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23 January 2017
|WTO ruling to increase US beef exports to Indonesia|
[20 January 2017] The recent World Trade Organization’s decision could provide further momentum for US beef exports to Indonesia. Feedstuffs quoted Joel Haggard, US Meat Export Federation (USMEF) Senior Vice President for the Asia-Pacific, as saying: “Indonesia has been heavily regulated in terms of the way it controls its importers - what they can import, when they can import, how they can import it. They began to loosen some of those restrictions early in the spring, but the commercial effects really came into place late last year.” Mr Haggard added that: “Some of those cuts would be items like knuckles and some of those hind-quarter cuts, plus some offal items. Liver and heart are now eligible. Those items were previously not allowed to be imported, and now they are.”
|CP China to build 3m layer complex in Kunming|
[20 January 2017] CP China said it has signed with the local government to build a three-million-layer complex in Kunming in southwestern Yunnan province. The facility will comprise of a feedmill, layer farms, egg packaging and processing plants, as well as a crocodile farm and an organic fertilizer factory. Total investment will be around USD 73 million, according to the Kunming Daily. “The complex will serve Yunnan and its neighbouring provinces, as well as Southeast Asia,” CP said in a press release. As early as 2012, CP launched a three-million-layer complex in Beijing, making it the largest layer farm in Asia. Now the company is said to be planning for 20 such complexes in China.
|US exports shell eggs to South Korea|
[20 January 2017] South Korea has opened its market for the first time for shell eggs from the United States, following the culling of over 30 million birds due to Highly Pathogenic Avian Influenza (HPAI) outbreaks. The first US exports of shell eggs arrived in Korea on January 12. USDA continues to work with the Korean government to open the market for US liquid egg products, liquid egg white, salted eggs and pidan. As a result of HPAI, egg prices jumped more than 50% between December 12 and January 6. This is the first time that the Korean shell egg market has been open to the US, reported the USDA in its GAINreport.
|India’s Odisha sees low poultry demand over AI outbreak|
[20 January 2017] Already reeling from demonetisation, the outbreak of avian influenza (AI) has added to the woes of poultry farmers in India’s Odisha state. They claim the sale of poultry products has dropped by 60-70% in the peak season while prices have also fallen by USD 0.29 a kg. Cashing in on the crisis, mutton and fish vendors have raised prices, according to The Times Of India. Market sources said the price of chicken has dropped from USD 2.05 to USD 1.76 a kg in a month. Similarly, the price of eggs per dozen has reduced from USD 0.80 to USD 0.73. Poultry traders said hotels, restaurants and fast food centres have also reduced their intake as public consumption has gone down.
|Hong Kong bans poultry imports from Uganda, Germany, India, Japan|
[20 January 2017] Hong Kong’s Centre for Food Safety (CFS) announced on January 17 that in view of notifications from the World Organisation for Animal Health (OIE) about outbreaks of H5N8 avian influenza (AI) in the state of Bavaria in Germany and Kottayam district in Kerala State of India, and an outbreak of H5 AI in Uganda and a notification from the Japanese authorities about an outbreak of AI in Gifu prefecture, the CFS has banned the import of poultry meat and products including eggs from the mentioned places. In the first 11 months of last year, Hong Kong imported about 9300 tonnes of frozen poultry meat and 2 million eggs from Germany, and about 6800 tonnes of frozen poultry meat and 45 million eggs from Japan, said a CFS spokesman as quoted by Sat PR News.
|Russia doubles grain exports to Asean|
[19 January 2017] Russian grain exports to Asean doubled in 2016-17 compared to the previous agricultural year, Rosselkhoznadzor, the Federal Service for Veterinary and Phytosanitary Surveillance, said recently. “The preliminary analysis of Russian grain exports in 2016-17 has already shown a two-fold growth in volumes,” Rosselkhoznadzor said. It said Russia delivered about 587,000 tonnes of grain to the region, including 467,000 tonnes of wheat. Rosselkhoznadzor said the forecast of grain imports by Asean increased to 38 million tonnes. Russia’s Agricultural Minister Alexander Tkachev said the country is forecast to export 35 million tonnes of grain from a 2016 harvest that exceeded 119 million tonnes. In 2015, Russia harvested 104.8 million tonnes and exported 33.9 million in 2015-16.
|China in its fifth wave of H7N9 activity|
[19 January 2017] Eleven more H7N9 infections have been reported from four Chinese provinces, according to official sources, and a World Health Organization (WHO) update provided an epidemiologic snapshot of a surge in infections, which includes two case clusters. China is in its fifth wave of H7N9 activity, and earlier this month the fast pace of newly reported illnesses had already topped last season's total. According to a case list maintained by FluTrackers, 140 cases have already been reported this season, including four in Hong Kong and two in Macau.
|Indonesia to import cattle from Mexico|
[19 January 2017] Indonesia is gearing up to start importing cattle from Mexico as negotiation on a similar deal with its neighbour and largest cattle supplier Australia remains in limbo. Indonesia’s Trade Ministry is communicating with Mexico to import of 4000 cattle as soon as next month. “We have issued a recommendation for the deal and the Ministry of Trade seems to be on board with the plan. This will secure the supply of beef at least until Idul Fitri,” said I Ketut Diarmita, Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture. Indonesia will have to rely on imports to meet 40% of its demand for beef this year, which is estimated to top out at 720,225 tonnes.
|China increases punitive tariffs on US DDGS|
[19 January 2017] China has increased punitive tariffs on imports of US DDGS from levels first proposed last year. The ruling is a major victory for China’s fledgling ethanol industry, which has complained the US industry was unfairly benefiting from subsidies, and followed a year-long government probe, according to a Reuters report. In a final ruling, China’s Commerce Ministry said anti-dumping duties would range from 42.2-53.7%, up from 33.8% in its preliminary decision in September. Anti-subsidy tariffs will range from 11.2-12%, up from 10-10.7%. Shipments in October and November last year fell to 135,000 tonnes and 163,000 tonnes respectively, about a third of the total in August before the first ruling. The new rates took effect in early January, and will be in force for five years.
|Australia urges Indonesia to relax cattle import restriction|
[19 January 2017] Australia is demanding that Indonesia loosen an import restriction that requires imported cattle to weigh at least 350kg and be 30 months old when it arrives in the archipelago. The requirement limits cattle options that Australia can supply to Indonesia. Indonesia has asked in return that Australia cut the price of its cattle by around USD 0.75/kg. “Adjusting the requirement would make it easier to import from Australia. If Australia can commit to the price cut, we will relax the requirement,” said I Ketut Diarmita, Director General of Livestock and Animal Health. Trade Minister Eggartiasto Lukita had said earlier that he has been in intense communication with his Australian counterpart to close the deal.
Animal Protein in Asia 2022, Bangkok, Thailand
Onsite reports by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[18 January 2017]
On the second day of Asian Agribiz's Animal Protein in Asia 2022 conference, two stream were addressed namely 'Regional meat opportunities' and 'Developing the next big meat product'.
The economic consequences of Trump's presidency
Michael Every, Head of Financial Markets Research, Asia Pacific, Rabobank said Donald Trump's incoming administration will try for trade deals that favour the US in terms of trade balance. Mr Trump will also invest hugely in key US infrastructure, while emphasizing on products made in the US and that’s one way he can jumpstart the US economy. “All of this is going to have a huge effect on the Asia region,” he said. Although USD dominates the globe, this stance could see a tightening of trade with the US. “There could be a massive USD squeeze in every emerging market,” Mr Every added.
Considering the potential for meat products in the halal sector
The size of the market for halal-certified food was estimated at USD 415 billion in 2015, with a compounded annual growth rate of 9%. In Singapore, growth of halal food is backed by growing awareness and demand, growing Muslim middle-class, savvy consumers making a more well-informed choice in dietary requirements and government support, said Khairul Ruzaini, Business Development Manager at Umairah Halal Food. However, global halal standards remains the key challenge for the halal sector. “Unified global halal standard is still an issue and we have differing certifications from various Halal authorities,” Mr Ruzaini said. Also, integrity throughout the Halal supply chain has become a major concern for Muslim consumers, with fraudulent Halal certifications and physical contamination of food products on the rise.
Origin fingerprint to prevent food fraud
Food fraud is costly. It damages brand image from poor consumer experience, impacts reputation significantly, and costs of adulteration is between 2-15% of annual revenue. According to Todd Gordon, Marketing & New Market Development of Oritain, adding value by reducing business risk and protecting brands is important. Oritain has been developing Scientific Traceability to prove a food product’s origin using a method of traceability. Citing a case study, Mr Gordon said the company partnered with Australia’s Farm Pride to ensure that the provenance of the farm’s free range eggs is protected. “Using our technology, we tested egg samples from various free range farms and created an origin fingerprint of the eggs that represent the eggs true origin. This fingerprint reduces the risk of fraud or eggs being substituted with lower grade eggs,” he said.
Potential developments in meat processing technology
A wealthier world with a rising middle class in Asia, choosy consumers and transformative technologies are mega trends mentioned by Paul Heskens, Vice President Asia Pacific of Provisur Technologies. Provisur sees potential developments in meat processing technology in the midst of the mega trends. The company, a leading supplier of grinding, mixing, separating, forming and slicing machines, has responded to the mega trends by developing higher capacity machines with wider line, more efficient machinery, balanced flow and integrated downstream equipment. The machines are also energy efficint with technologies including VFD & servo drives, energy monitoring, adaptive power controls and waste heat recycling. In addition, the company also develops machines with less labour and enhanced food safety features.
Key trends for fresh meat in Asia
In the last three years Asian Agribiz had seen positive developments in the fresh meat sector in Asia. According to Arief Fachrudin, Editor Asian Meat Magazine: “Demand for fresh chilled meat in the region is gaining ground due to food safety awareness. We are also seeing demand for portioned cuts increasing because consumers find it simple, practical, more convenient and less time consuming for meal preparation. In line with the two trends, slaughterhouses in the region are gaining traction.” He believes in the next five years the market for chilled meat iwill grow and the region will also see more investments in supermarkets, meat shops, slaughterhouses and cold chain facilities.
Animal Protein in Asia 2022, Bangkok, Thailand
Onsite reports by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[17 January 2017]
Delegates gain knowledge on trends and online shopping at AP2022
The Animal Protein in Asia 2022 conference which opened in Bangkok, Thailand yesterday, saw delegates gaining much insight into online sales models and consumer trends. The two-day conference by Asian Agribiz and its Asian Meat magazine continues today with more presentations today on regional meat opportunities and developing the next bug meat product.
The rise of online shopping hurts traditional supermarkets
Alternative retail formats such as Amazon and Alibaba are completely outperforming traditional supermarkets, said David Hughes, Conference Director and Emeritus Professor of Food Marketing at Imperial College London. In the UK in the next 4-5 years, growth will come from online, discounters and convenience sector, not from hypermarkets and supermarkets. “Traditional supermarkets are losing market share and sales to dotcoms. I think that’s the same situation in many countries including the US,” he added. In the UK, fresh fish has seen the biggest growth in fresh & chilled subcategories in online platforms followed by a strong performance of whole head produce, while fresh poultry and game also perform well. For the future of retailing, Prof Hughes said winning retailers will be those who work out best how to operate dotcom, big and small stores, metro stores and to maximize efficiency across the value chain.
Kee Song’s B2C and B2B e-commerce platform
Known for its Mozart-listening and antibiotic-free broilers, Singapore’s Kee Song Brothers Poultry Industries has launched keesong.com to solve customer's pain points including peak hour congestion, long queues and long working hours. The e-commerce platform has offered Kee Song’s range of frozen uncooked chicken, RTC and RTE chicken and other products. James Sim, Group Marketing Manager, said the company’s website has expanded its scope from B2C (Business to Customer) to B2B (Business to Business), addressing home delivery and drawing repeat purchase through a number of promotional activities. Mr Sim said the company has used the program to analyses buying behaviour and then it can tailor its offerings to different consumer groups.
Selling perishables online using the on-demand model
Collaborative economy, which removes excessive resources and capacity, leads to an on-demand model, said Khairul Ruzaini, Partnerships and Marketing Executive of HonestBee Pte Ltd. Consumers are shifting towards on-demand services because they are looking at speed and convenience. Meanwhile, US consumers are spending USD 57.6 billion annually in the on-demand economy including online marketplace, transportation, food/grocery delivery and other services. HonestBee, Asia’s online grocery and delivery service company, partners with supermarket brands and specialty stores and crowdsource their workforce. Mr Ruzaini said the company defies the notion that for fresh items, customers would like to see and touch the items before buying. HonestBee’s business model also reduces overheads by adopting the light-asset model (no inventory) while bridging between demand and excess resources.
Launching an online sales platform for processed fish products
Sidarta Sidik, Director of Food Product Marketing, PT Central Proteina Prima Tbk (CP Prima), said Indonesia’s e-commerce is growing but it still is in the early phase and logistics and online payment are big challenges in Indonesia as only 40% of the population has bank accounts and only 4.5% have credit cards. CP Prima became the first company in Indonesia to venture into e-commerce in the frozen seafood category by launching belanjaseafood.com. The site is an online store for fiesta seafood and champ seafood and a one stop solution for frozen seafood needs. “We have to control of the delivery system because our products are quite sensitive. The company coordinates thematic promotions with its e-commerce partners.
Common strategies from four poultry giants
Leading global poultry companies, including Tyson, JBS, CPF and BRF, have common strategies including spreading the risk geographically, creating product diversity, getting closer to the consumer and moving up the value chain, said Gordon Butland, Director, G&S Agriconsultants Co Ltd. “If you have only one product or one protein and you are in one country, you have serious risks including product and disease problems,” he said. Meanwhile, although breeding companies are confident that they can deliver consistent annual improvements in feed conversion, chick numbers and yields, they cannot guarantee yet that they can eliminate the disasters of diseases such as Avian Influenza and Newcastle, Mr Butland added.
Key food trends in Southeast Asia in 2017
Functional consumption or eating for specific purposes such as health and wellness will be the top food trend in the Southeast Asian region this year, according to Arpapat Boonrod, CEO Thailand Consumer Insights of Kantar, a leading market research company. Another important trend is food on demand, this trend is linked with the digital world which is changing the food landscape in the region. Responding to this, Kantar has seen some animal protein companies in the region selling their products online. For instance, Vietnam’s Vinamilk which sell its milk products through its e-commerce platform. Last but not least, according to Ms Arpapat, consumers in the region are more curious about the impact of companies to society, the environment, food safety and local community development.
Better packaging will play a key role in meat products
Urbanisation, product segmentation, health & wellness, convenience and internet of everything are some key trends impacting animal protein consumption, especially meat, in Asia. These trends, according to Christophe Gottar, Executive Director Global Poultry of Sealed Air, also impacts the packaging sector where meat producers and retailers will focus on food safety, shelf-life extension, operational efficiency and brand building through packaging technologies. “The first thing in packaging is you need to ensure food safety. Next is shelf life where in perishable food it is responsible for over 50% of food loss,” he said. Sealed Air has been developing innovative packaging technologies for fresh red meat, poultry and seafood.
Doing business in China
Meat industry in China continues to grow. It can be said that the government intervenes in the pork industry, but the yellow and white feather and beef industries are relatively left behind. However, beyond that, food safety reform has been at the top of the country’s political agenda. Doing business in the meat industry in China, according to Arron Hoyle, Principal of Black Dragon Advisors Ltd, is about learning to unlearn or to eat or be eaten. Sharing his experience in the country, Mr Hoyle said: “We need to have liquidity or cash in the meat business. We have also to be aware of policies of the government. And don't operate where you are truly not committed or focused,” he said. He also recommends not managing the business with executives that are a ‘1000 miles away’ with no understanding of the market, and “ownership has to understand the business and let those who know it, run it.”
|China to levy five-year anti-dumping, anti-subsidy duties on US DDGS|
[16 January 2017] China’s Ministry of Commerce said it has decided to impose both anti-dumping and anti-subsidy duties on imports of US distiller's dried grains (DDGs) for five years, effective Jan 12. The anti-dumping duties are mostly set at 50.0%, with anti-subsidy duties at about 11.2%. The levies follow an investigation launched in early 2016 and preliminary rulings from September when importers were required to place deposits with Chinese customs at 33.8% and over 10.0% respectively of the import value. Data from China’s Ministry of Agriculture shows that the nation imported 3 million tonnes of DDGS in the first 11 months of 2016, down 53.2% from a year earlier.
|Indonesia releases import recommendation for more than 150k feeder cattle |
[16 January 2017] Indonesia’s Ministry of Agriculture has released a recommendation to import 155,950 heads of feeder cattle for this year. I Ketut Diarmita, Director General of Livestock & Animal Health said the imported stock is to help anticipate the surging demand of beef during Ramadhan and Eid Fitr. “We have calculated that we will need around 300,000 ready-to-slaughter cattle during the festivals,” he said. Meanwhile on local stock, Mr Diarmita said the country has 391,828 heads of ready-to-slaughter cattle for the period of January-May 2017. The figure is equivalent to 78,366 tonnes of beef.
|5 more Kenny Rogers outlets to open in Malaysia|
[16 January 2017] Berjaya Roasters (M) Sdn Bhd, a subsidiary of Berjaya Corp Bhd (BCorp), plans to open five Kenny Rogers Roasters (KRR) outlets in Klang Valley, Malaysia this year, said Deputy General Manager Esther Woo. Berjaya Roasters is the franchise holder for KRR, reported The Star. “We have seen steady increase in our customer base since September last year. Given this trend, BCorp plans to open up five outlets in the Klang Valley,” Mr Woo said after launching KRR’s new loyalty card. Diners can now enjoy more rewards with the loyalty card called Timeless Treasure KRR for their birthdays, weekly treats and several other promotions. KRR positions itself as a restaurant selling healthy rotisserie roasted chicken meals.
[16 January 2017]
Phase feeding popular for performance, profitability
Animal protein producers in the region are taking advantage of the phase feeding system on their farms. They have adopted three, four or even weekly phases for optimum performance and profitability. Somboon Watcharapongphan, Secretary, Thai Broiler Association, told Asian Agribiz that phase feeding is popular among broiler farms as it helps better performance. Broiler farms observe three phases, with the first phase focusing on protein and less on energy, and the third phase focusing on energy. His farm, Mitrthamkankased, contracted by Betagro, raises some 500,000-600,000 broilers. They reach an average of 2.7kg in 40 days, with an FCR of around 1.6.
Philippine pig farmers are slow to adopt multiphase feeding system
While phase feeding in the Philippines is more accepted on poultry farms, pigs producers are still hesitant to implement it. Nutrition consultant Amie Galban told Asian Agribiz farms still prefer the conventional method because they think phase feeding is tedious and complicated, as it would mean a change in feeds almost every two weeks. “Farm hands are usually the ones complaining about this,” she said. She added that the buildings are not designed for phase feeding systems. “Many are too big that farm workers only want to have one feed type per building. The age of the pigs inside can vary by two to three weeks. They get confused when there are different feed types in one building.”
Farmers in Indonesia need better understanding of system
Many independent farmers in Indonesia still apply only one phase, the starter feed, or two phases, pre-starter and starter. “They find it complicated. Some others said it increases their costs,” Syahrir Akil, General Manager, Bintang Sejahtera Bersama, a subsidiary of Charoen Pokphand (CP) Indonesia, said. Some farmers avoid the multiphase system because they choose to harvest early at day 28 to meet market demand for small birds. Where broiler contract farming is concerned, many companies want their farmers to apply the system. Layers generally practice pre-starter, starter, grower, pre-layer, layer 1 and layer 2 feeds, said Dr Akil, however, “it’s hard to find farmers who apply this completely”.
Fine tuning feed for better meat quality
Phase feeding is common in China. According to William Wang, Technical Sales Manager, Lallemand Animal Nutrition, a France-based manufacturer of yeast and bacteria products, as more producers venture into vertically integrated businesses, they switch their focus from feed conversion ratio to improved meat quality and food safety with phase feeding. Some producers may have more specific phases in their production. Feed millers and additives suppliers provide customised solutions for them. Fujian Sunner Group, the largest white-feather broiler integrator in China, also offers four phases for breeders, commercials and chicks. Breeders receive more protein when brooding and calcium supplement when laying.
Feedmills forge ahead with variety feed products despite challenges
Phang Yuen Fun, Technical Service for Asia, Merial, said farmers in Malaysia understand that phase feeding is profitable as it is adjusted to body weight and nutrient requirement. However, feedmills see it as a challenge. One of the bigger challenges is at the feedmill. Broilers start with crumble and move on to pellets. In the intermediate stage, however, the short pellet is introduced. “Producing the short pellet can take up a whole production cycle in their plant, resulting in some losses in productivity, but they do it anyway because there is demand from farmers,” said Dr Phang. “Farmers can see consumption and good daily weight gain, and are willing to pay extra for the product.”
|Sri Lanka’s Pussalla modernises to maintain top spot|
[13 January 2017] Pussalla Meat Producers Pvt Ltd produced 170,000 parent DOC for the local market and 180,000 for export last year. “We hope to increase our total breeder DOC production to 450,000 chicks this year,” Managing Director Dilshan Wewita told Asian Agribiz. It will soon complete its hatchery expansion, enabling it to produce up to 3 million broiler DOC by Q1 2017. “To support this we have already completed two new all-in all-out grower farms and a new laying unit,” he said. Pussalla has eight PS farms for both growers and layers, totalling 300,000 birds, and producing 3 million DOC/month, making it the market leader in the country. The company also rears 16,000 D-line grandparents.
|Thai Union sets up wholly owned subsidiary in China|
[13 January 2017] Thai Union Manufacturing has divested 50% of its shares in Century (Shanghai) Trading to Century Pacific Food Inc and received USD 623,594 in December 2016. After selling the shares, TU set up a wholly owned subsidiary, Tai Wan Sheng Aquatic Trading (China), which will import and sell TU’s complete portfolio of seafood brands and products in China. It will also develop new products as required by the Chinese market. TU said that its new subsidiary will “participate in growing the market for frozen, chilled and premium ambient seafood and will develop an organic presence in China.” It will also build a platform for growth and help the company reach its long-term revenue target of USD 8 billion by 2020.
|Monsanto Indonesia targets 7000t of corn seed production|
[13 January 2017] Monsanto Indonesia targets to produce 7000 tonnes of corn seed this year. Of the figure, 5000 tonnes will be for the domestic market, while the rest is scheduled for export to the Philippines and Vietnam. Ganesh Pamugar Satyagraha, President Director said weather anomaly will persist this year, but the company is optimistic that its corn seed production and sales for domestic market will be much better than last year. Monsanto Indonesia produces different types of hybrid corn seeds, as well as biotech corn seeds. Last year the company targeted to produce 1000 tonnes of biotech corn seeds.
|China reports more cases of H7N9 avian flu|
[13 January 2017] China reported four new human cases of H7N9 avian influenza, including one in a child from Hong Kong who had recently travelled to Guangdong province. On Wednesday, the Shanghai Municipal Health and Family Planning Commission said a 50 year-old man was being treated for H7N9 infection, while a Chinese media report said there was a new case of the disease in a 41 year-old man from the city of Foshan in Guangdong province. The Food and Agriculture Organisation revealed that since 2013, there have been 931 cases and 355 deaths from avian flu. Since January 4, there have been 106 cases reported. The update said that poultry markets in Jiangsu province reported a high contamination rate in December, with 15.79% of environmental specimens testing positive for H7.
|Multivac acquires 49.9% share of TVI|
[13 January 2017] Multivac has acquired a 49.9% share in TVI, the market leader in meat-portioning machines and complete portioning lines. By acquiring the share, Multivac is taking a strategically important step in being able to offer in future complete production lines from one source. In future TVI will use Multivac's strong sales and service network and thereby develop new sales markets. TVI and Multivac are convinced that they can be even better partners to their mutual customers. Particular focus will be placed on driving forward the integration and linking of TVI's products and Multivac's packaging machines into complete lines with the highest possible level of automation, efficiency and machine availability.
|Thailand’s pork prices expected to increase slightly in Q1 |
[12 January 2017] Farmgate price of live pigs is expected to rise marginally to USD 1.66-1.82/kg in Q1 in Thailand, compared to USD 1.54-1.74/kg in Q4 of last year, thanks in part to government measures to spur consumer spending, Surachai Sutthitham, President of the Swine Raisers Association of Thailand, told Asian Agribiz. Pork prices have been on a downward trajectory in the second half of 2016 due to oversupply of pork and slowing consumer demand amid low agricultural prices. Some pig farmers also decided to postpone raising pigs last year in the face of continued lower pork prices, Mr Surachai added. “Thailand will see a slight oversupply of pork in Q1 this year and pork consumption will grow slightly or will be stable,” he said. Meanwhile, the association is finding ways to export more live pigs to southern China and Cambodia, Mr Surachai said.
|Vietnam seeks official pig trade with China |
[12 January 2017] With the downtrend in live pig prices in Vietnam due to oversupply that allegedly resulted after Chinese traders stopped buying pigs from Vietnam. The Ministry of Industry and Trade, in cooperation with the Ministry of Agriculture and Rural Development (MARD), has proposed a visit to China to negotiate with their counterparts so that Vietnam can officially export pork to China. MARD Minister Nguyen Xuan Cuong said that if an agreement can be signed, Vietnam can legally export some 1-1.5 million tonnes of pork to the country. Vietnam’s Department of Livestock Production said that in 2016, the country shipped some 600,000 tonnes of live pigs illegally to China.
|Indonesia records decreased fishmeal imports|
[12 January 2017] Indonesia’s Ministry of Fisheries & Marine Affairs has announced that fishmeal imports from January-September 2016 was only 4.1 million tonnes, which is far below the 29.9 million tonnes during the same period a year earlier. Slamet Soebjakto, Director General of Aquaculture said: “Our program to combat illegal fishing has been successful so far. We have a huge supply of raw material for fishmeal.” Mr Soebjakto also said that during the period, independent fish feed production by farmer groups reached 1.1 million tonnes, over 966,137 tonnes a year earlier.
[12 January 2017]
Wet markets remain the norm, but processing is growing in Asia
Although wet markets remain the norm in most Asian countries, there is a significant growth in modern retail trade in Asia, signalling a growing market for primary and further processing. Still, most Asians still prefer to shop in wet markets, even in urban areas where supermarkets and meat shops are on the rise. The Asian Agribiz team sought out why.
Serving different segments
In Thailand and Indonesia, supermarkets and wet markets serve different market segments, thus modern trade has not had much effect on meat sales in traditional markets. Tongchai Louharuangchaiyos, owner of Jae Kim pork shop at Bangkok’s Yingcharoen market told Asian Agribiz his buyers are mostly retail merchants, who buy pork and cook it for sale. On the other hand, modern retail trade targets mostly individual consumers, who buy pork for their own consumption. Similarly in Bali, the biggest pork market in Indonesia, the expansion of supermarket chains do not have much impact on pork sellers in wet markets, whose buyers are made up mostly of caterers and people who runs food stalls.
Although wet markets still dominate in most Asian markets, retailers there understand the growing competition from modern retail, and they are adjusting by offering more products and services. In addition to fresh pork, it is common to find value added products like ready to cook marinated meats, sausages and cured meats in wet markets today. Others now offer additional butchering services and serve cut ups and portions. Wet market vendors are also increasingly focusing on product quality. In Kunming, China for example, Zhou Xiaoli has turned to getting her pork from a modern slaughterhouse that results in better meat in terms of appearance and texture. Since free-range pigs are normally the native breeds with black hair, some retailers keep a little hair on the skin of pork to demonstrate that their products are ‘premium.’
Warm meat still preferred over chilled
Notwithstanding the growing calls for food safety, many Asian consumers continue to prefer ‘warm’ meat over chilled and frozen meat, and this is true especially of pork meat. Leonardo Manrique, who runs a meat stall in a wet market in Quezon City, Philippines, told Asian Agribiz that many consumers still believe that ‘warm’ fresh meat sold in wet markets is ‘fresher’ than chilled and frozen meat, which many think has been slaughtered and stored for some time before being sold. Nevertheless, as calls for food safety gain ground, some wet markets and even vendors are now installing storage facilities like freezers to help minimise meat spoilage. Mr Manrique noted however that most vendors sell the meat they have daily.
Lower prices continue to draw consumers
The cost factor is why many Asian consumers still buy their meat from wet markets. According to Leonardo Manrique, meat prices at supermarkets is normally 25-50% higher, and sometimes even more, than in wet markets. “That is a significant amount,” he told Asian Agribiz. Romeo Alfonso, a pig producer and pork seller in Ubud, Bali, Indonesia said consumers prefer to buy at wet markets because they can bargain on the prices. Meanwhile, wet market consumers prefer to touch and smell the meat they buy and they can do this is wet markets, Zhou Xiaoli, owner of a free-range pork stall in the largest wet market in Kunming, China told Asian Agribiz. In markets like Vietnam, where many consumers still shop for their food daily, wet markets remain the shop of choice.
|Singapore allows more frozen chicken exports from Thailand |
[11 January 2017] Singapore's Agri-Food and Veterinary Authority has allowed 20 Thai chicken factories to export frozen chicken to the island republic. Anan Sirimongkolkasem, President of Thai Broiler Processing Exporters Association, said the new permission reflects growing confidence in Thai poultry standards. Meanwhile, Gen Chatchai Sarikulya, Minister of Agriculture and Cooperatives said Thailand is expected to export at least 5,000 tonnes of frozen chicken to Singapore in 2017, valued at USD 11.2 million. Thailand exported 16,000 tonnes of livestock products to the island republic in 2016, including cooked chicken meat and chilled and frozen chicken. In all, Thailand is projected to export 750,000 tonnes of chicken meat in 2017, valued at USD 2.69 billion.
|Indonesia’s Ag Ministry says no corn imports in 2017|
[11 January 2017] Indonesia’s Agriculture Ministry will stop corn imports this year. Triastuti Andajani, Head of Feed Ingredients of the Directorate General of Livestock & Animal Health said to meet demand for animal feed, the ministry will increase the corn planting area in the country by as much as 2 million ha, and partner with feed millers to absorb all the harvest. The Indonesian Feed Producer Association estimated animal feed consumption this year to reach 18.5 million tonnes. “We need around 9.25 million tonnes of corn for feed. Home-mixers need around 3.6 million tonnes. So the total is around 1.1 million tonnes per month,” Ms Andajani explained. Last year corn imports dropped to 884,679 tonnes, or a 68% decrease from 2015.
|CITIC takes controlling stake in McDonald's China and Hong Kong franchises|
[11 January 2017] CITIC Ltd, CITIC Capital Holdings, The Carlyle Group and McDonald's Corp have formed a new company that will act as the master franchisee for McDonald's in mainland China and Hong Kong for 20 years. The newco will acquire the business for USD 2.08 billion, giving CITIC and CITIC Capital, units of China's state-owned conglomerate CITIC Group, a controlling stake of 52% in the entity, with Carlyle and McDonald's taking 28% and 20%, respectively. The deal is expected to close in mid-2017, when McDonald's will have more than 1750 company-owned stores in China and Hong Kong refranchised. It currently has 2640 restaurants in the region, and the new franchisee intends to add more than 1500 outlets over the next five years.
|Financial toll from outbreak of bird flu in Korea reaches USD30m|
[11 January 2017] South Korea said the financial toll from the slaughtering of more than 30 million birds nationwide since November from the worst-ever bird flu outbreak is almost USD 830 million. Until the first week of January, the culled count came to 30 million, including 25.82 million chickens and 2.33 million ducks, the Agricultural Ministry said. That represents 18.3% of the total poultry raised domestically. The number of culled layers reached 32.1% of the total, causing the price of eggs to rise sharply. Early December, the price for a 30-egg pack reached USD 4.78, surpassing the five-year average price of USD 4.75 for the first time. Eggs have become a rarity and any left on the shelf is sold at USD 7.05.
|Carabeef commands high price in Indonesia|
[11 January 2017] Carabeef or buffalo meat imported from India is set to be sold in markets in Greater Jakarta in Indonesia for USD 4.87-5.25 per kg. However, the meat is being sold by meat sellers at around USD 6.00-7.50 per kg. “This should not happen,” said Amran Sulaiman, Agriculture Minister. “We imported the meat to offer a cheaper meat alternative.” Aan, a meat seller in Senen market in Central Jakarta said that he sells carabeef at USD 6.45 per kg if it is fat-free. “We can sell the meat at USD 4.87 per kg, but consumers don't want to buy it as the fat is still included. That’s why we separate the fat, sell the lean meat at a better price and sell the fat at USD 1.50 per kg,” Mr Aan said.
|Cambodia cautious over bird flu|
[11 January 2017] Cambodia’s Health Ministry urged people to be vigilant over H5N6, H7N9 and H5N1 avian influenza viruses in light of recent outbreaks in some Asian countries, China’s Xinhua news agency reported. “Currently, H5N6 and H7N9 avian influenza viruses have not been found in Cambodia, but the country had detected 56 cases of H5N1 virus that left 37 people dead between 2005 and 2014,” the Ministry said in a statement. The ministry said travellers to areas affected by avian flu viruses should avoid poultry farms, contact with animals in live-bird markets, poultry-slaughtering areas, and contact with surfaces that appear to be contaminated with bird or other animal faeces.
|Indonesia regulates broiler supply & demand|
[10 January 2017] Indonesia’s Agriculture Ministry has released the revision of the regulation of chicken supply, distribution and monitoring, which is expected to protect independent farmers from unfair competition. Local production of breeding and commercial chicken and imports of breeding stock will be calculated based on the national production plan. Of the total commercial broiler DOC production, 50% has to be allocated for independent producers/farmers. The quality of the DOC has to be certified by a product certification agency (LSPro) appointed by the Agriculture Ministry. Finally, a producer of more than 300,000 birds/week has to set up a processing plant and a cold chain facility. Sigit Prabowo, Chairman of the National Poultry Farmers Association (PPUN) said: “We appreciate the revised regulation and we will monitor the implementation.”
|Sri Lanka to produce 88% of broiler parent production in 2016|
[10 January 2017] Sri Lanka is working towards self-sufficiency in broiler parent production. Last year the country expected to supply 88% of the total parent bird requirement, up three percentage points from the year before. Parent imports, meanwhile, dropped 22% between 2014 and 2015 to 176,674. This was expected to further drop to 144,181 in 2016, according to estimates from the Department of Animal Production and Health. In addition to this, the island is HPAI-free, a pre-requisite for exporting live birds. Broiler DOC exports jumped 120% from 2014 to 330,000 in 2015. A spokesperson from the department told Asian Agribiz that its 2016 poultry sector report is due in March 2017.
|Guangdong Wens 2016 pig sales up 38%|
[10 January 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said it sold 17.13 million finisher pigs valued at USD 5.26 billion in 2016, up 11.57% and 37.74%, respectively, from a year earlier. Average sales price stood at USD 2.67/kg during the year, up 20.26%. In December alone, the average price was USD 2.45/kg, up 2.49% from the previous month and ending a consecutive decline from June. Wens targets to produce 27.50 million pigs a year by 2019.
|Competition in Thailand’s retail food business to remain intense|
[10 January 2017] Over the past decade, Thailand’s retail food sector has been one of the fastest-growing in the world and this sector has diverse store layouts ranging from wet markets to hypermarkets. In 2015, total food retail sales from organised retail chain stores reached USD 52.56 billion or 62.3% of total retail sales, according to the USDA GAIN report. Convenience stores showed the biggest number of outlets (13,322) followed by supermarkets (463) and supercentre/ hypermarkets (376). Meanwhile, competition in the retail food business is expected to remain intense. Most investments will aim to improve and modernize existing stores, as well as develop store formats that are suited for urban areas and consumer preferences.
|Indonesia’s Ag Ministry to promote Bali Beef|
[10 January 2017] Indonesia’s Agriculture Ministry through its Directorate General of Livestock & Animal Health has said that it plans to promote premium beef from Bali cattle with the Bali Beef brand, starting 2017. I Ketut Diarmita, Director General of the directorate said: “We want to add value, so Bali cattle farmers will get better profits. In this program, the farmers will no longer sell live cattle, but we will support them in selling fresh meat.” Mr Diarmita said the directorate has identified that Bali cattle is a promising livestock to be developed further as the animal is well adapted to the local climate, is easy to breed, and produce quality meat. Based on the directorate data, there are 553,582 heads of Bali cattle currently in Bali province.
|Provimi launches Cinergy in Vietnam for antibiotic-free farming|
[10 January 2017] Provimi Vietnam Co Ltd recently organised its first international dialogue on antibiotic growth promoters in Vietnam. It also introduced the herbal additive Cinergy as a solution for antibiotic-free livestock farming. Cinergy increases feed intake, and decreases diarrhoea and mortality in farmed animals. “The results of tests and experiments on Cinergy showed that there’s a decrease in diarrhoea and general medical treatment in farmed animals in the absence of antibiotics,” said Chê´ Minh Tu'ng, head of Poultry Husbandry, Nong Lam University. Provimi’s laboratory in Vietnam is working with Vietnamese authorities to control antibiotic residue in feed and meat products, and supplying antibiotic-free solutions and alternatives for the Vietnam market.
|De Heus Vietnam hits milestone of 1m tonnes in feed production|
[09 January 2017] Royal De Heus reached a milestone in Vietnam after producing and delivering 1 million tonnes of feed last December. “We may not be the first, but we definitely reached the 1-million mark the quickest in Vietnam,” Gabor Fluit, De Heus Asia’s Business Group Director, told Asian Agribiz. De Heus has maintained an impressive growth in Vietnam in the last seven years with seven feedmills, 1200 employees, experts and terminal storage across the country. “We almost topped our capacity every year in the last five years. That’s why we built and opened one plant yearly. The years 2015 and 2016 are exceptional as we opened two plants per year,” said Marketing Manager Gideon Hung.
|DA to link local corn farmers with Vitarich|
[09 January 2017] The Department of Agriculture's (DA) regional field office in Davao City is working to link local corn farmers directly with Vitarich Corporation to supply corn for its new poultry feedmill in the city that is targeted to be operational by Q3 this year, said a report by Business World. Under the agreement that is currently being hammered out between the DA and Vitarich, the former will serve as a consolidator of corn produced by local farmers who will initially be under contract to sell half of their produce at a premium price to Vitarich. Mr Oñate is hopeful that such agreements will eventually eliminate middlemen and allow farmers to make better profits from their produce. He said his office is looking to forge similar agreements with other agribusiness companies.
|KFC Indonesia to open more outlets in eastern Indonesia|
[09 January 2017] Fast Food Indonesia, the operator of KFC in Indonesia, targets its income in 2017 to increase 10% to USD 402 million. To achieve this target, Fast Food will open 30 new outlets mostly the free-standing type, and 20 KFC Box outlets. “We will open the outlets in new and existing cities, but most of the new outlets will be in eastern Indonesia,” said Justinus D Juwono, Director. “In 2017 we will allocate a capex of USD 26 million to open the new outlets, expand distribution, add new distribution vehicle, and renovate 45 5-year old existing outlets.” Currently Fast Food operates 559 outlets throughout the country. For its 2016 financial performance, the company is optimistic to book an income of USD 365 million, a 7.8% increase from the previous year.
|Wens sees less fluctuation in China’s pig production|
[09 January 2017] There will be less fluctuation in China’s pig production due to higher thresholds of the sector amid environmental protection, said Guangdong Wens Foodstuff Group, China’s largest pig producer. “The so-called Pig Cycle is mainly due to backyard farms’ fast-in and fast-out system, but now it’s not easy for them to do that with higher thresholds of environmental protection,” Board Secretary Mei Jinfang told investors during a road show. The higher thresholds will keep the sow and pig stocks low, thus maintaining the pig prices at a good and stable level. “It’s a good opportunity for us,” Mr Mei said. According to him, Wens’ pig production will see an average annual growth of about 15%.
|Indonesia to increase seabass production|
[09 January 2017] Indonesia’s Fisheries & Marine Affairs plans to build three offshore aquaculture facilities in 2017 to produce an additional 1500 tonnes of seabass annually. Slamet Soebjakto, Director General of Aquaculture said the facilities will be built in Sabang of Aceh, Karimun Jawa of Central Java and the southern coast of Java between Cilacap and Pangandaran, with a total investment of USD 10.5 million. “The investment will cover automatic feeder machines, fish nets and costs of establishing floating bases and docks which will be adopted from the Norwegian model,” he said. The facilities will be jointly operated by Indonesia’s state-owned fishery company PT Perikanan Indonesia and local fishermen associations.
|India’s Odisha culls poultry over AI outbreak|
[09 January 2017] An eastern Indian state has ordered the culling of more than 2500 chickens and other poultry after four dead crows and three dead poultry tested positive for the highly pathogenic H5N1 virus. The avian influenza (AI) virus was confirmed at Keranga village, about 35km from Bhubaneswar, the capital of Odisha state, days after dozens of crows and chickens were found dead. More than 30,000 birds were culled in a similar outbreak in the region in 2012. “We have issued an advisory to follow immediate measures to complete culling operations, surveillance and sanitization in the infected area,” said Bishnupada Sethi, Commissioner-cum-Secretary of the state’s Fisheries and Animal Resources Development Department as quoted by Reuters.
|Sri Lanka’s Pussalla aims to be hub for producing, exporting parent DOC|
[06 January 2017] Pussalla Meat Producers Pvt Ltd, which raises the Hubbard breed, operates the largest grandparent farm in Sri Lanka. It started exporting parent stock in 2015. By 2016 the company was able to export half its production to south Asian countries, such as Bangladesh, Myanmar and Nepal. “Sri Lanka is disease free. We took that opportunity to export our products,” Chairman Philip Wewita told Asian Agribiz. Pussalla is in talks with Hubbard to make Sri Lanka its hub for producing and exporting parent DOC. This will reduce production costs for importers. “The African market is opening up too. Ghana and Zimbabwe are likley to be our new markets,” son Dilshan said.
|Thailand approves three-year, tariff-free soybean import plan|
[06 January 2017] The Thai government has approved an unlimited soybean import quota with zero tariff for a period of three years (2017-2019). Natthaphorn Jatusriphithak, Advisor to the Commerce Minister, said that the plan has been approved within the framework of the World Trade Organization and soybean imports will be managed on an annual basis. Despite the approved policy, soybean importers are still required to purchase domestic soybean at government determined prices. Importers have to buy domestic soybean at USD 0.43 per kg plus USD 0.06 for the purpose of vegetable oil production, USD 0.44 per kg plus USD 0.06 for animal feed production and USD 0.50 per kg plus USD 0.06 for food production. Thailand produces around 50,000-60,000 tonnes of soybean a year, representing only 2% of the annual soybean demand of almost 3 million tonnes.
|QL Trimitra ventures into food truck business|
[06 January 2017] In 2016 QL Trimitra, a joint-venture company between Malaysia’s QL Resource Bhd and Indonesia’s CV Trimitra, ventured into the food truck business. It has four trucks popular hangouts in Greater Jakarta. It is also actively involved in sales activities conducted by the Indonesian Food Truck Club. Carrying the QQ brand name, the trucks offer ready-to-eat products namely chicken slices, balls, satay, and tulip (made of chicken wings). “At an event in Jakarta in 2016, our food truck was recognised as the best performer by a renowned banking company, confirming that our chicken-based products are well received by consumers,” Cecep Muhammad Wahyudin, QL Group Indonesia Director told Asian Agribiz.
|San Miguel Pure Foods confirms USD 1.5 billion expansion|
[06 January 2017] San Miguel Pure Foods Co Inc (SMPFC), in a disclosure to the Philippine Stock Exchange, confirmed a report by the Philippine Daily Inquirer that it will spend some USD 1.5 billion until 2018 to expand its traditional food business due to growing demand. The bulk of its capital expenditure will be spent on increasing capacities and will include the construction of meat processing plants in Cavite in Luzon, Cagayan de Oro in Mindanao and Cebu in the Visayas, which will produce hotdogs, chicken nuggets and other processed meat products. SMPFC also said that it is currently in discussions with Hormel Foods on business growth opportunities for the Spam brand.
|Shanghai Maling to spin off feed, domestic cattle farming businesses|
[06 January 2017] Chinese food operator Shanghai Maling Aquarius Co said it will sell seven units to two sister companies, so as to exit the feed business and domestic cattle farming operations. Maling is a meat subsidiary of China’s state-owned food and drink conglomerate Bright Foods. In early December, the company completed the acquisition of a 50% stake in New Zealand’s meat processor Silver Fern Farms for more than USD 180 million. “The spin-offs will help develop our core businesses, namely the focus on branded beef sales, the acquisition of overseas cattle resources and the development of a pork value chain,” Maling said.
|Australia’s live cattle exports to Indonesia back to normal|
[06 January 2017] Live cattle exports to Indonesia has “normalised” after disruptions from changes in import policy. According to the latest LiveLink report published by LiveCorp and Meat and Livestock Australia, feeder and slaughter cattle exports increased in November with 67,000 cattle shipped to Indonesia. An additional 20,000 cattle were expected to be exported to Indonesia in December, meaning total exports to Indonesia for 2016 would reach 555,000 cattle, a 10% drop on 2015's number. “High cattle prices had been a welcome outcome for our partners in the production sector, but it has also affected profitability in the supply chain and seriously compromised the affordability of Australian beef for consumers in countries including Indonesia,” the Weekly Times quoted Simon Westaway, Australian Livestock Exporters’ Council Chief Executive.
|CPF to spend USD51.5m to buy stake in Poland’s SuperDrob|
[05 January 2017] Thailand’s Charoen Pokphand Foods (CPF) said it will spend around USD 51.5 million to acquire a 33% stake in SuperDrob Zaklady Drobiarsko – Miesne S.A. (SuperDrob), a leading agro and food company in Poland. CPF signed a preliminary share subscription agreement with SuperDrob and preliminary share purchase agreement with its existing shareholders on December 30. SuperDrob's main products registered as fresh poultry, flavored poultry, as well as sausages and ham under its own brand. Its clients include wholesalers, retailers, hotels, and restaurants both in Poland and foreign countries including the UK, France and China. Adirek Sripratak, CEO of CPF, said this transaction “will mark the first step of CPF in poultry operations in the European country.”
|Iran exports USD810m worth of livestock, poultry products|
[05 January 2017] Iran’s Deputy Agriculture Minister, Hassan Rokni said livestock and poultry products worth USD 810 million were exported from Iran in the first eight months of the current Iranian year which began March 20, 2016. Mr Rokni said around 51,000 tonnes of poultry meat and offal (liver and gizzard) and 477,000 tonnes of milk were exported during the period. “The volume of poultry exports was higher than the same period in 2015. Meanwhile, milk exports also increased by 3%," he told Mehr News Agency. However, Mr Rokni said egg exports declined due to challenges caused by avian influenza. “Egg exports plunged from 54,000 tonnes to 37,136 tonnes.”
|Bestworld Perkasa to expand product range|
[05 January 2017] Bestworld Perkasa, a subsidiary of Malaysia-based Bestworld, has been growing as a reliable meat processing equipment supplier in Indonesia. Elwein Ng, Managing Director told Asian Agribiz in Jakarta that the company enjoys a good market share. “We can supply complete lines for our customers. In addition, customers who buy our machines will get free consultation,” he said, adding that the other boost for the company is that many Indonesian meat processors are now looking for Asian-made machines. On business expansion, Mr Ng revealed that the company wants to expand its business to seafood processing and cold chain equipment. The company also plans to develop its market share in plastic casings for sausages, packaging and printing for packaging.
|China reports more H7N9 avian flu cases|
[05 January 2017] Two of China's provinces reported two new H7N9 avian flu cases over the past few days, raising the number of infections in the fifth wave of disease activity to 21. On January 1 the government media reported a case in Guizhou province in south-central China. The second case was reported in Jiangxi province in south-eastern China. The new cases lift the overall global total from H7N9 since it was first detected in humans in 2013 to 829, according to a case list kept by FluTrackers.
|Indonesia misses aquaculture production target due to rainy season|
[05 January 2017] Indonesia’s Ministry of Fisheries & Marina Affairs has said that aquaculture output in 2016 will only reach around 15.8 million tonnes, missing the target to produce 19.46 million tonnes. Slamet Soebjakto, Director General of Aquaculture said the rainy season which affected temperature and pH of aqua farms was the main reason. “We expect the condition in 2017 to improve. So in 2017 we target the production of aquaculture to reach 21.9 million tonnes, with shrimp as the main commodity,” said Mr Soebjakto, adding that many investors will invest in the shrimp farming sector.
|QL Trimitra plans production of RTE, RTC products in 2017 |
[04 January 2017] QL Trimitra, the joint-venture company between Malaysia’s QL Resource Bhd and Indonesia’s CV Trimitra, which has an integrated broiler business in Indonesia, aims to be a main player in the chicken-based food industry. “We are now restructuring our internal team. We also recruited more people with background and experience in the food industry,” Cecep Muhammad Wahyudin, QL Group Indonesia Director told Asian Agribiz. He revealed that its r&d team started product (ready-to-eat/RTE & ready-to-cook/RTC products) development in early 2016. “We plan to start mass-production in 2017, targeting modern and traditional markets in the country.”
|Ynsect is upbeat about Asia’s market for insect feed|
[04 January 2017] While insect protein could make its way into aquafeed by July 2017 in Europe, one French-based producer of the ingredient, Ynsect, is optimistic it could take off in Asia too. “Shrimp production is big in Asia. We have good results on growth and health of shrimp and tilapia fed with our product. We are convinced the market in Asia for insect protein in aquafeed will be huge,” Chairman and CEO Antoine Hubert told Asian Agribiz. Last year Ynsect exported to Asia a batch of tenebrio molitor protein, or TMP, a de-fatted protein meal made of mealworm larvae. “We are progressing well with discussions with leading companies in the region [in order to export] larger volumes of TMP,” he said.
|CJ Indonesia to integrate its poultry business |
[04 January 2017] There is no guarantee that the poultry and feed industries in Indonesia in 2017 will better than in 2016, Tevi Melviana, Sales & Marketing GM of CJ Feed Indonesia told Asian Agribiz. He said the government will continue to push inflation below 4%, which means the profit margin will be thin. Besides, associations in the industries will be very carefull to conduct meetings to avoid cartel accusation by the Business Competition Watchdog Agency (KPPU). "All the conditions will push industry players to vertically integrate their businesses. We, CJ, will also progress with integration. Currently we already have poultry breeding, feed and primary processing businesses. In the near future, our Food Business Unit will also expand in Indonesia," said Mr Melviana.
|Live pig price in Vietnam plunges to two-year low|
[04 January 2017] Price of live pigs in Dong Nai province, the hub of pig production in Vietnam, has plunged to a two-year low of USD 1.45/kg on the back of an oversupply of pigs, which the province’s producers are now in a rush to unload. “Dong Nai's swine herd is now at 1.8 million heads, up 38% from 1.3 million in the same period last year, leading to an oversupply situation that has dragged prices down, said Dong Nai Livestock Association Chariman Nguyen Tri Cong. The current price is below the average production cost of USD 1.72/kg. Industry players say the market shows no sign of recovery and has warned of an industry collapse if the present trend continues.
|Telangana wants more support for poultry industry|
[04 January 2017] India’s Telangana government has pledged to fight for agriculture status for the poultry industry. E Rajender, the State Finance Minister said the Telangana government had written to the central government to recognise the poultry business as part of agriculture. “This will establish more support from the government, especially in times of crisis,” he said. “When the GST comes into force in April, we want zero tax for poultry items. We are talking to finance ministers of other states and seeking their support for this demand,” he told The Hindu.
Meat trends to watch in 2017
[03 January 2017]
The Asian Agribiz team found some interesting developments within the meat sector in 2016 and these are bound to flourish in 2017. The upscaling of meat consumption we found, are mainly driven by a change in lifestyle as a result of urbanisation and higher incomes. Some of our findings are listed below.
Prepacked, branded meat make headway in Asia
Consumers are becoming more accepting of chilled and frozen meat, but at different paces in various countries. While some consumers have embraced prepacked, precut and preweighed meat, others continue to cherry-pick. In mature Asian markets, prepacked chilled and frozen meat have been making progress. In Japan, South Korea, Singapore, Hong Kong, Malaysia, Thailand, Indonesia, and China, it is typical to see chilled and frozen meat sold prepacked in supermarkets and meat shops. While this is mostly true in urban centres, better cold chain logistics have made these value-added products available even in areas outside of cities.
Demand for portioned cuts picks up in Asia
The demand for portioned cuts in Asia is on the rise, driven by growing incomes and changing lifestyles. In response to this retailers have come up with a variety of cuts to satisfy their customers. Driven by greater awareness for food safety, growing incomes, and changing lifestyles and family size, Asian consumers’ preferences, particularly those in urban areas, continue to evolve. There is now a clear trend towards portioned meat cuts to meet consumers’ convenience and cooking preferences.
Asian producers focusing more on packaging
Ready to eat (RTE) products in Asia is where taste, convenience and technology meet to provide quick and hassle free meals. While making strides in ensuring quality meals, the industry is also driving changes on the packaging front for more attractive, safer and cost effective products. Consumers across Asia, we learnt, purchase RTE meals on a regular basis. The packaging side of the business, is driven by the needs of the industry. A longer shelf life, wastage along the food chain, keeping food fresher and keeping off preservatives have pushed producers to learn the latest in packaging technology, material and processes.
Lifestyle changes transform cured meat sector
Like manufacturers of other processed meat products, cured meat producers in Asia are eager to stay updated with current market trends. Changing lifestyles across Asia has pushed for innovation in almost all aspects of the sector. Asian cured products are traditional delicacies. Yet consumers demand that the products move with the times while retaining their unique flavours and sentiments. Health reasons and changing lifestyles have propelled changes in the sector, and producers in the region have responded by using better quality raw materials and cutting back on salt and preservatives.
Innovation leads value-added seafood category to big gains
Asian consumers are looking to seafood as an alternative protein source but they demand convenient, healthy and delicious products. The value-added seafood industry across Asia continues to grow, backed by lifestyle changes, a growing middle class and consumers who are health conscious. In Indonesia the industry is expected to develop significantly in coming years. In the last three years, the industry grew at around 10% year-on-year.
Producers satisfy epicurean cravings with premium sausages
Generally regarded as healthier and leaner, the demand for premium sausages is expanding in Asia as upscale restaurants flourish and consumers cultivate expensive tastes. Producers of premium sausages are not cutting back when it comes to ingredients and cuts of meat. Today choice meat cuts and a blend of tasty ingredients have created what is called premium, or gourmet sausages.
|The future of TPP to be addressed at AP2022|
[30 December 2016] At Asian Agribiz's Animal Protein in Asia 2022 conference in Bangkok, Thailand this January, Michael Every, Head of Financial Markets Research for Rabobank in Hong Kong will assess whether the US-centric TPP will exit and the China-centric RCEP replace it. Is the trade argument too focused on the US and Europe and can CNY fill any USD gap in Asia? The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Access the complete program, speaker profile and register here.
|Indonesian consumers opt for chicken, mutton during festive season|
[30 December 2016] Indonesia’s soaring beef prices have led consumers to shift to chicken meat and mutton during the festive season. “The price of beef remains high at USD 9.13 per kg,” said Abdullah Mansuri, Chairman of the Indonesian Market Traders Association (Ikappi). Chicken meat and mutton are priced at USD 2.45 and USD 8.54 per kg, respectively. “Usually, the prices of beef and chicken meat drop after Christmas, but it will rise again at the beginning of the year. That’s the annual price cycle,” Mr Mansuri said. Previously, the Trade Ministry facilitated a beef distribution cooperation agreement between the State Logistics Agency (Bulog) and the Indonesian Meat Distributors Association (ADDI). The cooperation was made to ensure that beef prices do not exceed the government’s upper price ceiling of USD 5.95 per kg.
|Lay Hong aims to grow its food producing segment with Japan jv|
[30 December 2016] Malaysian integrator Lay Hong Bhd will position itself as a food producer as it produces more innovative and healthy products. It hopes to achieve this with its joint venture with Japan’s NH Foods Ltd. Group Executive Director Yap Chor How said its new processing plant, expected to be operational in 2018, will feature Japan’s quality control and food safety standards, The Star reported. “Our market share for processed food and ready-to-eat food segment is expected to hit above 10% after 2018 from around 6% at present,” he said. Lay Hong recently launched five frozen products under brandname Nippon Premium NutriPlus, namely Chicken Karaage, Chiki-Chiki Bone, Amakaraage, Tebamoto Amakaraage and Chicken Menchi Katsu.
|Vietnam approves grant package for high-tech farming|
[30 December 2016] Numerous technical, financial and regulation support from the Vietnamese government has helped shrimp farmers in the country. At a conference, Prime Minister Nguyen Xuan Phuc approved a grant package of around USD 2.5 billion for high-tech farming with the most favourable and open lending mechanisms. Nguyen Hoang Anh, Permanent Vice Chairman of the Digital Agriculture Association said Vietnam has visible advantages for strong growth in the shrimp sector, which brings in USD 3-4 billion per year in export value. However, “we haven’t reached full capacity due to some constraints including spontaneous small-scale stocking habit,” he said. With land use transformation to shrimp farming in some strategic areas, especially seawater-intruded areas in the Mekong Delta, Mr Anh said: “We can possibly increase the total shrimp farming area to 2 million ha from the existing 600,000ha.”
|New Zealand can provide halal meat know-how to Japan|
[30 December 2016] New Zealand is known for an economy dependent on agriculture, but it is also a leading exporter of halal meat to Muslim countries including Indonesia. However, the growing demand for halal-compliant foods surpasses New Zealand’s supply capability, and the country is looking to partner with others to promote the business. Bruce Baillie, Alliance Leader for Food Supply and Services at Pricewaterhouse Coopers suggested that New Zealand could provide know-how to Japan. “Japan has the potential to be a major supplier of halal products. Japan, like New Zealand, is a small country and exporting high-value-added products will be crucial to grow its economy,” said Mr Baillie as quoted by Nikkei Asian Review.
|Corn farmers in Batang regency need corn dryers|
[29 December 2016] The Regent of Central Java's Batang regency, Yoyok Riyo Sudibyo is pleased with CJ Feed Indonesia's 5th feedmill in his regency. "The management of the company has committed to give benefits to our regency and society. One of them is providing job opportunities," Mr Sudibyo said. However, "we also want the company to provide corn dryers for our corn farmers as their main problem is how to meet moisture content standards," he told Asian Agribiz.
|Deadline set to validate import permits|
[29 December 2016] The Philippine Department of Agriculture (DA) has given importers of meat, fisheries and other agricultural goods until December 31, 2016 to have their permits validated otherwise these would be cancelled. DA Secretary Emmanuel Piñol said that about 7000 SPS permits out of more than 19,000 issued by the previous administration remain unvalidated. Last month, Mr Piñol declared all import permits must be revalidated since some importers have been recycling them to bring in goods illegally. “The unmonitored SPS clearances, which traders re-use and abuse resulted in unmonitored quantification of the goods that are coming into the country,” he said. Since then the DA has processed 12,000 SPS permits, and is currently putting blacklisted companies on a database.
|Vietnam’s Hoa Phat's agri venture to contribute 30% of profits by 2020|
[29 December 2016] Vietnamese steel producer Hoa Phat Feeds Trading and Production One Member Co Ltd, which recently opened its first feedmill in Hung Yen, will focus on two major fields, namely feed and farming. “Hoa Phat will only look at pig farming,” said Tran Tuan Duong, Hoa Phat’s CEO and Vice Chairman. “By 2020 feed and livestock production will contribute 30% of Hoa Phat’s total profit,” said Mr Duong. The company aims to be one of the top 10 agri companies in Vietnam. It plans to complete the construction of its second feedmill in Dong Nai province by year end, and a third in Phu Tho province by early next year.
Regional Dairy Update
[29 December 2016]
Ultrajaya to launch two new milk products
Indonesia’s Ultrajaya Milk Industry & Trading Company plans to launch two new products namely yoghurt and pasteurised milk in the near future in an effort to boost its sales. The company has seen a growing trend in consumption of milk products in the country. Quoting a Nielsen survey, the company said the milk packaging market in Indonesia has been growing since 2014, and the value of the milk packaging market in Q3 2014 was USD 385 million, while in Q3 2015 the value increased to USD 428 million and USD 528 in Q3 2016. Ultrajaya’s management is optimistic that the liquid milk market will continue to grow, driven by a leaning towards a healthy lifestyle.
Wens becomes the largest dairy producer in Guangdong
Guangdong Wens Foodstuff Group in China said its dairy cow stock has exceeded 20,000 heads after introducing 3500 more cows from Australia, making it the largest dairy producer in the southern Chinese province. Wens, already the largest pig and chicken producer in China, is accelerating its dairy business by expanding Holstein and Jersey stocks. The company started its dairy business in 2000 and became a raw milk supplier to Hong Kong from 2003. It now enjoys a 70% share in Hong Kong’s raw milk market. Wens offers more than 30 dairy products in four categories, namely pasteurized milk, flavoured fermented milk, UHT milk and milk beverages.
Fonterra invests 20 million in Malaysian operations
Fonterra Co-operative Group, the world’s largest dairy export company, has invested USD 5 million in two of its plants in Malaysia. A report in the Nikkei Asian Review said Malaysia is considered a major market by the New Zealand group as ‘consumer insights’ here can be used for broader product development. This investment will boost blending capacity at the Susumas plant and reduce dependence on third parties. The plant can produce and pack an annual 30,000 tonnes of milk powder for brands including Anlene, Anchor, Anmum and Fernleaf, all market leaders in Malaysia. Over 100 products produced in Malaysia are halal-certified, making the country an important hub for export to other Muslim countries.
Indonesia’s milk production estimated to drop in 2017
The Indonesian Association of Dairy Cattle Farmers (APSPI) has predicted that the sluggish trend in domestic fresh milk production will continue next year as more local producers are likely to resign from fierce competition with imported dairy products. The association estimates that next year local fresh milk production will drop to 700,000 tonnes from 750,000 tonnes in 2016. The figure makes up less than 20% of national demand for fresh milk, which currently stands at 3.82 million tonnes. “In 2020, we predict that the proportion will be between 12-13%,” Agus Warsito, APSPI Chairman.
Producers in Vietnam find solutions for dairy farm waste treatment
Vietnam dairy producers are struggling with farm-waste issues. One of the solutions is to build a centralised waste treatment centre where livestock manure in the Moc Chau district, for instance, is treated professionally. “The centre will receive farm waste from the households and process it into organic solid fertiliser, which is then supplied to local farmers for crop cultivation, and liquid biogas to create small-scale electric generation,” suggested Moc Chau Milk's CEO Tran Cong Chien. The Department of Livestock Production supports this. Deputy Director of the Department Tong Xuan Chinh said the plan would require the consensus between the government, enterprises, and farmers.
|Learn more about world food commodity prices at AP2022|
[28 December 2016] Renowned Consultant and poultry industry specialist Gordon Butland will address world food commodity prices and how they have been in slow decline for five years or so, only recently stabilising with some signs of recovery now. With an increasingly unpredictable climate, are we to face the spectre of a return to hyper-price volatility for food staples, he asks. Mr Butland's will be one of 19 visionary presentations from 16 global and regional specialists at Asian Agribiz's Animal Protein in Asia 2022 conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Access the complete program, speaker profile and register at AP2022.
|Thaifoods Group to buy 75% stake in Thailand’s Big Food|
[28 December 2016] Thailand’s Thaifoods Group (TFG) said it will spend no more than USD 1.67 million to purchase a 75% stake in Big Food Group (Big Food), which operates broiler farms and slaughterhouse in Thailand. TFG will acquire 100,016 existing shares from Big Food’s existing shareholders and 200,000 newly issued shares at USD 5.56 per share. Moreover, TFG said it will establish its new subsidiary, Thai National Logistics, early next year to reduce logistic costs of the company. Thai National Logistics will have a registered capital of USD 1.67 million and it will be a wholly owned subsidiary of TFG. Meanwhile, TFG said earlier that it will invest around USD 54 million to build its first cooked chicken plant early next year.
|Indonesia resolves to appeal WTO dispute on agri products|
[28 December 2016] A World Trade Organization (WTO) panel agreed with the US on all 18 of its claims that Indonesia’s unfair trade restrictions are not consistent with WTO rules, according to the Office of the US Trade Representative. The US and New Zealand filed the dispute as co-complainants to address trade barriers in Indonesia that restrict the importation of American animal products such as beef and poultry and other agricultural products like fruits and vegetables. “Importantly, the WTO Panel findings will discourage Indonesia from simply substituting new trade-distorting approaches for the measures repealed, restoring American farmers’ and ranchers’ ability to compete,” said Tom Vilsack, US Agriculture Secretary. I Ketut Diarmita, Director General of Livestock & Animal Health told Asian Agribiz that the Ministry of Agriculture has coordinated with the Ministry of Trade to discuss the appeal efforts.
|Hy-Line China distributor to build USD144m layer facility|
[28 December 2016] Shenyang Huamei Livestock and Poultry Co, a layer and broiler integrator in northeast China, said it will invest USD 144 million to build an integrated layer facility consisting of a farming demo base, hatcheries and a poultry disease research centre. The project is designed to produce 100 million commercial chicks a year, according to Huamei, a Hy-Line distributor since 1985. “We will fully tap Hy-Line’s expertise in genetic development, farming and hatching management, biosecurity, as well as facility layout, so as to better serve the Chinese layer industry,” Huamei said. In December, the company imported new Hy-Line Brown GP stock, following the 16,510 sets introduced in March this year.
|Vietnam’s tra fish processors face severe material shortage |
[28 December 2016] Due to unfavourable weather conditions and farmer's ineffective investment plan, Vietnam’s tra fish processors are facing material shortfall, soaring material prices and decreased production capacity. The situation is expected to continue throughout 2017. According to the Vietnam’s Association of Seafood Exporters and Producers (Vasep), seafood processors will fall short of 40% of tra fish starting from Q1 2017. “The tra fish sector acreage has decreased 30% since November 2016 and is expected to shrink further next year,” said Duong Ngoc Minh, Vasep Vice President.
|CJ Feed Indonesia to maximise its new feedmills' capacities|
[27 December 2016] CJ Feed Indonesia aims to maximise the production capacities of its new feedmills in Lampung, Central Java and South Kalimantan in 2017. Tevi Melviana, Sales & Marketing GM told Asian Agribiz that the company will add more sales people. "We will also focus more on partnerships with feed agents and farming companies who have no feedmills, rather than on retail sales," he said. In 2017, according to Mr Melviana, the company also plans to produce feeds for other poultry species, and possibly pig feed at its Medan plant.
|CPF accelerates its food business after Bellisio deal |
[27 December 2016] Thailand’s Charoen Pokphand Foods (CPF) said it had completed the acquisition of Bellisio Parent LLC, US Frozen food producer, for USD 1.075 billion. Adirek Sripratak, CEO of CPF, said Bellisio’s business will continue to grow and it will expand production lines, which will produce Thai and Asian foods under the CP brand, serving US and Asian consumers in the US. “With Bellisio’s effective production base and cheap raw materials, we may also export these food products to Asian countries,” Mr Adirek added. CPF’s feed and farm business contributes more than 80% to its total sales, while its food business contributes only 12% total sales. After the Bellisio deal, CPF’s food business will contribute 17% to its total sales in 2017 and its sales contribution is expected to reach 25% in the next five years. Meanwhile, CPF expects its total revenue to reach USD 12.52 billion in 2016 and USD 13.91 billion in 2017.
|Malaysia’s Lay Hong expects good results in 2019 with new processing plant|
[27 December 2016] Lay Hong Bhd is confident of delivering a significant rise in performance for the financial year ending March 31, 2019. This will be derived from a new joint-venture plant with Japan NH Foods Ltd, which is expected to start operations by 2018. Group Executive Director Yap Chor How said construction of the plant would begin by the first quarter of 2017. The new plant will produce 2000 tonnes of processed food per month. He expects some products to be exported to Japan, Singapore and Middle Eastern countries, leveraging Malaysia’s halal certification and NHF’s network and expertise, The Star reported. Mr Yap said while NH Foods was eyeing to expand its halal market via Malaysia by capitalising on its NutriPlus brand, Lay Hong was keen to tap into NH Foods’ innovation expertise.
|Imported meat will gain ground in Vietnam|
[27 December 2016] Imported meat has been forecast to prevail in the Vietnamese market, posing challenges for domestic products and businesses. Vietnam’s husbandry sector is expected to face difficulties in the near future when trade barriers are removed following the ratification of free trade agreements, said Tuoi Tre News. Along with Australian beef, meat from Europe, Japan, and Indonesia is expected to become popular thanks to attractive quality and affordable prices. The Animal Husbandry Association of Vietnam said local meat is more expensive because of a limited source of feed and technology. “The poultry industry in the country has been heavily affected by cheap imported chicken. The beef and pork sectors could suffer as well,” said Nguyen Van Ngoc, an official from the association.
|Insect protein to be allowed in EU aqua feed from July 2017|
[27 December 2016] Insect protein can be used in fish feed in Europe from July next year. The announcement comes as European Union member states recently endorsed a European Commission proposal to allow the wider use of insect protein in feed. Jason Drew, co-founder of South Africa-based fly farmer AgriProtein, said the move “brings insect protein into the mainstream of feed ingredients. This is a big step for the environment and world food security. Replacing fish protein with insect protein allows us to dedicate our oceans to production for human consumption alone. But while the new EU regulations will permit insect protein as aqua feed, the situation hasn’t changed for other farm animals, including poultry and pigs.”
|CJ Feed Indonesia targets 3.2mt of feed by 2020|
[23 December 2016] CJ Feed Indonesia, a subsidiary of South Korea based CJ CheilJedang Group, is on track to achieve its target to produce 3.2 million tonnes of animal feed in 2020 after opening its 5th feedmill located in Batang regency, Central Java on December 20. The company has also finished construction of its 6th feedmill in Banjarmasin, South Kalimantan. KS Chung, CEO of the Group’s Feed & Livestock Business Unit, said to achieve the 2020 target, the company will set up 2-3 new feedmills in the country. Hari Suryadi, Project Manager told Asian Agribiz that the Batang plant, which is operated by the company’s subsidiary PT CJ CheilJedang Feed Semarang, has an annual capacity of 384,000 tonnes and is expandable to 500,000 tonnes. The plant, which cost the company around USD 30 million, will cover demand from Central Java and Jogjakarta. Meanwhile about the Banjarmasin plant, Tevi Melviana, GM Sales & Marketing told Asian Agribiz that the plant has started trial production, while the grand opening of the plant is planned for early 2017.
|Thai shrimp output continues to rise after recovery from EMS|
[23 December 2016] More than 50% of Thai shrimp farms have adopted better farm management and strategies to successfully cope with the early mortality syndrome (EMS), resulting in higher shrimp output, Somchai Lerkpoke, Secretary of the Thai Shrimp Association, told Asian Agribiz. Thai shrimp output is projected to hit 300,000 tonnes in 2016, up 15% from 260,000 tonnes in 2015. “We should thank EMS, which has forced us to improve farm management. Only professional shrimp farmers have managed to overcome this challenge,” he said. Better farm management practices adopted by shrimp farmers, range from selecting better shrimp genetics to improved farm structure and cleaning systems. Somsak Paneetatyasai, President of Thai Shrimp Association, said Thailand’s shrimp industry has a bright outlook and shrimp output is expected to reach 350,000 tonnes in 2017.
|Fujian Sunner to launch fifth feed plant by 2017|
[23 December 2016] Fujian Sunner Development Co said it is building a new feed plant with an annual capacity of 500,000 tonnes in Guangze where the company is headquartered. Costing USD 17.3 million, it will be Sunner’s fifth feed plant equipped with Muyang technologies. The facility will include a specialised railway to accept materials, and four silos to store 10,000 tonnes of corn each. The manufacturing process will be PC-controlled and a single shift will need only 10 workers, according to the company. The plant is scheduled to be launched in December 2017. As China’s largest white broiler integrator, Sunner raised and slaughtered 360 million birds in 2015 and targets to 430 million this year.
|Philippine bans poultry from the Netherlands, Germany and Japan |
[23 December 2016] The Philippines has temporarily banned poultry imports from the Netherlands, Germany and Japan after these countries reported outbreaks of highly pathogenic avian influenza. This covers poultry meat, day-old chicks, eggs and domestic and wild birds, but not heat-treated products. Frozen poultry meat with slaughter/process date of 21 days prior to the outbreaks are allowed to enter the country subject to veterinary quarantine rules and regulations. According to the Bureau of Animal Industry, the Netherlands and Germany are the 2nd and 5th largest sources of poultry imports for the Philippines. As of end-October this year, the Philippines imported over 41,000 tonnes of chicken from the Netherlands and nearly 12,000 tonnes from Germany.
|Meat processing equipment market to reach USD14.59b by 2022|
[23 December 2016] The meat processing equipment market, estimated at USD 9.63 billion in 2016, is projected to grow at a CAGR of 7.03%, to reach USD 14.59 billion by 2022. According to Fast Market Research, the market is primarily driven by factors such as increased demand for processed meat products and rising safety regulations generating the need for sophisticated equipment. On the basis of type, the market was led by the smoking equipment, followed by filling and tenderizing equipment. Asia Pacific is projected to be the fastest-growing market for the period considered for this study, due to the high adoption rate of meat processing equipment in food processing. China is expected to lead the market for meat processing equipment in the Asia Pacific.
|NH Foods to make Malaysia export hub for halal foods|
[22 December 2016] NH Foods, Japan’s largest food producer by sales, will make Malaysia the hub of its exports of halal food consumed by Muslims. The group’s unit NHF Manufacturing, a 51:49 joint venture with Malaysian poultry producer Lay Hong, will build a new factory in Selangor. With an investment of USD 10 million, construction of the new factory is slated to begin in early 2017. When completed in the first half of 2018, the factory will be capable of producing 1000 tonnes of food monthly under the first phase, with the option to double the capacity, depending on demand, reported Asia Nikkei. “There is big potential for halal food in Japan,” said Hideki Fujii, an executive of NH Foods, citing the increasing number of foreign visitors to Japan.
|SiamPigs aims to expand its network in Thailand|
[22 December 2016] SiamPigs, established by Sakchai Topanurak, an instructor at Thailand’s Chulalongkorn University, is a network of pig producers using enhanced genetics and disease resistant/tolerant pigs. SiamPigs develops its own breeds including Large White line 7788, Landrace line 4701 and Duroc line 929. SiamPigs breeds have been developed to cater to breeding objectives in Thailand. “Breeding objectives and genetic selection between Europe/the US and Thailand are different. They focus on fatty meats but Thailand focuses more on lean meats,” Dr Sakchai told Asian Agribiz. SiamPigs has developed one nucleus, one farm model, which uses disease resistant pigs in combination with a closed herd system. SiamPigs now covers more than 30 sow breeding farms and more than 100,000 sows have participated in the program.
|Masan to issue USD 300 million non-convertible bonds to foreign investors|
[22 December 2016] Masan Group Corporation recently received shareholders’ approval to issue a non-convertible international bond worth USD 300 million to foreign investors. The bond is valued at USD 1000 per unit with the duration of 5-10 years. After issuance these bonds will be listed on the Singapore stock exchange. Singapore’s Credit Suisse Ltd and Deutsche Bank AG’s Singapore branch are advising Masan Group on the deal. Masan Group is one of Vietnam’s largest private sector business groups focusing on the consumption and resources sectors. It established Masan Consumer Holdings as the primary platform to further exploit opportunities in the Vietnamese consumption segment. It operates in three business lines, namely food, beverage and animal protein.
|McDonald's China to complete hardware upgrade of 1000 restaurants |
[22 December 2016] McDonald's said it plans to complete hardware upgrade of approximately 1000 restaurants, or 40% of its entire restaurant portfolio in China, by the first half of 2017, in line with its “Future 2.0” strategy that aims to create a new customer experience. On December 9, the company’s first outlet in China, the Shenzhen Guanghua restaurant that was opened in 1990, became the first again to be fully upgraded to a “Future 2.0” concept restaurant, which integrates digital hardware, personalized products and considerate service, including Touch-Screen Self-Order Kiosk (SOK), mobile payment, customized burger and table service. “We hope to put more choice and control in the hands of our customers, so that they can have a good dining experience,” said Phyllis Cheung, CEO of McDonald’s China.
|Processing systems can bring in USD 2 billion in exports for Pakistan|
[22 December 2016] Pakistan can see USD 2 billion in poultry exports if it installs proper processing systems. University of Veterinary and Animal Sciences Vice Chancellor Prof Talat Naseer Pasha said the country’s poultry products had export potential particularly in the Middle and Far East countries, Central States and Russia, the Pakistan Observer reported. He added that export of poultry meat would also lift the economic condition of poultry farmers besides boosting the agriculture sector. The government should pay heed to a processing system of poultry products with the help of the private sector. He said poultry was the most vibrant sector in the country with an annual growth of 8-10%.
|Rhone Ma Holdings to expand regionally|
[21 December 2016] Malaysia’s Rhone Ma Holdings Bhd, recently listed on the Main Market of Bursa Malaysia Securities Bhd, said it plans to focus on expanding its product range as well as beefing its presence in four countries in the region, namely Indonesia, Thailand, Vietnam and the Philippines. The group, said Managing Director Dr Lim Ban Keong, also plans to register its 13 feed additives regionally, reported The Edge Financial Daily. Eventually, Dr Lim said Rhone Ma plans to expand its total solution provider (TSP) services, such as veterinarian advisory and antibiotic residue-free programmes, to its regional partners. “We want to educate our partners in the regional market on this [TSP] concept and we can train their people,” he said.
|DaChan Food to set up processing plants|
[21 December 2016] China's DaChan Food (Asia) plans to set up two food processing plants in the north of the country to support its food business. DaChan Food, which claims to be the largest chicken processor in China by number of chickens slaughtered, said its existing plants do not have enough capacity to meet demand for its processed food. The company’s operations include chicken meat production, through which it claims to be the largest chicken meat supplier to KFC in China. DaChan’s processed food arm sells products including chicken, pork, fish and vegetables. Presently DaChan Food's production network includes four processed food production facilities in China. According to Just Food the new sites will be in and around Bengbu, a city in the northern Chinese province of Anhui.
|Japan slaughters birds in Hokkaido to stem spread of bird flu|
[21 December 2016] In the wake of bird flu spreading like wildfire in the East Asian countries, Japan slaughtered some 210,000 farm birds in northern Hokkaido. It is the fifth mass cull this winter in Japan with hundreds of officials working to prevent the spread of the virulent H5 strain, which has been detected at several farms across the country. Just weeks earlier, outbreaks led to a cull of 550,000 chickens in the central city of Niigata and 23,000 ducks in the Aomori prefecture south of Hokkaido. Authorities have also banned the transport of poultry and poultry products in areas close to the affected farms, while sterilising main roads leading to them.
|Vietnam’s Hoa Phat to offer pigs with updated genes in 2018|
[21 December 2016] Vietnamese steel producer Hoa Phat Feeds Trading and Production One Member Co Ltd, which recently opened its first feedmill in Hung Yen, already has a foot in pig farming. In May 2016, Hoa Phat imported 500 pigs of purebred Danish great grandparent. The new breeds will “bring exciting new breeding prospects to Vietnam, as it brings new blood lines not yet present in the country,” said Trần Tuấn Duong, Hoa Phat’s CEO and Vice Chairman. The company will start offering pigs and piglets early 2018, and set a target of producing 650,000 pigs by 2021. “By 2020 feed and livestock production will make up 30% of Hoa Phat’s total profit,” said Mr Duong.
|Australia sees reduced cattle demand from Indonesia due to buffalo meat|
[21 December 2016] Indonesia's demand for Australian cattle has slipped as imported buffalo meat has taken up significant market share, according to Australia’s Northern Territory Livestock Exporters Association (NTLEA). The drop in demand for live cattle coincides with the wet season, which usually reduces available stock, reported ABC News. The number of cattle exported out of the Darwin Port for the 11 months to November is down 139,000 heads to 311,000, according to Australia’s Northern Territory Department of Primary Industry. The drop in shipments has been mostly due to a consolidation of the Vietnamese market and delays with Indonesia's new import regulations, in addition, to "direct competition from buffalo meat. Importers and lot feeders are finding it a bit harder to sell finished cattle,” said Stuart Kemp, NTLEA Chief Executive.
|Hoa Phat’s new feed products receive thumbs up from farmers|
[20 December 2016] Vietnam's Hoa Phat Feeds Trading and Production One Member Co Ltd recently launched its first feedmill in the northern province of Hung Yen. The 4.5ha feed plant is equipped with the latest in European technology is designed to produce 300,000 tonnes of livestock and poultry feed products per year under the BigBoss and HPFeed labels. “Although new on the market, Hoa Phat feed is seeing positive feedback from farmers. Our sales are growing each month," said Hoa Phat Feeds' Director Nguyen Viet Thang in a statement. Hoa Phat Group, a large steel producer, ventured into agribusiness in 2015.
|CJ CheilJedang to record improved Q4 performance|
[20 December 2016] South Korea based CJ CheilJedang’s Q4 result is expected to improve. Shim Eun-joo, Analyst at Hana Financial said the company will likely post Q4 sales of around USD 3 billion and operating profit of around USD 154 million, up 9% and 60% respectively. “The company sees its home meal replacement entrees sell briskly in supermarkets. In addition, overseas retail channels and the number of items sold are rising steadily,” she told The Korea Economic Daily. Another reason, “due to the recent regulation on output by the Chinese government, the lysine price has shot up 67% for the past two months. Given other companies are raising their prices, it is benefiting CJ in terms of financial performance,” she said.
|Myanmar corn production to increase by 6%|
[20 December 2016] In marketing year 2016-17 Myanmar’s total corn production is forecast to increase by 6% due to the expansion of rain fed corn growing areas and increased demand from neighbouring countries, said the USDA Foreign Agriculture Services. The country needs 5000-6000 tonnes of corn seeds annually. Trade sources say 30-35% of local corn is used in feed, 5-6% is used for seed, food processing and alcohol production, and the bulk is exported to China. Corn use in feed is expected to increase to 800,000 tonnes in 2015-16 from 600,000 tonnes the year before. This could climb to 850,000 tonnes in 2016-17 as corn is likely to replace broken rice as a major ingredient in feed.
|PPA says no H5N1 cases in Pakistan|
[20 December 2016] The Pakistan Poultry Association (PPA) has brushed aside rumours regarding an outbreak of H5N1 avian influenza (AI) in Pakistan. Abdul Maroof Siddiqui, PPA Central Convener said there are general aliments in poultry due to the prevailing weather situation, however, the chance of an AI outbreak in Pakistan is minimal. “Investment in our poultry trade is huge and the poultry business will suffer losses of billions of rupees if such rumours are circulated. So far not a single case of H5N1 has been reported, but in 2003 around one million birds, mostly chickens, perished after an outbreak of the less virulent H9 and H7 forms of bird flu,” he told the Daily Times.
|Ringer Hut opens its first restaurant in Jakarta|
[20 December 2016] Japan-based Ringer Hut recently opened a Ringer Hut Citywalk restaurant in Jakarta, its first outlet in Indonesia. The restaurant features a chicken-based Nagasaki Champon noodle meal, as well as Sara Udon noodles. The menu offers more to choose from and includes items where customers are able to choose between chicken and other meats. They are also able to choose between noodles imported from Japan and local noodles. The Ringer Hut Group currently has 11 restaurants abroad: four in the US, four in Thailand, and three in Hong Kong, making the new establishment in Indonesia its 12th in four foreign countries. In the press-release received by Asian Agribiz, the Jakarta restaurant is said to be operated by Ringer Hut Indonesia, a subsidiary established in 2016.
|Indian farmers protest against zero import duty on wheat |
[19 December 2016] Farmers across Uttar Pradesh held a protest against the central government’s decision to scrap the import duty on wheat. Farmers said the demonetisation program and, now, the scrapping of import duty on wheat, will bring down the price of the commodity. Political party Rashtriya Lok Dal West spokesman Praveen Deshwal questioned the move at a time when India already has sufficient buffer stock. “It will take two or three months for wheat to be imported. When it arrives in March the local produce will be ready for harvest. Then prices will crash and farmers will have to sell at a low price.
|China to strengthen production of additives in 13th 5-year plan |
[19 December 2016] China will see its import of feed additives drop between 2016-2020. The country, in its 13th five-year plan for the feed industry, will focus on strengthening local production of additives and concentrates. According to CCM, a market intelligence firm that focuses on China’s feed market, the next few years could see the country slashing its import of additives such as vitamins, amino acids and methionine. The ministry also wants to reduce the country’s dependence on protein additives, which are mainly imported. For now, it is promoting the use of synthetic amino acids. However, all is not lost. CCM added that the focus on domestic production can also offer good opportunities for investments in the Chinese feed additive industry.
|Indonesia’s Ag Quarantine Agency strengthens its vigilance over AI|
[19 December 2016] Following avian influenza (AI) outbreaks in Rumania, Japan, the Netherlands, France, Finland, India and Sweden, Indonesia’s Agriculture Quarantine Agency has circulated instructions to all agriculture quarantine units across the country to strengthen their control and monitoring. In the copy of the official letter received by Asian Agribiz, the agency has banned importation of poultry and poultry products from the seven infected countries. However, importation of hatching eggs and SPF (specified pathogen free) eggs are still allowed. The agency also asked all its units to coordinate with all airport & seaport authorities in the country, as well as monitor poultry distribution within their regions.
|Macao announces its first-ever H7N9 avian flu case|
[19 December 2016] Macao has reported its first human H7N9 avian influenza case, involving a 58-year-old man who owns a poultry market stall, according to a Xinhua report. This announcement comes just after local agriculture officials announced that H7 avian influenza was detected in poultry imported from mainland China. Health officials are testing and monitoring the man's contacts, and the man is reported to be in stable condition. The new H7N9 case follows the announcement of eight infections from China over the last several weeks. Macao's case lifts the global total from H7N9 to 816 cases, according to a case list maintained by FluTrackers.
|ADM sells GrainCorp stake for USD 287 million|
[19 December 2016] US commodities trader Archer Daniels Midlands Co has sold its 19.9% stake in GrainCorp Ltd to underwriters just three years after a failed bid to wholly acquire the Australian grain handler. The sale was valued at USD 286.92 million. ADM’s USD 2.1 billion bid to buy Australia’s largest listed grain handler was blocked by government regulators in 2013 near the peak of a grain market boom. “This transaction will allow us to further reduce our invested capital, and it will provide cash that we can redeploy to higher-return investments,” ADM Chief Executive Officer Juan Luciano said in a statement.
|19 visionary presentations at AP2022|
[16 December 2016] Among the key presentations at Asian Agribiz's Animal Protein in Asia 2022 conference in January are 'Considering the potential for meat products in the halal sector', by Khairul Ruzaini, Business Development Manager, Umairah Halal Food, Singapore and 'Developing promotable attributes for pork products', by Darryl D'Souza, CEO, Sunpork Solutions, Australia. In total there will be 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help you fine-tune your five-year plans. The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). You can access the complete program, speaker profile and register here.
|Rise in Thai shrimp exports|
[16 December 2016] Shrimp producers in Thailand will export around 230,000 tonnes of shrimp in 2017, up 10-15% from an estimated 200,000 tonnes this year, said Somsak Paneetatyasai, President of Thai Shrimp Association. Thai shrimp output is projected to hit 350,000 tonnes in 2017, up from an estimated 300,000 tonnes in 2016. Thai shrimp output has risen because shrimp farmers have adopted better farm management and strategies to cope with the early mortality syndrome. “The US and Japan have been major export markets for Thai shrimp, but we are seeing growth potential in the Chinese market,” Mr Somsak added. Shrimp export from Thailand to the US and Japan were 65,855 tonnes and 32,783 tonnes respectively in the first 10 months of 2016. Meanwhile, Thailand exported 160,935 tonnes of shrimp in the first 10 months of this year, valued at USD 1.53 billion.
|Japan, Russia develop fish processing facilities in Indonesia|
[16 December 2016] Indonesia’s Ministry of Fisheries & Marine Affairs has said that companies from Japan and Russia have shown serious interest in opening fish processing plants, along with associated cold storage facilities in 36 locations, including Sabang, Natuna, Muara Baru, and Makassar. “The Japanese have stated that they want to develop six spots,” said Susi Pudjiastuti, the Minister. She said the Sabang project, where it is planned to build a tuna cultivation centre, would be the earliest project to begin operation. The remaining projects are expected to be realised in 2017. Each plant will need a minimum investment of around USD 2-5 million, she added. Russian project management firm Blackspace, meanwhile, will develop 30 plants, after having completed Untia Port in Makassar. The port has been operating since November in cooperation with state-owned fisheries firm Perikanan Indonesia (Perindo).
|South Korea culls 8 million birds |
[16 December 2016] More than 8 million chickens and ducks have been culled in a nationwide quarantine effort to contain the highly infectious avian influenza (AI) that has devastated hundreds of poultry farms in South Korea over the past weeks. The government is doing everything it can to stop the spread of the H5N6 AI virus, but the virus is still elusive because of cold weather that significantly reduces the effectiveness of AI vaccines, according to the Ministry of Agriculture, Food and Rural Affairs. Experts said the accumulated number of culled poultry will reach 10 million in days to come, making the latest outbreak the worst in Korea since 2014. “We are the making utmost effort to contain the spread of the virus,” a ministry official told the Korea Times.
|Jollibee to sell stake in China’s San Pin Wang|
[16 December 2016] Jollibee Foods Corporation (JFC) will sell its shares in Chinese restaurant chain San Pin Wang and will focus instead on building up Yonghe King, its biggest business in China. JFC, thru its wholly owned subsidiary Jollibee Worldwide Pte Ltd, will sell its 55% share in the San Pin Wang to its partner, Guangxi Zong Kai Food and Beverage Investment Co Ltd for USD 13 million. In a disclosure to the Philippine Stock Exchange, JFC said its “divestment of its shareholdings in San Pin Wang is part of its intention to concentrate its resources on businesses with greater potential.”
|H5N6 detected in China’s Sichuan|
[16 December 2016] China’s Ministry of Agriculture said the nation has confirmed an outbreak of the highly pathogenic H5N6 avian influenza in Mianzu in southwestern Sichuan province. The new outbreak struck 13,000 birds in a farm and 11,000 of them died. “A total of 38,000 birds have been culled and the disease is under control,” the ministry said on December 12. The H5N6 resurfaced in China in early October when the country reported two separate outbreaks in Gansu and Hubei provinces to the World Organization for Animal Health (OIE). The October outbreaks affected more than 100,000 birds.
|China starts rail imports of European pork |
[15 December 2016] A shipment of 21.9 tonnes of pork from Germany arrived in Chengdu, southwest China after a 13-day route by train, indicating the establishment of a new transportation corridor for frozen food between China and Europe, said the Sichuan Entry-Exit Inspection and Quarantine Bureau. Rail transportation saves more than 40 days compared to ocean shipping, and is about USD 1450/tonne cheaper than air freight, according to the bureau. China has also designated Zhengzhou in central Henan province and Yiwu in eastern Zhejiang as meat ports for the China-Europe Express Rails, which began operations in 2011.
|Korea’s beef imports surge over anti-graft law implementation|
[15 December 2016] According to Korea Customs Service data, the country's total beef imports rose 28.4% to 320,219 tonnes in the first 10 months of this year. Imports of US beef surged 47.6% to 131,466 tonnes, while imports of Australian beef rose 14.9% to 162,794 tonnes during the period. South Korea's beef imports jumped partly because of a falling demand for pricey Korean beef amid the implementation of an anti-graft law. Imports of foreign beef are expected to further rise after the anti-graft law took effect in September this year, which limits spending on gifts, according to Yonhap News. Boxed sets of domestic beef, known as “hanwoo” have been popular gifts for the traditional holiday season, but their high prices make people hesitant to give such gifts under the law. Instead, people tend to buy less expensive imported beef.
|Ajinomoto receives award for its feed L-Lysine|
[15 December 2016] Japan’s Ajinomoto Co Inc and its consolidated subsidiary Ajinomoto Animal Nutrition Group Inc were awarded EcoProducts Grand Prize by Japan’s Ministry of Agriculture, Forestry and Fisheries for their long time business efforts of L-Lysine amino acid for animal nutrition. The award is one of the highest honours in Japan to commend the products for environmental protection. “The award evaluating our animal nutrition business from the view point of sustainability is quite meaningful to the entire Ajinomoto Group. We will continue to contribute to a healthy future for humanity through products and services supported by science and technology through our overall business activities,” said Tamotsu Iwamoto, Executive Deputy President of Ajinomoto Co.
Regional dairy update
[15 December 2016]
Vinamilk enters Thai market with yoghurt products
The Vietnam Dairy Products Joint Stock Company (Vinamilk) yoghurt is now available at supermarkets in Thailand, priced as a premium product. Vietnam’s largest milk producer picked Thailand’s Top Most Enterprise (TME) to distribute its products in Thailand, a dairy product market valued at USD 1.7 billion a year. This product is priced at USD 0.49-0.51, higher than other brands. TME expects to cover all distribution channels in Q2 2017. TME also plans to launch Vinamilk UHT milk. Its products are now sold in nearly 200 stores in 45 provinces in Vietnam and in more than 43 countries, such as Cambodia, Thailand, South Korea, Japan, China, Turkey, Russia, Canada, and the US.
Nestle opens Sri Lanka dairy facility
Nestle launched a milk chilling plant in Jaffna, marking a milestone in the development of its dairy business in Sri Lanka. Nestle said the facility would enable it to “preserve the quality and freshness” of milk collected in the region. It is equipped with quality testing facilities and farmers will be paid for the quality of milk they supply. This way Nestle believes it is encouraging farmers to produce more high quality milk. The company also conducts farmer training programs on cattle feeding and breeding, animal health, farm management and quality assurance. Nestle is the largest private sector milk collector in Sri Lanka.
Qantas plans for fresh milk delivery from Australia to China
In the first half of 2017, subject to government and regulatory approvals, Qantas Freight will carry more than 50,000 litres of fresh VAN Dairy’s milk from Hobart, Australia, to Ningbo, China. Local distributors will truck the milk to supermarkets and convenience stores in Ningbo and Beijing. “There is a huge demand for fresh milk in China and the key to satisfying that demand is having a reliable freight partner with an established freighter network, infrastructure and support in China and expertise in handling fresh produce – Qantas provides that,” said Managing Director of VAN Dairy’s parent company, Moon Lake Investments, Sean Shwe.
Amul soon to launch camel milk
With India’s Food Safety and Standards Authority setting new standards for camel milk, India’s dairy major Gujarat Cooperative Milk Marketing Federation, which sells products under the Amul brand, has said that it will launch camel milk in the next three months. “Now, the plant is ready in Kutch. Initially, the camel milk, packed in 500 ml bottle, will be sold in Ahmedabad through Amul booths,” said Hardeep Banga, Marketing Manager, adding that the camel milk will later be marketed in Delhi and Mumbai.
|AP2022 - team registrations close today|
[14 December 2016] Team registrations close today, 14 December, for Asian Agribiz's Animal Protein in Asia 2022 Conference. Register by today to enjoy savings of up to USD 300 per delegate. In total there will be 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help you fine-tune your five-year plans. The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). You can access the complete program, speaker profile and register here.
|Thai Union signs MOU on promoting fair labour practices|
[14 December 2016] Thailand’s Thai Union (TU) and the World Tuna Purse Seine Organisation (WTPO) recently signed a memorandum of understanding (MOU) to establish a high-level framework of cooperation in ensuring fair labour practices. Darian McBain, TU’s global director of sustainable development said “Thai Union Group is committed and focused on efforts of reform in the fishing industry and taken significant steps to promote safe and legal labour.” Under the MOU, TU and WTPO have agreed to develop policies and rules on ethical crew employment and fair labour practices, including training, social responsibilities and basic policies for sea-based operation of the tuna purse seine industry. Both parties also agreed to cooperate and exert efforts to ensure the viability, completion and success of this project.
|China 2016 GGP pig imports up 30% |
[14 December 2016] Chinese pig breeders imported a combined GGP stock of 5746 heads in 2016, up 30% from a year earlier, according to the China Animal Husbandry Group, a state-owned import agent for livestock breeders. The GGP stock came in 13 batches, of which seven were supplied by Genesus. It also recorded the largest single supply of 998 heads to a Jiangsu unit of Cofco Meat. The other suppliers include Hypor, DanAvl, Nucleus and PIC.
|Burger King launches first outlet in Dhaka|
[14 December 2016] US based QSR chain Burger King recently opened its first outlet in Dhaka, Bangladesh. Tiffin Box Limited, a Bangla Trac Group company, is the franchisee, who made a long time development agreement to launch and expand the Burger King brand in the country. Tarique E Haque, Tiffin Box Managing Director said that bringing Burger King to Bangladesh is a strategic move by the Group. “We use local agricultural products. So, it doesn’t only create a new brand image but also helps to extend our agro-products,” he added.
|Bhutan exports eggs to India|
[14 December 2016] Bhutan for the first time exported eggs to India in early December. The Agriculture Ministry sent 800 trays worth more than USD 2500 in its first consignment to Kolkata, India, as reported by Kuensel News. “It was done on a trial marketing basis,” Yeshey Dorji, Agriculture Minister said. “If this works out we will send more. We can sell but the price is the issue. We hope to fetch a higher price,” he said. The country achieved self-sufficiency in eggs in 2012 and today produces more than 250,000 eggs a day, the Minister said. There are about 400,000 laying hens altogether in the private and government farms across the country.
|Great savings if you register today for AP2022|
[13 December 2016] Animal Protein in Asia 2022 (AP2022), organised by Asian Agribiz, will examine the significant opportunities for growth in Asia’s animal protein markets that will emerge over the next five years. You can save USD 300/delegate by registering a team of two at Animal protein in Asia 2022 and paying by Wednesday 14 December 2016. Or USD 350 if you register a team of three or more!!! The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Register here today to enjoy attractive discounts.
|New Hope Liuhe to set up cooked pork JV with French integrator|
[13 December 2016] New Hope Liuhe Co said it plans to set up a 50-50 joint venture in China with French pork integrator Cooperl Arc Atlantique. The JV, with planned registered capital of over USD 21 million, is designed to have an annual capacity of 20,000 tonnes of western-style and low-temperature cooked pork products, such as bacon, sausage and ham. “This will be the first step for the two parties to develop a full pork value chain in China, enabling us to achieve business upgrading and diversification,” New Hope said.
|US companies pin hopes on Vietnam|
[13 December 2016] The US counts Vietnam as an important investment spot in Asean. Michael Michalak, Senior Vice President and Regional Marketing Director of the US-Asean Business Council said even if the TPP falls through, “Vietnam remains an attractive investment destination for Americans”. The Council was on tour with senior leaders from Fortune 500 companies. Alan Willits, Chairman, Cargill Asia Pacific, said Cargill will open its 12th feedmill in Vietnam next year, while Ian Pinner, President of Archer Daniels Midland’s Southeast Asia, Australia, New Zealand, and Global Destination Marketing Department, said ADM will continue expanding its business in Vietnam by not only trading but also investing in production and processing of products.
|Chicken, egg prices in Indonesia expected to increase during upcoming holidays|
[13 December 2016] Indonesia’s Trade Ministry expects chicken and egg prices to continue to increase in line with growing demand during the Christmas, New Year and school holidays. Oke Nurwan, Director General for Domestic Trade said that the prices for both commodities are now higher than last month. “As of December 8, the chicken meat price increased by 2.4% to USD 2.29 per kg, while eggs dropped by 2.3% to USD 1.68 per kg. We expect the figures to increase until the end of the month,” he said, adding that the price increases are normal. Mr Nurwan said the ministry will take measures to prevent dramatic price surges by monitoring regional markets. “We will make sure stocks meet demand, as well as monitoring the prices,” he said.
|CPF to buy 16.54% stake in China’s Ningxia Xiao Ming|
[13 December 2016] Thailand’s Charoen Pokphand Foods (CPF) said it will spend USD 21.04 million to purchase a 16.54% stake in China’s Ningxia Xiao Ming Animal Husbandry (Ningxia Xiao Ming). Chia Tai (China) Investment, a subsidiary of CPF, will buy 11,290,000 new shares of Ningxia Xiao Ming. Ningxia Xiao Ming is engaged in the production and sale of commercial layer chicks in China. Its shares are listed on China’s National Equities Exchange and Quotations. “This transaction is in line with C.P. Pokphand’s strategic investment,” it said in a filing to the Stock Exchange of Thailand. CPF said the transaction is expected to be completed this year. Meanwhile, Ningxia Xiao Ming recorded a revenue of USD 35.67 million in 2015, with a net profit of USD 5.82 million.
India's poultry sector coming to grips with demonitisation
[12 December 2016]
It has been five weeks since Indian Prime Minister Narendra Modi’s surprise announcement on demonitisation, where INR 500 and INR 1000 notes were taken out of circulation. While the plan will help the country flush out 'black money' and encourage a move to cashless transactions, the impact falls hard on farmers where almost every transaction is paid in cash.
Transition may be easy for integrators, not for backyard farmers
India’s demonitisation has squeezed the ‘cash-on-delivery’ structure in agriculture. According to Sujit Kumar, Proprietor, Sujit Kumar Consultants, a company dealing in meat processing, almost 90% of the transactions in India are carried out in cash. He said a complete switch to cashless for the large broiler integrators should not be difficult, and the process has begun. “The issue will remain with marginal or backyard farmers as their products are sold in weekly markets,” he told Asian Agribiz. However, he said, a cashless society will increase credit access and financial inclusion. This could benefit the industry in the long run.
Broiler, layer farmers not seeing the seasonal spike in demand
Broiler and layer farmers are seeing a sharp decline in demand. “The winter is the peak demand season but farmers are not seeing this,” Pankaj Mehrotra from Sampoorna Feeds, in Punjab, India, told Asian Agribiz. Because of the crunch he fears some producers may sell their businesses to integrators. One silver lining for the industry is that large producers will likely import technology from abroad. “While this is a tough patch for the industry to get through, the move will help us to secure the best technology in the business, which will lead to a lower cost of production. The economy will be more equally distributed. This will help improve the buying power of the lower and middle class.”
Broiler farmgate prices in Maharashtra drops 40%
Farmgate prices of broiler in Maharashtra has dropped about 40% after the INR 500 and INR 1000 notes were deemed illegal. Poultry farmers are now approaching customers directly, bypassing retailers. Farmers’ organisations have opened retail shops across the state to sell chicken at USD 1.47 per kg to recover their production cost. The farmgate price of chicken stands at USD 0.71-0.73 in markets across Maharashtra, a steep fall from the USD 0.95-1.02 per kg that the produce was commanding prior to the demonetisation announcement. “Our industry runs purely on cash. Demand has dropped as families are buying other essentials rather than chicken,” Kunal Pathre, owner of Kukoochku Poultry Farm, said.
Government should make transition smoother
Against a dire backdrop where prices have crashed and fresh produce lies rotting, the government should make it easier and cheaper for farmers them to adopt card payment and mobile wallets on a trial basis, said Nidhi Nath Srinivas, Chief Marketing Officer of the National Commodity and Derivatives Exchange Limited. In a Huffington Post article she said retailers should be educated on how they can expand business by moving from ‘cash only’ to ‘cash and card’ because it attracts more customers. “Once village retailers accept digital payments, rural customers will follow,” she said. “Exactly the way mobile wallets picked up with Ola and Uber. Economists call it the network effect.”
Cargill India is optimistic despite 30% drop in feed volume
Cargill Feed and Nutrition, India, sells feed to dealers via electronic transaction. Dealers sell to smaller dealers or directly to farmers. Achyuth Iyengar, Managing Director, said there has been a 10-15% drop in volumes post-demonetisation. "Our end-user is split 50:50 between big/medium farms (more than 10 cows) and small farms (2-10 cows). Sales to small farms is seeing a 30-40% dip while the big/medium farm sale, generally via electronic fund transfer, remains unaffected." He said in the long run, the move will benefit the feed industry. When electronic fund transfers become widespread the quick and smoother transactions would encourage the conversion of non-users to users of complete feed, resulting in better animal productivity and farmer profitability.
|Expect Asian data at AP2022 |
[09 December 2016] At the Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, in Bangkok, Thailand on January 16-17, 2017, participants can takeaway valuable information from 19 presentations – with much data presented in Asia for the first time, by 16 world class speakers from Australia, France, New Zealand, UK and USA. There will also be a special on-stage interview conducted by the Conference Chairman, Prof David Hughes. For the complete program and to register visit our website.
|Philippines issues new rules for import permits|
[09 December 2016] The Philippine Department of Agriculture (DA) issued Memorandum Circular 5, which lays down new rules for securing import permits. The circular calls for the revalidation of existing phytosanitary import clearances (SPS-ICs), and new applications now must be processed and approved manually, leading to longer processing time. A ‘green lane’ was created to fast track release of validated SPS-ICs for perishable goods such as chilled or frozen products. Jesus Cham, President of the Meat Importers and Traders Association, told Asian Agribiz that MITA members are complying with the new order, but he pointed out that legitimate importers like them have been transparent and have followed proper processes, including presenting their shipment for inspection even before the new rules took effect.
|Masan to be listed on Singapore Stock Exchange|
[09 December 2016] Vietnam’s Masan Group, will list its international bonds on the Singapore Stock Exchange with a maximum value of USD 300 million when conditions become favourable. “The listing’s timing has not been confirmed yet due to complex procedures,” said Van Nguyen, representative from Masan Group's Public Relations. Masan, Ho Chi Minh City-based food and consumer product company, is the country’s largest feed producer after Charoen Pokphand Group. In 2015 it acquired a 52% and a 70% equity interest in Vietnam French Cattle Feed JSC, or Proconco, and Agro Nutrition Company JSC, or Anco. Masan aims to hold a 50% market share of the feed industry by 2020.
|CPF to spend USD27m to acquire China’s Cofco Suqian|
[09 December 2016] Chia Tai (China) Investment (CTCI), a subsidiary of Thailand’s Charoen Pokphand Foods (CPF), recently signed an equity transaction agreement with the Cofco Poultry Industry. According to the agreement, CTCI will spend USD 27.23 million to acquire the entire interest in Cofco Meat (Suqian) (Cofco Suqian) from Cofco Poultry Industry. Cofco Suqian is engaged in poultry farming, processing and sales of chicken meat products, mainly to the Yangtze River delta area market. CTCI expects the acquisition will be completed this year. Upon the completion of acquisition, Cofco Suqian will become an indirect subsidiary of CPF. “The acquisition will allow C.P. Pokphand (CPP) to expand its agri-food business in China and further reinforce CPP’s leading position in the agri-food industry,” it said.
|Norway hopes to increase salmon exports to Indonesia|
[09 December 2016] Norway represents the biggest seafood exporter in the world, and it’s all about the salmon, said Per Fredrik Ecker, Board Member of the Indonesian Norwegian Business Council. According to him, the number of salmon exports to Indonesia is not so big for the time being but it has huge potential to grow. “Japan and China are probably the biggest receivers of Norwegian salmon in this region,” he said. Stig Traavik, Norwegian Ambassador to Indonesia said: “We convinced Indonesia that salmon is good and healthy. We can transmit our experience in fish framing to Indonesia.” The value of Norwegian seafood exports to Indonesia was USD 18 million in 2015. In 2015 Norway’s exports of seafood products to China and Japan was USD 290 million and USD 400 million, respectively.
|New Hope Indonesia to set up two more feedmills|
[08 December 2016] New Hope Indonesia continues to expand its feed business in the country. After opening its Lampung feedmill in Sumatera in October, the company is now setting up two new feedmills in Cirebon, West Java and in Makassar, South Sulawesi province. “Each will have a capacity of 10,000 tonnes per month,” Timbul Sihombing, Chief Marketing Officer told Asian Agribiz. Some months before opening the Lampung feedmill, the company inaugurated its new feedmill in Semarang, Central Java province. In East Java, it already operates two feedmills. And in Banten province, it already has one feedmill in Balaraja. “We are now expanding the Balaraja plant’s capacity. Some of the capacity will be used to produce fish feeds,” Mr Sihombing revealed. He added that the company also plans to produce duck feed. “We see good potential in this market.”
|CP Pokphand buys stake in Chinese layer breeder Xiaoming|
[08 December 2016] CP Pokphand Co, a Hong Kong-listed unit of Thailand’s Charoen Pokphand Foods, said it plans to acquire 11.29 million shares, equivalent to a 16.54% stake, in Ningxia Xiaoming Agriculture & Animal Husbandry Co for USD 21 million. The deal is subject to Xiaoming shareholders’ approval. The leading layer breeder and major distributor for Hy-Line in northwest China is currently 70.8% owned by its Chairman and General Manager Wei Xiaoming. It states an annual hatching capacity of 120 million chicks. Xiaoming’s annual report shows that CP China was its largest client with a 5.3% share in 2015, when the company booked revenue of about USD 36 million.
|JGC to set up Sumitomo’s new methionine plant|
[08 December 2016] Japan’s JGC Corporation has been awarded the contract for the construction of a methionine production facility for Sumitomo Chemical to be located in Niihama city, Ehime prefecture. Methionine is a type of amino acid used as an indispensable feed additive to encourage the growth of poultry. The present project to construct a new facility to produce methionine is indicative of Sumitomo’s response to the increase in the global demand for methionine. The new plant is scheduled to be completed in mid-2018.
|Indonesia opens aqua sector to foreign investments |
[08 December 2016] Aquaculture, feed industries, fish hatcheries and processing factories are among the sectors that have been opened up by the Indonesian government to foreign investors. Meanwhile, the catch fishery sector has been strictly reserved for foreign entities. To attract investors to the aquaculture industry, the government will build exclusive zones to ensure business continuity, simplify investment procedures and grant tax incentives on several imported raw materials. Recently Norway expressed interest to invest in the Indonesian aquaculture industry. “We want to enhance our business-to-business relationship and bring our expertise together, because we believe it has a bright future,” said Stig Traavik, Norwegian Ambassador to Indonesia.
|Japan’s Niigata culls 540k chickens over bird flu|
[08 December 2016] Japan’s Niigata Prefectural Government recently completed the culling of 540,000 chickens at two poultry farms to contain an outbreak of the highly virulent H5 strain of bird flu, according to Japan Times. About 230,000 chickens were killed at a farm in Joetsu, following the completion of a similar procedure to eradicate 310,000 chickens in the village of Sekikawa. The outbreak has triggered restrictions on the transport of chickens and eggs within a 10-km radius of each poultry farm. Four farms in Sekikawa and two in Joetsu have resumed shipment of eggs and other products after passing inspection tests in accordance with national rules on epidemic prevention.
|New Hope Indonesia to venture into chicken processing|
[07 December 2016] While it continues to strengthen the presence of its upstream business in feed milling and breeding, New Hope Indonesia has said that it plans to venture into chicken processing. “We have received the green light from our headquarters in China. In 2017 we will set up a chicken processing plant in West Java, which is targeted for operations in early 2018. We are considering the capacity,” Timbul Sihombing, Chief Marketing Officer told Asian Agribiz. Live birds for the plant will be from internal and external supplies, he added.
|Thailand’s Foodland Supermarket set to import more beef and lamb|
[07 December 2016] Thailand’s Foodland Supermarket plans to open 3-5 supermarkets a year over the next five years, Somsak Teraphatanakul, known as Frank, Chairman of Foodland Supermarket Co Ltd. told Asian Agribiz. Foodland will invest around USD 14 million to expand its logistics operations and open 3-5 supermarkets in Thailand in 2017. “If we don’t accelerate expansion of Foodland supermarket, we will have less bargaining power. In order to thrive, we need to have economies of scale and volume,” said Mr Frank. Foodland now runs 19 supermarkets in Thailand and it will open its 20th branch at Terminal 21 in Nakhon Ratchasima province this month. Meanwhile, the company will import more frozen/chilled beef and lamb to fulfil its expansion demand, he added. Every month, Foodland buys 1300-1400 kg of imported beef and 800-850 kg of imported lamb.
|Farmers blame regulation for worsening broiler situation|
[07 December 2016] Sigit Prabowo, Chairman of Indonesia's National Poultry Farmers Association (PPUN) has blamed the government’s regulation for the declining state of the broiler industry. “If the government quickly responds to our demands for DOC supply and market segmentation, independent farmers will be able to survive and develop their business. However, we are still waiting for the regulation and the implementation,” he told Asian Agribiz. PPUN said there are only around 6000 independent farmers now from 150,000 previously due to the hard situation. Yeka Hendra Fatika, Coordinator of Agri-food Studies and Advocacy Centre said the government’s regulation has marginalised independent farmers.
|QL Resources to open new outlets by year-end|
[07 December 2016] Malaysian poultry integrator QL Resources Bhd, which launched its second FamilyMart convenience store recently, will open another two stores by year-end. Executive Director Chia Lik Khai said QL Resources has allocated USD 4-5 million for store expansion yearly, and is confident of achieving 300 stores in five years. “We want everyone to have ready-to-eat fresh food any time, day or night,” said Dr Chia Song Kun, Group Managing Director. “The food will be packed in compliance with high Japanese quality standards and delivered at least twice daily. And the prices will be reasonable because we aim to honour the Family Mart promise of meeting your daily needs.”
|China to import record 86mt soybean for MY2016/17|
[07 December 2016] From July to September 2016, China imported 5.45 million tonnes of soybeans from the US —403% more than the same period last year. Chinese imports of US soybeans are expected to remain strong during the 2016/17 marketing year. According to the USDA’s Foreign Agricultural Service, China’s soybean imports are forecast at a record 86 million tonnes for MY 16/17, in anticipation of higher demand for feed and protein meal due to a recovery in swine production and steady growth in China’s poultry sector.
|Vietnam’s tilapia exports estimated to reach USD45m |
[07 December 2016] The Vietnam Association of Seafood Exporters and Producers (Vasep) estimate that the country’s tilapia exports will reap a revenue of USD 45 million this year, 32% higher than the previous year. The association said tilapia exports have seen a positive trend in the last few years. Import markets also rose from eight countries in 2005 to 68 countries in 2015 – of which America, Colombia and EU are the largest importers. According to the Department of Aquaculture, total area of tilapia farming reached 25,700 ha, generating an annual production of 187,000 tonnes. Vietnam’s northern delta and south-western delta are two major tilapia production areas.
|Trinity Farm plans for a new, better, bigger pig farm|
[06 December 2016] Trinity Farm, a pig farm based in North Sulawesi, Indonesia is planning for a new farm in North Minahasa. Gilbert Wantalangi, owner said its existing farm in Manado, which has 100 sows and a total population of 800 heads, cannot be further developed because the local government has designated the region for residential housing. “I don’t think the local government will extend permits for pig farms in the region, so I have to prepare to relocate,” he told Asian Agribiz. Mr Wantalangi expects to have a new farm within the next two years. There, he plans to raise 200 sows and gradually expand the number to 500 sows. “The new farm has to be better. I plan to set up closed houses as I want to raise pigs that will consume antibiotic-free feed. So the environment and biosecurity have to be better also,” he said.
|China’s Truein to set up two JVs with local fast food chain|
[06 December 2016] Chinese pork integrator Truein Agro-Pastoral Group said it plans to invest no less than USD 19.6 million to set up two joint ventures with Shaxian Delicacies, a fast food chain based in southeast China’s Fujian province with about 20,000 restaurants nationwide. Truein will take 45% of the JVs specialising in supply chain and advertising services respectively. The two companies signed in May to cooperate in material supply, product development as well as e-commerce operations. “We have been developing downstream businesses. The deepened cooperation with Shaxian will effectively expand our sales channels and market shares,” Truein said.
|McDonald’s sells Singapore, Malaysian franchise to Saudi group|
[06 December 2016] McDonald’s in Malaysia and Singapore is now managed by Lionhorn Pte Ltd, the same company that operates the more than 100 outlets in the western and southern regions of Saudi Arabia. McDonald’s Corp said this is part of its turnaround plan announced in May 2015 to move away from direct ownership in Asia. Leading the day-to-day management of the Malaysia and Singapore markets respectively will be local operating partners Azmir Jaafar and Kenneth Chan, both of whom previously held senior leadership positions at McDonald’s and together possess over 40 years of experience. With this transaction McDonald’s has now refranchised about 1300 outlets in a bid to become 95% franchised by end 2018.
|Indonesia invites Norway to invest in shrimp industry|
[06 December 2016] Indonesia has invited investors from Norway to develop the country’s shrimp industry, which is estimated to require USD 2.2 billion to unlock its multi-million dollars a year business potential. Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries and Marine Affairs said the amount is needed to develop the nation’s entire shrimp sector, including offshore cages. “We invite more Norwegian investors to invest in the shrimp industry, considering that Indonesia will revitalise its 300ha of shrimp ponds in 2017,” he said. The shrimp farm revitalisation program has been initiated in several regions including Lampung, West Sulawesi and North Kalimantan. The program is expected to yield 2400 tonnes of shrimp, each harvest worth USD 18.9 million.
|Viphavet Olmix Asialand launches feed additive factory in Vietnam|
[06 December 2016] Viphavet Olmix Asialand broke ground for its first feed additive plant in Vietnam recently. Located in Binh Duong, the plant is designed in accordance with Fami QS Quality and Safety System for Specialty Feed Ingredients and their Mixtures. Once ready it will operate 24 hours, six days a week producing up to 5000 tonnes in its first year. It hopes to meet local demand as well as demand from other Asian countries. With this project, Viphavet Olmix Asialand will become one of the three leading distributors of veterinary drugs and feed additives in Vietnam.
|Despite increased landed costs, US soybean shipments to China up|
[06 December 2016] Soybean shipments from the US to China increased in the third quarter of 2016 compared to the same period a year earlier, despite the rise in the transportation and landed costs, said the USDA’s Foreign Agricultural Service. The costs of shipping from Minneapolis and Davenport to Shanghai increased 18% during the quarter, said the USDA’s weekly Grain Transportation Report. The cost of shipping soybeans from Fargo and Sioux Falls to Shanghai through the Pacific Northwest increased by just 1%. In Brazil, it cost 1% less to ship soybeans from North Mato Grosso to Shanghai. It cost 7% less to transport soybeans from South Goiás to China.
|Malaysia’s DBE Gurney renews supply contracts with KFC, QSR|
[05 December 2016] Poultry company DBE Gurney Resources Bhd’s unit DBE Poultry Sdn Bhd has renewed its contracts worth USD 11.20 million with KFC (Peninsular Malaysia) Sdn Bhd and QSR Stores Sdn Bhd for the supply of poultry products. In a filing with Bursa Malaysia the group said the renewals are effective from January 1, 2017 to December 31, 2017. The agreements are expected to generate a turnover of about USD 11.20 million for DBE Gurney, it added. “Our commitment to supply high-quality poultry products to the industry will continue to be an emphasis for the retailers,” Group Managing Director Datuk Alex Ding Seng Huat said.
|China Everbright’s fund invests in West Hope unit|
[05 December 2016] China Everbright Ltd, a Hong Kong-listed unit of the Chinese central government-owned financial conglomerate Everbright Group, said its Mezzanine Fund has made an equity investment in Sichuan Dekang Agriculture Technology Ltd. “The investment details are confidential at this stage,” Dekang General Manager Luo Lin told Asian Agribiz. Dekang was founded in 2006 by West Hope Group Chairman Chen Yuxin and President Wang Degen, and now is a livestock farming arm of the group. The company states that it’s the largest local livestock producer in southwest China, targeting to sell 250 million birds and 10 million pigs a year by 2020. “The fund will be actively involved in Dekang’s bolt-on acquisitions, financing activities, and implementation of modern corporate governance in order to drive its growth in the modern agriculture industry and help cultivate a world-class agriculture and food company,” China Everbright said.
|Indonesia issues alerts on potential AI cases during rainy season|
[05 December 2016] Following information from Indonesia’s Meteorology, Climatology and Geophysics Agency that rainy season has started and Indonesia’s Directorate General of Livestock and Animal Health has circulated an official letter to all animal husbandry and veterinary agencies in the country to actively monitor cases of avian influenza (AI). In the letter received by Asian Agribiz, the directorate asks all agencies to quickly respond with disease reports from farmers and assist farmers to improve biosecurity. On vaccination, for duck it is recommended to use AI subtype H5N1 clade 2.3.2 vaccine, while commercial layers to use AI subtype H5N1 vaccines with clades 2.1.3, 2.3.2 or the combination. The directorate also urged farmers to buy DOC from breeders who have the AI-free compartment certificate.
|Special VietGAP for tilapia farmers|
[05 December 2016] Funded by Vietnam’s National Agricultural Extension Center and Vietnam’s Ministry of Agriculture & Rural Development, VietGAP is a program designed and applied to tilapia farming in an effort to create a stable background for good quality source of tilapia aimed for exports. In the program, participating farmers from northern and central provinces are supported with breeding fish, feed and probiotics, and are trained with farming standards. Initial results reported by VietGAP farms in Quang Ninh and Nghe An provinces showed a high survival rate of 95%, good growth rate of 650g after six months of stocking and average production of 14 tonnes/ha/year. According to the Agricultural Extension Center of Bac Giang province, one of the pioneer provinces participating in the VietGAP program, 100% of participating farmers are certified with VietGAP and secured the entire output.
ARIEF FACHRUDIN reports from the National Livestock Business Seminar in Jakarta, Indonesia
organised by the Indonesian Veterinary Drugs Association.
[05 December 2016]
Bad year for broiler breeding companies
This is not a good year for broiler breeding companies as the Business Competition Watchdog Agency (KPPU) fined 11 companies over the alleged broiler cartel case. “On September 2015, we were asked by the General Director of Livestock & Animal Health to early cull 6 million broiler PS. When we had cut around 2 million broiler PS, KPPU said we initaited a cartel. This is not a cartel as the government asked us to do it,” said Krissantono, Chairman of the Indonesian Poultry Breeding Companies Association (GPPU). Due to the controversy, Mr Krissantono said investors from Japan, South Korea, France and the Netherlands postponed their plans to invest in the poultry breeding sector. Mr Krissantono urged the government to calculate broiler breeding stock (GGP and GP) needed accurately in the future. According to GPPU, this year the government stopped imports of GGP and limited imports of GP. As a result, PS supply in 2017 will be reduced.
Feed industry to grow 8% in 2017
During the first half of this year, Indonesia’s animal & aqua feed consumption reached 7.9 million tonnes and 849,000 tonnes, respectively, according to the Indonesian Feed Producers Association (GPMT). Hudian Pramudyasunu, GPMT Secretary General said consumption is targeted to reach 17.2 million tonnes and 1.6 million tonnes by the end of this year. Next year the association estimated the feed industry to grow at 8%. “The main challenge in this industry is raw materials especially corn. We expect the government to prepare a buffer stock for corn as local supplies are not completely predictable,” Mr Pramudyasunu said.
Indian carabeef leads to reduction of local beef cattle population
Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI) predicted that in 2017 Indonesians will be more familiar with imported buffalo meat or carabeef. “The price is cheaper than local beef prices. This will change consumers’ preference. More people will consume the meat from India. Meat processors will also use it,” he said. “The impact of this to local beef cattle farmers is on their motivation. They may reduce their cattle population or stop their farm operations.” Mr Boediaya said if the Constitutional Court refuses their proposal for country-based importation, the local beef cattle will decline.
No special attention to dairy cattle farming
Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI) sees no special attention from the government to improve the dairy cattle farming industry in the country. “There has been no significant increase in dairy cattle population and milk production, in fact, it is decreasing. In 2012 the West Java Milk Cooperatives Association noted the number of dairy farmers was 26,153 people with a total cattle population of 101,115 heads. However, in 2015 the figures decreased to 19,362 people and 63,432 heads,” he said. On the other hand, Mr Boediyana said that local and foreign investors see growing milk consumption in the country. “They may invest in integrated dairy business by setting up dairy cattle farms and milk processing plants.”
Animal health industry to grow less than 10%
The Indonesian Veterinary Drugs Association (Asohi) projected that the animal health industry in 2016 may only grow less than 10%. Irawati Fari, Asohi Chairman said the growth in the breeding sector will be minus due to early culling and the alleged cartel case, while the growth in the commercial broiler sector will be stagnant. But in the layer sector, the growth will be around 10%. In 2015, the market for animal health products was estimated at around USD 290 million – the products included biological and pharmaceutical products for poultry, ruminants and pigs, and premixes.
|Find out at AP2022 if your company is in the innovator's league|
[02 December 2016] Would your company be in the 'innovator' league? Find out from Paul Levins, Executive Vice President, Global Head of Partnerships at Xinova LLC, Seattle, who says the meat industry has had limited innovation and there are few true leaders. He will be speaking at the Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, in Bangkok, Thailand on January 16-17, 2017. Xinova helps food companies innovate - to define and solve problems and make better products. For the complete program and to register here.
|Russia considers meat exports to Singapore|
[02 December 2016] At a meeting of intergovernmental commission recently Russia and Singapore discussed supplies of pork, beef and poultry meat to Singapore, Russian News Agency Tass reported. Singapore’s Agri-Food and Veterinary Authority will inspect Russian facilities in February 2017, Russia’s First Deputy Prime Minister Igor Shuvalov said. “We have discussed possible export from Russia to Singapore of meat - pork, beef and poultry,” he said. “We have agreed on how the veterinary authorities would be working in coming months. In February we shall expect inspectors, who will be working with the Russian companies," he said.
|Berdikari to venture into poultry business|
[02 December 2016] As recommended by the government and the Business Competition Watchdog Agency (KPPU), Berdikari, a state-owned company focusing on the integrated beef cattle business, plans to venture into the poultry business in 2017 to ensure quality DOC supply and stabilise broiler prices. Suwhono, President Director said the company will set up an integrated poultry business from breeding, feed milling, commercial farming to processing. “We will partner with independent broiler farmers and assist them,” he said. For the initial phase, Berdikari plans to set up commercial broiler farms and then broiler breeder farms.
|H5N6 developments in Japan, South Korea|
[02 December 2016] Japan has reported a third suspected H5N6 outbreak, the second from Niigata prefecture. The new outbreak involves a farm housing 230,000 birds. A few days ago animal health officials in Japan announced two outbreaks, one in Niigata and the other in Aomori prefecture. Earlier this month H5N6 was confirmed in black swans and in environmental samples in Japan. South Korea has confirmed H5N6 in farms in at least three provinces. The avian flu committee said the virus was likely carried from China by migratory birds.
|Hasco Feed ready to supply meat during Tet holidays|
[02 December 2016] After being first introduced to the market in July this year, Vietnam’s Hasco Breeding Food JSC or known as Hasco Feed is ready for greater market participation. The company announced that it is preparing to supply 5000 tonnes of fresh, quality meats during the Tet holidays. In other developments, the company said it has launched a new pig farm in Bac Giang province with a capacity to produce 5000 finisher pigs. Next year the company aims to set up distribution channels to large-scale farms in the North Vietnam and promote its brand in Vietnam’s feed industry.
|Indonesia’s feed wheat imports expected to rise in 2017|
[01 December 2016] Indonesia’s imports of wheat for animal feed could jump by about 36% to 3 million tonnes in 2017 if the government pushes forward with efforts to restrict corn imports, according to Desianto Budi Utomo, Chairman of the Indonesian Feed Producers Association (APPI). Indonesia has emerged as the world’s second-largest wheat importer and its imports of the grain spiked in 2016 after the country imposed tighter rules on corn imports. In 2015, Indonesia imported only 1890 tonnes of wheat for animal feed, according to the Statistics Centre Agency, but this was expected to rise to 2.2-2.3 million tonnes in 2016. Indonesia imports feed wheat from Ukraine and Eastern European countries as well as Argentina.
|Clean pork supply program launched in Vietnam|
[01 December 2016] De Heus Vietnam LLC, Vinh Anh Food Technology JSC, Fresh Studio Innovations Asia Ltd, and Hanoi’s Livestock Development Centre have cooperated to create a program aimed at establishing a clean, safe and secure pork supply chain that complies with HACCP and TRACEPIG standards. “The program is designed to be the first clean, safe and traceable pork supply that serves as a reliable brand with high credibility and accepted by Vietnamese consumers,” said De Heus Asia General Director Gabor Fluit. He added that the goal is “to supply high quality pork to local consumers while securing sustainable profits for the farmers and setting up a model to improve the quality of Vietnam's food and feed industries.”
|Malaysia’s CAB increases PS capacity by 84%|
[01 December 2016] Through acquisitions late November Malaysian integrator CAB Cakaran Bhd has increased its breeding capacity by 84%, from 510,000 parent stock to 940,000 parent stock. It acquired, through 53.04%-owned subsidiary, Farm’s Best Food Industries, a total of 21 parcels of land together with six breeder farms. This amounted to USD 14.13 million. CAB Group currently has eight breeder farms and 129 broiler farms, mostly located in Penang and Kedah. The recent purchases are focused in the south of Peninsular Malaysia. CAB said these purchases are in line with its growth plan, where it “has been continuously on the look-out for opportunities to expand its business both in Malaysia and overseas”.
|CPF to export healthy soups to Japan|
[01 December 2016] Thailand’s Charoen Pokphand Foods (CPF) is investing USD 19.65 million for a new facility in Ayutthaya province's Wang Noi district, said Sukhawat Dansermsuk, Chief Operating Officer of Food Business at CPF. The new facility, expected to start production in the middle of 2017, will produce thick soup and ready to eat products for health-conscious consumers, the elderly and sick persons. The new facility will have a production capacity of 70,000 tonnes of soup a day. Japan is expected to be the first export market, Mr Sukhawat said, adding “the new business is projected to generate revenue of USD 33.69 million in 2017.” CPF’s soup will include chicken, pumpkin, riceberry, mixed-vegetable and tomato soups.
|Indonesia’s shrimp exports up 6.84%|
[01 December 2016] Indonesia’s shrimp exports from January to August 2016 increased 6.84% to 136,323 tonnes over the same period last year. In terms of value, exports increased 3.75% to USD 1.13 billion. According to Nilanto Prabowo, Director General of Fisheries Competitiveness Improvement of the Ministry of Fisheries & Marine Affairs, the increase was due to demand for shrimp in global markets. Most of Indonesia’s shrimp is exported to the US, Japan and China. To further increase the export, Mr Prabowo said the ministry will continue to revitalise idle shrimp ponds in the country. According to Budhi Wibowo, Chairman of the Indonesian Fishery Products Processing and Marketing Association (AP5I), the revitalisation program is needed. If the government successfully revitalises 5000ha of shrimp ponds, this could net an additional 120,000 tonnes of shrimp per year.
|Korea’s CJ CheilJedang to acquire 47.3% of Vietnamese food firm|
[01 December 2016] South Korean food company CJ CheilJedang is planning to buy a 47.3% in Cau Tre from its three existing shareholders. CJ CheilJedang said Vietnam is an important market in its global expansion path. In March, CJ Vietnam purchased 4.18% of the Vietnam Meat Industries, or Vissan, for USD 13.3 million during its IPO auction. However, it failed to acquire a further 14% stake which went to Vietnamese conglomerate Masan Group. CJ Vietnam Chairman Chang Bok Sang also said the company will consolidate its presence in Vietnam through a USD 500 million m&a activity, focusing on the food sector.
|Learn about the future role of meat in the QSR business in Asia at AP2022|
[30 November 2016] Arron Hoyle, Principal of Black Dragon Advisors Ltd from New Zealand says the quick service restaurant business has been kind to Asia’s meat industry over the last 10 years. At the Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, he will address the future role of meat in the QSR business in Asia. The conference will be staged in Bangkok, Thailand on January 16-17, 2017. For more details, the complete program and to register click here.
|Bioceleng to produce value added pork products|
[30 November 2016] Bioceleng Farm in Bali, Indonesia, has ventured into pig processing. Romeo Alfonso, owner told Asian Agribiz that he gets better profits from portioned cuts. On average he sells around 800-1000kg of Bioceleng Farm branded pork (both chilled and frozen) to boutique hotels and fine-dining restaurants in Ubud, as well as to a hotel in Jakarta. However, Mr Alfonso admitted that the main challenge of processing is carcass balance. Bioceleng’s fast-moving cuts include belly, pork chops and knuckle. To get around the challenge, Mr Alfonso plans to further process the slow-moving cuts into smoked products and sausages. Currently Bioceleng has a total pig population of 250 heads with 30 sows. The pigs eat specially formulated diets which contain almonds among others. The pigs are also raised under a semi free-range farming model.
|Malaysia’s Rhone Ma to build manufacturing plant |
[30 November 2016] It is vital for animal health solution providers to have continuous product development and enhancement in the animal nutrition market to meet the needs of its customers. As such Malaysia’s Rhone Ma Holdings Berhad said it plans to set up a GMP-compliant plant in Negeri Sembilan. The plant will be the company’s own in-house manufacturing and R&D centre aimed at supporting Rhone Ma’s business. It will also construct a warehouse in Klang. This was revealed at the company’s prospectus launch. It hopes to raise USD 7.08 million from the proposed listing on December 19 on the main market of the Malaysian Bourse.
|Brazil challenges Indonesia’s halal requirements for imported meat|
[30 November 2016] Brazil has filed a complaint against Indonesia to the World Trade Organization (WTO), challenging Indonesia’s halal certification requirements for imported meat. The trade dispute has been registered in Indonesia-Measures Concerning the Importation of Chicken Meat and Chicken Products No. DS:484. Ahmad Firdaus Sukmono, Head of Trade Advocacy Bureau of Indonesia’s Trade Ministry said the policy is implemented as part of the government’s consumer protection efforts. “The dispute is focused on Indonesia’s rights to ensure compliance with food safety and halal requirements,” he said. Being the world’s largest chicken exporter, Brazil sees access to Indonesia constrained because Indonesia only allows halal whole chickens which are slaughtered individually.
|EU tightens inspection on Vietnamese seafood |
[30 November 2016] Vietnam is facing the risk of losing its major seafood market in the European Union (EU) due to raising concerns on food safety. “EU is tightening their inspection on Vietnamese seafood,” said Nguyen Hong Phong, Deputy Director of the National Agro-Forestry-Fisheries Quality Assurance Department. Besides sending warnings, EU also announced that it will implement a cross-sector inspection on harmful substance residues next year. In 2014, there were 48 seafood shipments to the EU that violated antibiotics and banned chemicals requirements. The number of violations in 2015, dropped to 29% from 54.9% in 2014. Within the first half of this year, however, the violations increased with six seafood shipments turning positive for chemical and antibiotics residues.
|Singapore imposes temporary ban on poultry from Germany|
[30 November 2016] In view of the recent outbreaks of avian influenza in Germany, Singapore recently announced that it has imposed temporary restrictions on poultry and poultry products from the country. Heat-processed poultry products, which meet the requirements for heat inactivation of AI virus, will not be affected, said a memo to meat traders on the Agri-Food and Veterinary Authority. Nearly 9000 geese were reported culled in the northern state of Schleswig-Holstein. Earlier last week some 30,000 chickens were culled in the state as a precautionary step to contain the H5N8 strain of the virus. Under German law, poultry must be killed even if they have a low pathogenic form of avian flu, which can mutate spontaneously into high pathogenic ones.
|Indonesia revises supply, distribution, monitoring of commercial chicken|
[29 November 2016] I Ketut Diarmita, Director-General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture said the directorate is now discussing a revision of supply, distribution and monitoring of commercial chicken. Integrators will be obliged to sell 50% of their DOC production to independent farmers. Secondly, all DOC sold to independent farmers have to meet Indonesia’s National Standard (SNI) on quality DOC. “So far, there are grade A and B in the market and independent farmers get grade-B DOC,” said Mr Diarmita. Last but not least, the ministry will oblige every broiler company with a production capacity of 500,000 birds/week to set up a processing plant plus cold storage facility. Singgih Januratmoko, Chairman of the Indonesian Poultry Farmers Association hopes the government will monitor the implementation of the policy.
Novus Gut Health Forum report by CRAIGE ALLAN
[29 November 2016]
Novus recently held a Gut Health Forum, which focused on The Impact Of Antibiotic-Free Production. Key take-home messages from the meeting in brief were as follows:
Feeding strategies for broilers in the absence of “in-feed antibiotics”
According to Dr Gonzalo Mateos, Professor of Animal Science, University of Madrid, Spain when the EU banned in-feed use of antibiotics in 2006 broiler performance, including FCR was not reduced. However, you need much better management when you don’t use in-feed antibiotics, starting at the hatchery. Since the ban we have seen a continual increase in the use of feed enzymes, organic acids etc., he observed.
Gastrointestinal tract health
Dr Mateos’s opinion is that it is a good idea to have a more diversified gastrointestinal tract (GIT) microbial population. Antibiotics reduce GIT microbial diversity – we don’t want that, he said. The GIT tract contains more than 600 species, and this population is very easy to modify. Nutrition can influence about half of the changes in the GIT microbial population. Ceacal fermentation does not necessarily mean problems. The fermentation of carbohydrates can be beneficial for the chicken as this can lead to the production of butyrate, whereas fermentation of proteins is not good and can result in an increase in hindgut pH causing the proliferation of harmful bacteria such as Clostridium.
Anti-nutritional factors and gut health
While anti-nutritional factors (ANFs) are common in feed raw materials they are often overlooked in formulations – particularly corn-soy diets, and rarely analysed, commented Dr G Saravanan, Technical Manager, Novus International. Phytate, a common ANF can cause intestinal irritation, and increased mucin production. Mucin is high in the essential amino acids, serine, threonine and proline and is poorly recovered. He also commented that when using phytate we need to rethink our trace mineral recommendations. For example, the NRC recommendation is to use 60ppm of zinc in broilers, however, common commercial practice is 130ppm. When using phytate you can recover about 35ppm of available zinc from raw materials.
Feed hygiene in an AGP-free production
When you think about antibiotic growth promoter-free (AGP) production we need to be concerned with feed hygiene, and this is a long-term strategy said Xabier Arbe, Head of Technical Services, South Asia and Southeast Asia Pacific, Novus International. You have to identify and evaluate your risks. We often think of animal-origin products, such as meat and bone meal (MBM) of being a high Salmonella risk, however, in a global Novus survey of soybean meal (300 samples), wheat and rice bran (192) and canola meal (85) about 9%, 13% and 12% of samples respectively were contaminated with Salmonella. Furthermore, the inclusion level of SBM is about 20-25% in most poultry diets, much higher MBM, so it can be a higher risk raw material, he said. “The risk in a free AGP production need to be managed by a proper sampling, technology like heat treatment and feed additives. However we need to understand their weaknesses so we will have a successful feed hygiene program,” concluded Dr Xabier.
|Cargill invests USD50m to expand poultry processing in Thailand|
[29 November 2016] Cargill is investing USD 50 million to expand its poultry processing operations at its facility in Nakhon Ratchasima province in Thailand. The company said this expansion is due to an increase in customer demand and strong customer confidence in the high quality and safety standards of the products produced by Cargill in Thailand. Construction on the new building annexed to the current facility began in October and is due for completion by Q1 2018. The expansion will create 1,400 new jobs and add to the more than 13,500 employees that Cargill currently employs across 14 locations in the country.
|15,000 pigs smuggled to China from Vietnam every day|
[29 November 2016] China Central Television (CCTV) reported that more than 15,000 live pigs are illegally shipped to China from Vietnam via ‘smuggling routes’ in Aidian town, a national port. Local inspection authorities have allegedly condoned the shipments, CCTV reported. The smuggled pigs from Vietnam, which are USD 0.58 cheaper per kg than Chinese pigs, escape inspection and quarantine. The thriving illegal pig imports have been also promoted by ‘truck escorting teams’. One of the truck drivers told CCTV that the smuggled pigs are sent to slaughterhouses across the country, including Southwest China’s Chengdu, Kunming and South China’s Guangdong Province.
|China’s Yisheng imports broiler GGP stock from Hubbard|
[29 November 2016] Shandong Yisheng Livestock & Poultry Breeding Co, the largest broiler breeder in China, said it has signed with Hubbard for the import of day-old GGP chicks valued at USD 10.4 million. The first shipment from Poland has been delivered, with the remainder to arrive in batches by September 2018. Hubbard has been a major GP supplier for Yisheng, but it’s the first time for a Chinese boiler breeder to introduce GGP stock. “This will change China’s structure of sourcing broiler genetics that was confined to overseas breeders and was easily affected by epidemic outbreaks worldwide,” Yisheng said. China’s GP imports fell significantly in 2016 due to bans on US and French poultry products.
|Bangkok Ranch to set up two new joint ventures|
[28 November 2016] Thailand’s Bangkok Ranch (BR) said it will invest no more than USD 2.5 million in two new joint ventures, aiming to expand its food business. BR’s two new joint ventures will engage in food manufacturing, retail and restaurant business. BR will establish its new joint venture, Chef Recipe Company Limited, which a registered capital of USD 1.1 million. The other new joint venture is Golden Star Century Company Limited. Chonlachart Worawuitthichongsathit, Assistant to CEO at BR told Asian Agribiz: “BR’s food business will generate higher margins than our conventional business. Although sales volume in food business is relatively small now, it has high growth potential.”
|Bright outlook for meat imports in Indonesia |
[28 November 2016] Considering a population increase of around 3 million per year, middle income population increase, limited land availability for farming, growing meat demand and development of the tourism industry, Thomas Sembiring, Executive Director of the Indonesian Meat Importers Association believes meats import in Indonesia in the next 5, 10 and 20 years is likely to see a 10% annual growth. “Take beef for example, the consumption is now only 2.5kg per capita. The demand for beef continues to grow, but local supplies can’t meet growing demand. So the only way to fill the gap is through imports,” Mr Sembiring told Asian Agribiz. “The interesting thing with imports is that you only buy cuts that are demanded by the market.”
|Council confirms date of DDGS ban in Vietnam|
[28 November 2016] The US Grains Council (USGC) is working with Vietnamese importers of distillers’ dried grains with solubles (DDGS) to end the country’s planned suspension of US shipments of the product due to contamination with the Ballion variety of beetle. “The Council was able to confirm the effective date is the bill of lading date, not the arrival date,” Kevin M Roepke, USGC Regional Director for Southern Asia and Oceania, told Asian Agribiz. “This would enable some shippers and end users to work together in order to clean the pipeline before the effective dates and ship early,” he said adding that the council will continue to work with Washington DC to try and come to a resolution on the issue.
Onsite with CRAIGE ALLAN and CHAKRIT RIDMONTRI at Poultry India 2016
[28 November 2016]
Shanthi Feeds to open further processing plant
Shanthi Feeds, India’s biggest frozen chicken exporter based in the southern state of Tamil Nadu, will open its first chicken further processing plant in 2017. V. Ilayaraja, Shathi’s Deputy General Manager, told Asian Agribiz that the plant will have an initial capacity of 100 tonnes/moth. It will produce a range of processed chicken items such as sausages, frankfurters, nuggets and patties supplying fast food chains, hotels and supermarkets across India. Based in Coimbatore city, Shanthi operates an automatic processing plant capacity 6000 birds/hour from Meyn of the Netherlands. It shipped 3600 tonnes of frozen chicken to the Middle East in 2015-2016 fiscal year, and has become India’s biggest frozen chicken exporter.
Unnat Feeds ventures into chicken processing
Unnat Feeds, a feedmiller-cum-broiler integrator in north India, will venture into the chicken processing business with a plan to set up a processing plant in 2017. Ranpal Dhanda, Joint Managing Director, told Asian Agribiz that he plans to build the plant with a capacity of 2000 birds/hour and expandable to 4000 birds/hour. It will be located in Panipat, about 80km north of capital Delhi. Unnat produces 250 tonnes of broiler feeds a day for commercial sales and use in the company’s farms. It produces 700,000 birds/month at the moment and will double the flock size for serving the new processing plant next year.
Semi-closed insulated layer houses reduce labour and mortality
The lack of reliable electricity supply in many areas in India makes fully closed housing perhaps not the right thing to do according to Bernada Lüers, Training and Marketing Manager, Big Dutchman. She recommends a semi-closed house with well insulated roofs as this reduces the radiant heat and therefore the house temperature. This increases bird comfort and reduces summer mortality rates. Conventional housing requires one person per 5,000 birds, whereas semi-closed housing only needs one person per 50,000 birds, except for morning egg collection. The manure belt removes manure daily, overcoming the odour and fly issues with open houses.
Poultry India and Aviagen growing together
Paul Gittins, Business Manager, Aviagen India remarked that the growth of Poultry India is indicative of how the Indian poultry industry is internationalising and offering producers greater choices. This is truly a win: win situation, as the local industry can grow faster with access to the latest techniques, equipment and methods. Likewise, international companies can be part of a big, exciting and growing market. Part of this increased choice is the growing acceptance of Aviagen birds, which are gaining more market acceptance as their biological performance adapts to local climate, environment and management conditions, noted Mr Gittins.
Mycotoxins – under-estimated risk in India
Mycotoxins are a major concern in India, as traditionally, mycotoxin analysis uses ELISA technology, which mainly detects aflatoxin. However, raw materials and feed from the sub-continent when analysed using state-of-the-art LC-MSMS analytical tools at Romer laboratories Singapore revealed that the prevalence of deoxynivalenol (DON), T-2 toxin (T2) and ochratoxin A (OTA) are vastly underestimated. These other mycotoxins damage the intestinal lining, resulting in other problems, such as reduced absorption of trace minerals that can lead to lameness. Sujit Kulkarni, Managing Director, Biomin India, reported that as producers become more aware of the mycotoxins and the economic losses they cause, there is growing interest in Mycofix which is a complete solution which not only adsorbs and deactivates mycotoxins, but also provides bioprotection.
Marel Poultry introduces Marel TargetBatcher
Jatin Bajaj, Account Manager said that this is the easy way to reduce giveaway, combining a pre-determined number of fresh or frozen products into a package of fixed weight. With seven high-accuracy individual scales and 14 holding bins the TargetBatcher selects the best combination of products in the fraction of a second. With fixed weight batching processors can reduce product give-away, which is 2-5% in manual operations, to 0.1-0.5% depending upon the batch commented Bajaj.
Unique xylanase for consistent performance
According to Dr Sushant Labh, Jubilant Life Sciences, many customers are concerned with problems with feed costs and feed variability. Most have found Xylamax (xylanase) useful in being able to resolve these issues he told Asian Agribiz. Xylamax outperforms other xylanases by releasing up to 130 kcal metabolisable energy (ME)/kg in corn-based poultry diets and up to 150 kcal ME/kg in wheat poultry diets due to its unique protein structure and pH profile.
|Presentations at AP2022 will help fine-tune five-year plans|
[25 November 2016] The Asian Agribiz Animal Protein in Asia 2022 (AP2022) conference, will deliver 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help fine-tune five-year plans. The conference which will be staged in Bangkok, Thailand on January 16-17, 2017, will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register on our website.
|Hy-Line China JV to build 60-million-chick hatchery in Chongqing|
[25 November 2016] Chinese layer breeder Huayu Agricultural Technology Co, in which Hy-Line International holds a 55% stake, said it will build a hatchery with annual capacity of 60 million chicks in Fengdu County in the southwest municipality of Chongqing. Initial investment will be USD 51 million, while a parent stock farm and a feedmill are also in the pipeline. Separately, Huayu, which is based in north China’s Hebei province, said it has won an order from CP Chongqing to supply one million Hy-Line Gray chicks in 2017. Data from the China Animal Agriculture Association shows that Huayu imported 75,740 Hy-Line GP stock from Spain in the first three quarters of 2016, approximately one third of the country’s total GP imports. China has banned US poultry imports from 2015.
|QL Resources’ net profit falls on lower margins from fisheries division|
[25 November 2016] Malaysian poultry producer and food processor QL Resources Bhd said its net profit declined 8.4% in the second quarter of the fiscal year as its fisheries products margin shrank. Net profit for the three months ended September 30, totalled USD 11.4 million compared to USD 12.48 million in the same quarter a year earlier, QL Resources said in a stock exchange filing. Quarterly revenue rose 5.7% year-on-year to USD 164.89 million. QL Resources is Asia’s biggest manufacturer of surimi. The company also produces fishmeal, frozen fish and surimi-based products with total annual output of about 140,000 tonnes.
|Singapore fast food restaurants brave slump|
[25 November 2016] Fast food restaurants in Singapore are doing better than regular restaurants. A Straits Times article noted that they beat sales at restaurants with lower prices, better efficiency and by responding nimbly to trends. Fast-food sales in September are estimated to have risen 2.6% over the same period last year. But sales at restaurants rose more modestly at 0.9%. “It has speed and convenience, and even the ambience is getting better at the outlets. They keep having new products, which people get on to social media,” said Singapore Polytechnic Senior Retail Lecturer Sarah Lim. “Singapore is the hotbed of innovation and creativity when it comes to flavour profiles. It is a trend leader,” said Mr Amarpal S Sandhu, Texas Chicken’s General Manager for Asia Pacific.
|Big Dutchman strengthens Philippine team|
[25 November 2016] After acquiring the Proline Group, Big Dutchman has boosted its Philippine team by adding new staff and moving to a bigger office in Metro Manila. The Manila office will take on the regional role for Big Dutchman pig equipment in Asia, excluding China. “The future expansion plans will allow the team to build up the market, promote the Big Dutchman brand and provide the Philippines with a new level of support that we are known for in the global market,” said Patrick Ty, Managing Director of Big Dutchman Philippines.
|McDonald's Indonesia to launch mobile app|
[25 November 2016] McDonald's Indonesia will launch a mobile app to serve customers amid growing technology development in the fourth quarter of this year. The fast food giant said by launching the app, it wants to tap the growing smartphone market and keep up with shifting consumer behaviour. Michael Hartono, Marketing and Communications Director said once it is launched, customers can download the app and click on the menu when they want to place an order. In other developments, the company plans to open 15 stand-alone outlets across the country, adding to its 168 existing outlets. “We aim to record 15% sales growth this year,” Mr Hartono said.
Onsite with CHAKRIT RIDMONTRI at Poultry India 2016
[24 November 2016]
Good focus on processing
The 10th edition of Poultry India opened yesterday in Hyderabad with about 250 exhibitors from all sectors related to the poultry industry from across the region and the world. Remarkable growth is evident in the poultry processing sector in India. At the present edition of the show, one out of the four halls is completely occupied by poultry processing equipment from both local and international suppliers such as Meyn, Marel Stork, Linco, Moba and more.
Senha Farms opens modern poultry processing plant
Sneha Farms, a major broiler integrator in India’s poultry hub of Hyderabad, recently opened its first modern broiler processing plant. It has a fully automatic processing line with a 6000 birds/hour capacity supplied by Marel Stork Poultry Processing from the Netherlands. Managing Director Ram Reddy told Asian Agribiz that the investment in the modern processing line is aimed at laying down the basis for Sneha to become a food company soon.
|Korea’s Daesang buys Vietnamese sausage maker Duc Viet|
[24 November 2016] South Korean food producer Daesang Corp said it has completed the acquisition of a 99.99% stake in Vietnam-based meat processor Duck Viet Food Joint-Stock Co for USD 32 million. Duc Viet Food, which mainly makes hams and sausages, is a small, but sound company with USD 13.6 million in total assets, said Daesang. The Vietnamese company posted a net income of USD 1.69 million and USD 26.21 million in sales last year. According to market intelligence agency Mintel Group Ltd, demand in processed meat products in Vietnam reached USD 490 billion last year. Chilled sausages made up the largest share (23%), followed by shelf stable sausages (19%) and Vietnamese traditional sausage (18%).
|Philippine chicken, chicken egg output up in Q3|
[24 November 2016] Philippine chicken production and chicken egg production grew 1.89% and 4.96% respectively in Q3 2016. Data from the Philippine Statistics Authority (PSA) showed that chicken output for the period was 400,950 tonnes while chicken egg was 112,970 tonnes. According to the PSA, the higher demand drove up chicken production, while increased inventory and expansion of layer farms led to the growth in egg production. Although average farm price of chicken took a slight 0.55% dip, the higher output led to a 1.33% hike in earnings, while for chicken egg industry, a higher average farm price translated to a nearly 12% increase in gross revenue.
|FAO, the Vatican condemn illegal fishing|
[24 November 2016] FAO and the Vatican have called for an intensified international push to stamp out human rights abuses in the world’s fishing industry — including trafficking of people and forced labour — as well as an end to the scourge of illegal fishing. José Graziano da Silva, UN Director-General said although fishing provides food and income for millions of people, “sadly, the same industry that offers so many opportunities also victimizes the most vulnerable.” Therefore, “FAO and the Holy See are calling for collaboration between all partners to work together in order to end human rights abuses along the entire fisheries value chain,” he said.
|MSD Animal Health calls for submissions for 2017 High Quality Pork Award |
[24 November 2016] MSD Animal Health announced its sponsorship of the 2017 High Quality Pork PhD Award in support of research in swine health, production and welfare. The award is open to recent doctoral graduates in veterinary or animal science, and the winner gets the opportunity to present their research at MSD Animal Health High Quality Pork meetings to be held in Europe, the Americas and Asia in 2017. Applications must be submitted by January 15, 2017 and the winner will be announced in mid-February. Visit highqualitycongress.com/hqporkphdaward.aspx to get further details and to apply.
|Fast Food Indonesia to operate 600 KFC outlets in 2017|
[24 November 2016] Fast Food Indonesia, the operator of KFC in Indonesia, has said that it will continue to increase the number of its outlet in the country. Currently the company operates 560 outlets across the country. Hendra Yuniarto, General Manager said it plans to operate 600 outlets in 2017 by setting up 40 new outlets both in Java and beyond Java. The company is confident of achieving a 10% revenue increase in 2017. To achieve this target, Mr Yuniarto said it will launch 3-4 new menus and push its online sales by cooperating with non-cash payment providers.
|Have traditional supermarkets peaked?|
[23 November 2016] At the Asian Agribiz Animal Protein in Asia 2022 conference, David Hughes, Emeritus Professor of Food Marketing at Imperial College London, UK will address how ‘Big Box’ retail food stores must to come to terms with the fact that on-line, discount, smaller supermarket, and convenience store sales will outpace hypermarket sales as consumers move towards a more shopper-friendly and dynamic multichannel grocery environment. The conference which will be staged in Bangkok, Thailand on January 16-17, 2017. This boutique conference will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register here.
|South Korea lifts ban on Thai frozen chicken|
[23 November 2016] South Korea has agreed to lift its 12-year ban on frozen chicken imports from Thailand, after South Korea’s Quarantine Inspection Agency (QIA) visited and inspected 12 Thai chicken plants in September this year. “This is good news because we can expand our export markets. And the volume of chicken exports will increase,” Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. Mr Kukrit said Thai chicken plants will export around 10,000 tonnes of frozen chicken to South Korea in 2017 and the volume will increase to 30,000-40,000 tonnes in the next 2-3 years. In total, Mr Kukrit said Thailand will export around 715,000-720,000 tonnes of chicken meat this year.
|Philippine hog production up in Q3|
[23 November 2016] Philippine hog production rose to 522,840 tonnes in Q3 2016, up over 4.5% from the previous year, the Philippine Statistics Authority (PSA) said in its quarterly agricultural performance report. This brings the country’s total production to nearly 1.6 million tonnes from January to September this year. The PSA said the rise was due to heavier slaughter weights and higher demand from institutional clients, traders and meat processors in Central Luzon and the Calabarzon regions, both of which are adjacent to Metro Manila. The higher volume helped push up the industry’s gross earnings to USD 989.2 million for Q3, up 1.75% year-on-year despite an almost 2.6% drop in average farm price during the review period.
|Vietnam a good market for EU meats, by-products |
[23 November 2016] Rising concerns on food safety in Vietnam and a preference for imported meat, has seen European countries promoting their meat products here, more so with EU-Vietnam Free Trade Agreement (EVFTA) that is due to take effect by 2018. A delegation of 42 EU establishments led by Phil Hogan, EU Agriculture Commissioner, held meetings with Vietnamese enterprises in an effort to strengthen ties and work towards the implementation of the EVFTA. The meeting showed that Vietnamese consumers favour not only high quality pork, but also poultry by-products. About 100 EU exporters currently export meat products to Vietnam. Meat imports from EU to Vietnam grew to 711 tonnes in 2015 from 10 tonnes in 2012.
|Japan, Korea, Hong Kong restrict poultry imports from Germany|
[23 November 2016] Japan, South Korea and Hong Kong are among several countries that have placed import restrictions on poultry from Germany following outbreaks of avian influenza in the country, the German state government of Mecklenburg-Vorpommern said in a statement. Eight European countries and Israel have found cases of the highly contagious H5N8 strain of avian influenza in the past few weeks and some have ordered that poultry flocks be kept indoors to avoid the disease spreading. Most outbreaks have involved wild birds, but Germany, Hungary and Austria have also reported cases in domestic duck and turkey farms where all poultry had to be culled. More outbreaks in Europe are likely in the next few weeks as wild birds believed to transmit the virus migrate south.
|Demonetisation hits India’s layer farmers|
[23 November 2016] Poultry farmers in India’s Andhra Pradesh state are badly hit by a drop in egg prices after demonetisation of high denomination notes. Layer farmers having 100,000 birds are losing at least USD 881 a day on sale of eggs and the losses are higher for farmers raising below 100,000 birds. With the money transactions becoming difficult across the country, the egg dealers are refusing to buy eggs from local farmers and they are offering prices lower than that fixed by the National Egg Co-ordination Committee (NECC). Kanakamedala Premkumar, NECC Zonal Committee Chairman said: “Our hopes on running the poultry industry this season were ruined due to the government’s decision of scrapping of high denomination notes.” He said the egg price fell from USD 0.05 to USD 0.04 per piece after Prime Minister Narendra Modi announced demonetisation on November 8.
|Sierad sells its fish meal producing subsidiary|
[22 November 2016] Indonesian poultry integrator Sierad Produce has sold its subsidiary Dwipa Mina Nusantara which produces fish meal, to an individual buyer. FX Awi Tantra, Director and Corporate Secretary said the reason was because in recent years the subsidiary was not able to produce fish meal due to limited raw material. “By selling the non-productive asset, we will focus more on our core businesses,” said Mr Tantra. From the transaction, Sierad raised around USD 380,000 which will be allocated to its capital expenditure in 2017. The company plans to use its 2017 capex to expand its processed food business, among others. Asian Agribiz noted that besides Dwipa, during this year the company has sold its land and building in Tangerang, and its ownership in Sierad Industries which produces poultry housing & equipment to Pacific Raya Propertindo for USD 13.4 million.
|Vietnam's exports in jeopardy over heavy metal contaminated seafood|
[22 November 2016] Vietnam’s export turnover target of USD 7 billion in 2016 may not be achieved as contaminated shipments to the EU contaminated have doubled compared to the same period last year. The National Agro-Forestry-Fisheries Quality Assurance Department (Nafiqad) and the Ministry of Agriculture and Rural Development (MARD) have imposed strict control methods on seafood exports from red-flagged companies in particular, and in the entire export seafood production sector. Nafiqad has received 11 compromised cases of shipments contaminated with mercury and Cadmium. “The number of violations has increased 2.2 times compared to 2015, said Nguyen Nhu Tiep, Nafiqad Director General.
|Shanghai Maling to shift Silver Fern Farms deal to an earlier date|
[22 November 2016] Chinese food operator Shanghai Maling Aquarius Co said the delivery day of the Silver Fern Farms deal has been set for December 1, 2016, amid concerns over a foreign exchange fluctuation. That compares with an earlier plan for completion on January 4, 2017. The deal price will also be raised to USD 187 million from USD 183 million, according to the Chinese company. In September this year, the New Zealand government gave the green light for Maling to buy a 50% stake in meat processor Silver Fern Farms. Shanghai-listed Maling is a meat subsidiary of China’s state-owned food and drink conglomerate Bright Foods, which owns global brands like Weetabix, Manassen and Synlait.
|Big Dutchman opens office in Myanmar|
[22 November 2016] Big Dutchman has ventured into Myanmar with the opening of a new office in Yangon. Headed by Surachai Chaicompa Managing Director, BDA Agriculture (Myanmar) Ltd will enhance the company’s sales and support services for customers in the pig and poultry sectors. “The expansion into Myanmar is a reflection of the economic growth sweeping the region. Our presence here recognises that new and existing customers benefit from locally driven support to complement our global services,” said Mr Surachai Chaicompa.
|Vissan welcomes Tet holiday with new products|
[22 November 2016] The Vietnam Meat Industries Joint Stock Company (Vissan) has launched two new products namely iridescent flower sausage and Happy Sausage for the coming Tet holiday (January 28, 2017). Traditionally, five represents blessings. So the five-coloured meat-based product combining high quality pork, peas and other beans, carrot and salted egg, wrapped in a paper bag, is designed to specially serve for Tet gifts, and as a special traditional meal. Meanwhile, Happy Sausage uses high quality pork from the company’s 3F model farm (Feed - Farm - Food). Vissan plans to distribute the new products to over 130,000 points across the country.
|South Korea confirms H5N6 cases |
[22 November 2016] South Korea has confirmed the country’s first outbreaks of the highly pathogenic H5N6 avian influenza virus at two poultry farms, an agriculture ministry official said. The outbreaks occurred at the farms in the central and southern parts of the country after the ministry reported in last week that the H5N6 strain had been found in the faeces of migratory birds. South Korea’s last bird flu outbreak occurred in March, when a different strain of the virus was detected at a duck farm, leading to the slaughter of at least 11,000 birds.
|CPF to acquire Bellisio for USD 1 billion |
[21 November 2016] Thailand’s Charoen Pokphand Foods (CPF) said it will buy Bellisio Parent LLC, a US Frozen food producer, for USD 1.075 billion, marking its first step into the world's largest food market. CPF signed a purchase agreement on November 17 with Bellisio Consolidated Equity. Bellisio Group is the third largest producer and distributor of single serve frozen entrees in the US by unit share, with well-known brands such as Michelina’s, Boston Market, and Atkins. Adirek Sripratak, CEO of CPF, said the deal will allow the company to bring greater variety of products particularly Asian food products, to US consumers as well as export CPF’s products globally. “This acquisition is in line with CPF’s strategic direction to expand into high potential markets,” Mr Adirek added. CPF said the transaction, subject to customary closing conditions and regulatory approvals, is expected to close within 180 days.
|Vietnam shrimp exports expected to reach USD3.1b|
[21 November 2016] Vietnam's shrimp exports in the first nine months of 2016 is valued at USD 2.2 billion, up 5.6 % compared to the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (Vasep). Shrimp exports to the US, EU, China and Korea stayed firm, except for Japan which dropped 4.2%. Shrimp exports to China saw the highest growth of 30.3%, while to the US, EU and Korea increased 15.2%, 6.9% and 12.3% respectively. Vasep said Vietnam shrimp exports in 2016 is expected to reach USD 3.1 billion, up 3.3% year on year. However, Vasep also estimates that there will be more challenges for shrimp exporters coming from stiffer quality requirements and anti-dumping duties set by some important markets.
|KFC Indonesia operator optimistic of USD365m revenue|
[21 November 2016] Fast Food Indonesia, the operator of KFC in Indonesia, is optimistic of achieving a revenue of USD 365 million in 2016 with the upcoming year-end holidays. The company’s performance until Q3 grew 9.3% to USD 261 million. Hendra Yuniarto, General Manager said one of the key drivers of the good performance was due to the launch of new menu called KFC Hot & Cheesy Chicken in Q3 which jacked up its stores’ sales by around 15-20% per month.
DSM Aquaculture Conference Asia Pacific 2016
Surabaya, Indonesia & Bangkok, Thailand
Reporting by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[21 November 2016]
Understanding raw materials composition, nutritional value
Raw material markets are globally connected, unstable and challenging. According to Brett Glencross, Professor of Nutrition, Institute of Aquaculture, University of Stirling in Scotland, volatility and market complexity is now the new norm. Therefore, “raw materials not only need to be procured in line with commercial economics, but with a view to managing the risks associated with volatility in demand,” he said. “Underpinning all of this is a solid understanding of the key quality drivers of raw materials, the most fundamental of which are their composition and nutritional value.”
Vitamin nutrition in warm water fish and shrimp
Vitamins are organic compounds essential for maintenance of biological process and optimal growth. Viviane Verlhac-Trichet, Research Centre Head and Principal Scientist at DSM Nutritional Products France, said that vitamins have the same metabolic functions in fish and shrimp as they have in land-based animals and their requirements are similar to other animals. “Since aquatic animals are not able to produce vitamins themselves, it is essential they obtain them via the feed,” Dr Viviane said. Meanwhile, increased dietary vitamin E protects unsaturated fats and thus improve fish product quality. Vitamin C contributes to maintain the integrity of the immune cells in fish through protection against oxidation and vitamin C modulates non-specific immune defences, leading to improved resistance to infectious diseases.
Moving beyond fish meal
Explaining about ‘Moving beyond fish meal’, Prof Glencross said: “animals need nutrients and energy, not raw materials. Same proteinogenic 20 amino acids exist in all plant and animal proteins. In addition, energy from protein, fat and starch is unaffected by whether it is of animal or plant origin.” According to him, being able to adapt with raw materials will create opportunities to reduce direct competition and underpins new innovation potential. However, he said all raw materials have issues with variability. Nutritional variability is affected by source, processing and etc. Meanwhile, understanding variability is the key to its management. “Getting it all right will mean no future reliance on fish meal,” he stressed.
Anti-nutritional factors of relevance to Southeast Asia
One of the major shortcomings of some feed ingredients is the presence of anti-nutritional factors (ANFs) and related compounds that may negatively impact their nutritive value or the maximum level of incorporation of these ingredients in feeds, said Dominique P Bureau, Fish Nutrition Research Laboratory at University of Guelph. ANFs can loosely be defined as dietary substances that reduce or interfere with the bio-availability of nutrients and disrupt normal metabolic, cellular and physiological process. Dr Bureau said that ANFs include oilseed anti-nutritional factors, dietary fibre and phytic acid. The ANFs contained in oilseed are diverse in nature, including protease inhibitors, saponins, lectins, antigenic compounds. Dietary fibre consists of diverse components such as non-starch polysaccharides and other organic components.
DSM Indonesia aims to be best premix solution provider
In 2020, DSM Indonesia aims to become the best premix solution provider in animal nutrition in Indonesia, revealed Jason Park, Director. He said the company prioritises quality, reliability and traceability in delivering its nutritional solutions that include vitamins, enzymes, eubiotics and minerals. Another important point is the company has a local premix plant located in Pasuruan, East Java with a capacity of 10,000 tonnes/month. The plant has been operating since July 2016. About the plant, Mr Park said: “Bar code system and PCS are used to ensure 100% traceability for food safety. The plant produces antibiotic free products for aquaculture. Besides, DSM is the only approved aqua premix manufacturer by Indonesia’s Ministry of Fisheries and Marine Affairs.”
|Conference for key strategists in the meat industry|
[18 November 2016] Four key themes will be addressed at Asian Agribiz’s Animal Protein in Asia 2022 conference which will be staged in Bangkok, Thailand on January 16-17, 2017. They are Harnessing e-commerce to sell meat; Developing the next big meat product; Staying in front of eating trends and Regional meat opportunities. This boutique conference will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register here.
|CPF’s Q3 net profit rises 45%|
[18 November 2016] Thailand’s Charoen Pokphand Foods (CPF) has posted a net profit of USD 146.25 million in Q3, up 45% from the same period last year, backed by improvement of its livestock business in Thailand and Vietnam as well as the recovery of its Thai shrimp business. CPF’s sales revenue increased 10% year-on-year to USD 3.46 billion in Q3. Its Thai operations (domestic and export sales) contributed 38% to the company’s total revenue, while the rest came from its international operations. Adirek Sripratak, President and CEO, said CPF’s business in China and Vietnam, which contribute 39% of its total sales, are the key growth drivers. In the long term, Mr Adirek sees business opportunities and potential in Russia, India and the Philippines.
|Nutricell to launch antibiotic-free poultry feed project|
[18 November 2016] Indonesian animal nutrition & health company Nutricell Pacific plans to launch antibiotic-free (ABF) poultry feed in early 2017. Fauzan Latief, Sales Manager, told Asian Agribiz that the project is a partnership with its customer in West Java. “The customer is a main supplier of chicken meat and eggs to McDonald’s Indonesia outlets in Greater Jakarta. By producing ABF feed at their plant, they can ensure traceability of their chicken meat and eggs starting from feedmill, farms to distribution,” he explained. “While the market practices antibiotics residue free meat by ensuring proper withdrawal time, we have stepped to the next level.” As a replacement, Mr Latief said they use eubiotics products such as essential oils and probiotics.
|Bangkok Ranch’s Q3 net profit drops 38%|
[18 November 2016] Thailand’s Bangkok Ranch has recorded a net profit of USD 1.93 million in Q3, down 38.1% from the same period last year, hurt by intense price competition in its export markets and the baht's appreciation against the EUR and GBP. Joseph Suchaovanich, Managing Director Asia and Asia Pacific at BR said earlier that the company saw intense competition in the live ducks segment in Europe. BR also saw increased competition from Chinese players in the roasted duck segment in European markets. Meanwhile, BR’s revenue increased 11.4 % year-on-year to USD 57.61 million in Q3. “We will continue to focus on operational efficiency, product development and market expansion in Thailand and overseas markets,” BR said in a filing to the Stock Exchange of Thailand.
|Jollibee Q3 sales up 12.4%|
[18 November 2016] Driven by strong growth in the local market, Jollibee Food Corporation posted a 12.4% sales in its system wide sales in the third quarter this year compared to the same period last year. The company expects to post its “highest system wide sales growth in five years and the highest organic growth in at least a decade driven by strong same store sales growth and the highest store network expansion,” said JFC CEO Ernesto Tanmantiong. Revenue for the period topped USD 566 million, up 11% year-on-year. For the first nine month this year, JFC’s system wide sales and revenue grew 14.1% and 12.8% respectively over the previous year.
|Sun Group builds second further processing plant |
[17 November 2016] Thailand’s Sun Group is investing around USD 23-28 million in a second further processing plant, Chamlong Termglinchan, CEO of Sun Group told Asian Agribiz. Sun Group’s new further processing plant in Saraburi province, will produce cooked chicken products and will have a production capacity of 1000 tonnes a month. Mr Chamlong said the plant will be operational in the fourth quarter of 2017 and it plans to export its cooked chicken to Japan and Europe. The company’s existing further processing plant has a production capacity of 500 tonnes a month. Meanwhile, Sun Group has set a revenue target of USD 340.40 million this year and USD 425.50 million for next year. Food business contributed 50% to the company’s total revenue in 2016, while the rest came from its feed business.
|Fujian Sunner to open new technology centre in early 2017|
[17 November 2016] Fujian Sunner Group, the largest white-feather broiler integrator in China, said it is launching a technology centre costing about USD 15 million. “The new building will be operational early next year,” Chen Zhihong, Deputy Director of Media Office told Asian Agribiz. According to him, the new centre will focus on physical and chemical food examination, food microbiological analysis and poultry disease control. “It will meet the demand for the production and processing of one billion broilers.” Sunner currently has an annual slaughter capacity of 500 billion birds. It slaughtered 360 million in 2015 and targets to kill 430 million this year.
|Indonesian poultry farmers seek market segmentation|
[17 November 2016] Indonesia’s Joint-Secretariat for Independent Poultry Farmers Rescue is planning to demonstrate today at the Ministry of Agriculture’s office in Jakarta. The joint-secretariat will demand that the ministry impose a selling price for live birds and eggs that is above their production costs as price fluctuation has led many to collapse. They also want a fair trade system and a 70% market share in the broiler & layer farming sector. Last but not least, they also want the ministry to define market segmentations – live birds or fresh warm broiler market for independent farmers, while frozen broiler meat market for integrators. Around 200 people will join the demonstration.
|Price of live pigs declines in Vietnam|
[17 November 2016] Live pig price in Ho Chi Minh City and Dong Nai province is expected to drop to USD 1.61/kg this month, down by USD 0.2/kg from October, and about 23% lower than the highest price reached in April and May this year when Chinese pig-buying activities reached its peak. At the time, many Vietnamese pig producers expanded production, but after Chinese traders stopped buying, producers are now faced with an oversupply, said Nguyen Kim Doan, Vice Chairman of Dong Nai Animal Husbandry Association.
|H5N8 outbreak in India|
[17 November 2016] A chicken has tested positive for H5N8 in Karnataka, India, the first detection in that district, the Business Standard reported. Haryana, Rajpura, Delhi, Gwalior, and Kerala districts have been previously affected. Post-outbreak response and surveillance is continuing in the other affected districts, according to the Business Standard report. The Bhopal-based National Institute of High Security Animal Diseases confirmed that samples from the chicken are positive for H5N8 avian flu, according to national agriculture officials. The Karnataka government has been instructed to initiate control and containment operations, similar to response efforts in other districts. "The situation is under control," the country's Agriculture Ministry said.
|David Hughes to chair meat conference in Bangkok|
[16 November 2016] Animal Protein in Asia 2022, another stellar conference by Asian Agribiz, will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). Chaired by David Hughes, Professor of Food Marketing, Imperial College, UK, the conference will deliver 19 visionary presentations from 16 global and regional specialists with 100s of ideas to help fine-tune five-year plans. View more details and register here.
|Luong Hue opens new processing plant |
[16 November 2016] Luong Hue, Vietnam's third largest native chicken breeder, is to open its new processing plant at the end of November with an aim to lift the country' native chicken industry to a new level of quality and hygiene standards. Investing over USD 1 million for the first phase of the project, the plant will be equipped with a slaughtering line capacity of 1000-1500 birds/hour from Bayle of France. Managing Director Pham Van Luong told Asian Agribiz that the entire project would cost a total of USD 5 million. This investment is meant to develop the whole value chain of Luong Hue's native chickens for local and international markets.
|US pork exports to China to hit 500,000t in 2016|
[16 November 2016] The US Meat Export Federation (USMEF) said exports of US pork to China this year are expected to range from 400,000-500,000 tonnes with a value of USD 500-600 million. “These figures will be 80-90% higher than last year,” Joel Haggard, Senior Vice President for Asia Pacific, told Asian Agribiz. In the first three quarters, exports- including variety meats and by-products - reached 252,000 tonnes valued at USD 440 million. “US pork prices are expected to stay low through this year and next due to expanding domestic production and supply availability,” Mr Haggard said.
|Thai wheat importers compelled to buy domestic corn|
[16 November 2016] Thailand’s feed producers that import wheat will have to buy domestic corn, as part of government measure to support corn prices, Bangkokbiznews reported. Corn prices have declined due to larger than expected supply in the current harvest season. Commerce Minister Apiradi Tantraporn said imports of wheat will require a permit. Feed producers who import one volume of wheat must purchase three volumes of domestic corn at USD 0.23/kg. However, Pornsil Patchrintanakul, President of Thai Feed Mill Association, told Asian Agribiz that the livestock industry needs 7.8 million tonnes annually but corn production is around 4.5 million tonnes a year. “If we buy 4.5 million tonnes of domestic corn, we will be able to import just 1.5 million tonnes of wheat. It will not be enough,” Mr Pornsil said, adding the industry imported 3.4 million tonnes of wheat annually in the past two years.
|Huaying kicks off construction of duck slaughterhouse|
[16 November 2016] Chinese duck processor Henan Huaying Agricultural Development Co had a ground breaking ceremony for a duck slaughterhouse on November 6. The facility, located in Fengcheng in east China’s Jiangxi province, will have an annual slaughter capacity of 30 million birds. It is the first phase of a complex that will also include a 300,000-tonne selenium-enriched feedmill and a 20,000-tonne cooked products factory by 2021. Due to the larger capacity total cost of the complex will be raised to USD 97 million from 68 million, according to the company.
|Vietnam producers urged to export pigs through official channels|
[16 November 2016] Vietnamese pig producers should ship pigs to China using official channels rather than through unofficial cross-border trade to avoid volatility in demand and prices. By doing so, producers can enter into supply contracts and prepare production plans, said Department of Animal Husbandry Vice Director Nguyen Van Trong, adding that counterpart sectors and agencies in both countries should work on a veterinary agreement to achieve this goal. Vietnamese producers must comply with regulations of importing countries and have an active production plan, he said, otherwise, “we would continue to be the victim of supply-demand imbalance and uncontrolled prices.”
|Sun Group to build second feedmill next year|
[15 November 2016] Thailand’s Sun Group will invest USD 23-28 million to build a second feedmill in 2017, Chamlong Termglinchan, CEO of Sun Group told Asian Agribiz. The new feedmill, which will be located in Saraburi province, will have a production capacity of 40,000 tonnes a month. The feedmill will mainly produce chicken feed and it will come online in early 2018, Mr Chamlong said. “The use of homemade feed will gradually decrease because key raw materials are hard to find. And feed will partly come from by-product feeds, which need technology in the feedmill,” he said, adding revenue from its feed business will grow at least 10% annually. Sun Group’s existing feedmill has a production capacity of 40,000 tonnes a month and 50% of the feed production is used internally.
|Kerchin single-day ecommerce sales hit USD 4.5 million|
[15 November 2016] Kerchin Cattle Industry Co, the second largest beef producer in China, said it booked ecommerce sales of USD 4.5 million on the day of "Double Eleven" online shopping festival. On Tmall alone, its sales rose 47.8% year-on-year to USD 3.2 million, ranking the first in the category of fresh products. Kerchin’s beef products are also available on Taobao, JD.com and Yihaodian. "Double Eleven", dubbed as the Chinese version of "Black Friday", falls on November 11 each year and was originally initiated by Alibaba, the operator of Tmall and Taobao, in 2009. It was later adopted by other e-commerce platforms and developed into China's biggest annual online shopping spree.
|Uptrend continues in food price index|
[15 November 2016] October saw a decline in global meat prices due to slackening import demand from China, bucking an upward trend in food prices overall, according to an index compiled by the UN Food and Agriculture Organization. The FAO Meat Price Index fell 1% in October from September, dragged down by excess domestic supplies in the EU and a decline in EU export prices for pork as demand from China slowed, the organization said. The decrease was further linked to declining beef export prices in the Asia Pacific region as higher domestic production in the US eliminated the need for external supplies. The Food Price Index has climbed continuously since the start of the year except for a dip in July.
2nd National Swine Seminar in Manado, North Sulawesi, Indonesia
Report by ARIEF FACHRUDIN
[15 November 2016]
Pig farmers should follow international, regional standards
The single Asean market offers both opportunities and threats to the national pig industry, according to Ellen Joan Kumaat, Rector of the University of Sam Ratulangi in Manado, North Sulawesi. She hopes pig farmers not only in the province, but also in other pig production centres such as Java, North Sumatera, Nusa Tenggara and Papua, will continue to increase their production efficiency and product quality according to international & regional standards. Prof Kumaat said by following the standards, local pig farmers will not only able to secure local markets, but also have the opportunity to tap export markets in the region.
Indonesia’s pig population to increase 3.92%
Standing pig population in Indonesia was estimated at 8.1 million heads in 2016, a 3.92% increase from last year, according to the Ministry of Agriculture. Meanwhile, pork production was expected to touch 342,346 tonnes in 2016, a 3.67% increase from last year. Pork production contributes around 10% to the total national meat production. Bali, North Sumatera, East Nusa Tenggara, West Kalimantan and North Sulawesi provinces are in the list of top five producers. In 2012, Indonesia exported 35,370 tonnes of pork with a value of around USD 62 million. Bulan Island based Indotirta Suaka which belongs to Salim Group was reported as the exporter with Singapore as the export destination.
High beef prices affect pork price, consumption
According to Sauland Sinaga, Chairman of the Indonesian Monogastric Association, the high price of beef in the country of around USD 9/kg has positively affected the pig industry. “Pork consumers in the country increased consumption due to the high price of beef. As a result, the price of live pigs has increased from USD 2.15 to USD 2.30 per kg,” Dr Sinaga said. He believes the government’s new policy to oblige live cattle importers to import one breeding cattle for every five feeder cattle imported will also positively affect pork consumption. According to him, it is not easy for live cattle importers to realise the policy as they have to prepare breeding farms. “This, again, will trigger the price of beef to escalate.”
Challenges in Indonesia’s pig farming industry
Although the Ministry of Agriculture estimates the national pig population and pork production will continue to increase, there are some challenges. Dr Sinaga said limited corn supply is the main challenge as the ministry has terminated corn imports. To address this problem, “farmers should look to alternative feed raw materials that are available locally,” he suggested. The next challenge is climate change, where farmers have to improve farm management, biosecurity and embrace modern housing technology. “Genetic quality is also a big problem. Pig production performance in Indonesia is still far behind other countries in the region. The government should help to overcome this problem in order to increase national pig farmers’ competitiveness,” said Dr Sinaga.
Zones for pig farming
Social problems hamper the growth of pig farming in Indonesia, according to Komang Budaarsa, Chairman of the Indonesian Pig Scientists Association. In West Java province for instance, pig farmers were forced to close their farms due to issues related to religion, odour, waste management and resident housing development. “So we want the government to establish zones for pig farming. It’s important for both farmers and potential investors,” said Prof Budaarsa. In addition, with the zoning, he also wants farmers to also raise indigenous black pigs that generate premium meat. “The price of babi guling [roasted pig carcase] from indigenous black pig is around USD 192, while from commercial pig is only around USD 115,” he said.
Main diseases in piglets in Indonesia
Suwicha Kupradinun found many cases of diarrhoea in 7-10 day aged piglets in Indonesia. The Thailand based pig health & management consultant said one of the causes is that most pig farmers in Indonesia cut their piglets’ teeth on day 1. “Piglets suffer a lot because of this practice, which then triggers diarrhoea. So they should cut the teeth on day 3 or 4,” he said. Besides diarrhoea, Dr Suwicha also found diseases caused by coccidia and E coli in 7-10 day aged piglets. “Other neighbouring countries such as Thailand, the Philippines and Vietnam also face the same problem,” he added. Dr Suwicha suggested that it is important for pig producers to take and test samples of faeces or blood at laboratories periodically. “Observations based on clinical & sub-clinical signs are not enough. We need to know root of the problem to then decide on which medical and preventive action to be taken,” he said.
North Sulawesi struggles with hog cholera
Pig producers in North Sulawesi have not been able to spread their market reach to potential pork markets such as Papua because the province is not yet free from hog cholera. Ronald Kalalo from the North Sulawesi Pig Farmers Association said the association is struggling to achieve the hog cholera-free status. “Based on our field observations, our members haven't found any cases of hog cholera at their farms. Some don't even vaccinate against hog cholera anymore,” he said. Mr Kalalo hopes the provincial government and the Ministry of Agriculture can guide the association on measures to get the free status. According to the local Animal Husbandry Agency, surveillance is mandatory and has to be performed for five years. If there are no hog cholera cases during the period, the province will get the free status.
|Thailand’s shrimp industry not worried by prospect of higher tariffs |
[14 November 2016] Donald Trump will likely implement protectionist trade policies as promised on the campaign trail. “If the US imposes higher tariffs on shrimp imports, we will conform as long as the US enforces this equally to every country,” Suraphol Pratuangtum, Honorary President and Technical Advisor of the Thai Shrimp Association told Asian Agribiz. According to the association, Thailand exported 57,543 tonnes of shrimp to the US in the first 10 months of 2015, valued at USD 572.22 million. “Americans still needs to eat shrimp and we produce quality shrimp,” Mr Suraphol said. Meanwhile, Pornsil Patchrintanakul, President of Thai Feed Mill Association told Asian Agribiz that Mr Trump’s policies will have no impact on the feed industry in Thailand as the industry imports feed, including soybean meal, from the US and does not export any feed products to the US.
|Local corn in Indonesia touches USD0.34/kg |
[14 November 2016] Indonesia's restriction of corn imports has led to higher local prices. The current local corn price is higher than the government’s ceiling price of USD 0.28 per kg. According to the National Layer Farmers Forum (PLN) data, local corn with moisture content of 17% is now priced at around USD 0.32-0.34/kg. Ki Musbar, PLN Coordinator said local corn price increased because of short local supply. “The shortage was worsened by poor management of post-harvest and distribution in corn production centres, plus many brokers in the distribution chain,” he said. “With the higher price, feed costs have increased by USD 0.01-0.02 per kg.”
|Wheat importers must also buy Thai corn|
[14 November 2016] In a move to curb tumbling corn prices the Thai government has decided that importers of wheat will have to purchase local corn. Nattaporn Jatusripitak, adviser to the Commerce Minister, said for one portion of wheat importers must also buy three portions of local corn at THB 8/kg, roughly USD 1.18/kg. Thai corn farmers are struggling following a significant drop in corn prices. Feed producers prefer wheat to corn because the former is cheaper. Some 2.8 million tonnes of wheat were imported from January-September this year, compared to 3.9 million tonnes last year. Domestically grown corn with moisture content of 14.5% is priced at between USD 0.99 and 1.02/kg. Chicago wheat is USD 0.78/kg.
|US meat exports make headway in Asia |
[14 November 2016] US beef exports were up 28% to South Korea and 16% to Japan from January to August, and pork exports to China were up 94%, said the US Meat Export Federation. Joel Haggard, Senior Vice President for the Asia Pacific region said US beef is in a stronger position than it was a couple of years ago. He acknowledged that the gains were mostly due to low cattle and beef export supplies in Australia and rising prices of Australian beef. Asia remains a battlefield for pork, due to the European Union’s market share and competitive prices, especially for frozen meat. But the US is making great progress on the chilled side, he said.
|Japan’s broiler market to set new record highs|
[14 November 2016] Japan’s 2016 broiler meat production, consumption and importation are on pace to break record highs, according to US’ Foreign Agricultural Service’s Global Agricultural Information Network (GAIN) report. Domestic broiler meat production in Japan is projected to climb 2% to 1.4 million tonnes for 2016. Total consumption also is projected to rise 2% to 2.6 million tonnes, while imports are projected up 1% to 945,000 tonnes in 2016, GAIN projected. Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) estimates that households, as measured by retail consumption data, consume about 40% of total broiler meat in Japan. Food service, ready-to-eat (RTE) food businesses, and other institutional end-users consume more than 50%, with the remaining volumes used for processed products.
|Learn about opportunities for growth in Asia’s animal protein markets|
[11 November 2016] Animal Protein in Asia 2022, another stellar conference by Asian Agribiz, will examine the significant opportunities for growth in Asia’s animal protein markets that will emerge over the next five years. The conference will be held at the Anantara Siam Bangkok Hotel, on 16-17 January 2017 (Monday-Tuesday). This is a boutique conference that will appeal to CEOs, VPs, board members, senior managers and investors from leading food businesses in South East and South Asia. View more details and register here.
|Uncertainty in meat market over Trump's victory|
[11 November 2016] The Asian and US industries have reacted with mixed sentiment to the future of meat exports from the US following Donald Trump’s victory in the US elections. On both ends of the globe, analysts, producers and meat industry professionals remain cautious based on Mr Trump’s views towards free trade. While on the campaign trail, he said he would scrap the Trans-Pacific Partnership (TPP) and seek to negotiate with individual countries to better ensure fair unilateral trade agreements. Colin Woodall, senior vice president of government affairs for the National Cattlemen’s Beef Association (NCBA) told Meatingplace: “TPP is our No. 1 ask. We’re losing USD 400,000 a day without it.” If the US stalls in this area, the market share is quite likely to be taken up by Australia, New Zealand and the EU, throwing US grain and meat producers into a quandary with excess supply.
|Vietnam to export processed chicken to Japan|
[11 November 2016] Vietnam will be able to export processed chicken for the first time, initially to Japan, after receiving the green light from the government and the Department of Animal Health as well as overseas investors. Vietnam's Ministry of Agriculture and Rural Development (MARD) has approved the surveillance plan for processing chicken for exports. The first company to participate in this project is Koyu & Unitek Ltd, which is completing the construction of its poultry processing plant that complies with Japanese standards. “We appreciated MARD's timely issuance of the surveillance plan for processing chicken for exports,” said James Hieu Nhon Khuu, Koyu & Unitek Director General.
|ACI Godrej receives USD8.3m of fund for capex|
[11 November 2016] Standard Chartered Bank has arranged a USD 8.3 million Zero Coupon Bond for ACI Godrej Agrovet, a joint-venture company formed by ACI of Bangladesh and Godrej Agrovet of India. The facility is aimed at financing the company's capital expenditure and to refinance its existing debt. ACI Godrej Agrovet, which launched operations in 2004, is a leading poultry, fish and cattle feed manufacturer in Bangladesh.
|Carl’s Jr opens in Cambodia|
[11 November 2016] California-based CKE Restaurants Holdings Inc, the parent company of Carl’s Jr and Hardee’s, announced the opening of the first Carl’s Jr restaurant in Cambodia recently. “This is an important market for our overall expansion strategy and we plan to open 15 restaurants in the country to offer Cambodians a superior burger experience,” said CKE’s International Division President, Ned Lyerly. “In addition to providing the very first quick-service drive-through outlet in the country, Cambodians can also enjoy our wide range of affordably priced, premium quality burgers and chicken sandwiches made fresh to order using high-quality ingredients, including chargrilled 100% Australian beef,” said Mr Lyerly.
|Zhou Hei Ya plans for processing facilities in Hebei and Sichuan|
[10 November 2016] Chinese duck parts processor Zhou Hei Ya International Holdings Co will allocate USD 64.5 million from its IPO proceeds, for additional processing facilities, logistics and storage centres in east, southwest and north China. “The planned processing facilities will include one in Cangzhou in northern Hebei province, and another around Chengdu in southwestern Sichuan,” Media Officer Zheng Beibei told Asian Agribiz. The company currently operates two plants in central China’s Wuhan and Shanghai in the east. It is constructing the second phase of its Wuhan facility and will build a new facility in Dongguan in southern Guangdong province. Trading of Zhou Hei Ya shares is scheduled to debut tomorrow.
|Masan Group invests in 10,000 sow farm|
[10 November 2016] Masan Group will build a 10,000-sow pig farm in Nghe An province which when finished would be the largest in the province. The farm, scheduled to become operational in 2017, will start supplying pork by early 2018 said Masan Group Chairman Nguyen Dang Quang. The modern, biosecure farm is certified with VietGAP and is expected to produce some 230,000 commercial pigs annually. Masan, which has been investing heavily in the country’s animal protein industry, increased its ownership in Vietnam Meat Industries JSC (Vissan) to 24.9 % from 14% in June 2016.
|Aviagen continues investment in growth|
[10 November 2016] Growth has been robust in the poultry sector in the last 3-4 years but Aviagen expects a lull in the next 6-12 months. Addressing guest at the Ross Asia Association meeting in Singapore on Monday, Jan Henriksen, CEO said the company has invested in expansion and facilities to ensure reliable and quality supply, in addition to investing 11% of its annual turnover in r&d. “We have GGP in seven countries and GP in 28 countries. We need this footprint to ensure consistent supply. In the past, disease issues have prevented this,” he said. “We need this because Aviagen sells performance and owners are always keen on investment for better performance.”
|Thaifoods Group reports solid Q3 earnings|
[10 November 2016] Thailand’s Thaifoods Group (TFG) has recorded a net profit of USD 15.20 million in Q3, compared to a loss of USD 7.89 million in the same period of last year, supported by higher revenue from its poultry and swine business. TFG’s revenue from its poultry business climbed 15.24% year-on-year to USD 104.30 million in Q3. The company’s sales volume of chicken increased from 71,424 tonnes in Q3 2015 to 86,811 tonnes in Q3 2016 mainly due to increased capacity for both export and local market. TFG’s revenue from its swine business increased 1.62% year-on-year to USD 39.86 million in Q3. The company’s sales volume of swine increased from 16,599.02 tonnes in Q3 2015 to 19,294 tonnes in the same period of 2016 due to increased capacity.
|Cambodia to develop halal standards|
[10 November 2016] Cambodia plans to develop a nationwide standard for halal products providing regulation to an industry that has until now remained local and small-scale. Malaysian Prime Minister Najib Razak recently agreed to fund a halal-standard training scheme at the request of Prime Minister Hun Sen. The country has also requested technical help from Thailand. Until now, the Highest Council of Islamic Religious Affairs in Cambodia, the country’s leading Muslim community body, has issued halal certification to businesses here, though local butchers say the process has historically relied more on trust than on inspection. Several organisations also print their own guidelines for halal food production.
|Generous discount for young executives at AP2022|
[09 November 2016] Asian Agribiz is offering senior participants at its Animal Protein in Asia 2022 (AP2022) conference a discount of up to 60% for a young executive that accompanies the main delegate. This is aimed at broadening the knowledge base of this executive in the animal protein industry and the significant opportunities for growth that will emerge over the next five years. Special rate for YOUNG EXECUTIVES (must be 35 years or younger) accompanied by a delegate with an early bird, team or regular registration is only USD 500. The conference will take place in Bangkok, Thailand on January 16-17, 2017. For details email firstname.lastname@example.org. To register, fill the form here.
|GFPT's Q3 net profit surges 52%|
[09 November 2016] Thailand’s GFPT has reported a net profit of USD 14.19 million in Q3, up 51.93% over the same period last year, backed by higher sales revenue especially from exports and lower feed costs. GFPT’s revenue increased 4.08% year-on-year to USD 126.21 million in Q3 due to higher revenue from its chicken processing segment and higher sales volume of live broilers to its joint venture, GFN. The company’s total export of chicken processing was 8,000 metric tonnes, up 50.94% from Q3 2015. Meanwhile, revenue from its feed segment dropped 6.84% year-on-year to USD 31.93 million due to higher competition in animal and aquatic feed in Thailand.
|Poultry production expected to improve in all Asian markets |
[09 November 2016] The poultry industry in Asia is trending upwards and production growth is expected to continue in all markets. Speaking at the Ross Asia Association Meeting where Aviagen celebrated 60 years of success with the Ross breed, Rupert Claxton, Strategy Consultant with Gira said South Asia is likely to continue to expand aggressively, with production up by 9%, led by growth of integrators, and improved disease control protocols. He added however, that low global feed costs will be an important factor in ensuring this growth trajectory.
|Russia-Indonesia jv company to set up four fish processing plants|
[09 November 2016] Russia-based Black Space and Indonesia’s state-owned fishery company PT Perikanan Indonesia (Perindo) have agreed to form a jv in fish processing with Black Space controlling 80%. Syahril Japarin, Perindo President Director said the jv company will set up four fish processing units including 300-500 tonne cold storage facilities in Malang, Trenggalek, Aceh and Makassar. The plants will process different types of tuna for the Russian market. Mr Japarin said the jv company has allocated around USD 15.28 million for the project which is scheduled for completion in three years. Once this first project is finished, the jv company plans to set up new fish processing units in six different locations in the country.
|Chinese firm building USD 2.1b Special Agri Economic Zone in Cambodia|
[09 November 2016] China’s Tianrui Group hopes to break ground soon on a USD 2.1 billion special economic zone close to Phnom Penh. The area will be dedicated to processing agricultural products for export, a first for the country. “Our team has studied the agricultural industry here and we found that Cambodia does not have large-scale storage facilities to serve the agriculture sector and, in particular, there is no company that can process agricultural products on a large scale for export,” Shen Chen, CEO of the group’s local subsidiary, Tianrui (Cambodia) Agriculture Corporation, said. He added that the company will also enter into contracts with local farmers to buy their products.
|Thai feed producers to buy 300,000 tonnes of corn surplus in November|
[08 November 2016] Thailand’s Ministry of Commerce recently held a meeting with feed producers and related parties and concluded that feed producers will buy around 300,000 tonnes of corn surplus in November, solving corn supply problems. The current corn harvest season has seen larger than expected supply of corn in the market. Corn output is expected to be 800,000 tonnes in November, while corn output was 1.3 million tonnes in October and 1 million tonnes in September. Meanwhile, the feed industry needs 500,000 tonnes of corn each month. Bangkok Produce under Charoen Pokphand Group will buy 150,000 tonnes in November, while Betagro will buy 40,000 tonnes, Cargill 20,000 tonnes, and Centaco 15,000-20,000 tonnes. During the post-harvest season, corn output is expected to decrease to 100,000 tonnes in January 2017.
|CP, Japfa record positive performance in Q3|
[08 November 2016] Indonesia’s largest poultry integrator Charoen Pokphand Indonesia recorded a positive performance in the third quarter this year. The company’s sales reached USD 2.16 billion, up 27.2% from the same period of last year. Meanwhile the net profit was USD 190.29 million, a 99.2% increase from the same period last year. On the other hand, Indonesia’s second largest poultry integrator Japfa Comfeed Indonesia also recorded a good Q3 result. During the period, the company’s sales and net profit was USD 1.57 billion (a 10% increase) and USD 139.08 million, respectively. Of these sales figures, sales of feed, DOC, cattle and consumer products increased 8.4%, 31%, 33% and 4.9% respectively.
|China’s Huatong Meat to build new facilities with IPO fund|
[08 November 2016] Zhejiang Huatong Meat Products Co, a Chinese livestock integrator in which CP China and Conti Feed own a 5% stake each, said it plans to build new pig and poultry processing facilities that are estimated to cost USD 64 million. The company is seeking a Shenzhen IPO to fund the expansion. The new facilities will include a pig slaughterhouse with annual capacity of 500,000 heads, a 10,000-tonne pork processing plant, and a poultry processing plant to handle 36 million birds a year. Huatong’s products include feed, fresh pork and chicken, Jinhua ham, as well as braised meat.
|Indonesia to set up fish feed plant in North Sumatera|
[08 November 2016] Indonesia’s Ministry of Fisheries and Marine Affairs has said that next year it will set up an aqua feed plant in Medan, North Sumatera. Slamet Soebjakto, Director General of Aquaculture said the plant, which will have a capacity of 3000 tonnes of floating feed per month, is set to produce feeds for freshwater fish, brackish water fish and mariculture fish. This project, which will cost the ministry around USD 2.06 million, is aimed to help fish farmers with cheaper feed. Mr Soebjakto said the plant will be operated by Indonesia’s state-owned fishery company PT Perikanan Indonesia. “This is a pilot project. If it runs well, we will consider setting up more in Java and Kalimantan,” he revealed.
|Indian carabeef sales in Indonesia cause anxiety to Australian cattlemen|
[08 November 2016] Sales of Indian frozen buffalo meat or carabeef which started last month, in Indonesia are already causing anxiety among Australian ranches that supply Indonesia with more than half a million live cattle a year. “The threat to Australia’s market share is real and we’d be foolish to think otherwise,” said Tracey Hayes, Chief Executive of Australia’s Northern Territory Cattlemen Association. “Indian buffalo meat is a much cheaper product.” Australia relies on Indonesia to buy more than half its live cattle exports – earning USD 417 million from the live trade last year. Indian buffalo meat sells for as little as the state-food agency set price of around USD 5/kg in so-called traditional markets in Jakarta, compared with about USD 8.8/kg for beef from Australia in more upscale farmers’ markets.
|India’s Aavishkaar to invest in Indonesia’s agriculture sector|
[07 November 2016] Indian venture capital company Aavishkaar Venture Management is looking to raise around USD 100-150 million for Indonesia, and is hoping to invest in 10-15 Indonesian companies within the next five years. Vineet Rai, CEO said the company expects to close 5-6 deals in the next year or two. “We are looking at various sectors such as education, health, energy, agriculture, poultry and dairy,” he said. In November 2015, the company announced its first investment in Indonesia – an undisclosed funding in PT Bali Seafood, a subsidiary of North Atlantic Inc. North Atlantic operates in the fishery sector, sourcing seafood from Indonesian artisanal fishermen and marketing frozen products to supermarkets and restaurants in North Africa and Asia.
|EU to remain China’s main supplier of pork |
[07 November 2016] While the EU will continue to be the dominant supplier of pork to China due to the country’s 100% ractopamine-free pork requirement and the high number of accredited EU plants, volumes will be lower than the expected 1.9 million tonnes this year, Rabobank said in its Pork Quarterly report 2016. EU’s pork production is seen to decline by 1.5% from Q4 2016 until mid-2017, and this would put pressure on prices. This will present opportunities for lower priced pork from other exporting countries, such as Canada, the US and Brazil.
|India’s revision on poultry import restrictions does not satisfy US|
[07 November 2016] India has not been able to satisfy the US with its implementation of the World Trade Organisation’s ruling on poultry import restrictions, despite a second round of revision in rules to address the US’ concerns. “The US, at the latest meeting of the dispute settlement body (DSB), said India’s measure to check bird-flu may still be substantially more trade-restrictive than the one based on recommended international standards. It also accused the country of not cooperating fully on the matter,” said an official privy to the discussions. The US also did not withdraw its request to the WTO for authorisation to impose a retaliatory fine of USD 450 million annually against India. India, however, asserted that the disputed measures were no longer in force. It said that its revised package of measures complies with the DSB ruling as these recognised disease-free areas.
|Indonesians told to work hard to achieve food self-sufficiency|
[07 November 2016] Indonesia’s President Joko Widodo has urged his people to work hard to overcome the country’s need for food imports. “Last year, we imported rice, soybean, corn and many others,” he said during a World Food Day event in Central Java recently. “We have to solve this problem. We are sure in the future Indonesia will reach self-sufficiency in food.” Mr Widodo said he is sure that if everyone worked hard to increase production, Indonesia will not need to import food anymore. He expressed his hope that Indonesia would not have to import corn by 2018. He expected regions like East Nusa Tenggara, West Nusa Tenggara, Bima, Gorontalo, and East Java to increase food productivity.
|US tops South Korea’s beef import list|
[07 November 2016] The US has become South Korea's largest source of beef imports in October as more consumers prefer American products as an alternative to the expensive local supply, US quarantine data showed. South Korea imported a total of 10,551 tonnes of American beef from October 1-20, surpassing Australian imports of 8382 tonnes over the same period, according to the data compiled by the US Meat Export Federation. South Korea halted imports of US beef in 2003 in the wake of a mad cow disease outbreak and lifted the ban in late 2008, which led to mass demonstrations among people in fear of their safety. Although America's beef market share fell behind other imports in the early years of resumption, it has emerged as a popular alternative to expensive local beef over the past few years.
|A definitive conference for meat producers, processors and retailers|
[04 November 2016] Animal Protein in Asia 2022 is the definitive conference for poultry, pork and fish producers, meat processors and retailers planning to grow your companies over the next five years. The conference organised by Asian Agribiz will take place in Bangkok, Thailand on January 16-17, 2017. It will field reputed industry speakers who will tackle four major challenges namely, Harnessing e-commerce to sell meat; Staying in front of eating trends; Developing the next big meat product and; Regional meat opportunities. For details email email@example.com. To register, fill the form here.
|Egg prices in Indonesia drop due to seasonal low demand|
[04 November 2016] The price of eggs in some regions in Indonesia has been below production cost since end September. Singgih Januratmoko, Chairman of the Indonesian Poultry Farmers Association (Pinsar Indonesia) said the farm gate price of eggs per kg in West Java and Central Java, for instance, currently stood at USD 1.22 and USD 1.15 respectively, while the production cost is around USD 1.34. “Current demand for eggs is low, while production increased by 5-10% since September. However, we expect the price will be corrected in November,” he said. Meanwhile, Ki Musbar, Coordinator of the National Layer Farmers Forum noted that at consumer level the price of eggs per kg in Java is around USD 1.38-1.53, while in Greater Jakarta the price is around USD 1.76. Mr Musbar added that farmers’ production cost increased to USD 1.34 from USD 1.22 as local corn price increased to USD 0.34 per kg.
|Chinese PE fund to cut stake further in WH Group|
[04 November 2016] Chinese private equity firm CDH Investments said it is selling one billion shares, equivalent to a 6.83% stake, in WH Group to independent third parties. Its holding will be reduced to 12.94% following the deal, though it has also indicated an option to cut a further 4.76% stake in the Chinese parent of Smithfield Foods. In August, CDH sold 10.62% of WH Group, including a 1.99% stake to a unit of Rise Grand, an investment vehicle controlled by WH’s management team, boosting the vehicle’s holdings to 36.01%. CDH and its partner Goldman Sachs started investments in WH Group, previously known as Shuanghui International, in 2006, and it’s said to have been seeking to exit.
|Australia ready to compete with Brazil, Mexico in Indonesia’s beef market|
[04 November 2016] Australia is ready to face competition from Brazil and Mexico, new players in the Indonesian beef market, following Indonesia’s decision to diversify its beef import sources. Simon Crean, Australian Livestock Exporters Council Chairman said Brazil and Mexico may reduce Australia’s dominance. Along with India, the two countries offer cheaper beef compared to Australian sources. However, Mr Crean said price is not everything. “To compete with them, it’s not a big problem. Australian products are well received by customers. They are reliable, safe and clean. We have a significant disease-free status that is globally recognised,” he said.
|Vietnam, Cambodia sign trade deal |
[04 November 2016] Vietnam and Cambodia have signed a trade deal expected to boost bilateral trade relations, improve people’s lives, especially those living in the border areas and contribute to economic development. Some 29 Vietnamese goods will be tariff-free when exported to Cambodia, including milk and cream, and meat products, while 39 Cambodian goods such as meat will be tariff-free when exported to Vietnam. According to Vietnam Net the agreement will see Cambodia offer special incentives to Vietnam, which are even higher than those the country has committed to other Asean member countries. Accordingly, Vietnamese goods will be more competitive than products of other countries in the Cambodian market.
|Japan pork production to decline in 2017|
[04 November 2016] Rising domestic consumption has kept pork prices stabilised at higher levels despite a growth in supply in Japan. In its Pork Quarterly Q4 report 2016, Rabobank noted that both local production and imports have increased, growing by 1.9% to 515,000 tonnes and 9.4% to 495,000 tonnes, respectively. Towards the end of the year however, domestic production is expected to stabilise and is seen to decline in 2017 as sow inventory declines. Together with an appreciating yen, this means opportunities for pork exporters.
|Thailand’s BOI to reinstate incentives for feed producers |
[03 November 2016] Thailand’s Board of Investment (BOI) will bring back incentives for feed producers and manufacturers of feed-meal compounds after suspending them in 2014, the Nation reported. BOI Secretary-General Hirunya Suchinai said the board will promote Thailand as a hub for feed production and r&d centre for the industry in Asean. Incentives will be in two stages. First, feed production projects will obtain non-tax incentives including exemption of import duties on machinery. Second, feed projects which invest in r&d and innovation, will obtain additional tax incentives, based on the value of the projects. This will help raise feed production standards in Thailand and add value to feed products, BOI said.
|Vietnam’s Anova Feed moves into the north with new feedmill |
[03 November 2016] Anova Feed Joint Stock Company inaugurated its third feedmill in Vietnam in Pho Noi A Industrial Park in Hung Yen province recently, marking its foray into North Vietnam. Occupying an area of 3 ha, the USD 12.3 million plant will be equipped with a modern European production line and quality management programs. It will be able to produce 250,000 tonnes per year. “The plant is expected to start production by October 2017,” said Anova Director General Bui Phan Phu Loc in a statement. “Establishing a feed production plant in Hung Yen will help Anova serve the northern part of Vietnam more quickly and conveniently,” Mr Loc said.
|Putra Perkasa Genetika plans for duck processing plant|
[03 November 2016] Anticipating an increase in duck partner farmers, Indonesia’s Putra Perkasa Genetika will soon set up a processing plant in Pamulang, South Tangerang to absorb finisher ducks from its partner farmers. “It will have a capacity of 20,000 birds per day and we will use technology either from China or Europe,” Ang Hendra, owner and Managing Director told Asian Agribiz. The processing plant is targeted for operation in Q3 2017. In local markets, a live hybrid duck (around 1.6kg) is priced at USD 2.69, while the carcase (around 1.3kg) is sold at USD 3.84.
|Shandong Fengxiang building 60,000-tonne cooked chicken plant|
[03 November 2016] Chinese broiler integrator Shandong Fengxiang Co said it is building a cooked chicken plant with an annual capacity of 60,000 tonnes, making it one of the largest plants of its kind in China. The new plant, located in Yanggu where the company is headquartered, will have two processing lines targeting quick service restaurants and export markets respectively, with equipment sourced from Japan, the US and EU. Currently, the company is capable of slaughtering 200 million broilers and producing 60,000 tonnes of cooked products a year. It has been a supplier to KFC since 1998.
|Bulog to import 200,000t of corn from US|
[03 November 2016] Indonesia’s Ministry of Trade has recently released an import agreement letter for the State Logistics Agency (Bulog) to import 200,000 tonnes of corn from the US. “Corn suppliers from the US are able to meet the quantity at a more reasonable price,” the agency said. Once the corn arrives in Indonesia, Wahyu, Bulog Purchasing Director said it will be distributed to farmers, “not to feed millers.”
|China 2016 pork production seen down by 5-6%|
[03 November 2016] China’s pork production in 2016 is seen to fall 5-6%, as sow inventory remains low, said Rabobank in its Pork Quarterly 4Q report 2016, and will likely remain low in H1 2017. Recovery is expected to start in H2 2017 as newly established farms come online and due to lower feed prices that would encourage expansion. Nevertheless, given the stricter environmental policies implemented by the government on pig farming, Rabobank projects that production will grow by only 2-3% next year, still below the 2015 levels.
|Opportunity to train young executives at Animal Protein 2022|
[02 November 2016] Asian Agribiz is offering companies in the animal protein sector an opportunity to train their young executives at the Animal Protein 2022 conference in Bangkok, on January 16-17, 2017. Senior management attending the conference are encouraged to bring along their young executives, at a significant discount, to broaden their knowledge base of the animal protein industry and learn of the significant opportunities for growth in that will emerge over the next five years. For details email firstname.lastname@example.org.
|Frozen Pekin duck from Malaysia confiscated in Lampung|
[02 November 2016] Around 2.1 tonnes of frozen Pekin duck from Malaysia was confiscated last month in south Lampung, Indonesia. According to Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association (Himpuli). “As far as I know, the Ministry of Agriculture never issued an import permit for Pekin duck. So the frozen Pekin duck confiscated in Lampung was illegal. We suspect this illegal practice has been on with the horeca industry in Greater Jakarta as the main market,” Mr Zulkarnain told Asian Agribiz. He said that there is demand for duck meat in the country but the local supply, be it Pekin duck, hybrid duck or local duck, cannot meet demand.
|Thailand bans melamine tainted feed from Vietnam |
[02 November 2016] Thailand’s Department of Livestock Development has banned 60 tonnes of feed from Vietnam after laboratory tests revealed melamine contamination. The discovery prompted authorities to impose stricter checks on shipments from Vietnam. Department Chief Apai Suttisunk said the shipment was dried squid viscera meal imported by two Thai companies. The contaminated substance found in the shipments was cyanuric acid, which is a component of melamine, one of nine harmful chemicals banned in imported feed. The Bangkok Post said the department will inform the Vietnamese government and ask that the manufacturer be banned from exporting products to Thailand. “We have put the manufacturer on the blacklist,” Mr Suttisunk said.
|Vietnam bans US DDGS due to beetle contamination|
[02 November 2016] Vietnam will suspend imports of US DDGS from mid-December due to contamination by the Ballion variety of beetle, said a Vietnamese government directive. The loss of Vietnamese imports would be a big hit for US DDGS suppliers as the country is one of the fastest growing feed grain markets in the world. Prices of the product could also take a hit with markets already smarting after China last month said it would impose anti-dumping and anti-subsidy duties on US imports. “Both shippers and buyers are in a difficult situation as it will be tough to sell a cargo rejected by Vietnam because it is contaminated by the beetles to a third country,” said a trader at a foreign firm in Ho Chi Minh City.
|Australia to invest in Indonesia’s cattle breeding industry|
[02 November 2016] Australia aims to invest in Indonesia’s cattle breeding industry, with a readiness to adapt to the latter’s new “5-plus-1” import policy. Enggartiasto Lukita, Indonesia’s Trade Minister said under the new policy, the government is committed to import one cow intended for breeding for every five cattle imported for feedlotting. Mr Lukita further said as the main beef supplier to Indonesia, Australia has to find ways to adapt to the new policy. “We have invited Australia to invest in our breeding and cattle feed industry, as well as in the processed beef industry,” he said. Meanwhile, Simon Crean, Australian Livestock Exporters Council Chairman said as a start, land suitable for breeding farms will have to be identified. “There should be a partnership between government and business entities before we move ahead,” said Mr Crean.
|South Korea pork production on upward trend|
[02 November 2016] Pork production in South Korea is on the rise, putting pressure on farm, wholesale and retail prices and resulting in a “generally depressed pork market,” Rabobank said it its Pork Quarterly Q4 report 2016. Rabobank sees this situation to continue next year as both hog and sow herd has grown. As such, pork supply will continue to grow, putting further pressure on prices and leading to a further decline in imports in 2017 and perhaps beyond.
|New Hope Indonesia opens new feedmill in Lampung|
[01 November 2016] New Hope Indonesia inaugurated its new feedmill in Lampung province last week. Constructed on 3ha of land, the plant has a capacity to produce 10,000 tonnes of broiler and layer feeds per month, said Timbul Sihombing, Chief Marketing Officer. The feed will be marketed in the southern region of Sumatera. The plant, which is the company’s second feedmill in Sumatera Island, is equipped with a laboratory, a warehouse for feed raw materials and silos. Mr Sihombing said the plant will absorb local corn from the region.
|CPF set up two new subsidiaries in China and Taiwan|
[01 November 2016] Thailand’s Charoen Pokphand Foods (CPF) said it has established two new subsidiaries, Rui Mu Foods Company Limited in Taiwan and C.P. Food (Hengshui) Company Limited in China. Charoen Pokphand Enterprise (Taiwan), a subsidiary of CPF, hold a 52% stake in Rui Mu Foods, while a Taiwanese national hold 48%. Rui Mu Foods engages in layer-chicken business in Taiwan. Meanwhile, CP Food Investment Limited wholly owns C.P. Food (Hengshui) which engages in manufacturing and sale of value added processed food in Hebei, China. CPF also set up a new associate company, Siam Rivea in Thailand which operates restaurant businesses in Thailand, and CPF owns a 30% stake in the company.
|Vietnam pork producers face pressure from imports|
[01 November 2016] The EU-Vietnam Free Trade Agreement will see import tariffs on meat from the EU to Vietnam reduced within 3-7 years. Similarly, the country opened its market to Russia and Canada. According to Rabobank, the growth in the supply of cheaper foreign pork meat in Vietnam is likely to put more pressure on local producers, who are already reeling from a supply/demand imbalance due partly to an expansion earlier this year that resulted when Chinese traders began buying large numbers of live pigs due to the shortage in China. However, by August shipments stopped leaving producers with too many pigs for the local market.
|Good sales of Indian carabeef in Indonesia puts pressure on Australian beef |
[01 November 2016] Increasing sales of Indian carabeef (buffalo meat) in Indonesia are undercutting Australian beef, according to a report. BMI Research has revealed the export price for the meat is just USD 3.1/kg, compared to the Australian boxed beef export price of USD 4.4/kg. The figures are worrying for Australian exporters who have watched Indonesia open its market to frozen buffalo cuts just this year. The 80,000 tonnes of carabeef the country wants to import in 2016 is more than double the amount of Australian boxed beef imported in 2015. Aurelia Britsch, BMI Research Head of Commodities, said: “There is not enough meat in the country and the government is keeping quite a tight grip on the import level. So the fact that India can export large quantities of cheap beef will definitely be an advantage in Indonesia.”
|China Jan-Sep pork output down 3.6% |
[01 November 2016] China generated a pork output of 36.9 million tonnes in the first nine months of 2016, down 3.6% from a year earlier, said the National Bureau of Statistics. Total meat output, which include beef, mutton and poultry also, were down 1.1% year-on-year at 58.33 million tonnes during the period. The Bureau did not provide quarterly figures, but its earlier announcements showed that the pork decline was at 3.9% in the first half and 5.9% in the first quarter, indicating a slow recovery of the sector. Meanwhile, China’s stock of live pigs stood at 431.63 million heads at the end of September, up from 402.03 million at end-June, according to the Bureau.
|H5N8 outbreaks expand to southern India|
[01 November 2016] India last week reported a fourth highly pathogenic H5N8 avian flu outbreak, signalling rapid spread of the virus, this time into the southern Kerala state. According to a Times of India report the virus was confirmed in five places in ducks. The findings were confirmed by the State Disease Investigation Laboratory in Bhopal. Health officials have established 20 rapid response teams to battle the virus. The findings follow confirmations of H5N8 in birds at two zoological gardens in New Delhi and a similar facility about 100 miles southeast of there in Madya Pradesh state.
|China’s Wellhope invests in the Philippines|
[31 October 2016] Chinese feed miller Wellhope Agri-Tech, in which Royal De Heus of the Netherlands holds a 9.63% stake, said it has signed an agreement with four Filipinos to set up a joint venture in Tarlac province for pig farming and feed milling. Initial investment is about USD 9 million, and Wellhope will take a 40% stake. “The new JV will sharpen our competitive edge in this market by combining the partners’ technology and customer base,” Wellhope said. The company currently has three overseas feedmills in North Korea and Nepal. It has also signed to set up another two JVs in India and Iran.
|Thai authorities urge off-season rice farmers to plant corn|
[31 October 2016] Thailand’s Betagro and Bangkok Produce under Charoen Pokphand (CP) Group recently signed a memorandum of understanding (MOU) with the Department of Agricultural Extension, Thai Seed Trade Association and Bank for Agriculture and Agricultural Cooperatives, urging off-season rice farmers to plant corn in 23 provinces across the country. Under the MOU, all parties will support rice farmers to plant corn, instead of growing a second rice crop in 2016/2017. Paisarn Kruawongvanich, Executive Vice President of Bangkok Produce said the private sector will educate farmers about corn planting technology, cost-saving measures and improving production efficiency. “Thai authorities aim to reduce rice planting areas. There is too much supply, leading to low prices,” Mr Paisarn added.
|Gapuspindo discusses beef cattle import with Mexican counterpart|
[31 October 2016] Didiek Poerwanto, Vice Chairman of the Indonesian Beef Cattle Businessman's Association (Gapuspindo) said the association recently met a group of beef cattle businessmen from Mexico to discuss the import of breeding and feeder cattle. According to him, if the Mexican businessmen are able to offer lower than USD 3 per kg of live weight, Indonesian feedloters will choose to buy feeder cattle from Mexico. On shipment, Mr Poerwanto said that it takes 21-25 days to ship cattle from Mexico to Indonesia. “The Mexican businessmen should ship in large quantities if they want their cattle price to be competitive.”
|Corn farming could yield high profits for Malaysia|
[31 October 2016] Malaysia’s Agriculture and Agro-based Industry Ministry believes corn farming has the potential to garner high profits for the country. This is prompting research and development in the area. Its minister Datuk Seri Ahmad Shabery Cheek said the country would be emulating success stories on corn-farming from Thailand, Indonesia and the Philippines. “If these countries are already profiting from it, this means that we can do the same. There is thus no issue of the compatibility of corn-farming on our land.” Currently in the introductory process at the moment, the minister targets that the country would be successful in the farming of its own corn seeds within two to three years’ time.
Regional dairy update
[31 October 2016]
Creamline Dairy to set up new milk processing plant
India’s Creamline Dairy Products will be setting up a new plant in Vishakapatnam, Andhra Pradesh to expand its capacity and extend its distribution network. P Gopalakrishnan, CEO said the plant will have a capacity to process 100,000 litres of milk per day. The outlay for the project will be around USD 4.5 million. Creamline is a subsidiary of Godrej Agrovet and has a production capacity of around 710,000 litres per day and a milk drying facility of 150,000 litres per day. Mr Gopalakrishnan added that the company will also increase its market reach by increasing the number of exclusive outlets.
Vinamilk is now retailed online
Vietnam Dairy Products Joint Stock Company (Vinamilk) recently launched its online retail channel via Vinamilk eShop - Giac Mo Sua Viet or The Dream of Vietnamese Dairy Products, making it the first fast moving consumer goods (FMCG) company in Vietnam to do so. Kantar Worldpanel reports that FMCG online sales make up 3.9% of sales worldwide. In Vietnam it is only 0.2%, which means there remains a large room to grow in this segment. It is estimated that Vietnam’s e-commerce sector will see a five-fold increase by 2020. Last year the total value of sales chalked up was USD 4 billion.
Goa Dairy launches protein-rich feed for dairy cattle
Aimed at providing local dairy cattle farmers with good quality cattle feed, India’s Goa Dairy recently introduced protein-rich fodder called ‘Supreme’. The feed is provided to farmers at a subsidised rate of USD 0.25/kg. The feed contains 23-25% protein, enabling dairy cows to produce above 10 litres of milk per day. “A cow can produce one litre of milk with a 300g dose of Supreme, as compared to the 500g of regular feed given for the same amount of milk, thereby cutting costs,” said NC Sawant, Goa Dairy Managing Director.
Foreign strategic investors want to buy bigger portion of Vinamilk
Foreign strategic investors may only be interested in buying Vietnam Dairy Products JSC (Vinamilk) in bulk instead of piecemeal portions as planned by State Capital Investment Corporation (SCIC). The Vietnam Association of Finance Investors (Vafi) noted this in a document submitted to the Ministry of Finance and SCIC, to propose an alternative plan for the Vinamilk's divestment. Vafi said this is because minority stakes holders will not be able to join management boards. Fraser & Neave Ltd, owner of an 11% stake in Vinamilk, may be the only foreign investor joining the auction because buying 9% will increase its share to 20% and make it the controlling shareholder of Vinamilk.
Creamline Dairy launches Vitamin D fortified milk
Creamline Dairy Products Limited, a dairy player in south India and subsidiary of Godrej Agrovet, has announced the launch of ‘Enrich D’ under its brand Jersey, a homogenised and pasteurised milk fortified with vitamin D. P Gopalakrishnan, CEO said milk is an important part of the family diet in Chennai. However, 80% of Indians are known to be vitamin D deficient. “Value-added milk products are the key growth drivers and as the demand for these products is growing rapidly, the launch of Enrich D will enable Creamline to expand its footprint and ensconce its presence in Chennai,” he said.
Indian dairy companies expand their cold chain facilities
The growth in demand for high-profit yielding value-added milk products in India is driving dairy companies to expand their cold chain infrastructure. This was not possible earlier with the low-margin liquid milk segment that dominated the product portfolio for dairy companies. Companies are now spending nearly a third of their capex on cold chain and the investments are growing at 15% year-on-year. Chennai-based Hatsun Agro Products announced a USD 25.4 million investment in setting up of cold chain infrastructure. Similarly, Hyderabad-based Dodla Dairy has more than doubled its investment this year to around USD 2.2 million in cold chain. Other dairy companies like Amul, Kwality and Prabhat are also making significant investments.
|CPF acquires a 70% stake in China’s Fujian Sumpo|
[28 October 2016] Thailand’s Charoen Pokphand Foods (CPF) said it recently spent 48.26 million to acquire a 70% stake in China’s Fujian Sumpo Foods Holding Co Ltd. (Fujian Sumpo). Chia Tai (China) Investment, a subsidiary of CPF, purchased this from Sumpo International Holdings Limited and Longyan Huiren Investment Co Ltd and Fujian Sumpo will become an indirect subsidiary of CPF. Fujian Sumpo engages in manufacturing and trading of animal feed, farming and trading of poultry as well as processing and trading of chicken meat products in Fujian, China. “The acquisition will allow CP Pokphand (CPP) to expand its agri-food business in China and further reinforce CPP’s leading position in the agri-food industry in China,” it said in a filing to the Stock Exchange of Thailand.
|China to continue driving global pork industry|
[28 October 2016] China will continue to drive global hog prices in the last quarter this year and well into 2017, with pork imports seen to become a more important supply source for the Chinese market, Rabobank said it its Pork Quarterly 4Q report 2016. The country’s pork production is expected to drop by 5-6% in 2016, higher slaughter weights and rising productivity will help offset the decline. “Based on the low sow numbers, production pressure is expected to continue in 2017,” Rabobank said. “This will support a price rebound until the Chinese New Year at the end of January 2017, and it offers trade opportunities” for pork exporters.
|Indonesia’s corn stock declines|
[28 October 2016] Corn stock at many feed millers’ warehouses in Indonesia is low, according to Musbar, Forum Coordinator of the National Layer Farmers Association. “Their stock will finish this month [October],” he said, adding that: “the situation is getting worrying as the new season for rice planting will start soon. Only a few millers have secured corn stocks for November from local supplies.” As a result, Mr Musbar said the price of local corn once touched USD 0.34/kg. For layer farmers, this price increase will affect their profit margin. “So with this situation, will challenge the Agriculture Ministry's statement that local corn supply is sufficient until the end of this year,” he said.
|Guangdong Wens eyes M&As in China’s white broiler segment|
[28 October 2016] Guangdong Wens Foodstuff Group, the largest pig and yellow-feather broiler producer in China, said it would enter the domestic white-feather broiler market by merging and acquiring some players in the segment. “The white chicken segment is suffering an overcapacity, and some players will eventually exit. We will enter the market in north China at an appropriate time,” Qin Kaitian, Vice President of Poultry Operations, told institutional investors during a road show. Wens enjoys about one fifth of China’s yellow chicken market. In 2015, it produced 744 million native broilers, and production is expected to hit 860 million birds this year, according to Mr Qin.
|Vasep targets USD7b for seafood exports this year|
[28 October 2016] Vietnam’s seafood exports are expected to reach USD 7 billion this year, a year-on-year increase of 5.5%, according to the Vietnam Association of Seafood Producers and Exporters (Vasep). In an article from Vietnam News, Truong Dinh Hoe, General Secretary, said the sector faced challenges early in the year. Then a balance in supply and demand in the world market helped the prices of some seafood products to recover. Exports of certain items like shrimp and tra fish have increased this year, though growth was not high, he said. “We have high expectations for exports in the last months of the year. It will be a foundation for us to prepare better for 2017.”
|Bangladesh shrimp exports pick up pace|
[28 October 2016] Shrimp exports picked up in the first quarter of fiscal 2016-17 after remaining on the downturn over the past two fiscal years thanks to lower production in the major producing countries, Bangladesh’s industry operators said. The DailyStar reported that export earnings from shrimp rose 14% year-on-year to USD 124 million in the July-September period of the fiscal year, according to data from the Export Promotion Bureau. Kazi Belayet Hossain, Managing Director of Sobi Fish Processing, said demand for black tiger has particularly increased in the EU and the US. Mr Hossain is also a former President of the Bangladesh Frozen Foods Exporters Association.
|Thailand’s CPF buys domestic corn directly from farmers|
[27 October 2016] Thailand’s Charoen Pokphand Foods (CPF) will buy corn directly from local farmers from September 2016 to March 2017, said Paisarn Kruawongvanich, Executive Vice President of Bangkok Produce under CP Group. Thailand’s corn harvest this season has been good. CPF’s direct corn buying program will help support corn prices and guarantee farmers a market for their produce, he said. CPF is buying domestic corn at 14.5%-30% moisture at USD 0.23/kg for corn at 14.5% moisture in the Bangkok metropolitan region. CPF’s corn buying prices will vary depending on the location and logistics costs. CPF has 15 feedmills across the country, all of which have joined the program. Mr Paisarn expects each feedmill to directly buy 10,000 tonnes of corn per month from farmers.
|Evonik breaks ground for 2nd DL-methionine plant in Singapore |
[27 October 2016] Strong demand for DL-methionine in Asia saw Evonik Industries commence construction of a second plant in Singapore. The USD 500 million plant will have an annual production capacity of 150,000 tonnes, doubling its capacity in the country and making it the group’s largest production site in the world. By 2019, when this plant becomes operational, the group hopes to produce 730,000 tonnes worldwide. Evonik sells DL-methionine under the brand name MetAmino. “Our methionine complex, which came on-stream in late 2014 on Jurong Island, is a success story. This led to our decision to build a second plant next to it,” said Klaus Engel, Chairman of the Executive Board of Evonik.
|Alliance vows to boost China's per capita consumption of chicken|
[27 October 2016] The China Broiler Alliance said it targets to boost the nation’s per capita annual consumption of chicken to 12kg in five years, up from about 7kg currently. The Alliance, consisting of 36 major white-feather broiler producers and processors that dominate almost all production of parent stock and about half of the chicken output in China, also pledged to guarantee food safety with proper use of antibiotics and a traceability system, while improving animal welfare, environment sustainability as well as employee benefits. Founded in 2014 to reduce the sector’s overcapacity by limiting GP imports, the Alliance is now chaired by Fujian Sunner Chairman Fu Guangming, with Li Jinghui, Senior Vice President of DaChan Food, as President.
|Indonesia records 12 AI cases as of end August|
[27 October 2016] Indonesia’s Ministry of Agriculture has released new report on avian influenza (AI) cases in the country where the data was collected through SMS gateway and surveillance by veterinary agencies. As of August 31, 2016, the ministry reported 12 cases of AI in 12 villages, nine regencies and eight provinces. Central Kalimantan topped the list with three cases, followed by West Java with two cases and also Central Java with two cases. Meanwhile, Banten, Jogjakarta, Bangka Belitung archipelago, East Kalimantan and South Sulawesi, recorded one case each. The report also mentioned that there were no human infections during the period.
[27 October 2016]
Producers satisfy epicurean cravings with premium sausages
Generally regarded as healthier and leaner, premium sausages are seeing a growth in demand across Asia as upscale restaurants flourish and consumers cultivate expensive tastes. Players in the industry shares their insights into the topic with ASIAN AGRIBIZ.
Sausages that are marked premium and halal
Seeing a gap in the market for halal gourmet-standard meat products prompted Malaysia’s Victoria Crest Sdn Bhd to produce premium sausages made from prime cuts of meat – 100% chicken breast meat, New Zealand lamb shoulders and Australian topside rump steaks. “Our casings are natural lamb casings and certified halal,” said Denis Dimond Rawlins, Director. Victoria Crest supplies to hotels and restaurants, and has a retail line for local supermarkets. Mr Rawlins said there is potential for its products internationally as Asians nurture a taste for higher quality sausages, a greater variety of products and flavours, and healthier options. “The issue initially will be the cost of the products as quality comes with a price. Growth will initially be slow but I see this accelerating.”
The category is seeing fast growth
In the Philippines demand and sales of premium sausages, as with other processed meat products, have been growing at double digit rates for the past few years. While the country’s giant meat processors are also manufacturing premium sausages, Cotton Sevilla, owner of Sevilla & Sons Sausages Co, said the market is dominated more by small and medium-scale producers. In Thailand Charoen Pokphand Foods (CPF), which said the category has growth potential, uses similar standards for its Bucher brand of sausages as it does for its other products. It uses quality raw material from its farms, which are free of growth promoters, beta-agonist, and antibiotics.
No standard definition of premium sausages
While there is no standard definition of what premium sausages are in Asia, Alvin Ng, Managing Director of Bayerische Tech Sdn Bhd, rebuilder and seller of used food processing equipment in Malaysia, said these sausages contain a high meat content which leaves little room for fillers such as starches and soy protein. They are made from ground meat, sometimes natural ingredients and no preservatives. “The high meat content causes a meaty mouth feel, which includes crunchiness,” he said. A manufacturer can also call a product premium by virtue of the way it is made. Some are handcrafted, while others use some automation.
Wagyu treat for Indonesian sausage fans
Jakarta-based meat processor Libra Bogatama Sentosa, subsidiary of Bogatama Group, is producing premium sausages made from 99% Australian wagyu beef. “We use the bolar blade of the animal as its texture and fat is perfect for further processed products like sausages. Sometimes we also use the knuckle if the supply of bolar blade is limited,” Vivien Felicia, Marketing Communication Manager of Bogatama Group, said. The product has no flour, preservatives and colourants. The cooked sausages contain chicken fat as an adhesive. Halal collagen casings are used. “People in Jakarta are health conscious. They are also selective and demanding. They want to know the ingredients of the products they consume,” she said, adding that sales look promising.
Shuanghui invests in promoting high-temperature Western-style sausages
At a Carrefour in Kunming, China, Shuanghui sausages make up more than three quarters of the category’s sales, said Zhao Chunyan, Perishables Department Sales Manager at the Guangfu Road store. Most of the sausages are Chinese high-temperature products with a six-month shelf life. Although the American-style low-temperature sausages, recently launched by Shuanghui, tastes better, Ms Zhao said more promotion is needed to educate consumers to recognise them. Low-temperature products account for 30% of Shuanghui’s packaged meat sales. This will change as the company switches from medium and low-end to premium sausages, and from Chinese to Western products. The company said it will invest in marketing new products.
Read a complete report in Asian Meat Magazine, November/December 2016.
|Haima wreaks havoc on Philippine agri and fishery sector|
[26 October 2016] The Philippines recorded agricultural losses amounting to at least USD 226 million from Supertyphoon Haima which hit the country last week. The Department of Agriculture is still assessing the full impact of the typhoon. Hardest hit is Region 2, a major corn production area, where losses to corn crops have been estimated at over 5700 tonnes worth USD 13.3 million. Losses from the livestock sector are currently pegged at around USD 146,000.
|Burger King aims for 180 branches in Thailand in five years|
[26 October 2016] Burger King (Thailand), a unit of Minor Food Group, aims to have 180 Burger King restaurants in Thailand in five years, up from 67 now, the Nation reported. Prapat Siangjan, General Manager of Burger King (Thailand) said recently that the company plans to open five more Burger King restaurants by the end of this year and to open around 15 new restaurants next year. Burger King's (Thailand) expansion plan is expected to increase its sales from around USD 48 million in 2016 to around USD 66 million in 2017 and USD 114 million in 2021. The company is planning to open new restaurants in first-tier locations, such as inner Bangkok and in second-tier locations such as southern and eastern provinces.
|Vissan lists on UPCoM|
[26 October 2016] Viet Nam Meat Industries Company, or Vissan, recently listed more than 80.9 million shares on the Hanoi Stock Exchange’s UPCoM, the market for unlisted public companies, at a reference price of USD 3. Vissan launched an initial public offering on March 7. Under current regulations, before official listing, the company must be an unlisted public company. Vissan holds a 65% share of the sausage market, a 40% share of the frozen food market, a 30% share of meat pies and a 20% share of the canned food market. It has more than 130,000 outlets across the country. It earned more than USD 166.8 million in revenue and a pre-tax profit of USD 6.8 million last year.
|China soybean imports continue grow|
[26 October 2016] A recovery in swine production and steady growth in the poultry sector, and subsequent higher demand for feed and protein meal, will see China’s soybean imports reaching a record of 86 million tonnes in 2016-17, up from the estimated 82.5 million tonnes in 2015-16, the US Department of Agriculture’s Foreign Agricultural Service said. The soybean import growth rate, however, is expected to slow due to a forecasted recovery in local production and China’s sale of oilseed stocks and reserves. Lower imports of DDGS after the implementation of anti-dumping duties has increased demand for soybean meal and could support growth in imports.
|Chicken prices in Delhi may decline further if AI cases continue|
[26 October 2016] Reports of three cases of avian influenza (AI) in Delhi, India are expected to result in a plunge in chicken prices as people have stopped buying chicken leading to a stockpile. Traders said this was just the beginning and if the bird flu threat continues prices may fall by more than 50%. For now, the price of live chicken has dropped from USD 1.19/kg to USD 1.10. The Delhi government last week put poultry farms, wholesale markets and avian hot spots under watch after the death of 10 migratory birds at the capital’s zoo sparked fears of a bird flu outbreak.
|Indonesia to develop fish processing industry in eastern regions |
[26 October 2016] Indonesia plans to develop a fish processing industry in the eastern regions. Susi Pudjiastuti, Minister of Fisheries and Marine Affairs said the price of fish in eastern Indonesia is cheap compared to other regions. For instance, the price for one processed mackerel in eastern Indonesia is only USD 0.23 while the same fish will sell for USD 2.30 in Java. Therefore, Ms Pudjiastuti said that the government must take steps to increase the number of processing plants, especially in the eastern regions, and provide better logistics that will allow fish products to be delivered in and out of the market easily.
|Thaifoods Group sees growth potential in Vietnam|
[25 October 2016] Thailand’s Thaifoods Group (TFG) has invested in Vietnam's pig industry and it produces 250 live pigs per day. TFG will increase its pig production in Vietnam by 15-20% next year, Phet Nantavisai, Executive Vice President of Farm Unit at Thaifoods Swine Farm told Asian Agribiz. Consumption of pork in Vietnam is higher than in Thailand. Average pork consumption in Vietnam is currently at 29 kg per person per year, compared to 14-15 kg per person per year in Thailand. “The majority of Vietnamese consumers are young and the pork market here has large growth potential,” Mr Phet said. The company outsources pig feed production to a local feed plant, which produces feed according to TFG’s formula.
|Vietnam aims to become global seafood processing centre|
[25 October 2016] Vietnam is likely to become a global seafood processing centre in the future thanks to its competitive labour cost and increasing number of high-quality processing facilities, reported a local daily quoting General Secretary of the Vietnam Association of Seafood Exporters and Producers Truong Dinh Hoe. He said world leading seafood processors are shifting their factories from Europe and China to Vietnam, and domestic businesses have increased imports of raw materials for processing for export. The country has also spent nearly USD 800 million importing shrimp, tuna, cuttlefish, for processing and re-exporting, he said, stressing this shows that the country plays a vital role in the global seafood supply chain.
|China to promote modern agriculture|
[25 October 2016] The Chinese government announced that it will take measures to develop modern agriculture in the next five years, according to a plan released by the State Council. The objective is to build an efficient, environment-friendly and resource-saving agriculture, maintain the supply of agricultural products and improve farmers’ income. According to the plan, the national output of grain in 2020 is expected to reach 550 million tonnes, 50 million tonnes more than in 2015. China’s productivity is expected to increase to more than USD 6900, compared with just USD4400 in 2015. The State Council has called for the promotion of the agriculture restructure by upgrading plantation structure, improving the quality of animal husbandry and upgrading fishery industry. It also plans to improve agricultural technology and the integration with information industry.
|Nepal’s poultry farmers struggle with illegal chicken imports|
[25 October 2016] Poultry farmers in Biratnagar, Nepal are struggling to survive due to illegally imports from bordering Indian towns. Although the government has imposed a ban on imports, the porous border has facilitated illegal trade. Farmers in border towns mainly Morang, Sunsari, and Jhapa are forced to buy chicken feed at steep prices and sell chicken at low price. Naresh Thapa, a poultry farmer from Jhapa said the local market have been swarmed with chicken from India because of the government apathy towards curbing smuggling of chicken. The locals sayt middlemen are facilitating the smugglers to capture the Nepali market.
|Indian rice farmers move to shrimp farming|
[25 October 2016] Farmers in coastal areas of India are abandoning rice cultivation and moving to farming (vannamei) shrimp. In Andhra Pradesh, the expansion of shrimp farming has triggered a boom that saw the state grab a 45% share of Indian seafood exports, which have escalated to USD 44.9 billion. Official data show area under paddy in the state has been progressively decreasing over the last few years. Paddy cultivation declined 10% in 2015-16 after dipping 7% in the previous year, mostly in coastal districts.
|Sealed Air to double capacity at Shanghai facility|
[24 October 2016] Sealed Air is investing about USD 72 million to expand a facility in Qingpu, Shanghai, and the work is expected to be complete by 2018. “We will double the capacity at the flagship packaging manufacturing plant by adding three new lines,” Shen Hong, Vice President for Greater China, told Asian Agribiz. “The expansion will not only increase our capacity, but also enhance our services and commitment to customers in the region,” Mr Shen added. According to him, the Shanghai facility serves the Asia-Pacific region including Greater China, Japan, Korea, Southeast Asia, India, Australia and New Zealand. It also houses the company’s Packforum Asia, a world-class customer learning centre. Sealed Air has been in China for over 30 years.
|300 breeding cattle from Australia arrive in South Kalimantan|
[24 October 2016] As many as 300 breeding cattle from Australia have arrived in South Kalimantan, Indonesia. According to Thomas Lembong, Chairman of the Indonesia Investment Coordinating Board, the initiative, which is under the Indonesia-Australia Commercial Cattle Breeding Program, will help develop the Indonesian cattle industry, boost investment opportunities and enhance trade between the two nations. Mr Lembong continued that the program will pilot a range of different commercial scale breeding models with private partners and commercially focused cooperative smallholder groups to assess economically viable and sustainable larger scale breeding models. As part of this project, Australia will supply 2000 breeding heifers and 100 bulls to selected partner sites.
|Japanese company establishes cattle business to Vietnam|
[24 October 2016] A cattle breeding company in Japan, devastated by the 2011 earthquake, will start raising about 5000 beef cattle in Vietnam by year end in collaboration with Saigon Agriculture Incorporation (Sagri). Sagri will prepare a 500ha ranch, barns and young cattle, while Japanese farmers, Ushichan Farm Co, will provide their expertise in livestock farming. It will receive USD 3 million annually in consultation fees. Beef from the ranch in Vietnam will be sold in local supermarkets and other stores starting 2018. Sales will be evenly shared by the two companies. According to Ushichan Farm, the move is aimed at helping Japan compete with US and Australian products after the Trans-Pacific Partnership pact is signed.
|India looking to boost production of black tiger shrimp|
[24 October 2016] India aims to boost its production of black tiger shrimp especially after the US removed anti-dumping duty on Indian shrimp. The marine export organisations now target USD 10 billion of seafood exports by 2020, more than double the USD 4.68 billion worth of exports in 2015-16. Shrimp made up the lion’s share of these exports at USD 3.09 billion. Among shrimp, Black Tiger is the crustacean of choice. The export of Black Tiger shrimp last year improved by 6.56% in quantity but decreased by 30.35% in US dollar earnings owing to the depressed global economic scenario. Total production was 71,400 tonnes.
WVPA 3rd Asia Meeting, Manila, Philippines
Report by ISA Q TAN
[24 October 2016]
The World Veterinary Poultry Association, in association with the Philippine College of Poultry Practitioners, held its 3rd Asia Meeting in Manila last week. Running on the theme “Prevention is better than cure,” the meeting had 37 presentations from various experts and was attended by poultry practitioners from various parts of Asia.
ND remains a major problem in global poultry production
Newcastle Disease (ND) continues to be a major concern in poultry production, resulting in severe economic losses to the poultry industry worldwide. In a presentation at the 3rd Asian Avian Pathology Lecture at the WVPA 3rd Asia Meeting, Dr Aini Ideris of the Department of Veterinary Clinical Studies of the University of Putra Malaysia, said that the ND virus is increasing in complexity and that despite intensive vaccination programs are unable to induce the optimum protection in commercial flocks due to various underlying factors. While strict biosecurity and the use of improved vaccines are important strategies in the successful control of ND in commercial flocks, he also emphasised the need for further development of innovation and strategy for effective control of ND virus.
Including inactivated ND vaccine in live ND vaccination program leads to better protection
Studies indicate that including an inactivated ND vaccine during the chick’s first week of life in the live ND vaccination program results in effective clinical protection against highly virulent NDV genotype VII. Dr Andreas Hermann of Merial France added that when the inactivated vaccine was administered at Day 7, “only the clinical protection against challenge was complete, moreover shedding of ND challenge virus was not detectable. This is likely attributable to a more mature immune system at seven days of age compared to day old, resulting in a stronger immune response post inactivated ND vaccination.”
Reducing virus shedding in modern poultry production
Poultry is seen to become the largest protein source for the global human population from 2020 onwards, but poultry raisers continue to face challenges in production. In areas where many infectious viral diseases are endemic, diseases continue to proliferate in highly populated poultry areas, threatening economic returns. To minimise infections, Dr Christophe Cazaban of Ceva France reiterated that “strict obedience to biosecurity rules and day-to-day gap analysis are of paramount importance.” He said that new technology vaccines such as immune-complex and vector vaccines “provide a significant support in managing the diseases’ spreading risk within a house, a complex, or even a geographical area.” Studies show that chickens given these new vaccines “shed significantly less virus” and that virus load reduction can reach and even exceed a factor 106.
Using biomarkers to evaluate effect of mycotoxins
Mycotoxins continue to be a major challenge for many poultry producers, and how they affect animals must be measured as early as possible. Astrid Koppenol of Impextraco said the company has developed protocols to determine the effects of mycotoxin early on, using biomarkers that can be objectively measured and evaluated as indicators, using different strategies such as blood biochemistry, flow cytometry and histopathology to name a few. She said biomarkers clearly demonstrate significant changes at a very early stage and with limited number of animals. They are a promising tool to be used to evaluate in vivo effects generated by mycotoxins on health status and can greatly help to overcome large scale animal trials.
Novel non-antibiotic growth promoter effective against C. perfringens in broilers
Clostridium perfringens-induced necrotic enteritis (NE) is a common disease found in poultry traditionally has been addressed using antibiotics. Increasing calls to reduce AB use in food animal production, however, calls for alternatives. Maximillian Sim of Amlan presented a novel non-antibiotic growth promoter, NNA-F, which has been demonstrated to control biotoxins produced by pathogenic bacteria, specifically those of C. perfringens which are responsible for necrotic enteritis in poultry. In addition, when there is no disease challenge, NNA-F improves the growth performance of the birds. He said the true potential of NNA-F and how it affects the pathogenic bacteria warrants further studies.
Coccidiosis control in broilers trends toward vaccination
Coccidiosis, one of the most economically important diseases in poultry production, has generally been addressed using vaccines in breeders and layers and anticoccidials in broilers. Koon De Gussem of Huverpharma explained however, that there is now a growing trend, particularly in the US and some South American countries, toward the use of coccidiosis vaccines in broilers. In Southeast Asia, particularly Thailand, he said some producers have been studying the concept and initial results indicates it is “promising and indeed might prove to be a valuable addition in the fight against coccidiosis and subsequent enteric disorders.” He said those implementing vaccination need to carefully design a rotation program.
Asian Agribiz Layer Feed Quality Conference 2016, 20-21 October 2016, Kuala Lumpur
Onsite reports by RACHAEL PHILIP
[21 October 2016]
After two successful days in Jakarta at the start of this week, Asian Agribiz’ conference dedicated to the layer industry moved to Kuala Lumpur, Malaysia. Among others, the speakers emphasised pullet nutrition, maintaining uniformity and shell stability on Day 1 of the conference here.
Tips on managing body weight of pullets
Body weight is a huge driver of egg size. In his presentation Doug Korver, Professor of Poultry Nutrition, from the University of Alberta, Canada, offered participants tips on managing weight of pullets. “If the pullets are under target weight for age, delay the change to the next dietary phase. This will allow the birds a slightly longer time on a higher nutrient density diet,” he recommended. “If the hens are underweight as sexual maturity is approaching, photostimulation can be delayed, again allowing the birds additional time to deposit body reserves.” For overweight birds he said do not cut feed supply as this will send a negative signal that nutrition is limiting and birds could stop laying eggs.
High density diets during stressful period can help birds maintain body weight
Stressful management practices such as vaccinations, beak trimmings and bird handling can affect the ability of pullets to achieve body weight targets. “Any interruption to growth during any of the developmental phases will result in hens lacking the body reserves and organ function to sustain high production as adult layers,” said Marcus Kenny, Nutritionist, Hy-Line International. To overcome these challenges, he suggested going back to high nutritional density diets for a week prior to the stressful event. “Going back to starter 2 diet is not such a bad idea,” he said as feed intake at 14 weeks of age can drop by 20% during stress periods. This reflects a roughly 20% drop in nutrition.
Particle size of calcium can affect quality of the shell
While a well-balanced feeding program with nutrients reflecting the birds’ requirements during different phases of life is essential for it to lay quality eggs, the correct particle size of calcium carbonate can affect shell quality. “Feed with too high a percentage of fine and medium-sized particles will cause more broken eggs compared to feed with coarse particles,” said Ron Eek, Lohmann Tierzucht, Regional Area Manager for Asia – Oceania Pacific. In Phase 1 feed he recommended a mixture of fine limestone (0-0.5mm) of 30% and coarse limestone (1.5-3.5mm) of 70%. In Phase 2 and Phase 3 the ratio can be 25%-75% and 15%-85% respectively.
|Canada Pork International opens Shanghai office|
[21 October 2016] Canada Pork International (CPI), an export promotion agency of the Canadian pork industry, has opened an office in Shanghai to explore more opportunities in China. It is the agency’s second overseas office following the one in Tokyo, Japan. Founded in 1991, the CPI is a joint initiative of the Canadian Meat Council, representing the pork packers and trading companies, and of the Canadian Pork Council, which is the national hog producer organization. “Canadian pork exports, including offal, fat and processed products, to China, Hong Kong and Macau could ‘easily’ exceed 200,000 tonnes this year,” Jason Li, CPI Director Marketing for Greater China told Asian Agribiz.
|De Heus duplicates Vietnam success in Myanmar|
[21 October 2016] De Heus opened its first feedmill in Myanmar early October. According to the Johan van der Ban, General Manager De Heus Myanmar the company hopes that its involvement in Myanmar will help the country iron out some of the industry’s challenges, especially illegal border trade. “Compared to neighbouring countries the cost of production for Myanmar farmers is very high, which eventually leads to high consumer prices at the end of the chain,” he told Asian Agribiz. “Making the sector more competitive by enhancing farmer knowledge through training, providing farmers with quality feed, setting up efficient value chains is the key to long-term success of the animal protein industry in Myanmar,” he said.
|Marfrig sees growth potential in Asia Pacific|
[21 October 2016] Brazil’s main beef producer Marfrig Global Foods SA expects the Asia Pacific region to be its principal engine for growth going forward after China and the US opened their markets to Brazilian fresh beef in 2015. Mergers and acquisitions in the region, however, are not on the company's immediate radar, said José Eduardo de Oliveira Miron, Vice President of Finance. “We are concentrating on organic growth. We see growth in beef consumption in the world propelled by the Asian markets, where demand should remain robust and met mainly by imports,” he said. Mr Miron said the company's Keystone division is leading one of the company's main investments of USD 35 million to build a new plant in Thailand. It will have capacity to produce 20,000 tonnes of processed food a year starting in 2017. Next year, Mr Miron said the beef division is expected to expand its sales in Malaysia, which should allow the company to export beef on the bone and raise the value of products sold there.
|Thaifoods Group invests USD54m in cooked chicken plant|
[20 October 2016] Thailand’s Thaifoods Group (TFG) will invest around USD 54.16 million to build its first cooked chicken plant early next year, Chirdsak Kukiattinun, Chief Operations Officer of TFG told Asian Agribiz. TFG’s cooked chicken plant, which will be located in Kanchanaburi province, will have a production capacity of 25,800 tonnes a year. The plant will come online in 2018, Mr Chirdsak said. TFG plans to export 80% of its production to Japan and the rest to Europe. “Exporting cooked chicken will offer higher margins but it requires high investment,” Mr Chirdsak added. Meanwhile, TFG will export 25,000 tonnes of frozen chicken to Japan and Europe this year, up from 8,000-9,000 tonnes last year. TFG currently slaughters 450,000 chicks a day in Thailand.
|Bel Ga Myanmar sets up poultry breeding farm|
[20 October 2016] Bel Ga Myanmar, is setting up a poultry breeding facility in Yangon, Myanmar with a capacity to house 96,000 hens and 12 million DOC at an estimated cost of USD 10.5 million. The International Finance Corporation, the private lending arm of World Bank, plans to contribute through a loan of USD 6.5 million, it said in its pre-investment disclosure. Bel Ga Myanmar is 99.9% owned by BDH Azier BV, a private jv between Belgabroed, a leading hatchery in Belgium and De Heus Animal Nutrition. The remaining 0.1% is owned by De Heus Myanmar, a wholly owned subsidiary of De Heus. The company is currently in the process of identifying 12ha of land in an industrial zone in Yangon to house the facility. The project is expected to help Myanmar farmers build expertise and meet the fast growing demand for poultry products in the country.
|Vietnam to supervise shrimp production chain for export |
[20 October 2016] Vietnam’s Ministry of Agriculture and Rural Development will monitor the production chain of shrimp for export as it develops farms to the standards of the World Organisation for Animal Health and countries importing the product. The ministry will direct the implementation of a national plan on monitoring diseases on shrimp for export in the 2017-2020 period. It targets by end 2017 at least 10% of breeding shrimp farms producing over 1 billion of post larval shrimp each year will be recognised as safe farms. At the end September, there were 80,000 ha of whiteleg shrimp farmed nationwide, a year-on-year rise of 6.3%, with an output of 200,000 tonnes, up 4.2%.
|India encourages egg production|
[20 October 2016] According to The Pioneer, people in India currently consume 63 eggs per capita, which is lower than the 180 eggs as recommended by the National Institute of Nutrition. Radha Mohan Singh, Agriculture Minister said: “In egg production, we are at sixth in the world. The country currently produces 83 billion eggs.” According to him, the country needs to raise domestic output three times to achieve nutritional security. He added that the Central Government is promoting poultry farming through National Livestock Mission where this is being encouraged under the component of entrepreneurship development and employment generation. Andhra Pradesh, Tamil Nadu, Kerala, Haryana, Punjab, Goa, West Bengal are major egg producing states, but Uttar Pradesh, Bihar and Chhattisgarh are catching up fast due to higher demand.
|Indonesia’s aqua feed, raw material imports touch USD144m|
[20 October 2016] Indonesia’s imports of aqua feed and raw materials from January to August 2016 touched 725,124 tonnes with a value of USD 144 million. The highest import volume was wheat meal/gluten (250,819 tonnes), followed by soybean/lecithin (119,299 tonnes), fish oil (89,785 tonnes), fish & squid paste (55,233 tonnes), fish meal (24,964 tonnes), and the rest was shrimp & fish complete feed, vitamin/mineral, yeast, hatchery feed, corn and artemia. Meanwhile in terms of value, soybean/lecithin recorded the highest value (USD 48.1 million), followed by fish meal (USD 32.9 million), fish & squid paste (USD 15.6 million), shrimp & fish complete feed (USD 4.6 million) and fish oil (USD 3.6 million).