries, KSB Distribution, Prestige Fortune (S), Ng Ai Muslim Poultry Industries, Sinmah Poultry Processing (S), Toh Thye San Farm, Tong Huat Poultry Processing Factory and Ban Hong Poultry. CCS claims the companies engaged in anti-competitive agreements to coordinate the amount and timing of price rises. The distributors have six weeks to submit a defence and could face fines if found to have infringed anti-competition rules.
|Duta Technovet to establish chicken shop in Yogyakarta|
[14 March 2016] One of the main problems in the broiler business in Yogyakarta, Indonesia is the long supply chain and the many brokers involved. Duta Technovet plans to set up clean and hygienic outlets selling fresh chilled chicken, close to traditional markets and residential areas in Yogyakarta. “This will shorten the supply chain. Profits will improve and consumers will enjoy better quality at a lower price,” Hari Wibowo, owner of Duta Technovet, told Asian Agribiz. The outlets will not only sell dressed birds and portioned cuts, but also marinated, ready-to-cook products. "I also plan to set up a semi-modern mini slaughterhouse,” said Mr Hari.
|Thai Union eyes Middle East, China, Southeast Asian markets|
[14 March 2016] Thailand’s Thai Union (TU) will diversify its target markets by focusing more on the Middle East, China and Southeast Asia, Post Today reported last week. In its 5-year plan, TU will increase sales channels in these markets, said Wai Yat Paco Lee, Deputy General Manager in charge of investor relations and corporate investment. The US and the European Union are TU’s major export markets. TU expects sales to increase 15-20% to USD 4-5 billion this year. TU recently set up its new subsidiary, Thai Union Online Shop, for online sales.
|China signals an openness to GM technology via Syngenta deal|
[14 March 2016] China National Chemical Equipment Corporation (ChemChina) has agreed to buy Switzerland-based agrochemicals giant Syngenta for USD 43 billion, a move that suggests China is softening its stance towards genetically-modified (GM) technology. Slated as the biggest overseas acquisition by a Chinese state-owned company, the transaction is expected to be concluded by the end of the year. Davor Pisk, CEO overseeing Asia Pacific and North America, said Chinese ownership of GM technology would make mainland consumers, who have so far been sceptical, more comfortable with the technology.
|McDonald’s Indonesia to add 15 new outlets|
[14 March 2016] Rekso Nasional Food, the operator of McDonald’s in Indonesia, will continue its outlet expansion. Michael Hartono, Marketing Director, said the company plans to add 15 new outlets this year. Besides big cities, the expansion will also target second and third tier cities, following the success of its outlet in Cibinong, a second tier city in Bogor regency. Rekso plans to add new items to its menu in mid-2016 and expects its sales to increase by 15% this year.
|Petersime launches Operational Excellence program|
[14 March 2016] Incubator maker Petersime launched the Operational Excellence package in Kuala Lumpur, Malaysia recently among its dealers. The program was initially presented to the industry at the IPPE in Atlanta early this year. Rudy Verhelst, Marketing Manager, said it helps hatcheries apply best practices at every level from the person who does the cleaning to the hatchery manager, veterinary and maintenance technician. “This is important because people forget procedures and there are rotation of operators. The program is designed to keep everyone sharp and to strive for excellence,” he said.
|Grain traders benefit from low freight rates|
[14 March 2016] “The ocean freight market is challenged by low earnings. The move to rebalance has been strong but more is needed,” said John D’Ancona, Senior Analyst & Divisional Director-Dry Cargo, Clarksons Platou Asia Pte Limited, at the USSEC Grains Transportation Conference in Phuket, Thailand last week. 'There are too many ships,” he said. However, players in the grain industry have benefited from low ocean freight rates. “But there are risks,” Mr D’Ancona said. The counterparty risk is that if the ocean freight rates are so low, some owners will go bankrupt. Players in the grain industry need to be careful who they choose as their counterpart.
|The effect of maintaining appetite in prolific sows |
[11 March 2016] At Asian Agribiz's 2016 Pig Feed Quality Conference, Professor Bruno Silva, Universidade Federal de Minas Gerais, Brazil, will look at the use of additives that may be another alternative to improving the feed intake by sows. Increasing the feed consumption of the sow is a major challenge for nutritionists in tropical climates. The high ambient temperature affects the capacity of food intake of lactating sows. For more details on the conference that will be held in Bangkok, Thailand on March 31-April 1, contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org, or visit our website. Audio translation of all presentations into Vietnamese will be available.
|Vietnam's Vissan raises USD41m in IPO|
[11 March 2016] Vietnam's state-run food processor Vissan Co, raised USD 41 million in an initial public offering on March 7 for 14% of its shares. Vissan sold all 11.33 million shares on offer at an average price of USD 3.60/share. It is not clear when Vissan’s shares will debut in Vietnam, where IPOs and listing are separate processes. Vissan supplies pork, beef, chicken and processed food via its nationwide network. Foreign investors bought 3.3 million shares or 4% of the company.
|Malaysia's DBE Gurney eyes downstream venture with Taiwanese firms |
[11 March 2016] DBE Gurney Resources Bhd’s seven Taiwanese partners may take up a 20% stake in the company in an investment that will see DBE produce and market value-added chicken products via a new food and beverage franchising business. The consortium comprises Taiwan Shing Co Ltd, Jien Peng International Co Ltd, Fu Hsin International Co Ltd, Solatek Co Ltd, HTS Technology Co Ltd, Ultra Brave Technology as well as Formosa Food King Co Ltd. DBE Gurney Managing Director Alex Ding said the group wants to enhance its business activities by venturing into retailing of fried chicken products under the Harumi brand via a franchising model. “We are restructuring our business now by focusing more on processed chicken meat,” he said.
|KPPU suggests measures to tackle Indonesia's oversupply problem|
[11 March 2016] Indonesia's Business Competition Watchdog Commission (KPPU) recently announced some short-term measures to address the broiler oversupply situation in the country. Among others, it suggested that the government audit the actual GGP, GP, PS and DOC production and set ceiling prices for DOC and feed. KPPU also suggested that the central and local governments set a reference price for live birds. 'The government should also separate the market segmentation between corporate and farmer. Corporates are encouraged to aim for export markets,” said Syarkawi Rauf, KPPU Chairman. He urged the government to shorten the supply chain by initiating an online system.
|CP ALL pressured to resolve corporate governance issues in Thailand|
[11 March 2016] CP ALL, Thailand's largest convenience store operator and a unit of Charoen Pokphand Group, is being pressured by investors to resolve its corporate governance issues. In December 2015, the Securities and Exchange Commission fined top executives at CP ALL and True Corporation for insider trading. In early February, CP ALL's board of directors allowed the executives charged to continue their jobs. Bandid Nijathaworn, President and CEO of the Thai Institute of Directors expressed disappointment. “All parties must step up efforts in establishing good corporate governance with legal amendments and practices of punishment,” Mr Bandid said. He added that those charged with insider trading should be disqualified as directors of listed companies.
|Global food industry will face supply constraints|
[11 March 2016] Supply constraints in the global food industry will be compounded by water and land availability and climate changes, said David Donnan, partner at A.T. Kearney at the USSEC Grains Transportation Conference in Phuket, Thailand this week. This will affect the amount of food grown globally, he said. Most arable land for farming has been used or urbanized. “Water depletion in India, Southeast Asia and California will have an impact on the ability to grow the right crops in the next 10-30 years,” he added.
|KPPU refuses to continue PS culling program|
[10 March 2016] Indonesia’s Business Competition Watchdog Commission (KPPU) has rejected a request from the Ministry of Agriculture to continue the broiler PS culling program. So far around 3 million PS have been culled from a target of 6 million. “We have received a letter from the Directorate General of Livestock and Animal Health about the request. We will not allow it before the directorate audits the actual number of GGPS, GPS, PS and commercial broiler DOC production in the country,” said Syarkawi Rauf, KPPU Chairman. According to him, the culling program has caused severe fluctuation in the price of chicken.
|Lay Hong banks on Japanese investment|
[10 March 2016] Malaysian poultry integrator Lay Hong Bhd reported a lower profit before tax of USD 1.3 million in the third quarter ended December 31, 2015 due to lower egg prices and sales volume. It said lower quantity of eggs sold and lower egg prices had impacted its integrated livestock farming segment while its retail supermarket segment was hurt by lower consumer spending following the implementation of the goods and services tax. The company’s quarterly revenue fell by 7.8% to USD 39.1 million. Lay Hong said the entry of NH Food Ltd, a company listed on the Tokyo Stock Exchange, as a new foreign substantial shareholder will augur well in terms of synergy in food processing technologies and opening of new foreign markets.
|Sri Lanka's CGE sees profits soar amid strong demand |
[10 March 2016] Sri Lanka's Ceylon Grain Elevators (CGE), a poultry and feedmilling group, saw a 300% boost in profits on strong demand for chicken and eggs, and farmers shifting from self-mixed to compound feed. Profits rose 300% to USD 2.70 million in the final quarter of 2015 from the corresponding period a year earlier. The group, a unit of Singapore-based Prima, said total profits of USD 8.20 million were recorded, up from USD 0.4 million. “The outstanding results were consequent to the increased demand for chicken meat and eggs,” the firm said. “Shortage of local raw materials compelled farmers to move from self-mixing to compound feed.'
|Global wheat production 7% higher but consumption declines|
[10 March 2016] Global wheat production is expected to reach 736 mmt for marketing year 2015/2016, or 7% higher than the 5-year average, said Matt Weimar, Regional Vice President of US Wheat Associates. The record crop has been supported by good weather conditions in wheat growing countries and improved yields, he said. However, wheat consumption in China and the US is expected to decrease 4% and 2% respectively in 2015/2016. “In China you have corn and other feed ingredients that are cheaper, the same with the US,” Mr Weimar said at the USSEC Grains Transportation Conference in Phuket, Thailand on March 7.
|Bulog to secure beef cattle supply from East Nusa Tenggara|
[10 March 2016] Indonesia’s State Procurement Agency (Bulog) is in negotiations with large-scale cattle suppliers from East Nusa Tenggara province. Wahyu, Director, said Bulog hopes the suppliers will sign a price contract to secure the buying price. “We expect the price to be not more than USD 3/kg of live cattle, so we can sell the beef at around USD 6.5/kg in Jakarta,” he said, adding that Bulog targets to secure 1000 heads of cattle from East Nusa Tenggara in the near future. Bulog needs around 500-750 heads of cattle a month to supply to Jakarta.
|Chilled meat demand in Asia to grow|
[10 March 2016] Asian demand for chilled meat processed under Australian hygiene standards could eclipse live exports within decades, according to a leading agribusiness analyst. John Corbett of Hassad Australia said wealthier Asian consumers will increasingly demand quality meat processed under strict food safety standards in Australia instead of at abattoirs at home where concerns over water contamination are rife. “As it evolves the higher end value consumer will want their Black Angus and they’ll want it from Australia, processed in Australia,” Mr Corbett said.
|Optimum vitamin nutrition for better health and performance of swine|
[09 March 2016] Vitamin requirements for swine are dynamic and may change with the development of new high performing breeds, modifications in nutrition or production systems, or with improved understanding of vitamin functions. Recommended vitamin levels are sufficient to prevent clinical deficiencies, but do not support optimum health, performance and welfare of modern livestock breeds. Dr Gilbert M Weber, Senior Science Fellow, DSM Nutritional Products, Switzerland, will provide practical recommendations for vitamin supplementation, based on scientific findings at the 2016 Asian Agribiz Pig Feed Quality Conference in Bangkok, Thailand from March 31 - April 1. For more details, contact Omthong Tjoa or Sutasinee Lake at email@example.com, or visit our website. Audio translation of all presentations into Vietnamese will be available.
|Yogyakarta’s broiler production predicted to stagnate|
[09 March 2016] Broiler production in the Indonesia’s Special Region of Yogyakarta was flat in the last two years due to low live bird prices due to DOC oversupply. Based on data of the Yogyakarta Broiler Farmers Association (Apayo), broiler production in the region was 2.4 million birds last year. According to Hari Wibowo, Chairman of Apayo, the last two years has been hard for farmers. “The price of live birds was often below production cost,” Mr Hari told Asian Agribiz. 'This led many famers to become contract farmers to large companies. Some sold their farms to investors. The number of farmers is decreasing,” he said.
|Philippines signs new rules on GM crops|
[09 March 2016] The new set of rules on the propagation, importation, and use of genetically modified (GM) crops in the Philippines is expected to take effect in April after it was signed by the heads of the Departments of Agriculture, Health, Environment & Natural Resources, Science & Technology, and Interior & Local Government. Although the news was welcomed by the feed, poultry, & livestock sectors, one feed industry stakeholder told Asian Agribiz that details of the new rules are still forthcoming. Another industry player expressed concern that the new rules might make it more difficult to get permits to bring in GM crops.
|Pakistan’s meat export industry enjoys 30% growth|
[09 March 2016] The meat export industry in Pakistan is growing at 30% annually. Growth can be raised with proper processing, according to Dr Muhammad Hayat Jaspal, Head of Meat and Nutrition of the University of Veterinary and Animal Sciences (UVAS). He said despite competition from India and globally, Pakistan has successfully held its ground in the Middle East market. However, in order to enter the China and Malaysia markets, better handling and processing protocols are required, he added. In 2005 Pakistan exported USD 29 million worth of meat products. This rose to USD 243.5 million in 2015.
Novus Layer Forum, Bangkok Thailand
Report by CRAIGE ALLAN
[09 March 2016]
The Novus Layer Forum last week was attended by about 50 key customers from throughout South and Southeast Asia. Among others, the presentations covered feed, egg and eggshell quality.
Feeding for 400 eggs
Genetics have changed in the last five years, with unprecedented production and peak performance said Dr Steve Leeson, Department of Animal and Poultry Science, University of Guelph, Canada. We need to be feeding for longer 80-90 week laying cycles, rather than 52 weeks. Peak egg mass now occurs at about 36-46 weeks, which is 4-6 weeks later than 15 years ago. Choosing the mature body size is probably the most important decision you will make for these extended laying periods, as it dictates subsequent egg size. For an extended lay, a large body weight results in too large an egg past 70 weeks, and more difficulty with sustaining eggshell quality.
Advances in energy and amino acid requirements
Dr Gonzalo Mateos, Prof – Animal Science, University of Madrid, Spain stressed that in principal hens eat to satisfy their energy requirements – but the adjustment is not perfect, and that hens prioritise egg numbers over egg size. Hens have a minimum requirement for linoleic acid to maximise egg size, and once this requirement is satisfied (1.3%?) extra supplemental fat is important. Ideal protein is important he said, but we don’t know enough about the numbers. He illustrated this point by showing different ideal protein recommendations between breeding companies, research institutions, researchers and amino acid manufacturers. Dr Mateos stressed that good management, health status and disease control are more important than nutrition to improve performance.
Manipulating egg composition
This is a marketing issue – it’s easy to produce enriched eggs, however, it’s much more difficult to market them and get a premium price, said Dr Leeson. The content and composition of fats and fat soluble compounds in animal products are fairly easy to manipulate, whereas proteins and water soluble products are generally unaffected by diet manipulation.
Light management in pullets and layers
Dr Xabier Arbe Ugalde, Head of Technical Services, South & Southeast Asia, Novus Inc, stressed the golden rule “never allow light to increase during the rearing period,” as this results in small eggs and the risk of prolapse. He said that you need to understand your housing limitations, and adapt your lighting program. For example in open housing there is the risk of increasing day length stimulating pullets during the rearing period. He advised to check what will be the day length at the end of the rearing period to ensure that the day length will be the same in the production house at the start of production.
|Singapore subsidiaries boost CAB’s Q1 results|
[08 March 2016] Though still in its early stages, Malaysian poultry integrator CAB Cakaran Corporation Bhd’s diversification plan is seeing success. The company’s first quarter 2016 revenue has increased by 35% to USD 60.89 million over Q1 2015. CAB said its Singapore subsidiaries – Tong Huat Poultry Processing Factory Pte Ltd and Ban Hong Poultry Pte Ltd – mitigated the low average selling price of broilers during the quarter and lowered its losses. In an interview with The Edge Financial Daily Managing Director Christopher Chuah said he hopes the company will hit USD 242 million in revenue in the current financial year ending September 30 2016.
|Indonesian farmers demand government protection|
[08 March 2016] More than 1,200 broiler farmers from different regions in Indonesia marched from the National Monument to the Presidential Palace in Jakarta last week, demanding that the government stabilise the price of live birds and protect independent broiler farmers from unfair competition. Hartono, Advisor of the Indonesian Poultry Farmers Association & Information Centre (Pinsar Indonesia), said around 82% of the chicken market is now controlled by large companies. “We want the government to give priority to independent farmers and encourage integrators to export their products,” said Mr Hartono.
|Thaifoods Group posts net loss of USD44m |
[08 March 2016] Thailand’s Thaifoods Group (TFG) posted a net loss of USD 44.34 million in 2015, over a net profit of USD 25.98 million in 2014. This was attributed to the decline in domestic chicken and live-pig prices. However, TFG’s sales volume of chicken increased from 263,050 tonnes in 2014 to 283,367 tonnes in 2015 due to the increase in farm production output and slaughterhouse capacity. Total sales value of its poultry business declined 10.7% to USD 310.93 million in 2015. TFG’s sales of swine rose from 47,907.7 tonnes in 2014 to 64,908.7 tonnes in 2015.
|CPF continues to focus on product sustainability|
[08 March 2016] Thailand’s Charoen Pokphand Foods (CPF) said it is focusing on product sustainability by reducing food loss and waste. In 2014, CPF used 12,000 tonnes of agricultural wastes such as corncob and palm kernel shell as fuel in its feed production process, said Kularb Kimsri, CPF's Vice President of the Global Standard System Centre. At its chicken-processing plants in Saraburi and Nakhon Ratchasima, it turns used vegetable oil into biodiesel for transportation, she said. “CPF aims to produce foods by using resources efficiently,” Ms Kularb said, adding that its chicken products and CP shrimp wonton have received carbon footprint reduction labels.
|Vietnamese organic shrimp farming produces results|
[08 March 2016] After three years of development Vietnamese shrimp farmers in the Mangroves and Markets Project (MAM) have been able to significantly increase their income. The project in the Nhung Mien and Dat Mui Protected Forests in Ngoc Hien District in Ca Mau Province is operated by 5300 households on 24,000 ha. “They now have higher productivity and prices for their organic shrimp, and get paid for environmental services,” said Nguyen Thi Bich Thuy, Project Manager. Households have received training in managing household waste and forest protection, and are taught to farm shrimp without commercial feeds or chemicals. The training leads to Naturland Certification, which will allow farmers to charge a premium of about 5-10% more for their shrimp.
|CPF India to launch online delivery service this month|
[07 March 2016] CPF (India) Private Limited, a subsidiary of Thailand’s Charoen Pokphand Foods, will launch online sales and home delivery of its Five Star Chicken in Bangalore this month, Sanjeev Pant, Senior Vice President for Food Business of CPF (India) told Asian Agribiz. “Teenagers love ordering foods via mobile apps - this is the new trend in India,” he said. CPF (India) has operated Five Star Chicken for three years and it is time to expand its business. The firm has invested around USD 80,000 in backend systems, website and warehousing for online food delivery. The service will be extended to Chennai in the next 2-3 months, he said.
|Suja’s chicken processing division records positive performance |
[07 March 2016] Although the poultry business in Indonesia last year contracted, the chicken processing division of Super Unggas Jaya (Suja), subsidiary of CJ Indonesia, recorded an increase of 60% in sales. Adi Nugroho, Suja Sales Manager, told Asian Agribiz that since venturing into chicken processing in 2013, sales of chicken carcass and its portioned cuts grew. “This year we are optimistic of recording double-digit growth again,” he said. In the near future Suja plans to sell its products under the ‘Super Chicken’ brand. “Although the market still prefers unbranded products, it’s important to develop and popularise our own brand since this will differentiate the quality of our products,” said Mr Adi.
|Chinese seize ship carrying USD30m worth of meat|
[07 March 2016] Chinese border security patrol boats seized a 4,000-tonne cargo ship carrying 71 containers of meat just before Chinese New Year, according to a report by Legal Daily. The Fuyun (“Luck”) refused to stop when hailed by patrol boats, but officers managed to board the ship as it attempted to get away, the newspaper said. Crewmen said the ship was heading for Kaohsiung in Taiwan, but navigation devices were set for a port on the Chinese coast. The ship was carrying about USD 30 million worth of beef, pork, chicken and duck meat from Europe, the US and other nations, but lacked legal and quarantine documents and is suspected of smuggling, the newspaper said. Chinese officials cracked down on the Hong Kong grey channel in the first half of 2015, but pressure eased in the second half of the year.
|CPF net profit gains 4.7% in 2015|
[07 March 2016] Thailand’s Charoen Pokphand Foods' (CPF) net profit rose 4.7% to USD 311.52 million in 2015, supported by gain on sale of investments and currency gain. However, CPF revenue decreased 1.1% to USD 11.87 billion last year, hurt by lower sales of domestic livestock and shrimp units. Prasit Sujiravorakul, analyst at Bualuang Securities expects CPF earnings in 2016 to be driven by the turnaround of its Thai shrimp unit and modestly improved domestic livestock margin. The improved livestock margin will be led by chicken and pork price gains and lower raw material prices. For overseas operation, CPF’s Russia unit will lead the firm’s growth in 2016 on the back of sustained strong pork prices and the full-year consolidation of S&W, Mr Prasit said.
Positive outlook for Indonesia's aquaculture & fisheries sector
[07 March 2016]
Indonesia targets 8.3mt of fish production
Indonesia’s Ministry of Fisheries & Marine Affairs has set an ambitious target to reach 8.3 million tonnes (mt) of fish production this year. It claimed last year’s production was 7.3 mt. Balok Budiyanto, Director of Aquaculture Production & Business, said shrimp, milkfish, tilapia, pangasius, catfish, grouper and snapper will be the main commodities to focus on and be developed in 26 regencies. "The government will help increase the quantity and quality of fries, initiate certification of good aquaculture practices, transfer technology such as biofloc, as well as provide production input aids to farmer groups,” Mr Balok said.
Fishmeal processing plants planned in 10 locations
Imports of fishmeal for aqua feed continue to increase. In 2014 Indonesia’s Ministry of Fisheries & Marine Affairs recorded imports of 80,000 tonnes or 90% of the total need of aqua feed millers – the rest was from local supplies. Balok Budiyanto said the ministry will benefit from fish from around 590,000 fishing vessels in the country to process into fishmeal. The ministry this year targets to build fishmeal processing plants in 10 different locations namely Bintan, Biak, Lampung, Indramayu, Pekalongan, Lumajang, Trenggalek, Tuban, Situbondo and Cirebon. Local production is expected to increase to 20% of the total need of aqua feed millers.
Aqua Feed Directorate to provide feed processing machines
The Directorate of Aqua Feed of Indonesia’s Ministry of Fisheries & Marine Affairs this year will continue its independent aqua feed program. Coco Kokarkin, Director, said the directorate will give 360 pellet machines and 20 hammer mills worth around USD 3.7 million to farmer groups. Last year the directorate provided 91 pellet machines to farmer groups. “The machines are locally made and easier for the groups to get spare-parts,” Mr Coco said. “The groups are also regularly trained on how to operate these machines, as well as about feed formulation based on local resources.” The directorate will also offer raw materials worth around USD 1.8 million.
Double digit growth in shrimp production
Indonesia’s (vannamei) shrimp production this year is predicted to grow around 10-20%, triggered by the shrimp farming euphoria in the country, said Budhi Santoso from the Shrimp Club Indonesia. Last year, he said production was 320,000 tonnes – 60% was exported to the US. Mr Santoso reminds farmers to be alert to diseases such as white faeces, WSSV, IMNV and SSS that were found some years back in different farms in the country. To increase shrimp production, the government will revitalise idle ponds and set up new ponds. “For revitalisation, farmers have to check the carrying capacity quality as many idle ponds are now close to residential areas and industries. Meanwhile for new ponds, it’s okay for the government to copy the concept of shrimp pond estate in Equador,” Mr Santoso explained.
RTE, RTC trends in seafood
According to Budhi Wibowo, Chairman of the Indonesian Fish Product Processing & Marketing Businessmen Association (AP5I), the trend in the seafood industry is towards ready-to-eat (RTE) and ready-to-cook (RTC) products. In Asean, Indonesia is less competitive compared to Thailand. “Every year Thailand launches new seafood products. Top five claims of their products are halal, no additives/preservatives, microwavable, ease of use and premium.” Based on AP5I data, Thailand launched 202 new seafood products in 2014, and 93 products in 2013. “So this is our challenge to be more creative and competitive in creating new products to face regional and global competition,” Mr Wibowo said.
Aqua feed consumption in 2015 reaches 1.5mt
Denny Indradjaja, Chairman of the Aqua Feed Division of the Indonesian Feed Millers Association (GPMT), reported that the consumption of aqua feed in the country last year reached 1,509,533 tonnes. Of this, fish feed and shrimp feed recorded 1,143,017 tonnes and 366,516 tonnes, respectively. Mr Denny is optimistic that this year the aqua feed industry will continue to grow positively. “Growth (of aqua feed consumption) at 10-15% is achievable for this year,” he said.
|Taking NIR beyond feedstuff analysis to enhance pork production profitability|
[04 March 2016] Compared to proximate analysis, Near Infra-red Reflectance (NIR) spectrophotometry, cost effective and fast technology, for predicting chemical and physical composition of feedstuffs allows nutritionists to expand the range of their analysis and get quicker, in some cases essentially instant, results on the ingredients and feed being analysed. However, this uses just part of the NIR potential in animal production. Dr Hadden Graham, Global Technical Director, AB Vista, United Kingdom, will present opportunities to extend NIR technology to support greater efficiencies in pork production at the Asian Agribiz 2016 Pig Feed Quality Conference on March 31-April 1 in Bangkok, Thailand. For more details, contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org, or visit our website. Audio translation of all presentations into Vietnamese will be available.
|Indian firm invests in Indonesian seafood venture|
[04 March 2016] Aavishkaar Venture Management, a venture capital firm in India has invested about USD 2.1 million in US and Indonesia based seafood firm North Atlantic Inc (NAI). NAI operating in Indonesia through PT Bali Seafood, sources seafood from Indonesian fishermen and markets frozen seafood products to supermarkets and restaurants in North America and Asia. NAI Founder and Chairman Gerald Knecht said that Bali Seafood will use the funds to build fish processing facilities in Indonesia, with the first location in Sumbawa. “The direct outcomes for small boat fishermen in the country would be premiums paid for quality, stable market, higher percentage of product sold from present supply chain,” he added.
|CCK sees 12.7% increase in 4Q15 revenue |
[04 March 2016] Malaysian poultry integrator CCK Consolidated Holdings Bhd (CCK) registered higher earnings in Q4 2015. Revenue for the period grew 12.7% year-on-year to USD 30.73 million. The group’s current quarter pre-tax profit of USD 1.37 million was 82% higher than in 2014. “The group will continue to look for opportunities to expand its network of outlets in both Malaysia and Indonesia. It will remain focused on managing its operating costs effectively and to increase its market share both domestically and internationally,” said the company.
|Hamlet Protein to stage broiler seminar at Victam |
[04 March 2016] Hamlet Protein will stage a seminar on March 30, in Bangkok Thailand in conjunction with FIAAP/Victam. Titled 'A Good Start for Young Broiler Chickens = A Strong Finish', the speakers will be Theo Niewold (University of Leuven), Thikhamporn Charoenwai (Hamlet Protein), Dr Jowaman Khajarern (Khon Kaen University) and Tommy H. Krogh (Skov, Asia). Contact Hamlet Protein here to register your interest.
Highlights in Asian Pork Magazine, March/April 2016
[04 March 2016]
Henky Farm moves to AI for breed improvement
Henky Purnawan, owner and Manager of Henky Farm in Kopeng, Central Java – Indonesia, told ARIEF FACHRUDIN that various problems of natural mating can be overcome by artificial insemination (AI). He also wants to use AI as part of his pig genetic improvement project.
Sevilla & Sons focuses on a niche
In an industry laden with big players, start-up sausage manufacturer, Sevilla & Sons Sausage Co, found a niche market to serve. Focused primarily in fresh pork sausages, the company has, in just a year, grown beyond expectations and continues to churn out new products and flavours, writes ISA Q TAN.
TGM advances with hi-tech pork management
Thai-German Meat Product Co Ltd (TGM), a leading meat processing company in Thailand, has its new, second meat plant up and running. The state-of-the-art facility is equipped the most advanced machines and equipment aimed at ensuring the high quality of the company’s products, writes NITSARA THONGRUNG.
Comparing the quality of pharmaceuticals
While generic products may be cheaper, nonetheless, one should expect the same quality as the original brand. MARK MOMBARG and LORENZO FRAILE present a study which showed substantial differences in the physical properties of four brands of toltrazuril tested.
Recommendations for using DDGS in swine feed
While pig farmers have used distiller’s dried grains with solubles (DDGS), the nutrient rich co-product of dry-milled ethanol production in feed for years, questions still remain on how to best use this feed ingredient. RICHARD MARKUS and ANDRÉ VAN LANKVELD look at the appropriate inclusion level and use at various production stages.
Biosecurity Part 1 – Keep it out the perimeter fence
Biosecurity prevents new diseases entering your farm from outside sources. One of the best ways to isolate your pigs and protect your farm is to install and maintain pig-proof perimeter fencing. JOHN CARR and CHUAN-HSING CHANG discuss guidelines to ensure your fence is an effective defence.
|CPF India to launch frozen packaged food this month|
[03 March 2016] CPF (India) Private Limited, a subsidiary of Thailand’s Charoen Pokphand Foods, will sell frozen packed foods in Bangalore and Chennai this month, Sanjeev Pant, Senior Vice President for Food Business of CPF (India) told Asian Agribiz. He said the firm invested around USD 16.85 million on a new chicken-processing plant and slaughterhouse in Andhra Pradesh last year. The new plant will produce nuggets, burgers, sausages, snacks and kebabs under the CP brand. “This emphasis is due to the changing lifestyle of Indian consumers,” Mr Sanjeev said, adding that this sector enjoys 20% annual growth.
|QL Group Indonesia to increase omega eggs supply|
[03 March 2016] QL Group Indonesia, a subsidiary of Malaysia’s QL Resources, plans to market its QL Omega eggs through 4000 Indomaret stores. The Salim Group owns this chain of retail convenience stores. Last year around 1.5 million QL Omega eggs were retailed across 1500 Indomaret stores in Greater Jakarta and West Java each month. By targeting the 4000 Indomaret stores in Greater Jakarta and West Java, QL will need to produce around 4 million omega eggs per month. "We need to increase our production capacity and set up new commercial layer houses,” Mark Chia, President Director, told Asian Agribiz.
|Bangkok Ranch's net profit down 17% in 2015|
[03 March 2016] Thailand’s Bangkok Ranch's (BR) net profit decreased 17% to USD 15.43 million in 2015, hurt by lower sales revenue and currency losses. BR is the largest fully integrated duck-meat producer in Thailand. According to the company revenue fell 9% to USD 217.65 million last year, driven by the local and global economic downturn and lower selling prices in domestic and export markets. BR also faced unfavourable foreign currency translation in 2015. The firm’s investment plan will focus on production efficiency improvement and capacity expansion.
|Sierad Produce increases nugget production|
[03 March 2016] Indonesia’s poultry integrator Sierad Produce this year plans to increase its chicken nugget production to 12,000 tonnes, nearly double that of last year’s 7000 tonnes. “The potential is huge. We will develop new products based on customers’ needs. For instance, enriched calcium and vitamin nuggets for children to support their physical and mental development,” said Eko Putro Sandjojo, President Director. With the increased nugget production capacity, Sierad will double its distribution outlets to 12,000.
|Fivefold increase in Indian seafood exports|
[03 March 2016] India’s seafood exports have increased fivefold in the last 15 years reaching USD 6.5 billion, Marine Products Export Development Authority (MPEDA) Chairman Leena Nair said during the Aqua India 2016 conference. According to her, this has made India the fourth largest global seafood exporter. While 67% of the export value is shrimp, 77% of the shrimp exported is farmed. Industry sources however said that increased production costs and diseases are likely to slow Indian shrimp production in 2016.
|China confirms H5N6 avian flu outbreak in Guizhou province|
[03 March 2016] China reported an H5N6 avian flu outbreak on a farm in the south-central province of Guizhou last week. The outbreak affected more than 20,000 poultry, the World Organization for Animal Health was informed. Last month a farm with swans and peacocks was affected by H5N6 in Hunan province.
|Chinese chicken industry plagued by overcapacity|
[02 March 2016] China’s chicken industry is suffering overcapacity, which is causing losses for producers and processors. Chicken consumption grew at a 4.4% annually for 10 years to 2011, and industry players were betting the trend would continue when they invested in expansion, said Rich Herzfelder, a speaker at the Gira Asia Meat Club. Instead, consumption stagnated starting in 2012 due to a series of safety issues and outbreaks of avian influenza. But politics and local government support make it extremely difficult to close down redundant capacity, and consequently inefficient and money-losing facilities continue to operate.
|Processing facilities may help resolve oversupply in Indonesia|
[02 March 2016] The price of chicken in Indonesia has contracted to around USD 2.4/kg from USD 3.0. Meanwhile, live bird price is about USD 1.0/kg, far below the production cost of USD 1.2/kg. According to Singgih Januratmoko, Chairman of the Indonesian Poultry Farmers Association & Information Centre (Pinsar Indonesia), the fastest way to normalize the situation is by processing the excess supply. “This should be done by big companies with processing plants,” said Mr Singgih. Eko Putro Sandjojo, President Director of Sierad Produce, said the government should offer incentives to set up post-harvest facilities as this will help stabilise the price.
|QL Resources Malaysia's Q3 net profit up 4.9% |
[02 March 2016] Malaysia’s QL Resources Bhd reported that its net profit grew 4.9% to USD 13.8 million, compared with the same quarter last year, on higher sales of marine products, which helped offset weak earnings from its poultry businesses. AllianceDBS said despite the muted earnings QL’s earnings prospects will remain robust. “It will likely stay resilient despite expectations of a slowdown in Malaysian consumption and economic growth in 2016,” said analyst Marvin Khor. “The increased focus on exports of surimi is also a positive development in light of the weaker ringgit.” The company said its key marine products manufacturing business got a boost from a weaker ringgit that inflated export earnings, while lower commodity prices helped in cutting operating costs.
|South Africa in talks with Thailand, China on red meat exports|
[02 March 2016] South Africa is in talks with Asian nations on exporting red-meat to the region, with the trade valued at USD 619 million annually, Deputy Agriculture Minister Bheki Cele said. Thailand and China’s special administrative region of Hong Kong are among areas that have approached South Africa for meat, he said. Should South Africa conclude meat-export pacts, it would need 488 inspectors to examine the veterinary and phytosanitary requirements. The national Treasury will allocate about USD 37 million towards their training. “Once they are trained, we will be able to unlock the USD 619 million business,” Mr Cele said.
|New US law prohibits import of slave-produced seafood|
[02 March 2016] US President Barack Obama has signed a bill that prohibits import of goods made by children or slaves, including fish caught by ‘forced labour’ in Southeast Asia, the Associated Press reported. The US labour department lists more than 350 goods produced by child labour or forced labour, including fish and shrimp from Thailand. An expose by AP last year found that Thai companies exported seafood to the US that was caught and processed by enslaved workers. However, Thai authorities and the seafood industry have argued that the crackdown on illegal, unreported and unregulated fishing has yielded results.
|Hong Kong suspects violation of ban on backyard poultry|
[02 March 2016] Hong Kong's agriculture ministry recently detected the H5N6 virus in a chicken carcass that washed ashore in Lantau Island, raising suspicion that locals might be violating a ban on raising backyard poultry. The ministry said the backyard poultry ban has been in place since 2006 and that its staff will inspect the area around where the bird was found to see if there are any illegal poultry. Hong Kong is one of four jurisdictions, along with China, Laos, and Vietnam that have reported H5N6 in birds.
|Feeding the modern sow and her progeny|
[01 March 2016] With the increasing number of piglets born feeding strategies in high prolific sows need to be adjusted. Learn more at Asian Agribiz's 2016 Pig Feed Quality Conference. Dr René Bonekamp, Swine Specialist EMEA, DSM Nutritional Products will highlight essential elements in feeding the modern hypoprolific sow; protein and amino acids, fibre, fat and fatty acids and vitamins. For more details, contact Omthong Tjoa or Sutasinee Lake at email@example.com, or visit our website. Audio translation of all presentations into Vietnamese will be available.
|Sierad Produce sells asset in Tangerang |
[01 March 2016] Indonesia’s poultry integrator Sierad Produce has said that it recently sold its land and buildings in Tangerang, Banten to Bumi Serpong Damai for USD 4 million. Eko Putro Sandjojo, Sierad President Director, said it is not possible to develop commercial broiler farms in the location as it is close to residential areas. FX Awi Tantra, Sierad Finance Director, added that the sale will have no significant impact to the company’s operations. Mr Eko said money from the sale will be used to build commercial broiler farms in other regions. “This year we plan to build 12 farms. Currently we have 10 farms in operation,” he said.
|Thai Union net profit rises 4.1% in 2015 |
[01 March 2016] Thai Union's (TU) net profit rose 4.1% to USD 148.48 million in 2015, supported by sales increases and a rise in foreign exchange gain. According to the company, TU sales in baht terms in 2015 grew 3.1% to USD 3.5 billion from the previous year. The firm said that its acquisitions in late 2014 and early 2015 started to contribute to the overall operation where salmon, shrimp and sardine and mackerel showed the strongest growth in overall categories. "We are well positioned for another solid year in 2016,” said Thiraphong Chansiri, President and CEO of TU.
|Halal foods pioneer charged for fraudulent exports to Indonesia, Malaysia|
[01 March 2016] William Aossey Jr, a businessman reputed as a pioneer in the US halal food industry was sentenced recently to two years in prison and a fine of USD 60,000. He was charged for falsifying packaging labels so that his company Midamar, could export beef products that did not meet Malaysian and Indonesian halal standards. A lengthy investigation also led to charges against Midamar, a related halal certification organization and two of Mr Aossey’s sons.
Indonesia’s beef supply concerns addressed in Jakarta
[01 March 2016]
Separate beef supply for meat processors
Although the price of beef in Indonesia skyrocketed to around USD 7.5-8.9/kg, members of the Indonesian Meat Processors Association (Nampa) availed beef at USD 4.8/kg as their raw material. Ishana Mahisa, Nampa Chairman, said since December 2014 the government has separated the supply of beef for end-consumer and the meat processing industry. “So we did not feel the impact of beef price rise,” he said. "However, in the Asean context, the beef we get which is mostly from Australia, is much higher in price compared with Malaysia, which gets beef from India."
Thin margins for beef cattle farmers
Consumers think that beef cattle farmers make good money as the price of beef now at around USD 7.5-8.9/kg, said Nanang Petrus, a farmer from Lampung. “Quite the contrary, we don’t enjoy much profits besides, it is hard to find feeder cattle to raise. Not to mention, the price of feeder cattle has increased,” Mr Nanang said. He critised the government’s data on the growing supply of local beef. “Low supply of beef at traditional markets is a sign that we have problems with local supply,” he added.
Supply chain concerns
Indonesia’s Ministry of Trade believes that the high price of beef is a phenomenon of supply-demand imbalance. An official of the ministry said there are problems in the supply chain that has contributed to the situation. “Our supply chain in the beef trade is still too long and has too many brokers. Besides, transportation cost is also a problem. It’s cheaper to send cattle from Australia to Jakarta than from East Nusa Tenggara to Jakarta,” he said.
Beef cuts have different markets
According to Yudi Guntara Noor, a feedlotter and an official of Indonesia’s Trade Chamber, many consumers in Indonesia still generalise beef and its price. “In fact, beef has different cuts, quality and price. And the cuts have different markets too,” said Mr Yudi. He said the standard price for national calculation by the Statistic Centre Agency is that of hind-quarter of local beef (fresh chilled). From a whole carcass of local cattle, the market of the fore-quarter is for meatball sellers and meat processing companies, while the market for the hind-quarter is end customers.
Dharma Jaya builds breeding, feedlot facilities
Jakarta’s government-owned livestock company PD Dharma Jaya this year plans to set up a beef cattle breeding farm and feedlot facility in East Nusa Tenggara, one of the local beef cattle production centres in Indonesia. “With the facilities in place, we want to produce cattle for our processing plant in Jakarta, as well as to help develop local farmers’ capacity and skills,” said Marina Kusumajati, President Director. In order to prevent price volatility in Jakarta, Ms Marina said the company plans to publish info on beef prices on its website daily. According to her, Jakarta needs around 650-750 heads of cattle per day.
Indonesia should import more breeding cattle
Viva Yoga Mauladi, Deputy Chairman for Commission IV of Indonesia’s House of Representatives, urged the government to increase imports of productive heifers for breeding, instead of feeder cattle, in order to achieve beef self-sufficiency. The government, he added, also has to have a special program to prevent slaughter of local productive heifers and cows. “Last but not least, the government has to focus on genetic improvement,” Mr Viva said. He also reminded the Business Competition Watchdog Commission (KPPU) to be more careful in investigating beef cartel practices in the country, since it will affect business and investment.
Associations strive to maintain FMD-free country-based imports
The Indonesian government seems keen to allow beef/cattle imports from foot and mouth disease (FMD) free countries. India is said to be on the list of potential countries. Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association, said: “We will continue to strive to maintain the import regulation of beef & cattle based on country. We disagree with the import regulation based on FMD-free zones.” Yudi Guntara Noor, a feedlotter and an official of Indonesia’s Trade Chamber, said that India’s FMD free zone(s) claim is suspect as this is not on record with the World Organisation for Animal Health (OIE).
|China beef sector remains dependent on imports|
[29 February 2016] The Chinese government believes that the Chinese beef sector will remain dependent on imports for the foreseeable future, and is expanding the number of countries that can legitimately export beef to China, according to Rich Herzfelder, a speaker at the Gira Asia Meat Club. Australia, New Zealand and Uruguay are the only countries to have had continuous market access for the last 10 years. Argentina and Canada were added to the roster when Chinese demand started to boom in 2012. Costa Rica was added in 2013, and Chile, Brazil and Hungary in 2015. However, China’s largest beef supplier is actually India, which ships its product via the grey channel and is unlikely to receive market access in the near term due to safety issues.
|CPF adheres to international practices for fishmeal procurement|
[29 February 2016] Thailand’s Charoen Pokphand Foods (CPF) said that its procurement of fishmeal is in line with international sustainable practice and is traceable back to the vessels at port. “CPF currently buys raw materials only from fishmeal producers that meet the Responsible Supply Chain of Custody (RS CoC) standard set by the International Fishmeal and Fish Oil Organization (IFFO),” said CPF Vice President Jarus Aussawachanchaisakul. He added that CPF’s suppliers must undergo regular audits to ensure they meet the firm’s social and ethical standards. “We are in the process of bringing more suppliers up to this standard,” said Mr Jarus.
|KPPU wants Indonesian government to set DOC, feed ceiling prices |
[29 February 2016] Indonesia’s Business Competition Watchdog Commission (KPPU) has urged the government to set ceiling prices for DOC and feed. Syarkawi Rauf, KPPU Chairman, argued that the ceiling prices are aimed to protect independent poultry farmers from losses. “Currently independent farmers make up 20% of poultry farmers in Indonesia and the percentage is declining. If the government agrees with the idea, they can maintain the current number [of independent farmers] or even increase it,” said Mr Syarkawi. DOC quality is also an issue, according to him. “The government can set up a state-owned company focusing on supplying good quality DOC to independent farmers.”
|H5N8 and H5N2 in Taiwan|
[29 February 2016] Taiwan has reported six more avian flu outbreaks to the World Organisation for Animal Health, OIE. One involved H5N8 and the five others cited the H5N2 strain. Taiwan has been battling both viruses in poultry over the last several months. The H5N8 struck a goose farm in Pingtung County at the end of January. The H5N2 outbreaks began at the end of January and was recorded until mid-February in Yunlin County, Changhua and Pingtung counties, and in the city of Tainan.
Inhagen helps with industry modernisation
[29 February 2016]
The sixth edition of the biennial International Animal Health, Genetics and Nutrition Congress & Expo (Inhagen) has become the Philippines’ largest exhibition and forum to showcase the latest scientific developments and state-of-the-art technologies on animal health, genetics and nutrition. ISA Q TAN reports on some interesting developments showcased during the event.
Intracare promotes clean water
Netherlands-based Intracare highlighted the need to provide clean water to raise healthier animals. Arjan van de Vondervoort, Marketing and Sales Manager, told Asian Agribiz that unlike other disinfecting products, Intracare’s Intra Hydrocare has the dual effect of cleaning and disinfecting drinking lines. He said the biofilm that accumulates from the various chemicals, medications and supplements that are added to the drinking water is not removed simply by disinfecting, and could result in polluted water. Intra Hydrocare purifies the drinking system. It can be used in low concentrations without affecting the animals during the production period and at higher concentrations after production for complete cleaning.
Semen Cardona to establish boar station in the Philippines
Plaridel Products & Services, the exclusive distributor of Semen Cardona in the Philippines, said it will put up a boar station in the country by the end of the year. “Semen Cardona is a multi-genetic operation, and DanBred is an important partner of the company in Spain,” Dr Jun Punzalan, Managing Director of Plaridel Products & Services told Asian Agribiz. “One of the primary genetics at the boar station will be DanBred. This will give Filipino raisers ready access to DanBred genetics without importing semen from Europe.” Currently, Filipino producers using DanBred semen have to import the semen from Semen Cardona in Spain.
Poultry producers still on alert against ND
Philippine poultry producers remain on high alert against Newcastle’s Disease (ND), after having identified the type of virus that has hit the country. At the ND Forum organised by Philippine College of Poultry Practitioners, Dr Dennis Umali, Assistant Professor at the College of Veterinary Medicine of the University of the Philippines-Los Baños, said that the virus has been identified as Type VIIi, which is similar to the type that was found in Indonesia and Pakistan. There is still some contention as to how the outbreaks occurred. Dr Jay Peria, Veterinary Technical Services Manager at Ceva Philippines, told Asian Agribiz many poultry producers in the country remain on cautious, beefing up on their production programs and biosecurity to help protect their flocks against the virus.
Zagro showcases liquid supplements
Zagro showcased its liquid supplements particularly for poultry at Inahgen to develop its market in the Philippines. Anelynne Labanen, Zagro’s Technical Specialist for Animal Nutrition told Asian Agribiz that the company has a well-developed market for its water soluble products, and is now ready to push its oral liquid supplements like Zagrosol AD3E and Zagrosol ES, as well as its feed additives Zagromix and Zagrovit. The company has also beefed up its presence in the market, with additional sales agents to focus on key accounts as well as take care of its distributorship network throughout the country.
Better nutrient digestibility with MFeed+
A year after launching MFeed+, a unique combination of clay and seaweed designed to boost nutrient utilisation in animals, Olmix is showcasing the product at Inahgen 2016. “We launched it last year and have finished registering the product in this region,” Sebastien Balusson, Deputy CEO & Industrial Manager, told Asian Agribiz. He added that MFeed+ helps improve animal performance by improving nutrient digestibility. Since launching Mistral in the Philippines, Olmix’s presence in the market has grown to include other products aimed at helping livestock producers boost productivity and profitability.
Age of piglets is key in digestibility measurement of amino acids
[26 February 2016] At Asian Agribiz's 2016 Pig Feed Quality Conference which will take place on March 31-April 1 in Bangkok, Thailand, Associate Professor, Juliana A. Soares Almedia, Missouri Baptist University, USA will consider if the standardised ileal digestibility (SID) of crude protein (CP) and amino acids (AA) in different soybean products (soybean meal (SBM) 48%, SBM 44%, enzyme treated SBM, fermented SBM, soy protein concentrate, and soy protein isolate) vary, and if the bodyweight of pigs influences SID of CP and AA. For more details, contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org, or visit our website. Audio translation of all presentations into Vietnamese will be available.
|Revenue drop of 7.64% for Thailand's GFPT |
[26 February 2016] GFPT’s total sales fell 7.64% to USD 460.74 million in 2015, driven by decrease in export volume of chicken meat products and lower prices of chicken meat and parts in domestic market. According to the company's filing to the Stock Exchange of Thailand, GFPT’s export volume (chicken meat products) was 22,100 tonnes in 2015, down 15.65% from 2014, driven mainly from lower export volume of raw chicken products. Revenue from chicken processing represents 40.38% of the firm’s total sales, while the remaining sales come from feed, farm and processed foods. GFPT’s net profit in 2015 declined 32.85% to USD 33.44 million from the previous year. GFPT said it will place emphasis on the upstream expansion of chicken farm areas, with an investment of USD 22.39-27.98 million per year.
|CPF India to expand QSR network|
[26 February 2016] CPF (India), a subsidiary of Thailand’s Charoen Pokphand Foods plans to expand its quick service restaurant Five Star Chicken network in its core Indian markets. "In 2016 we plan to increase our network adding around 150 outlets. The focus will be mainly on the southern markets where we will be consolidating our presence before reaching out to other regions," said Rijoy Prabhakar, Assistant Vice President of CPF (India) and Head of the Five Star Chicken business. According to him, the company is looking at small towns, amusement parks and malls for housing the QSR.
Industry updates for meat producers and traders at GAMC
[26 February 2016]
The 4th Gira Asia Meat Club (GAMC) meeting, held in Ho Chi Minh City yesterday, saw participants from the meat processing, poultry, pork and cattle industries. Club members listened to presentations on production, consumption, pricing and trade in sheepmeat and pigmeat globally and specifically in Asia. The second day of the meeting will feature similar topics on poultry meat and beef.
Market demand in the Philippines for pork will continue to support growth
An oversupply of pork in the Philippines and a decline in producer prices has hurt profitability in the Philippines, said Rupert Claxton, Senior Consultant, Gira. Other issue plaguing the country is its lack of supply chain infrastructure and competition from cheaper imports that is leading to uncertainty for its pork producers. However strong market demand continues to support growth in the industry. He said he expects the country to see a price recovery in 2016. “Investment by overseas companies, while provocative, is forcing evolution,” he noted. For his 2021 outlook on the country Mr Claxton said increased levels of commercialisation will lead to the development of several national operators although they will focus around Manila. “The country will see increased commercialisation and an improved use of modern systems at farm level.” He also expects import penetration to increase from its current low levels with growth of both offal and frozen categories.
Japan is expected to see more pork imports from TPP member countries
While imports of pork to Japan fell year-on-year by 5% to 791,000 tonnes, the Trans-Pacific Partnership (TPP) is expected to give larger access to imported pork from TPP member countries such as Canada and the US in the next five years, said Yi Chen, Consultant for Gira. She said in the long run total consumption for this market will be limited due to its shrinking population. For South Korea, meanwhile, the sharp increase in imports of fresh and frozen pork as well as offal last year will lower imports for this year. Last year imports shot up by 25% to 453,100 tonnes after domestic prices for pork increased as the effects of PEDV and FMD outbreaks in the country reduced domestic production.
Chinese sheep producers are reacting to price signals and could go into over production
Sheepmeat in China is threatening to go into over production as producers are attracted by the high prices, which has caused local production to be relatively competitive with imported products. “It is already happening. This is a threat to imports from Australia and New Zealand,” Rich Herzfelder, a presenter at the Gira Asia Meat Club, said, adding that there has been significant increases in both large herd in confinement and marginal production. “These producers are reacting to the price signals they are seeing,” he said. The market saw high prices in 2013-2014. North Asia is New Zealand’s second largest market for New Zealand lamb.
|CP Group partners with AG Processing for higher traceability|
[25 February 2016] Thailand’s Charoen Pokphand Group (CP) has partnered with USA's AG Processing Inc, the world’s biggest soybean processing cooperative, to develop a sustainable soybean meal (sbm) supply. The project will reinforce sustainable and traceable sourcing throughout CP's supply chain and that of its business partners. Somchai Kungsamutr, President and CEO of CP Group’s Feed Ingredients Trading Business said the 3-year partnership aims to develop a process whereby sbm can be traced back throughout the supply chain. The project will also ensure that sbm sold to CP will not originate from deforested areas. CP imports sbm mainly from the US, Brazil, Argentina and India. Mr Somchai added that CP used almost 1mt of sbm last year.”
|Philippine DA plans for food safety institute|
[25 February 2016] The Philippine Department of Agriculture (DA), through its National Meat Inspection Service (NMIS), plans to put up a Food Safety Institute (FSI) that will serve as a venue for training and workshops for the country’s food safety officers. The FSI, said DA Assistant Secretary for Regulations and NMIS Executive Director Minda Manantan, will be a training hub for NMIS trainers, meat control officers, food safety officers, meat inspectors, NMIS hazard auditors and even food business operators. She added that the institute is also planned to provide laboratory services and will serve as the national reference laboratory for all fresh or unprocessed meat.
|Indonesia’s feed-grade wheat imports increase in January |
[25 February 2016] Members of the Indonesian Feed Millers Association switched to wheat to substitute the use of corn in their feed formulations, due to the government's corn import limitation last year. Based on the Statistic Centre Agency’s data, wheat imports in January surged 86.35% compared with the previous year’s wheat imports. Fransiscus Welirang, Chairman of the Indonesian Wheat Flour Producers Association, said wheat imports for the feed industry has grown since Q4 2015.
|Indian seafood exporter launches mobile app for home delivery|
[25 February 2016] Leading Indian seafood exporter Baby Marine Group based in Kerala has launched a smartphone app for home deliveries. Customers can either place online orders at dailyfish.in or by downloading the Daily Fish India app. Alex K. Thomas, Managing Director and CEO of the company said that they started this concept of reaching out to customers in Kochi and have plans to reach other major cities in Kerala. “We have decided that our products will not be available in shops or mall counters," he added.
|H7N9 causes five more deaths in China|
[25 February 2016] China’s latest outbreak of H7N9 avian influenza has caused another five deaths, according to a report by the World Health Organization (WHO). WHO said China reported 28 additional human cases of H7N9 since December in six provinces, all in southern China. Twenty-five of the cases reportedly resulted from exposure to live poultry or live poultry markets; there was no clear exposure to live poultry in the other three cases. Four of the confirmed exposure cases died, as well as one of the unconfirmed cases, WHO said.
|Indonesia’s fishery industry ready for AEC|
[25 February 2016] Indonesia’s Ministry of Fisheries & Marine Affairs is optimistic that the country’s fishery industry can compete in the Asean Economic Community (AEC). Nilanto Perbowo, Director General of Fisheries Competitiveness Reinforcement, said the ministry’s policies on moratorium, illegal fishing eradication and ban on transhipment have led to abundant local fish stock. “We are able to meet demand from local and regional markets,” he said. Mr Nilanto said his directorate has allocated USD 134 million for the development of cold chain and logistics systems, fish processing vessels, and live fish & frozen fish carrier vessels.
|Salim ups stake in Malaysia’s CAB Cakaran |
[24 February 2016] The Salim Group has increased its stake in Malaysian poultry integrator CAB Cakaran Bhd with an additional 3.266% or 5 million shares in off market trading via subsidiary Plant Wealthy Holdings Bhd. On January 20, Anthoni Salim, Chairman, emerged as a substantial shareholder in CAB Cakaran via a 6.69% off-market transaction. To date, Anthoni holds 8.55% in CAB Cakaran through Plant Wealth Holdings Ltd, a company controlled by KMP Investments Pte Ltd, which in turn is 67% owned by Anthoni. This brings Anthoni’s stake in CAB to 11.81%, excluding the agreement Plant Wealth made with CAB on January 18 for a proposed private placement of a 9.1% stake in CAB Cakaran, which is expected to be completed in Q2 2016. Once completed Anthoni will effectively own a 20% stake in CAB Cakaran, most likely giving him a board seat.
|Low live bird price troubles Indonesian farmers |
[24 February 2016] After spiking to USD 3.0/kg, now the price of chicken in Indonesia has contracted to around USD 2.4/kg. This has led broiler farmers into a difficult situation as live bird is priced at just USD 0.9-1.0/kg, far below the production cost of around USD 1.2/kg. According to the National Poultry Farmers Association (PPUN), this is due to excess supply. “Current broiler DOC production is back to 60 million birds/week, while demand is only around 48 million birds,” said Sigit Prabowo, PPUN Chairman. Hartono, Advisor of the Indonesian Poultry Farmers Association & Information Centre (Pinsar Indonesia), worries that this could be critical to farmers and hopes the government will continue the PS culling program.
|New procedures for handling and use of MSM approved|
[24 February 2016] The Philippine Department of Agriculture (DA) has issued new regulations for handling and use of mechanically separated meat (MSM). The new circular, which took effect on February 4, is expected to “ensure that MSM, as raw material for heat-treated meat products, will be hygienically handled throughout the entire production chain in order to ensure food safety and quality.” The circular covers the composition, hygienic handling practices and use of both locally produced and imported MSM from pork and poultry.
|Thai Union launches new sustainability initiatives|
[24 February 2016] Thailand’s Thai Union (TU) has launched a new sustainability initiative called Sea Change, designed to deliver lasting changes in the way the firm operates in the Thai and global fishing industries. TU’s Sea change program includes responsible sourcing, marine conservation, safe and legal labour and caring for its communities. It aims to have full traceability by 2020, reducing the risk of illegal, unreported and unregulated (IUU) fishing. TU also said that the initiatives are designed to provide every worker with safe and freely-chosen employment.
|India is largest Asian surimi supplier to Japan|
[24 February 2016] In the second half of last year surimi shipments from India to Japan reached 37,000 tonnes making it the largest supplier to Japan among Asian countries. This was likely caused by a drop in exports from Thailand due its labour issues. “The number of vessels acquiring fishing licences in Thailand declined by 50% compared to its peak,” said a Japanese importer. Surimi output declined by 80% from its peak. “Only a few producers are actively exporting surimi to Japan,” he said. Supply from Indonesia, where investments in production facilities are progressing, saw imports jump 20% last year.
|Improved methionine nutrition for swine|
[23 February 2016] At Asian Agribiz's 2016 Pig Feed Quality Conference, Dr Yves Mercier, Research Manager Amino Acids, Adisseo France, will highlight that methionine and sulphur amino acids are more than building blocks for protein synthesis and are involved in many cellular regulations. He will present some recent research results on sulphur amino acids in swine demonstrating their crucial role. For more details on the conference which will take place on March 31-April 1 in Bangkok, Thailand, contact Omthong Tjoa or Sutasinee Lake at email@example.com, or our website. Audio translation of all presentations into Vietnamese will be available.
|Indonesia to build seven cattle ships |
[23 February 2016] The Indonesian government is pushing ahead with its domestic cattle shipping program, with another seven ships to be built this year. The government launched the nation’s first subsidised cattle ship late last year. Named the Camara Nusantara 1, the ship has since made three voyages, bringing cattle from East Nusa Tenggara into Java. Amran Sulaiman, Agriculture Minister, confirmed more ships will be built. “We have ordered seven ships,” he said. “A ship costs about USD 3.7 million.”
Highlights in Asian Poultry Magazine, March 2016
[23 February 2016]
Direct sales raises KRR’s profitability
KRR Poultry Farms was among the pioneers in layer farming in India’s Namakkal region, which has since become the egg basket of India. The farm continues to concentrate on improving egg quality to maintain its lead, writes SM ARUN.
Poultry maven sets sights on foreign markets
With a successful two-site layer operation, Rolly Lagaya is happy to share his knowledge with other layer farmers. ISA Q TAN writes that his goal is no longer to expand his poultry farm, but to help new and existing farms improve their efficiencies through better technology and management practices.
Robby’s Farm profits with 3-zone biosecurity
Robby Susanto counts himself lucky that his layer farm in Solo, Indonesia’s Central Java province is being used for a pilot project by the FAO for its 3-zone biosecurity program. This program has raised his profits alongside a change in mind set and attitude of his farm operators, writes ARIEF FACHRUDIN.
Focus on safety helps Cargill remain resilient
Food manufacturing is no longer a straight-forward business. A breakdown in food safety practices on the complicated supply and production chain can have dire consequences on businesses. RACHAEL PHILIP writes that manufacturers can learn from Cargill’s focus on safety, transparency and quick action last year.
Targeting immunosuppression - building a good immune foundation
Immunosuppression in poultry causes widespread and significant economic losses, by decreasing vaccine effectiveness, causing excessive post-vaccine reactions, and allowing secondary infections like E. coli to establish, requiring antibiotic treatment. DEXTER M. ABRIGO and STEPHANE LEMIERE explain how to reduce immunosuppression to build a good and solid immune foundation.
Understanding light intensity measurement
Light intensity in poultry houses is often measured with light meters that do not consider the different perception of light intensity of birds at distinct wavelengths, compared to humans. Light intensity measured at bird level should be uniform throughout the house from side-to-side and front-to-back discusses IAN RUBINOFF.
Using substrate-specific NSP enzymes in layer diets
The responses of laying hens to NSP enzymes have been inconsistent. One important factor is the highly variable and complex non-starch polysaccharides (NSP) in different feed ingredients. S. PARASHURAMULU and S.V. RAMA RAO highlight the importance of appropriate NSP enzymes specific to the substrates present in commercial layer diets, including alternative protein meals.
Improving the titre of live infectious bronchitis vaccine for poultry hatcheries
Infectious bronchitis (IB) vaccines have not been recommended in combination with other sprayed additives that may inactivate the vaccine. RYAN IZARD describes how a new generation vaccine stabiliser can not only avoid soaking the chicks with aerosol spray, but also prolongs the viability and improves the effectiveness of a live IB vaccine.
|Indonesia’s broiler DOC production predicted at 4.1b birds|
[22 February 2016] Indonesia’s potential production of broiler DOC this year is predicted at around 4.1 billion or 78 million birds per week, according to the National Poultry Farmers Association (PPUN). Sigit Prabowo, PPUN Chairman, said the demand for broiler DOC is only around 2.6 billion birds or around 50 million birds per week, if the current chicken consumption is at 9.5 kg per capita. “So there will be around 28 million excess DOC excess,” Mr Sigit said. He added that the numbers of broiler PS and GP are currently at around 32 million birds and 800,000 birds, respectively.
|China reports new H7N9 cases, analysis ties death to longer incubation|
[22 February 2016] Hong Kong health officials reported three more H7N9 avian flu infections last week, all of them in adults from Guangdong province in the southern part of China's mainland. Also, a new analysis of the disease found that longer incubation periods are associated with fatal outcomes. Nearly all of China's H7N9 cases have involved contact with poultry or their environments in live-bird markets. The new cases are part of a fourth wave of H7N9 activity in China, in which 53 cases have been reported so far.
|India likely to import corn in 2015/16|
[22 February 2016] India is likely to import corn in marketing year 2015/16 on tight domestic supplies due to the drought affected domestic harvest. The USDA Gain report estimates that India could import 400,000 tonnes based on the quota allocation of 290,000 tonnes of corn for imports under the tariff rate quota (TRQ), and the likelihood of additional allocation of 100,000 to 120,000 tonnes before the rabi corn arrivals begin in April. In January the government issued a tender for importing 320,000 tonnes of corn under specific conditions including that the cargo is non-GMO. Most of the qualify bids offered corn sourced from East European and Black Sea origins. “Assuming no major weather aberration from now through the harvest of the upcoming rabi corn in late March through July, the government may not be inclined to allow further imports of corn under TRQ,” said the Gain report.
India dairy industry update
[22 February 2016]
India's milk production to reach 146.31 mt
India's milk production is estimated to increase to 146.31 million tonnes in 2015-16 while the per capita availability of milk has also increased to 302gm, Union Agriculture Minister Radha Mohan Singh said. “For the first time there is a record enhancement of milk production at 6.3% whereas on a global scale there is only an increment of 2.2%,” he said. According to him, even though the country stands first in global milk production, milk productivity per animal is far less than the average in developed dairy nations.
Hatsun Agro to acquire feedmill in Tamil Nadu
India’s largest private dairy Hatsun Agro has approved the acquisition of a feedmill owned by VKS Farms located near Coimbatore in Tamil Nadu. The acquisition is part of Hatsun Agro’s plan to expand its fast growing cattle feed business. The USD 2 million deal will be under a private equity agreement and the company’s board will meet shortly to finalise the deal with VKS Farms. Hatsun has brands like Arun Icecreams, Arokya Milk, and dairy products under the Hatsun brand.
India’s organised dairy market to grow
India’s organised dairy market is expected to perform better as consumers are rapidly turning towards branded dairy products, according to a report by ratings agency Crisil Ratings. Revenue from the share of organised dairy segment could rise to 25% by 2017-18 from 19% in 2014-15. “States in northern India, which are big on milk production but have low organised dairy penetration will witness the highest capacity addition,” the report said. Organised channel is expected to incur a capital expenditure of USD 2.2 billion by 2017-18 to raise milk processing capacity to 105 million litre per day.
Amma Pannai to increase feed production capacity
Amma Pannai Mahalir Kuzhu, a group of 20 women working towards the improvement of agriculture productivity, has gained the attention of the National Bank for Agriculture and Rural Development. The group produces 50 tonnes of animal feed per month at a rented facility. Feedback from their customers, all members of milk cooperative societies at Vallivalasu in Erode district, show that milk yield has increased by 15%-20% after feeding the animals with the feed produced by the group. At INR 15.80/kg (USD 0.23), the cost is about INR 3 lesser compared to other brands in the market. To maintain consistent quality the group regularly tests their product at the Namakkal Laboratory to validate the right proportion of raw material, namely rice bran, groundnut cake, minerals mixture, black gram husk, jaggery, bajra, corn, sorghum, palm cake, cotton seed, common salt, red gram husk and bengal gram husk.
|Establishing a digestible calcium requirement for pigs: methods and current results|
[19 February 2016] Dietary calcium (Ca) is inexpensive often over-fed in pig diets, however, this can have negative effects on the digestibility of more expensive ingredients such as amino acids and phosphorus (P). Therefore, establishing a digestible Ca content for ingredients coupled with a digestible Ca requirement for pigs may enable more accurate delivery of the Ca needs of the pig. Dr Carrie Walk will summarise a series of experiments conducted to evaluate the digestible Ca concentration of various inorganic and organic feed ingredients, and to use these values to establish a digestible Ca requirement for pigs based on growth performance, Ca and P balance and bone ash at Asian Agribiz's 2016 Pig Feed Quality Conference in Bangkok. For more details, contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org, or visit our website. Audio translation of all presentations into Vietnamese will be available.
|Thai authorities register 70,000 foreign workers in seafood industry|
[19 February 2016] Thai authorities have registered more than 70,000 previously undocumented foreign workers in its fishing industry, part of an effort by the government to avoid a European Union ban on its seafood exports, AFP reported. The EU delegation visited Thailand last month to inspect its progress in combating illegal, unreported and unregulated (IUU) fishing. Navy, fisheries and labour officials insisted the clampdown on illegal fishing was yielding results. The government said that documenting foreign workers, many of whom illegally enter Thailand from Cambodia and Myanmar and are easily exploited, will help end the cycle of abuse. More than 8,000 fishing vessels have also had their registrations revoked in the last year.
|Indonesia’s agri, fishery exports increase in January|
[19 February 2016] Indonesia’s Statistic Centre Agency (BPS) recently released data of agriculture & fishery exports in January 2016. Some commodities showed an increasing trend including pig, shrimp, freshwater fish and crab. The export of pigs in January 2016 reached USD 5 million or a 12.84% increase compared with January 2015's export value. Meanwhile, the export of shrimp, freshwater fish and crab reached USD 5 million (a 7.01% increase), USD 2.4 million (a 12.6% increase) and USD 3.2 million (a 101.67% increase), respectively. BPS said that exports were to the US, Japan, China, Asean and EU.
|China’s first welfare code for feed lots and slaughterhouse due in June|
[19 February 2016] The Chinese Veterinary Medical Association (CVMA) is working with 30 local breeding and slaughtering companies to draft the country’s first animal husbandry and slaughtering standards code. The code is expected to be ready by June. According to CVMA the code will set technical standards on how animals are housed and fed on farm. The slaughterhouse section will cover stunning and bleeding of animals. It will also offer guidelines on livestock stocking density as well as temperature, humidity and ammonia concentration levels in farm houses and feedlots. There will also be standards for feed and water quality and cleanliness. The new standards are driven by a demand for better meat quality and food safety, and better treatment for farm animals.
|Vietnam's seafood producers push for BAP certification|
[19 February 2016] Minh Phu, Vietnam’s largest shrimp producer and exporter, will pursue four-star Best Aquaculture Practices (BAP) Certification through a partnership with National Fish and Seafood. According to the Global Aquaculture Alliance (GAA), approximately 800 Vietnamese shrimp farms will be encouraged to obtain BAP certification. National Fish will assist producers with education, support and funding to enroll in the GAA’s iBAP program. "This announcement demonstrates our commitment to making third-party certification available to the majority of aquaculture constituents,” said Peter Redmond, BAP’s Vice President of Market Development. National Fish also pledged to market the shrimp from the farms that earn and retain BAP certification.
|India’s ITC to enter branded shrimp segment|
[19 February 2016] India’s multi-business conglomerate ITC Limited is looking to expand its portfolio into the branded shrimp segment, according to its Chairman YC Deveshwar. “While we are exporting shrimp now and could become a branded player in the frozen shrimp market by marketing West Bengal shrimp across India,” he said. ITC is targeting to reach USD 14.6 billion turnover from its fast moving consumer goods category in the next 15 years.
|Farm’s Best will remain in agribusiness despite proposed sale of assets |
[18 February 2016] Malaysian integrator Farm’s Best Bhd said its proposed asset disposal to CAB Cakaran Corp Bhd would not result in the group having insignificant business or operations. Its feedmilling activity, for instance is expected to continue to generate significant revenue. The asset disposals would help pare down part of its USD 60 million debt and save USD 4.8 million in annual interest expenses. CAB had announced that it was keen to take over some assets which have either been incurring losses or generating small profits in the last two years. Among the assets are a poultry processing plant, six breeder farms and 28 broiler farms totalling USD 59 million.
|Thailand’s livestock industry protest against TPP|
[18 February 2016] The Swine Raisers Association of Thailand, along with 10 other livestock groups, have jointly submitted a formal complaint against joining the US-led Trans-Pacific Partnership (TPP) to Sunantha Kangwankulkij, Deputy Director General of the Department of Trade Negotiations. “We are voicing our resistance as the TPP will negatively affect the Thai livestock industry,” Surachai Sutthitham, President of the Swine Raisers Association of Thailand, told Asian Agribiz. For example, unwanted pig parts from the US could be pushed to Thailand, he said. Meanwhile, Finance Minister Apisak Tantivorawong said earlier that if Thailand participates in the TPP agreement, it will boost Thailand’s economy.
|S Korea to sell old rice as feed|
[18 February 2016] South Korea will sell old rice in its stock to feed domestic animals as a means to handle rising inventory and to save costs on feed raw material imports. The country’s Ministry of Agriculture, Food and Rural Affairs said it will start by offering 99,000 tonnes of brown rice harvested in 2012 to local distributors later in February. The rice will be sold at USD 0.17 per kg. Farms will be required to mix about 5% of rice into corn-based forage for pigs, cows and poultry. The ministry said using rice as cattle feed will reduce stockpile management expenses, by about USD 1.1 million per 10,000 kg, and cut costs on corn imports.
|Denmark re-enters Japan by-products market |
[18 February 2016] Denmark has confirmed that it will export diaphragm muscle, cattle tongue and other by-products to Japan after a 15-year trade embargo was lifted. “The Japanese have a high food safety standard and the move is an endorsement of Denmark as a food producer,” said Eva Kjer, Denmark’s Minister of Environment and Food. “It is an important step in our plan to increase exports of Danish quality food to Asia.” She said while the export of tongue and muscle to Japan showed that Danish companies are good at getting the best out of the raw materials, the diaphragm muscles, a delicacy in Japan, demonstrate how Danish food is able find new markets.
|EU sees ‘huge potential’ for new farm agreement with Vietnam|
[18 February 2016] The EU is looking forward to new trade links with Vietnam. According to European Trade Commissioner, Cecilia Malmström, the development of new trade agreements between the EU and Vietnam has ‘huge potential’ for EU firms. According to the UK’s Agriculture and Horticulture Development Board, Vietnam has a large pig herd and consumes 35kg of pork per person. “Assuming the FTA is ratified, it will remove import tariffs, which should make exporting to the country more feasible,” a spokesperson from the board told Pig World. The the country could then become a significant export market on a par with Korea or the Philippines.
|Japan’s farm, seafood products to gain export fast track|
[18 February 2016] Japan’s government will work with wholesale markets to streamline procedures for exporting farm and fishery products, aiming to reach a USD 8.64 billion annual goal ahead of its 2020 target date. The new one-stop service will halve the time needed to complete the process to about three days. The idea is to create opportunities even for small-scale producers to reach foreign markets. Starting in fiscal 2016, all of the procedures for shipping produce and seafood overseas, including quarantine inspections and certificate issuance, will be conducted at a single location for each of the three major airports – Haneda, Narita and Chubu in cooperation with nearby markets.
|Lay Hong buys OCR’s asset in Thailand|
[17 February 2016] Malaysian poultry integrator Lay Hong Bhd said it is paying USD 2.1 million to O&C Resources Bhd (OCR) for a property in Songkhla, Thailand. According to Lay Hong the acquisition is part of its business expansion in chicken processing and further food processing overseas. “Currently there is no urgent need but there is a possibility to expand into backward integration in broiler farming in the future should demand reach a significant volume,” the company said. Last month Tokyo Stock Exchange-listed NH Foods Ltd acquired 10% of Lay Hong. Both companies have plans to set up a joint venture company manufacturing further processed foods. NH Foods produces fresh meats, processed foods and dairy products.
|Japfa challenges price-fixing allegation|
[17 February 2016] Three Indonesian subsidiaries of Singapore-listed Japfa are caught up in investigations over alleged price fixing and cartel activities in the beef and poultry industries in Indonesia. Two of the units involved in the beef industry are due to appear before the country’s Competition Commission (KPPU), Japfa said in a statement to the Singapore Exchange. “Japfa Comfeed Indonesia, together with the other 16 poultry companies, was directed by the Director General of Animal Husbandry to cull six million poultry parent stocks in 2015,” the statement said. “The company does not, therefore, expect an allegation report on any violation of the law for complying with the direction.” The company added that for “completeness”, it was disclosing that two other subsidiaries – Santosa Agrindo and Austasia Stockfeed – would be appearing before KPPU, to answer similar allegations over the restriction of the distribution and sales of beef.
|Syngenta buy gives China access to GMO technology|
[17 February 2016] China National Chemical Corp’s proposed USD 43 billion purchase of global Swiss agribusiness Syngenta AG has important implications for the seed sector. While both companies are major agrochemical producers, the purchase will also give ChemChina access to Syngenta's seed technology, which is heavily oriented to GMO crops. China has been slow to adopt GMO technology directly, and slow to approve GMO imports, but the acquisition, due to be finalised by the end of the year, will create a powerful advocate for GMO technology in the Chinese agricultural sector.
|Pakistan’s beef exports to UAE increase|
[17 February 2016] Pakistan’s beef exports to the United Arab Emirates has reached USD 43.61 million from 2014-15, registering a 24% increase compared to the previous year. Industry sources said that the growth is mainly due to a 50% increase in the number of accredited Pakistani slaughterhouses since 2013. At present, around 12 meat processors from the country export beef to UAE.
|Live cattle demand in Jakarta, West Java to reach 850k heads|
[17 February 2016] Indonesia’s Ministry of Agriculture has predicted that live cattle demand in Jakarta and West Java will reach 850,000 heads this year. Of the demand, 645,341 heads will be supplied from eight provinces in the country while the remainder will be from imports. Fini Murfiani, Director of Livestock Processing & Marketing, said: “50% of the local supply is targeted from West & East Nusa Tenggara and will be transported by special livestock vessels. West & East Nusa Tenggara are able to supply 128,289 heads and 214,788 heads, respectively.” The Ministry of Agriculture is optimistic that local supply can help stabilise the price of beef in Jakarta and West Java.
|McDonald’s opens 8th outlet in Vietnam|
[17 February 2016] McDonald’s Vietnam opened its eighth outlet in Ho Chi Minh City early this month, two years after starting up in the country. The QSRs growth has doubled every year since it first opened in February 2014, according to Henry Nguyen, Managing Director of Good Day Hospitality, which owns and operates the franchise in Vietnam. Nguyen targets 100 outlets across the country in the next 10 years. The company currently uses around 15% domestic ingredients. This year the chain aims to raise the ratio to 30%, but the main ingredients such as beef, pork and fish are imported from the US, Australia and Thailand.
|Online grocery shopping in Asia to see double-digit growth|
[16 February 2016] The market for online grocery shopping in Asian countries could see double-digit growth to USD 13 billion by 2020, driven by the rise of the young, working class population in urban areas. This is according to grocery shopping smartphone app operator HappyFresh, which operates in Indonesia, Malaysia, Thailand and Taiwan. “We are seeing an ‘uberisation’ of the retail industry in Asia. The outlook is promising,” Markus Bihler, CEO, said. “Opportunities abound in this region. The continued increase in mobile adoption and broadband penetration has helped boost our online grocery sales.” HappyFresh noted that working mothers currently outnumber all other customers in terms of online grocery shopping.
|Philippine producers contemplate pig holiday|
[16 February 2016] Philippine pig producers are considering a five-day pig holiday to protest against the continuous entry of smuggled pork meat in the local market, which has led to a decline in prices. From around USD 2.42/kg in August last year, price of live pigs is down to only USD 1.89/kg this month. Chester Warren Tan, President of the South Cotabato Swine Producers Association, told Asian Agribiz that some producers are now selling at lower the production cost. While no date has been set for the planned holiday, Mr Tan said they are hoping that this will spur the government to move swiftly against smuggling, which continues to plague the country’s livestock industry.
|CPF focuses on food safety, specialised foods|
[16 February 2016] Thailand’s Charoen Pokphand Foods (CPF) is focusing on food safety and specialised foods such as food for patients in hospitals and food for older people, Viroj Kampeera, Executive Vice President of CPF said. The firm has special technology to make liquid food last longer, from one day to 2-3 months. CPF is now seeking medical food status with the Food and Drug Administration (FDA). Moreover, it will expand healthy and specialized foods to Asean countries, Mr Viroj said. CPF's r&d spending now accounts for 1-2% of its local sales, or around USD 28.37-56.74 million each year.
|Registrations open for 2016 Pig Feed Quality Conference in Bangkok|
[16 February 2016] Widely recognised as one of Asia's premier scientific forums for industry professionals to update their knowledge on pig production, the Asian Agribiz 2015 Pig Feed Quality Conference brings together 15 world class academic and commercial speakers, with 18 presentations – with much data presented in Asia for the first time. Registrations close on March 15, 2016. For more details, contact Omthong Tjoa or Sutasinee Lake at email@example.com, or visit our website.
|USDA: China grain policy will lead to high meat prices|
[16 February 2016] China’s high grain support prices will lead to artificially high prices for meat and dairy products in 2016, according to a report by the USDA’s Beijing office. That would be good news for meat exporters in Australia, Brazil, the US, and Germany, because high prices lead to larger imports. China is once again expected to produce record corn, wheat and rice crops, despite already having 250 million tonnes in storage, the report said. The government subsidises production with high support prices, and farmers switch crops to collect a guaranteed pay out. The government then suppresses low-priced grain imports to maintain high domestic feed prices, raising the cost of producing meat.
|Indonesia to have Brahman breeders association |
[16 February 2016] Indonesia is looking to Australia for breeding heifers as part of its food security. According to Shane Bishop, President of the Australian Brahman Breeders Association (ABBA), the Brahman forms the base of Indonesia’s breeder herd, “and Indonesia is always keen to secure both breeder bulls and semen from Northern Territory genetics.” Mr Bishop said ABBA will support the Indonesian government’s plan to import productive heifers to help achieve self-sufficiency. “We will work closely with Indonesia’s Directorate General of Animal Health and Livestock in the formation of an Indonesian Brahman Breeders Association. This will include providing technical support and sourcing suitable Australian genetics,” said Mr Bishop.
Asian Agribiz web special
Demand for portioned cuts picks up in Asia
[15 February 2016]
The demand for portioned cuts in Asia is on the rise, driven by growing incomes and changing lifestyles. In response to this, retailers have come up with a variety of cuts to satisfy their customers. The ASIAN AGRIBIZ team delves into this flourishing trend in the region.
Changing consumer lifestyle drives demand
Driven by greater awareness for food safety, growing incomes, and changing lifestyles and family size, Asian consumer preferences continue to evolve. There is now a clear trend towards portioned meat cuts to meet convenience and cooking preferences. Teddy Margamulia, Category Manager of Indonesia’s leading wholesaler Save Max, said: “In Indonesia families are now smaller. They buy meat portioned and weighed to fit their family size,” he said. The same is observed in Thailand. Kanop Sujikara, Deputy Managing Director of Tanaosree Group, said: “Large households are fast disappearing and the family size is shrinking. We portion our products in response to this changing consumer lifestyle.” Mr Kanop added that sales of whole chicken has been shrinking in the last few years.
Horeca contributes to growth of portioned meat category
According to Joanna Asterlita Kristanti, Chicken Processing Plant Supervisor of CJ Indonesia, the Horeca (hotel, restaurant and catering) sector has also been contributing to the growth of the portioned category. The number of hotels, restaurants, including QSRs, and caterers in Asia continue to increase and their demand for chilled portioned cuts will push category growth further.
Variety of cuts
Today portioned cuts sold at meat shops, supermarkets and hypermarkets in Asia are available in a variety of choices offering convenience to customers. For poultry, breasts, legs, wings and offal (liver, paws and gizzard) are the basic cuts found in supermarkets across the region. But with adventurous consumers preparing different cuisines at home, we find speciality cuts such as chicken cubes, ribs, tulip or lollipop, ground meat, boneless and skinless parts and fillet. In the beef category, there are prime cuts like sirloin, tenderloin and ribeye, secondary cuts, as well as offal. These cuts are weighed and packed.
Portioned popular in Malaysia
Supermarket and hypermarkets in Malaysia offer varied choices of portioned cuts. They get their chicken – whole and in parts – from suppliers and processors, said Jessie Ker from the Meat Department of GCH Retail (M) Sdn Bhd. “For chicken we do not do the cutting in-store. However, we offer free butcher services for customers who buy whole birds. “Lamb and beef, on the other hand, are delivered in blocks. We have bandsaws and slicing machines to produce leg and shoulder chops, cubes, spare ribs and thinly sliced meat for shabu-shabu. These are sold frozen and chilled,” Ms Ker said. Chicken drumsticks and wings are popular among end users in Malaysia at around USD 2.50 per kg. Food stall operators such as fried noodles, fried rice, satay and tom yam stalls, meanwhile, opt for breast meat.
Making the cut
Rodrigo de la Peña, who runs a meat shop in Quezon City in the Philippines, believes that at the start, it was retailers that created demand for portioned meat by making them available, but now growing demand from consumers is driving sales up. “When retailers first began to offer cuts, consumers responded well. So the same concept was applied to pork and beef, and it worked. Now it is the consumers themselves who are driving demand for cuts. There are many cuts in the market that are now the result of that,” Mr de la Peña said, adding that the trend towards portioned cuts will continue to grow as more people find cuts convenient for meal preparation.
Portioning according to demand
CJ Indonesia through subsidiary Super Unggas Jaya (Suja) does chicken portioning to meet the needs of supermarkets and QSRs. By portioning, Joanna Asterlita Kristanti, Chicken Processing Plant Supervisor, said Suja gains a premium of around 10%, compared to sales of dressed birds. Suja produces a variety of regular cuts such as whole leg, thigh, drumstick, breast, wing and offal. The products are sold chilled and frozen. She said the drumstick and wing are popular at supermarkets. Another Indonesian chicken processor Batam Inti Pangan Sejahtera (BIPS) that operates plants in Bogor, West Java, and Batam Island produces fresh chilled boneless legs, boneless breasts and fillets to meet demand from local and Japanese restaurants in Greater Jakarta and Batam city.
In the Philippines some retailers, particularly in supermarkets and meat shops, are adding value to portioned cuts by marinating them for barbecue and frying at home. These are sold either by weight or by piece. “We began selling marinated meats because we felt that our customers would want the additional convenience of ready-to-cook products,” said Rodrigo de la Peña, owner of a meat shop in Quezon City in the Philippines. Marinated chicken parts in Malaysia is a category that has potential to grow, said one supplier. Ready-to-cook portioned chicken legs and other parts marinated in honey and black pepper, as well as skewered kebab chunks, offer retailers wider margins and consumers greater convenience.
Gradual growth in India
Portioned cuts are slowly gaining ground among consumers in India. However, this is largely confined to consumers opting for special cuts according to their taste preferences. “Whole carcass still dominates the fresh meat segment and majority of the consumers still depend on traditional markets for their meat supplies,” said Karumuthu Manickam, Director of Kaveri Chicken in Thanjavur. “We have to view things in this light. Only when fresh meat is made available in supermarkets, portioned cuts will gain popularity,” he said.
Read the full article in the March/April 2016 issue of Asian Meat Magazine.
|Fine-tuning piglet nutrition|
[12 February 2016] The role of early nutrition in pig production cannot be overemphasised. Feeding piglets should focus on maximising feed intake to allow better gut health, improve FCR and subsequently long term performance. Asian Agribiz’s 2016 Pig Feed Quality Conference on March 31-April 1, 2016 at The Landmark Hotel in Bangkok, Thailand, will tackle various topics toward improving piglet nutrition, such as maximising piglet feed intake through diet composition; electrolyte balance and acid binding capacity in piglet diets. Dr Rommel Sulabo of the University of the Philippines at Los Baños will look at the European piglet feeding experience and discuss which are applicable to the Southeast Asian setting. For further information, contact Omthong Tjoa or Sutasinee Lake at firstname.lastname@example.org, or find more details here.
|Import permits for GM feed ingredients still valid in the Philippines |
[12 February 2016] Feed producers and traders with existing permits issued prior to the Supreme Court’s ruling banning the importation of genetically modified (GM) crops will still be allowed to bring in GM feed ingredients, Agriculture Secretary Proceso Alcala said. However, the agency will no longer issue new permits until new guidelines and regulations have been released. Dr Fe Cabullo, Chief of the Animal Feeds, Veterinary Drugs & Biologics Control Division, Bureau of Animal Industry told Asian Agribiz that the government is already holding consultations with industry stakeholders as well as other government agencies including the Department of Environment and Natural Resources, the Department of Science and Technology in order to craft the new guidelines that will take into account the needs of various affected sectors.
|Indonesian poultry companies blamed for rising prices|
[12 February 2016] Indonesia’s Business Competition Watchdog Commission (KPPU) has identified 12 poultry companies in an agreement on broiler PS culling of around 6 million birds. M Syarkawi Rauf, KPPU Chairman, said the commission has sighted a written agreement to reduce chicken supply with a view to control prices. The 12 companies, KPPU said, control 90% of the market share. According to KPPU, the companies’ actions has caused the price of chicken at consumer level to reach USD 2.94/kg from an average of USD 2.35. However, this case has led to some confusion as the culling effort was initiated and controlled by the Ministry of Agriculture.
|China may suffer GP shortage with HPAI related bans|
[12 February 2016] China’s HPAI-related ban on poultry imports from the US and France may actually increase demand for imported chicken, according to a USDA report on China’s chicken market. This is because the ban also covers imported live grandparent (GP) stock, which Chinese producers rely on. As a result, the USDA reduced its projection of Chinese chicken meat production for 2016 from 13.1 million tonnes to 12.7 million tonnes, and also boosted its import projection. The US provided more than 90% of China’s GP stock before the HPAI ban went into effect in January last year. French imports filled the gap in 2015, but ended after HPAI hit France’s flock in December. Chinese producers are seeking new GP stock from New Zealand and other locations, but they don’t have enough supply to satisfy the market.
|India’s shrimp production likely to decline|
[12 February 2016] Higher cost of production and diseases are likely to slow Indian shrimp production in the current year. S Muthukaruppan, President of Society of Aquaculture Professionals (SAP) said that production declined by over 10% last year due to flooding and EHP (Enterocytozoon hepatopenaei, a type of fungal infection) disease outbreak. Recovery is likely to be marginal due to lower returns from farming. Aquaculture shrimp products constitute almost 70% of annual seafood exports from India. “Cost of production has moved up from USD 2.2 to USD 3.31/kg,” he said.
|Strains of HPAI kill six in China|
[12 February 2016] Avian influenza has killed at least six people in China since mid-December, according to the World Health Organisation (WHO). The H5N6 strain of the virus infected at least five people, killing three of them, while the H7N9 strain infected 10 people, killing another three, according to reports on the WHO website. The H5N6 victims were all in Guangdong Province, while H7N9 infected six people in Zhejiang, two in Jiangsu and one each in Guangdong and Jiangxi provinces. Two H7N9 victims died in Zhejiang, as well as the sole case in Guangdong. All of the victims had a history of exposure to live poultry, and all cases were confirmed by laboratory analysis.
|CPF plans for sixth feedmill in Turkey|
[11 February 2016] Thailand’s Charoen Pokphand Foods (CPF) is planning to build a new feedmill in Turkey this year, Viroj Kampeera, Executive Vice President of CPF told Asian Agribiz. He said that the firm is close to completing the factory blueprint. “Sales of our animal feed skyrocketed in Turkey last year because our sales team had targeted the right market,” Mr Viroj said, adding that sales of animal feed in Turkey grew more than 30% in 2015. He said that even with the new feedmill in Turkey, “it may not be enough to meet animal feed demand”. CPF currently operates five feedmills in Turkey.
|Indonesia’s Bulog has abundant corn for Q1 |
[11 February 2016] Indonesia’s state procurement agency Bulog will have abundant corn stock in the first quarter of this year after recently purchasing around 445,000 tonnes of imported corn. This was purchased by feedmillers but detained at six seaports due to the government's corn import ban policy. Djarot Kusumayakti, Bulog President Director, said the agency has signed a contract to buy 260,000 tonnes of corn from Argentina and Brazil for Q1. So in total Bulog will have a stock of around 705,000 tonnes in Q1, he said.
|Shanghai bans live poultry sales after Chinese New Year|
[11 February 2016] Shanghai has banned live poultry sales for three months to prevent bird flu and other diseases caused by live fowl, according to Shanghai Daily. The ban was not put in place until February 8, the first day of the Chinese New Year, so that residents could buy live birds for their holiday celebrations. The downtown districts of Jing’an and Huangpu have already banned the live poultry trade permanently, the temporary ban applies to the rest of the city.
|Thai Union completes acquisition of Rügen Fisch |
[11 February 2016] Thai Union (TU) announced that it has completed the acquisition of a 51% stake in Rügen Fisch. Based in north-eastern Germany, Rügen Fisch is the country's shelf-stable seafood leader. The transaction has satisfied all regulatory requirements and customary closing conditions, including clearance by the competition authorities in Germany and the European Union. Rügen Fisch's headquarters will remain in Germany. "We achieved another important milestone for Thai Union,” said Thiraphong Chansiri, President and CEO of TU. Meanwhile, Andrew Bergmann, CEO of Rügen Fisch said "the integration will enable us to pursue our growth strategy and strengthen our foundation across Germany."
|Vietnam to enjoy tariff cuts for poultry products from Laos |
[11 February 2016] A circular released by Vietnam’s Ministry of Finance on import and tax rates on bilateral trade between the country and Laos noted that some goods imported from Laos will enjoy a reduction of 50% in tariffs between February 14 2016 and October 3 2020. The list of goods subject to tax reductions include preserved and cooked poultry and birds’ eggs. To be eligible for the tariff cuts the goods must be imported and transported directly from Laos into Vietnam and must carry a certificate of origin issued by Lao authorities.
|Cambodian poultry farm disinfected after birds die|
[11 February 2016] Authorities in Kompong Thom province said they disinfected the Stung Seng City farm where some 12,000 broilers died in the last few weeks. They also disinfected a nearby canal where the carcasses were dumped, but said they are still unclear on what caused the deaths. A sample from the carcasses was sent to the Animal Health department in Phnom Penh. The company’s poultry Health Manager, Bun Sovannara, said the farm had only 5000 chickens, less than the 12,000 claimed by authorities, and that only about 700 had died a few weeks ago from diarrhoea and respiratory problems.
|Malaysia’s DBE Gurney to venture into food business |
[10 February 2016] Malaysia’s DBE Gurney Resource Bhd plans to venture into the food sector with a fried chicken franchise under the brands Gurney Fried Chicken and Harumi. The company hopes to open 30 restaurants, 3000 kiosks and 300 mobile trucks in the next three years, Alex Ding, Managing Director, said. “For Gurney Fried Chicken, we will be partnering with a Taiwanese fried chicken company, which currently owns about 600 restaurants [in Taiwan]. They will help us develop our own brand and provide us with the technology. We are finalising the details of the partnership,” Mr Ding said, adding that the company plans to open its first fast-food restaurant in Perak by mid-2016.
|Export gain, price recovery will drive GFPT’s earnings in 2016 |
[10 February 2016] Thailand’s GFPT is expected to post a net profit of USD 38.3 million in 2016, up 8% from 2015, driven by export volume gain, domestic chicken price recovery and low raw material prices. Prasit Sujiravorakul, analyst at Bualuang Securities, anticipates that GFPT’s export volume (raw and processed chickens) will grow 5-10% this year from an estimated 21,800 tonnes in 2015. Japan is GFPT’s key market. Meanwhile, GFPT’s export volume in Q4 2015 is forecasted to be at 6,300 tonnes, up 3% from Q4 2014. Mr Prasit said that GFPT’s clients who held back orders in the previous few quarters resumed imports in Q4 2015 despite sustained weak global economies and highly volatile foreign exchange rates.
|China could turn to pork imports in 2016|
[10 February 2016] With sow and hog inventories remaining at their lowest levels in six years, China’s pork supply is expected to stabilise, or even decline in 2016, Rabobank said it its Pork Quarterly Q1 2016 Report. While hog prices in the domestic market were strong in the last three quarters of 2015, herd replenishment moved at a slow pace. While pork demand may remain weak due to a slowdown in China’s economy, there is growth potential for safe, quality food pork products, which imported pork can provide. As such, China may continue to increase it pork imports to meet local demand. While US pork exports to China is expected go up this year, it faces strong competition from European suppliers, what with the strong dollar and the depreciation of the euro.
|Indonesia’s Bulog to buy beef cattle from East Nusa Tenggara|
[10 February 2016] Indonesia’s state procurement agency Bulog plans to buy beef cattle directly from farmers in East Nusa Tenggara to get stock for beef price stabilisation in the country, especially in Greater Jakarta. The plan emerged as the Ministry of Trade has not approved the import 8000 tonnes of beef from New Zealand. Djarot Kusumayakti, Bulog President Director, said it has sent an inspection team to find partners and study the cattle supply chain in the province.
|Thailand’s TCC Group to purchase Casino Group’s stake in Big C|
[10 February 2016] Hypermarket operator Big C Supercenter said on Monday that its major shareholder, Géant International BV of Casino Group, has entered into a share sale agreement with Thailand’s TCC Group. TCC will acquire Casino’s 58.56% stake in Big C Thailand for USD 7.10 a share, totalling USD 3.46 billion. Rumpa Kumhomreun, Chief Financial Officer and Vice President for Finance and Accounting at Big C Supercenter said that the completion of the sale is expected by end March. Big C operates more than 700 stores in Thailand.
|Vietnamese farmers need financial aid to cope with cold spell|
[10 February 2016] Financial support is required for Vietnamese farmers as temperatures drop to below 11 degrees in Hanoi. A report by the Office of the Steering Committee for Disaster Prevention and Rescue showed that the recent low temperatures killed 57,272 livestock, of which poultry accounted for about 77%. Nghe An Province was the hardest-hit with more than 40,000 poultry killed. Agriculture and Rural Development Minister Cao Duc Phat proposed that banks temporarily delay loan payment deadlines for farmers.
|Nutrition for improved health|
[05 February 2016] Good and proper nutrition is critical to developing the pig’s immune system, especially since more than 70% of the pig’s immune cells are in the gut. How nutrition impact disease susceptibility and how disease affect nutrient utilisation is just one of the topics in the session on nutrition for improved health at Asian Agribiz’s 2016 Pig Feed Quality Conference on March 31-April 1, 2016 at The Landmark Hotel in Bangkok, Thailand. For more details, contact Omthong Tjoa or Sutasinee Lake at email@example.com, or visit our website.
|Thaifoods Group to see turnaround in Q2 |
[05 February 2016] Bualuang Securities anticipates Thaifoods Group’s (TFG) earnings to reach a bottom line break-even in Q1 2016 before a turnaround in Q2 and a strong recovery in H2 of 2016. TFG’s improved performance will be led by a recovery in chicken and live-pig prices, capacity gains and its cost efficiency programs. Moreover, it plans to set up a chicken sausage facility, which will likely be operational in Q2 2016. The firm also aims to add a production line at its Kabin Buri plant in Q2, which will increase its slaughterhouse capacity by 25% and feed production capacity by 60%.
|Indonesia to allow beef, cattle imports from disease-free zones|
[05 February 2016] Amid soaring beef prices, Indonesia’s government announced at the end of January its ninth economic stimulus package, which included measures to stabilise beef supply and prices by diversifying beef import sources and deregulating logistics. Darmin Nasution, Coordinating Economic Minister, said that under the new package, the Agriculture Minister will introduce a zoning system within a cattle-importer country, instead of using a country-based criteria, to help reduce dependence on a single country. “A country can have disease-free zones and we can import from these zones,” Mr Darmin added.
|Tech firms fined for spreading KFC 'mutant chicken' rumours|
[05 February 2016] KFC has won a court battle in China against three local tech firms that spread false reports saying KFC’s chicken comes from mutant birds with six wings and eight legs. The companies were ordered to apologize and pay a combined USD 91,300 fine for damaging KFC’s reputation. The Chinese rumours picked up on hoaxes that have been spread on the worldwide web since 1999, according to the myth buster website Snopes.com. KFC’s parent, Yum Brands, has always strongly denied the reports, calling them “ridiculous.” On Wednesday, Yum also reported that its China KFC same-store sales were up 6% in Q4 2015, recovering from 2014 lows.
|AVA refutes rumours that imported bak kwa contains rat meat|
[05 February 2016] The Agri-Food and Veterinary Authority of Singapore (AVA) has refuted rumours circulating via e-mail that the majority of bak kwa sold in Singapore and imported from China may contain rat, fox and mink meat. In a press statement, AVA assured the public that the majority of bak kwa sold in Singapore is produced locally from raw pork sourced from countries such as Australia, Brazil and Spain. Less than 5% is sourced from two establishments in China that have been approved to export semi-processed frozen sliced pork to Singapore. According to AVA, imported meat items are accompanied with health certificates endorsed by the overseas authority.
|Indonesia encourages sustainable aquaculture|
[05 February 2016] Indonesia’s Ministry of Fisheries and Marine Affairs continues to encourage sustainable aquaculture and has begun fish restocking as part of its efforts to maintain the sustainability of the environment and fishery resources. Slamet Soebjakto, Director General of Aquaculture, said: “The development of aquaculture must support the sustainability of nature and fishery resources.” On the fish restocking program, the ministry is pushing hatcheries to produce quality seeds. “Our aquaculture production target for 2016 is 19.5 million tonnes, for this some 101 billion seeds will be needed,” said Mr Slamet.
|Bulog buys corn detained at Indonesian ports|
[04 February 2016] Around 353,000 tonnes of imported corn from Latin America that arrived in Indonesia in January and was detained at five seaports namely Belawan, Cilegon, Semarang, Lampung and Surabaya, has been bought over by Bulog. Thomas Lembong, Indonesia’s Trade Minister, said Bulog has bought the corn from the importers for USD 0.22-0.23 per kg, and then sold it to poultry and livestock farmers and feed millers at a price of USD 0.26. Bulog and Indonesia’s Agriculture Ministry has also stabilised corn price in Blitar, East Java by distributing around 200 tonnes of corn to layer farmers in the largest egg production region in Indonesia.
|Global pork market weak in Q1|
[04 February 2016] The global pork market will remain weak in the first quarter of 2016 as sufficient supply and modest demand growth will likely see prices down to its lowest levels since 2006, Rabobank said in its Pork Quarterly Q1 2016 report. This follows a ‘stronger-than-expected drop’ in global prices at the end of 2015. However, some recovery is expected leading into Q2 as both positive demand and price developments in importing countries will begin to support prices in exporting countries during Q1.
|Thai Union expects lower profit for Q4 2015|
[04 February 2016] Thailand’s Thai Union is expected to post a net profit of USD 16.86 million for Q4 2015, down 14% compared to 2014. Bualuang Securities attributed this to extra expenses tied to the abandoned Bumble Bee deal and fishing fleet impairment. Bualuang Securities also estimates that TU’s Q4 sales will be at USD 915 million, down 9% over 2014. However, it will likely see sales in baht term to stay flat in Q4. Meanwhile, the mean price of raw skipjack tuna peaked at USD 1500/ tonne in August last year before plunging to USD 1000/tonne in November-December 2015, due to supply growth. The low tuna price is expected to continue through Q1 2016 before rising modestly in Q2.
|Vietnam’s Hung Vuong to invest in Russian fish company|
[04 February 2016] Hung Vuong Corporation, a processer and exporter of fishery products has announced plans to invest USD 15 million for a 51% stake in the Russian Fish Joint Stock Company. Duong Ngoc Minh, Chairman and CEO, said the company, a global exporter of the Alaska Pollak, produces animal feed and operates cold storage plants in Vietnam and Russia. It also imports and distributes fisheries products from 18 markets around the world. He said there was an opportunity for catfish exporters from Vietnam to sell tra and basa fish in Russia. He said, the co-operation between his company and the Russian firm would auger well for Hung Vuong.
|North Atlantic plans major expansion in Indonesia|
[04 February 2016] US-based fish importer, processor and distributor North Atlantic is planning to expand operations at its Indonesian subsidiary to improve sustainability, traceability and social impact. By building four processing plants in the country the company hopes to reduce waste in the supply chain. That waste occurs from product degradation primarily due to a lack of cold chain infrastructure. Construction of the first, near a traditional fishing village on the south-central island of Sumbawa, is expected to begin in March and to be operational by the end of the year. “The plant will produce fish products including individual vacuum packed (IVP) portions in retail bags, bulk IVP portions and bubble wrapped loins,” said Bill Stride, North Atlantic CEO.
|Marel concludes acquisition of MPS|
[04 February 2016] Marel recently announced that it has closed its acquisition of MPS meat processing systems (MPS). In November 2015 Marel announced that it had entered into an agreement to acquire MPS for USD 414.5 million on a debt and cash-free basis. United, the two companies will be at the forefront in developing full-line solutions and equipment for the meat processing industry.