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29 October 2016
|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).
|Prof David Hughes to chair Animal Protein in Asia 2022|
[19 October 2016] David Hughes, Professor of Food Marketing at the University of London will chair the ‘Animal Protein in Asia’ conference being held at the Anantara Siam Bangkok Hotel on 16-17 January 2017. Dr Hughes travels the world advising Boards of Directors and senior management of agribusiness, food and drink companies about global food industry developments and how these might impact their businesses. He has lived and worked in Europe, North America, the Caribbean, Africa and Asia. The conference, organised by Asian Agribiz, will tackle using e-commerce to sell meat products, staying in front of eating trends, developing the next big meat product, and regional meat opportunities. For further details email@example.com.
|Thailand’s CPF acquires 60% stake in UK’s Foodfellas|
[19 October 2016] Thailand’s Charoen Pokphand Foods (CPF) has spent USD 15.23 million to buy a 60% stake in United Kingdom’s Foodfellas Limited (Foodfellas). CP Foods UK Limited, an indirect subsidiary of CPF, acquired 9,340 ordinary shares of Foodfellas, making it a subsidiary of CPF. Foodfellas engages in food service business and it imports and distributes raw material and food products such as beef, lamb, sausages, bread, bakery, potatoes and avocado from around the world to more than 160 customers. Foodfellas‘s major customers are branded restaurants with more than 15,000 outlets in the UK. CPF said the deal will allow it to effectively enter into the food service market in the UK as well as expand its business to other European countries.
|Pig producers ask for AAA abattoir|
[19 October 2016] Philippine hog raisers have asked the Department of Agriculture (DA) to resume its plans to build AAA slaughterhouse in Bulacan province, one of the biggest pork producing areas in the country just north of Metro Manila. Pork Producers Federation of the Philippines Inc President Edwin Chen told Asian Agribiz that his group has asked the National Meat Inspection Service (DA) that the abattoir can be a shared service facility that pig producers in the province and nearby areas can use. He noted that despite the province’s proximity to Metro Manila, the country’s biggest pork market, it does not have any AAA slaughterhouses.
MSD Animal Health High Quality Pork Congress in Manila, Philippines
Report by ISA Q. TAN
[19 October 2016]
MSD Animal Health held its High Quality Pork Congress on October 17-18 in Manila, Philippines which was attended by over 120 participants from various parts of Asia.
Improved feeding offers biggest opportunity in reducing antibiotic use
With the growing call for reduced use of antibiotics in animal production, producers must look at improving nutrition to keep their herd healthy and minimise the use of medication. “About 40-60% of the antibiotics are used on enteric infections in weaners and finishers,” said Michael Aegerly of the SvineVet consulting group from Denmark, and added that “bad nutrition is easily masked with antibiotics.” Dr Aegerly also discussed Denmark’s experience in reducing the use of antibiotics in pig production and the role played by good feeding and management programs.
Animal welfare has economic benefits
While there is increasing consumer demand to improve animal welfare in meat production, many producers still look at it as additional cost. However, Dr Megan Verdon of the Animal Welfare Science Centre in Australia, pointed out that ensuring animal welfare does have economic benefits. Raising pigs in good conditions where they are more likely to stay alive will mean less mortality and more animals for the farmer to sell. At the same time healthy animals will lead to savings in medicine and veterinary bills and ultimately better quality meat.
Intradermal vaccination is fast and efficient
Disease prevention is critical in successful pig production, and effective and safe vaccines play an important role to achieve this, Dr Rika Jolie, Global Technical Director of Merck Animal Health Swine Business Unit said. Pointing out that the dermis is 'an excellent processor of antigens' because of the abundance of dendritic cells in the area, she said processing of antigen after intradermal vaccination is fast and efficient. It also induces an immune response and a clinical protection that is similar to or even better than intramuscular vaccination.
PRRS needs systemic approach
Twenty five years since it was first identified, PRRS continues to be an economically significant disease plaguing the global pig industry. It is a complex disease and there is no one size fits all approach to control it, said Dr Jolie, who added that effective PRRS control is made up of several building blocks that include biosecurity, diagnostics, herd classification, intervention strategy, monitoring and economics. She also noted that PRRS interventions must be customized to fit each production system, which calls for a systematic approach to assess the disease and a partnership between the veterinarian and the producer.
Estimating economic efficiency of PRRS intervention strategies
The economic impact of PRRS cannot be overstated, and many intervention strategies have been implemented to combat it. Dr Christina Nathues presented a calculation tool that can assess the economic impact of PRRS for different severities as well as estimate the economic efficiency of various PRRS intervention strategies. She said that in studies they have conducted, moderately PRRS-affected farms showed considerable losses and that the disease has the highest impact in the fattening stage. Dr Nathues, explained however, that because the tool is an economic PRRS model, there is some oversimplication and therefore calls for prudent use.
Managing data for better decision making
Data gathering and record keeping have become norms for many pig farms. However, Carlos Peñeiro, Partner-Director of PigCHAMP Pro Europa SL pointed out that data must be managed properly so that they can lead to good decision making, and this can be done effectively by harnessing information and communication technology. He said collected data must be cleaned up and processed so that a good report can be generated. These reports in turn must be distributed and given at the right time, so that they can be properly analysed and used for monitoring and allow farms to make timely decisions and necessary adjustments.
Asian Agribiz Layer Feed Quality Conference 2016
17-18 October 2016, Jakarta – Indonesia
Onsite with ARIEF FACHRUDIN
[18 October 2016]
Asian Agribiz’s Layer Feed Quality Conference 2016 which opened in Jakarta yesterday, was attended by 147 participants from Indonesia, India, the Philippines, Pakistan and South Korea. Pullet nutrition, laying cycle extension and home-mixing were the key topics, delivered by 12 reputable international speakers.
Importance of maintaining skeletal health
With longer productive life, increased egg production and reduced feed per egg, modern laying hens must be more efficient at maintaining skeletal health more than ever before. Doug Korver, Professor of Poultry Nutrition at the Department of Agricultural, Food and Nutritional Sciences of University of Alberta in Canada said structural bone is not replaced while the hens are actively laying, and over time, a decline in structural bone takes place, even as medullary bone continues to accumulate. “Therefore, it is possible for hens with osteoporosis to have high levels of bone ash, even as the skeleton is extremely weak. It is therefore, essential to ensure that the pullets are fed and managed to maximise structural bone formation before sexual maturation, and to manage the hens to reduce the loss of structural bone after the onset of lay,” Prof Korver explained.
Preparing pullets for long productive life
The key to producing a successful layer is in the rearing period. Marcus Kenny, Hy-Line International Nutritionist said a well reared pullet will provide the foundation for a successful layer, which is prolific, persistent and profitable. Meanwhile, poorly reared pullets rarely support optimal performance in the laying period. Often, flocks experience post-peak dips in performance with poor persistency. Therefore, Mr Kenny said growing the pullet to the breeders recommended body weight throughout rear is the first step in producing a good quality layer. “Achieving adequate body condition and frame development will also provide the bird the foundation for a successful laying cycle,” he added.
Genetics, balanced nutrition important to maintain egg shell stability
Layers and breeders have a genetic potential for a high egg output, said Ron Eek, Lohmann Tierzucht Regional Area Manager for Asia – Oceania Pacific. In order to produce mainly saleable and hatching eggs, egg shell stability is a crucial trait. “Both genetics and balanced nutrition play an important role to maintain good eggs,” he said. Geneticists have succeeded to combine a prolonged production period with good egg shell stability until end of lay. Meanwhile for the nutritionist, Mr Eek said hot weather is an additional challenge. “In order to maintain production of premium eggs, rations need to be supplemented with extra micro ingredients, vitamins C and E and sodium bicarbonate. A so-called phase feeding program with different rations during the production period is essential to safeguard performance. The main targets are maintaining good egg shell quality, controlling egg size and balancing nutrient supply to actual requirement.”
Strategies for longer laying cycles
The best way to increase the number of eggs produced is by increasing the length of the cycle. According to Fernando Cisneros, Global Carotenoids and Layers Manager of DSM Nutritional Products, longer cycles can help to reduce production costs and increase egg production, without the need for a moulting period. However, longer cycles can produce negative side-effects, such as decreased laying rate and calcium absorption, bone fractures, more variable brown shell colour, larger eggs with decreased shell strength and a decline in shell quality. Therefore, according to Dr Cisneros, pullet development is crucial to a successful layer to build the structural bone and the pre-lay period is key to deposit the medullary bone. It is also essential to ensure good gut health and a healthy liver and adjusting the feed levels of phosphorous, calcium and vitamin D3 from start pullets to ensure a high level of saleable eggs in the flock, he added.
|12 Indonesian breeding companies found guilty over cartel allegations|
[18 October 2016] Twelve Indonesian poultry breeding companies were found guilty on October 13 of the alleged broiler cartel. The 12 companies are considered to have jointly undertaken early culling of 2 million broiler PS with the aim to reduce broiler stock in the market which then led to higher market prices. Charoen Pokphand (CP) Indonesia and Japfa Comfeed Indonesia were fined USD 1.91 million each. Only Expravet Nasuba was not fined. According to local media, CP and Japfa raised objections to the decision as the early culling had come purely from the government, without any lobbying from the companies. The two companies are now thinking about the next legal steps. One day after the verdict, the Indonesia Stock Exchange reported that stocks of CP, Japfa and Malindo weakened.
|Philippine 2016 pork imports could exceed 2015|
[18 October 2016] In the first eight months of the year, the Philippines imported nearly 185,198 tonnes of pork, up 19% from the previous year, data from the Bureau of Animal Industry showed. “It is trending upwards this year, and it looks like we’re heading for higher import [volume] this year over last year,” Philippine Pork Producers Federation President Edwin Chen told Asian Agribiz, although he did not say by how much. Industry officials say however, that the volume is likely to be bigger than the official data due to technical smuggling. However, some industry officials noted that with the new administration, they hope that smuggling might be significantly lessened.
|Guangdong Wens Q3 revenue up 10% at USD2.3b|
[18 October 2016] Guangdong Wens Foodstuff Group said its third-quarter revenue rose 9.69% to USD 2.27 billion, while net profit was up 14.97% at USD 536.42 million. The largest livestock producer in China sold 4.26 million finished pigs and 221 million yellow broilers during the quarter, up 6.09% and 9.24%, respectively, from a year earlier. In its quarterly report, Wens warned of risks of a price fluctuation as China’s live pig prices declined in the third quarter. “The drop was particularly significant in late September,” it said, though the average prices were still higher than the previous year.
|Overwhelming response for Asian Agribiz's Layer Feed Quality Conference |
[17 October 2016] Asian Agribiz's Layer Feed Quality Conference opens in Jakarta Indonesia today with the theme ‘Science, trial data & application. The two day conference will feature 15 presentations from leading regional and international speakers in academia and industry who will provide actionable take-home messages to help producers and feed millers improve their profitability, productivity and sustainability. The conference will deliver three themes namely Tackling pullet nutrition; Extending the laying cycle; and Winning with home-mixing. The keynote speaker at this conference which will later in the week (October 20-21) be staged in Kuala Lumpur, Malaysia is Dr Doug Korver, Professor of Poultry Nutrition, Department of Agricultural, Food and Nutritional Sciences, University of Alberta, Canada.
|Thailand’s Betagro says food research and development is endless|
[17 October 2016] Thailand’s Betagro will continue to develop its food technology including foundation technology and advanced technology as the company sees food research and development (R&D) as endless possibilities, Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz at the Sustainable Brands conference in Bangkok, Thailand this week. Foundation technology includes food preservation, meat texture, taste and shelf-stable food. “These technologies should be developed continuously,” he said adding that the company will build on the foundation technology it has, such as changing meat structure by adding vitamins and omega3. “We will not limit ourselves to just meat and food science,” Mr Vasit added.
|De Heus to work towards raising standards in Myanmar|
[17 October 2016] Like in Vietnam De Heus is also actively working to raise the standards of the industry in Myanmar. One example is its partnership with recently-established joint venture company Bel Ga Myanmar Ltd. Through this partnership – which ties Belgium’s top producer of day-old chicks and day-old layers Belgabroed NV (51%) with De Heus (49%) – farmers will have access to high-quality day-old chickens. On its 2017 plans for Myanmar Johan van der Ban, General Manager De Heus Myanmar told Asian Agribiz that the company is ready to implement its earlier planned strategic investments, such as ensuring the success of Bel Ga Myanmar. “We will continually spread our wings and introduce our brand to farmers in Myanmar,” he said.
|Peksi to widen market for its Malond quail carcase|
[17 October 2016] Indonesia’s Peksi Gunaraharja (Peksi), the largest quail integrator in Jogjakarta, targets to sell more than 30,000 Malond quail carcases per week locally. Malond is a meat-type quail breed. Peksi introduced Malond carcase in 2011 to the domestic market. In 2012 it sold an average of 7000 Malond carcases per week. Sales continued to grow and in 2013 reached 11,000 carcases, while in 2014 and 2015 increased to 14,000 and 22,000 carcases respectively. “The target to sell more than 30,000 carcases per week is possible as the demand continues to grow,” Sudarsono, Peksi Marketing Manager for Meat Division told Asian Agribiz.
14th CIMIE embraces upgraded meat consumption in China
Report by ALLEN SHU
[17 October 2016]
Despite the economic slowdown in China, exhibitors and potential customers at the 14th annual China International Meat Industry Exhibition (CIMIE) in Beijing, in September were optimistic about the nation’s demand switch to premium meat products, amid government initiatives to boost and upgrade domestic consumption in a bid to raise the quality and efficiency of its economy. “You may see many Chinse women are spending a lot on luxury shoes, clothes or bags. No doubt that they are willing to pay for premium meat products,” Uwe Kessler, Handtmann Sales Director, told Asian Agribiz. “This is also an international trend. Japan is a good example,” he added.
Big projects for western-style products help
China’s top pork processor Shuanghui was always quoted at CIMIE for its two newly launched state-of-the-art plants - American-style plant in Zhengzhou, and a Western-style plant in Shanghai. Each has a daily capacity of 100 tonnes of high-quality western products, with processing equipment from various international suppliers. “The sausage sector is set to recover with more premium products, though it may take time for consumers to get familiar with the western style products,” said Hans Heppner, Sales Director for smoking equipment supplier Fessmann.
More investments in beef plants
Wolfgang Muth, Banss Sales Manager for Asia, said China’s meat industry is not investing much amid the economic downturn, but new projects in beef and mutton are growing, particularly in the northern part of the country. Meanwhile, Marel said it is backing the construction of a cattle slaughterhouse in east China. The Dubbo project is designed to slaughter 100,000 cattle imported from Australia annually. “It is a milestone for us as the project features the first joint sales from Marel and our newly acquired MPS,” Valur Blomsterberg, Marketing Coordinator for China, told Asian Agribiz.
Marel banks on China’s poultry sector
According to Mr Blomsterberg, Marel sees better performance for China’s poultry sector over the next years, as a limit on broiler GP imports has helped the sector to reduce overcapacity. The company showcased at the CIMIE a tailor-made Insight Poultry Processing newsletter that features industry updates and in-depth information and customer testimonials on the latest equipment in China. “We are also promoting our poultry business on local social media WeChat,” Mr Blomsterberg said, adding that Marel has just moved to a new office in Beijing that will serve clients in poultry, red meat and further processing, in addition to its Qingdao office that is dedicated to the fish industry. “Just as our Chinese slogan shows, we will fully support our customers’ development and progress.”
Skin packaging in the spotlight
While vacuum packaging still dominates the Chinese market, skin packs caught visitors' attention at CIMIE with highlighted promotions by both Multivac and Sealed Air. Multivac held a skin pack seminar together with film producer Wipak. Sealed Air launched Darfresh on Tray under the Cryovac brand, a new generation of its skin packaging that was introduced to Asia for the first time. “The new packaging could extend the shelf life of fresh meat to up to 30 days,” said Onat Bayraktar, Vice President of Sealed Air Food Care, Asia. “A longer shelf life will help reduce food waste, which will thus not only save money for retailers and consumers, but also minimize the negative environmental impact, such as waste of water and emissions of carbon dioxide,” Mr Bayraktar said.
Improved efficiency with integrated lines
Chinese meat processors have been moving towards automation for quality and food safety. Furthermore, many companies choose integrated lines rather than separate machines to improve their efficiency further, according to Niclas Rathmann, CEO of Vemag. “An integrated line could be more stable and reliable. It also saves time in the process such as a casing change,” Dr Rathmann said. Meanwhile, Provisur Sales Manager Nick Yu said that there will be growing demand for large-size and integrated equipment amid a consolidation in the Chinese meat industry. “This would be a good opportunity for the US-made industrial applications,” he told Asian Agribiz.
|New ruling in Indonesia will have minimal impact on processing industry|
[14 October 2016] Despite the new ruling in Indonesia urging big poultry producers to build slaughterhouses and not new closed houses, Indonesia’s poultry industry is upbeat that its food processing line will not be affected by the policy. “The industry has been facing oversupply in recent years, so the moratorium on expansion will not have a big impact [to food processing],” said Sudirman FX, Chairman of the Indonesian Feed Producers Association. “But in the long run, it might cause several problems, because if the economy grows further, nationwide demand for chicken meat will also increase and we will have to build commercial farms again from the beginning.”
|Betagro set to implement new ERP next year|
[14 October 2016] Thailand’s Betagro Group is investing more than USD 28 million on new enterprise resource planning (ERP) software and it will implement this in the middle of next year in agribusiness and in its food business in 2018, Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz at the Sustainable Brands conference in Bangkok, Thailand this week. The company will shift to a world-class ERP software, Mr Vasit added. Meanwhile, Betagro has been consolidating its six business units into two, which are agribusiness and food business. “Previously, our six business units had six databases. Now, we are in the process of consolidating the data and this will offer many operational benefits,” Mr Vasit said.
|Timab phosphates becomes Phosphea|
[14 October 2016] French feed phosphates specialist’s name change from Timab Phosphate to Phosphea, which was introduced last month, will happen gradually. “We want to take into consideration import and Customs procedures in the different countries,” Pol Abiven, Regional Manager, Asia Pacific told Asian Agribiz at his office in Kuala Lumpur, which opened in 2014. It has offices in China and India as well as two sales people in Vietnam. Part of Groupe Roullier, the move marks Phosphea’s dedication and leading position in the category. “We stand out in the industry because of our focus on phosphate, our quality products, the approach of our sales people and the proximity to our clients. We have 60 sales people globally, making roughly one sales person per market,” he said.
|China seizes over 200,000 smuggled pigs from Vietnam|
[14 October 2016] The commerce department of south China’s Guangxi region said it seized a total of 262,600 live pigs smuggled from neighbouring Vietnam in the first eight months of this year. The pigs, valued at USD 65 million, were detected in eight cases. “We will tighten the border control, since Vietnam has been encouraging the smuggling of live pigs,” it said. China’s live pig prices hit a record high in the first half of 2016, triggering a hike in pork imports as well as smuggling. The prices have declined since June.
Indonesian broiler farmers demand bigger slice of farming sector
[14 October 2016] Independent broiler farmers in Indonesia are waiting for the implementation of the Ministry of Agriculture’s regulation which will then offer them a larger slice of the farming sector. So far integrators together with contract farmers dominate the sector. Joko Susilo, a spokesperson of the Indonesian Chicken Farmers Organisations Association, told Asian Agribiz that broiler production in the country is dominated by eight big broiler producers that have can produce 3.2 billion birds a year. Mr Susilo also said that they are still waiting for the regulation on market segmentation and floor & ceiling prices.
|De Heus maintains non-integrated business model in Myanmar|
[13 October 2016] De Heus, which opened a new feedmill in Myanmar early October, said its strategic positioning in the country remains one of a partner to independent livestock farmers. This, according to Johan van der Ban, General Manager, sits well with market needs. “We will continue to build on the non-integrated business model where independent entrepreneurship can flourish,” he told Asian Agribiz. “Some players in the feed market aim for full integration of the value chain but we make family-owned farms more competitive by providing them with high quality animal nutrition products in combination with intensive technical on-the-farm support.” Located in Yangon the new plant has a capacity of 120,000 tonnes, which can be doubled.
|Indonesia’s chicken processing industry projects grow|
[13 October 2016] Indonesia’s chicken processing industry last year recorded significant growth, according to the Indonesian Poultry Slaughterhouses Association (Arphuin). “There were new chicken processing plants built during the year by both existing and new players,” Nuri Hidayat, Arphuin Chairman for Organisation told Asian Agribiz. “This year the industry sees a positive trend. Next year we believe we will see many new players joining the processing industry,” he said. Based on Arphuin data, there are 130 chicken processing plants and slaughterhouses in the country. Of the figure, the number of chicken processing plant is less than 100, with the number of grade A and B plants no more than 30.
|Thai Union invests USD575m in Red Lobster|
[13 October 2016] Thailand’s Thai Union (TU) said early this week that it will purchase a minority stake in Red Lobster, a US seafood chain, from Golden Gate Capital, a private-equity firm, for USD 575 million. TU will buy a 25% stake for USD 230 million and pay USD 345 million for preferred shares, which can be converted to common shares and an additional 24% stake within 10 years. Golden Gate Capital will continue to be Red Lobster’s majority owner and retain operational control. Thiraphong Chansiri, CEO of TU said this investment marks a strategic step to build TU’s direct-to-consumer channel.
|Indian carabeef finds place in Jakarta|
[13 October 2016] Starting this year, Indonesia has decided to import carabeef or buffalo meat from India as an alternative to beef to stabilise prices. Although the meat is sold at around USD 4.6 a kg, almost half the current stubbornly high beef price. Initial doubts regarding acceptance quickly faded after the arrival of the first shipment in late August. Within a month, 65% of the 10,000 tonnes of carabeef had been successfully absorbed, data from the State Logistics Agency (Bulog) showed. Meat vendors in local markets, meanwhile, reported that sales had quickly picked up pace. “Last month, I only managed to sell less than 50kg of buffalo meat per day. But these days, I can sell up to 75kg daily,” said Arifin Nasmawi, a vendor in West Jakarta’s Grogol market. Bulog is now set to procure another 70,000 tonnes by year-end.
|H5N6 resurfaces in China|
[13 October 2016] China has reported two separate H5N6 outbreaks to the World Organization for Animal Health (OIE). Both outbreaks which began on October 2 affected more than 100,000 poultry. The largest outbreak, near Jinchang City in Gansu province, struck a farm of 95,172 birds, while the second outbreak, near Xiaogan City in Hubei province, involved a farm of 6,100 birds. Response steps have been activated at both farms. Gansu province is in the north-central part of China, south of Mongolia. Hubei province lies southeast of that, in the east-central part of the country.
|KFC, Pizza Hut in India record sales increases|
[13 October 2016] KFC and Pizza Hut in India have announced system sales increases of 13% and 6% year-on-year respectively for Q3 2016, as the consolidation of its business with franchisees Devyani International and Sapphire Foods has started to pay off. Rahul Shinde, KFC India Managing Director said: “Over the last 12 months, we have restructured our business, decoded our core consumer proposition and reset strategy utilising our strengths. We are optimistic about leveraging the huge opportunity that India has to offer.” The National Restaurant Association of India (NRAI) estimates the current size of the QSR market at USD 1.37 billion, projected to grow to USD 3.71 billion by 2021. “The QSR space is highly competitive, which is why the need for innovation is crucial for continued success. Amidst intense competition, the slightest difference can have a lasting impact,” said NRAI.
|Jakarta to relocate chicken slaughtermen to standard facilities|
[12 October 2016] With a population of 12 million people, Jakarta needs 1 million chickens a day, according to Rismiyati, staff of the Agriculture & Fisheries Agency of Jakarta. There are more than 200 live bird shelters and more than 1000 non-standard slaughterhouses in the province. The players source live birds mainly from West Java and Banten provinces. Ms Rismiyati said the provincial government is now trying to relocate all the players to standard chicken slaughterhouses in five locations namely Pulogadung, Rawa Kepiting, Petukangan Utara and Rawa Lele. “We target next year for the relocation,” she said at a seminar attended by Asian Agribiz. “Therefore, we plan to revitalise existing slaughterhouses with better equipment and add cold chain facilities,” she revealed.
|Huaying’s 2016 exports to exceed USD100m|
[12 October 2016] China’s top duck integrator Henan Huaying Agricultural Development Co said its exports are expected to exceed USD 100 million this year, as it is pushes its ‘going global’ strategy further. In the first eight months, the company’s exports rose about 50% to over USD 50 million. Huaying exports cooked products to more than 40 countries including European Union, Japan, South Korea and Singapore. It also ships frozen items to Hong Kong and the Middle East, according to the company. “We will expand to more countries, while seeking overseas partners to invest in China’s duck sector,” Chairman and CEO Cao Jiafu said. In the first half of 2016, the duck processor completed its first shipment of cooked chicken products to Japan and South Korea, paving the way for broader exports of the products.
|Thai corn production revised up for 2016/17|
[12 October 2016] Thailand’s corn production in marketing year 2016/17 has been revised up to 5.2 mmt, compared to 4.9 mmt in the previous forecast, according to the USDA's GAIN report. This is an 11% increase from marketing year 2015/16, due to higher than expected acreage expansion from farmers who have switched from cassava and sugarcane corps that were adversely affected by drought. Meanwhile, corn consumption in marketing year 2016/17 is expected to increase to around 5.5 mmt, up approximately 15% from marketing year 2015/16 due to growing chicken meat exports. The Thai government is also encouraging feed millers to buy domestic corn at USD 0.23/kg, while limiting imports of feed wheat during the peak harvest in order to stabilize the farm-gate price of corn.
|Peksi to upgrade its quail processing plant |
[12 October 2016] Indonesia’s Peksi Gunaraharja (Peksi), the largest quail integrator based in Jogjakarta, plans to upgrade its quail processing plant to grade-A, which will enable the company to export the products to other countries. “We will work with related institutions for the upgrade. We expect this plan to be realised in 2017,” Sudarsono, Peksi Marketing Manager for Meat Division told Asian Agribiz. Peksi has a grade B, semi-automated processing plant located in Bantul regency with a capacity of 60,000 birds per week. This plant is equipped with a 12-tonne cold storage facility. Besides this, Peksi is now looking to set up a new modern quail processing plant. It is also setting up a cold storage facility in Karawang, West Java for better distribution to western regions.
|India’s soybean production up 60%|
[12 October 2016] Soybean production in India’s Madhya Pradesh is expected to grow by 60%over last year, according to the first crop estimates of the Soybean Processors Association of India (SOPA). The association estimated soybean production in the state at 5.6 million tonnes. The estimated growth in output is expected due to improvement in yields from 608 kg/ha a year ago to 1034 kg/ha this season. “In most of the area of Malwa region, the soy crop is in good condition,” said DN Pathak, SOPA Executive Director.
|Gupbi, Badung regency to form pig farming colony |
[11 October 2016] The Bali Pig Farmers Association (Gupbi) and the local government of Badung regency in Bali, Indonesia are planning for a pig farming colony in the regency. This program is aimed at educating local farmers about intensive pig farming, as well as increasing their bargaining position with slaughtermen and brokers. I Ketut Hari Suyasa, Gupbi Chairman told Asian Agribiz that the local government has allocated around USD 370,000 to start a pilot project for the colony system. The money will be used to set up pig houses, and to buy breeder pigs, feed and veterinary medicines. “To set up a pig farming complex that includes pig houses with a capacity to house 1000 pigs, a raw materials and feed warehouse and a biogas unit, we need around 5000 sqm of land. We target the construction to start early next year,” said Mr Suyasa. Finisher pigs from the colony will be sold to traditional markets.
|Gut health is key to successful poultry production|
[11 October 2016] Gut health is crucial to successful poultry production for the future as producers need high feed intake broilers to be sustainable. Maarten De Gussem, Managing Director of Vetworks BVBA told Asian Agribiz at a seminar hosted by DuPont in Bangkok, Thailand last week that “gut health is the most crucial component in defining production costs. Mortality rate, the cost of day old chicks, the cost of housing, energy, all that is important, but nothing is important as feed conversion rate,” he said. Meanwhile, producers need to be aware of two main negative drivers of gut health, which are infectious causes (bacterial, parasitological, viral) and feed quality and management including anti-nutritional compounds, poor physical texture/form of feed and poor feed management.
|PED suspected in pig farms in Bali|
[10 October 2016] The death of piglets with watery faeces in Bali is now a trending topic among pig farmers in Indonesia. A trusted industry player with 20-years of experience in pig farming told Asian Agribiz that six months ago a disease outbreak caused the death of 300 sows in Negara, Bali. Other outbreaks were found in several pig farms in Payangan, Bali. “Clinical signs point to PED [porcine epidemic diarrhoea],” he said. “However, it’s not conclusive as no lab test results have confirmed it.” The source said he got all information about the cases from farmers, slaughtermen and technical service staff of feed & veterinary drug companies, as well as based on his field observation. “Many pig farmers have tried to conceal this. Besides, the Livestock & Animal Health Agency of Bali has been late to respond. There are also no test kits or rapid tests for PED at the agency and Veterinary Agencies to check and confirm,” he said.
|Putra Perkasa to venture into duck contract farming|
[11 October 2016] Indonesia’s Putra Perkasa Genetika, the largest native poultry breeder based in Bogor, West Java sees good market potential for meat-type ducks in the country. “The market is getting bigger as many restaurants now offer duck meat dishes,” Ang Hendra, owner and Managing Director told Asian Agribiz. To seize the potential, the company plans to develop a duck contract farming business. “We want to partner with small-medium scale farmers to raise our Gunsi 888 duck,” said Mr Hendra. In contract farming, Putra Perkasa will provide DOD and feed specially formulated to meet the genetic potential of Gunsi 888 duck. The company will also guarantee the market for finisher ducks. To promote contract farming, the company has started conducting free seminars on duck farming management for interested parties.
|Baader Group inaugurates new regional office for Asia|
[11 October 2016] The Baader Group inaugurated a new regional office and logistic centre for spare parts and service at Excalibur Centre, Singapore yesterday in a bid to serve the Group's customers in Asia better. With the establishment of Baader Asia equipped with the infrastructure for spare parts logistic, we are enhancing our services to our valued customers across Asia, the company stated in a press release. We will now be able to provide a complete value chain of support that includes processing consultancy, project proposals (quotation, layout, engineering, installation and start up), after sales service and now quick delivery of spare parts.
|India’s shrimp exports to US up over 40% in August|
[11 October 2016] US shrimp imports from India increased by over 40% year-on-year in August, according to the latest figures from the National Oceanic and Atmospheric Administration. In August 2015 India, the top foreign producer of shrimp for the US market, exported 14,754 tonnes. That rose to 20,815 tonnes during the same period in 2016. The other top five shrimp exporting countries all also saw increases in their exports, with significant increases in exports from Thailand, which rose by 48.5% to 7523 tonnes, and from China, which rose by nearly 76% to 3697 tonnes. Vietnam’s exports increased by 48.5%, while those from Indonesia increased by 5.6%.
|CP to partner with HNA Group for animal protein production|
[10 October 2016] CP Group said it has signed an agreement with China's HNA Group, the parent of Hainan Airlines, and Hainan State Farms Group to produce a variety of animal protein in China's southern island province of Hainan. The project will initially cover an annual capacity of 3 million layers, 1.5 million pigs, 10,000 tonnes of shrimp products, and 600,000 black goats. “It will be a partnership related to the entire industry chain, including plant and animal breeding and cultivation, further processing, as well as trade,” CP Chairman Dhanin Chearavanont said in a statement.
|DuPont sees probiotic potential for broiler production |
[10 October 2016] Kirsty Gibbs, Global Technical Services Specialist, DuPont Industrial Biosciences at Danisco (UK) Ltd explained three current challenges in the broiler industry, during a seminar in Bangkok, Thailand last week. First, there is increasing concern about food safety and food security. Second is antibiotic removal. “There is a big drive internationally for reducing the use of antibiotic growth promoters or eliminating them from practices and also reducing the use of therapeutic antibiotic,” she told Asian Agribiz. Third is all about bird performance. DuPont launched Enviva PRO at the event to address some of these challenges. Enviva PRO is a multi-strain Bacillus probiotic, which can provide broader coverage for potential challenges for broilers, Ms Gibbs said. Enviva PRO also effectively supports the balance of the gut microbiota in poultry under challenging commercial conditions.
|Sierad halts on farm expansion plan|
[10 October 2016] Indonesian poultry integrator Sierad Produce has slashed its budget for new farms in the wake of the government’s plan to issue a moratorium on the expansion of big poultry producers. Sierad collected almost USD 30.78 million from a recent rights issue and was planning to use USD 23.20 million to build new broiler closed houses and use the rest as working capital. “However, as the government plans to impose a moratorium on the construction of farm houses, we have decided to shift the funds to working capital and facility maintenance, so that we can use it more effectively,” Sri Sumiyarsih, Finance Director. Sierad had used USD 2.12 million of the rights issue proceeds to build two farms in Serang of Banten province and Sukabumi of West Java province.
Onsite report from Philsan 29th Annual Convention, Pasay City, Philippines
by ISA Q TAN
[10 October 2016]
The Philippine Society of Animal Nutritionists (Philsan) held its 29th Annual Convention in Pasay City, Philippines on October 6, with the theme ‘Think Before You Feed: Safety, Efficiency and Sustainability.’
Philippine feedmillers see 3-4% annual growth from 2016-2018
Driven by population and economic growth, as well as growing per capita consumption of meat and eggs, the Philippine feedmilling industry sees a 3-4% growth between now and 2018, Terence Uygongco, VP of the Philippine Association of Feedmillers Inc said. He said the hog industry will remain the biggest segment, with a share of at least 60%, while broiler and layer feeds will account for 15% and 13% each. Mr Uygongco also noted that Philippine feedmillers are looking to integrate and harmonise with other feedmilling industries in Asean, and increase in global competitiveness.
Feed safety is now a must
With growing calls for food safety, managing feed safety to produce safe food is no longer optional in many countries, said Dr Rick Carter, Pacific Technical Services Manager of Kemin Animal Nutrition & Health Asia. Feed manufacturers must increase their levels of participation and intervention in order to reduce risk factors. He noted the controlling feed safety risks may include hazard prevention, elimination or reduction, while feed deterioration risks and factors affecting these risks can be rated and combined to help manage shelf life. He added that control measures need to be practical and achievable, with prevention preferable to correcting non-conformances after their occurrence.
Holistic approach key to successful poultry production
Many broiler producers still tend to view management, health, nutrition, and environment as separate aspects in broiler production, but this should not be the case. Dr Mark Paderes SVP–Feed Milling Operations, Animal Health Technical Services and Feeds Quality Assurance of Bounty Agro Ventures Inc, reiterated to convention participants that “these multifaceted components overlap and the final production outcome is contingent upon the interface” between management, health, nutrition and environment. He also emphasised the need for broiler producers to innovate in order to keep pace with the growing global demand for poultry products.
Long term gains outweigh short term problems from reduced antibiotics use
Amidst growing calls for reduced and more responsible use of antibiotics in livestock and aquaculture production, many producers argue that reducing antibiotic levels will negatively affect productivity. Dr Alexandre Peron, Regional Additives Technology Application Lead of Cargill Provimi Southeast Asia, said that while producers may experience higher production costs and slightly lower outputs in the short term, the long term benefits, which include among others, higher value of products, greater brand equity and access to markets, should outweigh these issues. He said farmers, veterinarians and feedmillers must work together to shift to a more comprehensive and sustainable production system that will ensure the health and performance of the animals.
|OSI seeks capacity expansion in central China|
[7 October 2016] OSI Group is planning a second phase of its wholly-owned unit Henan OSI Foods Co, while seeking a buyout of Xihua Da-OSI Poultry Development Co, a 51-49 joint venture between Chinese poultry processor Henan Doyoo and OSI, according to the government of Xihua County, Henan Province where the two projects are located. In a meeting with the central province’s Vice Governor Zhao Jiancai, OSI President David McDonald said Henan OSI’s annual capacity of cooked chicken and beef will be expanded to 180,000 tonnes, while Da-OSI, a broiler integrator, will see its annual capacity expanded to 120 million birds. OSI had most of its operations suspended in China following an out-of-date meat scandal at its Shanghai plant in 2014. The Shanghai plant had its food production license revoked by a local food watchdog earlier this week.
|Sumber Unggas to retail marinated native chicken products|
[7 October 2016] Sumber Unggas Indonesia, one of the largest native chicken breeders based in West Java, plans to set up five outlets selling marinated native chicken products early next year. Naryanto, owner and Managing Director told Asian Agribiz said an outlet would cost around USD 3800. “All the outlets will be located in Jakarta. However, we will also look for potential in other big cities in West Java,” said Mr Naryanto.
|Thai Union purchases remaining shares in Tri-Union Frozen Products|
[7 October 2016] Thailand’s Thai Union (TU) has acquired the remaining 18% stake in its US subsidiary Tri-Union Frozen Products (TUFP) for around USD 46 million, making TUFP a wholly owned subsidiary of TU. Prior to the acquisition, TU owned 82% of TUFP, while the remaining 18% stake was held by Diversified Food Products LLC. “The acquisition was part of the company’s attempt to fully integrate its interests in all its subsidiaries around the world in order to obtain effective control for better management,” TU said in a statement, adding the move will also align TU’s strategies, corporate vision, mission and core values. TUFP operates its business as Chicken of the Sea Frozen Foods and is the largest frozen seafood importer and distributor for the US market.
|Malaysia’s Lay Hong to focus on differentiating G Mart|
[7 October 2016] Malaysian integrator Lay Hong Bhd said it has no intention to close more stores to reduce costs. “We will stop the closure (of stores) at this juncture, we’ll focus more on the merchandising of products to differentiate G Mart. We will probably also look into new locations that have better prospects,” Executive Director Yap Chor How said. Currently, Lay Hong still operates 16 supermarkets in Sabah. The retail supermarket business contributed 20.7% to the company’s revenue for FY16.
|McDonalds restructuring Asian business|
[7 October 2016] McDonald's Corp is restructuring its Asian business and may sell 20-year franchise rights for its Singapore and Malaysia outlets to Saudi Arabia's Reza Group for up to USD 400 million, reported Reuters. The move is in line with McDonald's plans to bring in partners as it switches to a less capital-intensive franchise model in Asia. Reza Food Services Co Ltd, owns and operates McDonald's restaurants in the western and southern region of Saudi Arabia.
|Thaifoods Group eyes investment in poultry farm business|
[6 October 2016] Thailand’s Thaifoods Group (TFG) said it will conduct a feasibility study for potential investments in Big Foods Group (Big Foods), which operates poultry farms and a slaughterhouse in Thailand. TFG plans to invest no more than USD 1.73 million or more than 50% of Big Foods shares and turn the company into TFG’s subsidiary. TFG will draft the memorandum of understanding regarding the investment plan in Big Foods this month and will complete the due diligence process by the end of this year. However, “if the study has concluded that the investment is not viable, we will not proceed,” TFG said in a filing to the Stock Exchange of Thailand.
|Philippines may not need chicken imports |
[6 October 2016] Although the Philippine market may experience some tightness in chicken supply during the Christmas holidays, imports may not be necessary, Dr Erwin Awitan, a poultry consultant in the Philippines told Asian Agribiz, adding that demand typically goes up during the period. The problem, he said, is distribution, noting that producers in the Visayas and Mindanao are “experiencing the poor performance that hit Luzon some weeks ago, which explains their low production output, and consequently higher selling prices as dictated by supply and demand. I think we have ample supply locally.”
|Native chicken business in Indonesia records significant growth|
[6 October 2016] Native chicken business in the last decade grew significantly, according to Ade Zulkarnain, Chairman of the Indonesian Native Chicken Farmers Association (Himpuli). Of several native chicken production centres, West Java is number one. Mr Zulkarnain said 80% of the native chicken breeders are based in this province. On average the breeders have the capacity to produce 200,000 native chicken DOC per month. “We will continue our campaign to other provinces to invite local farmers to raise native chicken intensively. We expect native chicken to contribute 25% to the total chicken production in Indonesia,” Mr Zulkarnain told Asian Agribiz.
|Vietnam’s H1 shrimp production down due to unfavourable weather|
[6 October 2016] According to Vietnam’s Directorate of Fisheries’ report, the country’s shrimp production in the first half decreased due to unfavourable weather conditions with prolonged drought, fluctuating salinity and high temperature, causing fluctuating pond conditions, which negatively affected shrimp health and induced disease outbreaks. In H1, farming of brackish water shrimp in the country reached 706,700 ha, an increase of 2.7% over the same period last year. Total shrimp production reached 181,000 tonnes, a decrease of 3% over last year. The Vietnamese Association of Seafood Exporters and Producers estimates that in the second half there will be a shortage of raw shrimp due to drought and salinity, which will affect shrimp exports.
|Selahonje targets 2000 outlets of Hisana Fried Chicken by 2020|
[6 October 2016] Indonesia’s Selahonje Jaya Abadi plans to increase the number of its Hisana Fried Chicken to 2000 take-away outlets throughout Indonesia by 2020. Yudi, Vice President Director said to achieve the ambitious target, the company is now improving its internal system, organisation and fund allocation. “We need a better system and management to manage the 2000 outlets,” he said. Currently the company has 630 take-away outlets spread in 11 provinces. Mr Yudi said the company grew significantly in the past five years. This year it expects to record a 22% growth in revenue. Fried chicken outlet with a take-away concept is booming now in Indonesia. Another main player in this category is Sabana which already has 1700 outlets.
|Lay Hong-NH Food to build USD 7m plant in Malaysia|
[5 October 2016] Malaysian integrator Lay Hong Bhd’s partnership with Japan’s NH Food Ltd has set 2018 as a target for the completion of its USD 7.29 million plant. “We’ll start to build the new plant in Q1 2017, Executive Director Yap Chor How said. NH Foods is Japan’s largest meat packing company. Local daily The Star reported that the new plant will have a production capacity of 1000 tonnes per month to complement the 1600 tonnes per month for the existing plant. The joint venture company will manufacture, distribute and sell processed meat-based foods that will be marketed under the brand name Nippon Nutriplus.
|OSI's Shanghai plant’s food production license revoked|
[5 October 2016] Shanghai Husi Food Co and its regional controller OSI China have been fined a combined USD 3.64 million over out-of-date meat production and sales in 2013 and 2014, said the Shanghai Municipal Food and Drug Administration (SFDA). The Shanghai plant, which has not been operating since July 2014, also had its food production license revoked. “A revocation of food production license does not mean that the plant has to be closed, but it is much harder for it to get a new one and resume production,” Yvonne Jiang, a lawyer with China’s Dacheng Law Offices, told Asian Agribiz. OSI will pay the fine on schedule, according to the SFDA. OSI has been in China for 25 years and has six plants supplying meat products to fast food chains, including two joint ventures with Fujian Sunner and Henan Doyoo. It also operates three specialised fruit and vegetable plants in Guangzhou and Kunming.
|Pakistan sells 1800 broilers at subsidised price to boost production|
[5 October 2016] To encourage domestic poultry farming, the Punjab Livestock and Dairy Development Department sold about 1800 birds at subsidised prices. About 300 units – each comprising five hens and one rooster – were sold to farmers at USD 8 per unit at nine different points. The department plans to distribute 73,000 units of chickens in the 36 districts of Punjab in a phased program. The Lahore district will receive about 18,000 birds, while other districts will be provided 12,000 chickens.
Highlights in Asian Poultry Magazine, October 2016
[5 October 2016]
Poultec achieves good results with wider houses
What are the limits on the width of a closed house? At 100 ft, Poultec Enterprise Sdn Bhd is likely the farm with the widest house in Malaysia allowing for 55,000 birds per house. The Tan brothers tell RACHAEL PHILIP the limits can be managed with attention to sound husbandry practices.
Cargill Joy raises the bar for quality chicken supply
The new joint venture between Jollibee Food Corporation and Cargill Philippines will ensure a steady supply of chicken products for Jollibee’s various brands. But beyond that it also aims to lift chicken production and food safety standards in the Philippines, write ISA Q TAN.
Good biosecurity helps improve Kaithep’s egg quality
Biosecurity has become an indispensable part of good farm management that translates to healthy birds and positive production parameters. Meet Manoch Chootubtim, the owner of Thailand’s Kaithep farm, who says his layers produce quality eggs due in part to his closed farming system and farm location, writes PAYUNGSAK WIRIYABUNDITKUL.
NSP enzymes spare feed ingredients in broiler diets
S.V.RAMA RAO and M.V.L.N RAJU report trials that show exogenous NSP enzymes can improve nutrient digestibility and utilisation in broiler diets.
Early nutrition strategies for peak performance in broilers – processed vegetable protein
APEH A. OMEDE, SLEMAN M. BESKI and PAUL A. IJI present trials that show that feeding a starter feed with a high content of digestible protein pays off as increased weight at slaughter and improved FCR.
Pendulous crop in turkeys - prevention and management
E.TIRUPATHI REDDY, B.V.SUDHAKAR, R.V. SIVAKUMAR, B.SUDHAKAR REDDY and B.SOMA SEKHAR REDDY advise prevention of pendulous crop in turkeys by removing predisposing factors.
Achieving performance in AGP-free broilers
BARBARA BRUTSAERT presents two recent broiler trials from Asian Universities which showed that synergistic additives can achieve same or increased growth performance in AGP-free production systems.
|Thai feed producers delay wheat imports to support domestic corn prices|
[4 October 2016] Thai feed producers recently bought corn from local farmers at above-market prices while delaying wheat imports, supporting local corn prices during the harvest season, Pornsil Patchrintanakul, President of the Thai Feed Mill Association told Asian Agribiz. The Commerce Ministry recently asked feed producers to buy corn from local farmers at prices above USD 0.23/kg. Meanwhile, the current corn prices is around USD 0.17/kg in Thailand. All member of Thai Feed Mill Association, have also delayed importing wheat until the end of corn harvest season. “We are delaying at least 200,000 tonnes of wheat imports from October to December,” Mr Pornsil added. As a result, the domestic corn price will not be affected by wheat imports.
|Lay Hong to expand layer, broiler divisions |
[4 October 2016] Malaysian integrator Lay Hong Bhd has budgeted USD 10.46 million for financial year ending March 31, 2017 for expansion in both its layer and broiler divisions. Speaking to reporters after the company’s AGM and EGM recently, Executive Director Yap Chor How said USD 5.59 million will be utilised for the layer segment, USD 3.40 million for broiler and the remainder for other segments. Malaysia’s Lay Hong hopes to boost organic growth by increasing its production capacity to three million eggs per day and two million birds per month by 2018, from the current 1.8 million eggs per day and one million birds per month.
|Indonesia issues permits for live cattle imports from Mexico|
[4 October 2016] Indonesia’s Ministry of Agriculture has issued import permits to live cattle importers for 200,000 heads of feeder cattle and 200,000 heads of breeder cattle from Mexico. “The imports can start this year,” said Andi Amran Sulaiman, Minister of Agriculture. Mr Sulaiman believes imports of breeder cattle will positively contribute to his ministry’s target of beef self-sufficiency. Enggartiasto Lukita, Minister of Trade said previously the importers depended on Australia, “but now they have a choice. They can import from Mexico.” According to Mr Lukita, Mexico offers competitive live cattle prices and their cattle have good production performance.
|Cargill inaugurates new dairy feed plant in India|
[4 October 2016] Cargill recently inaugurated a new USD 13.2 million feed plant in Bathinda, Punjab – India. This new plant is a testament of Cargill’s commitment to support the growth and development of the booming dairy industry and its farming community in India. The plant will provide consistently high-quality, nutritious and safe feed to dairy farmers in Punjab, Haryana, Uttar Pradesh and Rajasthan. It will produce 10,000 tonnes of feed per month and feed 75,000 cows per day. Achyuth Iyengar, Managing Director for Cargill’s complete feed and nutrition business in India said: “We have been catering to the Punjab dairy farmer for more than 10 years now. The continued trust of the dairy farmers in our feed products has encouraged us to build and invest in this new facility.”
|First Le Porc du Mékong product to hit markets in 2017|
[3 October 2016] Le Porc du Mékong’s safe and hygienically processed pork is expected to be in the market in Vietnam in Q1 of next year. “We hope to start production on the farms belonging to the scheme by the implementation of our standards before year end,” Christophe Guillaume, CEO, Neovia Vietnam, told Asian Agribiz. The scheme is a collaboration between French companies, namely feed additive producer Neovia, breeder company Grimaud Group and meat processor Le Boucher, and 600 Vietnamese farmers, headed by the Animal Husbandry Association of Vietnam. It hopes to reach full capacity of the Le Boucher slaughterhouse by 2022. This translates to 360,000 pigs slaughtered per year.
|Indonesian cattle farmers concerned that imported beef will upset prices|
[4 October 2016] Indonesian cattle farmers are concerned that the government’s efforts to stabilise the price of beef by allowing the imports of secondary cuts and offal and frozen meat will affect traditional markets. Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association, said the imported meat could distort sales of local beef in traditional markets due to price disparity. The average price of imported beef is only around USD 6/kg, while the price of local beef is more than USD 9. Mr Boediyana hopes the government considers this from the perspective of local cattle farmers’ too. “The farmers have to survive, so the government has to help them make profits,” he added.
|Malaysia’s stagnant egg industry could see positive turnaround|
[3 October 2016] Malaysia is seeing a stagnation where consumer eggs are concerned. According to Nourredine el Molaka, General Manager, Sanovo Technology Asia Sdn Bhd, producers are looking for solutions. “Egg processing such as hard boiled and liquid eggs could be a positive turnaround for the country,” he told Asian Agribiz. “These products though are not internationally traded and is mainly for local use. Clients, especially those who produce mayonnaise or cakes, generally want freshly-made liquid eggs for better end results.” He said powdered eggs, which are internationally traded, is not a product for Malaysia because shell eggs are expensive in the country and the cost of production is too high.
|Investment policy in Indonesia’s native chicken business should be changed|
[3 October 2016] According to Ade Zulkarnain, Chairman of the Indonesian Native Chicken Farmers Association (Himpuli), one of several barriers in the native chicken business is limitation on the amount of investment. “Native chicken business is only for local farmers. That’s why the government limits the investment to USD 765,000 per business. However, with the Asean Economic Community, this policy will hamper our competitiveness,” Mr Zulkarnain told Asian Agribiz. “We expect the government to change the policy and invite big companies to invest but only in GP and PS production.”
Regional dairy update
[3 October 2016]
New Zealand assists Sri Lanka in developing dairy sector
New Zealand said it will extend its full assistance to develop the milk production sector in Sri Lanka. New Zealand High Commissioner to Sri Lanka Grahame Morton said his country expects to provide Sri Lanka new technology, industry expertise and grants to enable the island to improve its milk production. According to an FAO report, the country is self-sufficient in most animal products apart from dairy. It imports 75,000 tonnes of milk powder annually. To be self-sufficient a further 482 million litres has to be produced annually. The sector is growing at a rate of 1-2% annually. It needs to grow at about 15% annually for the next eight years.
Vietnam government to sell stake in Vinamilk
Credit Suisse, HSBC, JP Morgan Chase, Nomura Holdings, Rothschild as well as Saigon Securities and Viet Capital Securities are among the financial institutions recently invited by the Vietnamese government for advice on selling its stake in dairy company Vietnam Dairy Products JSC, better known as Vinamilk. The government, through investment arm State Capital Investment Corporation, holds a 44.7% stake in the company. It intends to sell 10%, worth about USD 900 million, and offload the rest incrementally. The first chunk of Vinamilk could be sold at a premium as several Asian companies and private equity firms are jostling for shares. F&N Dairy Investments, backed by Thai beer billionaire Charoen Sirivadhanabhakdi, already owns 10.9% of Vinamilk, and the tycoon is keen to bolster his stake in the company.
Pelwatte Dairy to invest USD 10 million in Northern fresh milk plants
Pelwatte Dairy Industries Ltd in Sri Lanka will invest USD 10 million to build three mini fresh milk processing plants in the north starting this year. Pelwatte Chairman Ariyaseela Wickramanayake said in addition he will also build a milk powder processing factory in Jaffna as well. Mr Wickramanayake said there are over 260,000 dairy cows in the area. “When I visited Jaffna I only saw international milk power brands in the shops. This is why I have decided to have the plant in Jaffna,” he said. Mr Wickramanayake said there is also a tradition in Jaffna where people want to consume fresh milk. He plans to open collection centres in the north to collect milk, pack them and sell them in shops in Jaffna.
|Chooks to Go to open in Malaysia, Indonesia|
[30 September 2016] Bounty Agro Ventures Inc (BAVI) is set to open its first outlet of its popular oven-roasted chicken brand Chooks to Go (CTG) in Penang, Malaysia, BAVI President Ronald Mascariñas told Asian Agribiz. The store, to be operated by Chooks to Go Malaysia Sdn Bhd, which BAVI established with a Malaysian partner, marks the beginning of CTG’s expansion outside the Philippines. He said the company’s commissary in Malaysia is already completed and the store is scheduled to open in November this year. BAVI is also putting up a CTG outlet in Indonesia, which the company targets to open in December this year. Both outlets will initially offer the flagship Chooks to Go flavour as well as a local variant that is suited to the local taste.
|CPF’s compartment systems awarded DLD certification|
[30 September 2016] Charoen Pokphand Foods' (CPF) compartment systems at its nine PS farms and one hatchery in Thailand’s Nakhon Ratchasima province, have been awarded the Department of Livestock Development's (DLD) certificates, guaranteeing the farms and the hatchery are free of avian influenza. The certificate confirms CPF's compliance with the guidelines of the World Organization for Animal Health (OIE). Siripong Aroonratana, Executive Vice President at CPF said the DLD certification confirms CPF’s prevention systems on avian influenza throughout its supply chain. CPF’s nine PS farms, raise some 1.2 million PS and CPF’s hatchery produces 1.7 million eggs a week. Meanwhile, CPF received DLD’s compartment system certificates for its broiler farms and duck farms in 2011. CPF aims to receive DLD’s compartment system certificates for its slaughter houses in 2018, Mr Siripong added.
|Indonesia lifts restriction on imports of secondary cuts, offal|
[30 September 2016] Indonesia has lifted a 21-month restriction on imported rump and chuck steak, in addition to edible offal — including liver, heart, feet and lungs — in a move towards reopening a market worth at least USD 42 million to Australian exporters. The lifting of the blanket restriction, which Acting Prime Minister Barnaby Joyce said will benefit farmers and meat processors, follows the resumption of talks earlier this year towards negotiating a free trade deal between Australia and Indonesia. Mr Joyce said the Indonesian decision will restore certainty to rural communities, noting that Australian producers shipped almost 20,000 tonnes of secondary beef cuts to Indonesia in 2014, representing a USD 42 million share of the total boxed beef trade with Indonesia of USD 327 million. Mr Joyce added that Indonesian demand for protein will continue to increase over the next three decades, with its population forecast to grow by almost 25% to 322 million by 2050.
|South Korea considers lifting ban on Thai frozen chicken|
[30 September 2016] South Korea’s Quarantine Inspection Agency (QIA) delegates visited and inspected 12 Thai chicken plants this week and will decide later this year whether to lift its 12-year ban on Thai frozen chicken, said Sorravis Thaneto, Deputy Director General of Thailand’s Department of Livestock Development (DLD). Frozen chicken exports were suspended in 2004 due to outbreaks of avian influenza in Thailand. The country exported 42,580 tonnes of frozen chicken to South Korea in 2002. Dr Sorravis said there are 53 plants, which aim to export frozen chicken to South Korea. QIA has inspected disease surveillance systems, hygiene systems and food safety systems at the plants. If South Korea gives the green light to Thailand, chicken producers will export its frozen chicken products to South Korea early next year, Dr Sorravis said, adding “we estimate that our export prices will be around USD 3200 per tonnes.”
|Indonesia setting up integrated fish cold storage in Natuna|
[30 September 2016] Indonesia’s Ministry of Fisheries & Marine Affairs is currently setting up an integrated cold storage facility in Natuna archipelago. The facility, which will have a capacity of 200 tonnes and cost around USD 856,000, is expected to start operation in early 2017. The facility will be equipped with an air blast freezer and a 10-tonne ice flake machine. Nilanto Perbowo, Director of Fish Products Competitiveness said once the project is finished, the ministry will expand the capacity to 3200 tonnes. “With the facility, we want to enhance our fish quality and production efficiency. In addition, we want to attract local and foreign investors to invest in fish processing facilities in Natuna archipelago,” said Mr Perbowo.
|Shortage of chicken in the Philippines possible during Christmas holidays|
[29 September 2016] The Philippines could be facing a shortage of chicken during the latter part of the year particularly during the Christmas holidays, Ronald Mascariñas, President of Bounty Agro Ventures Inc (BAVI), one of the Philippines leading poultry integrators, told Asian Agribiz. While there is currently an oversupply in Luzon, which has led to a drop in live prices, he said the same is not true in the Visayas and Mindanao, where prices have gone up due to tight supply. Industry monitoring indicates a possible shortage, he said, adding that it would be a good idea for the government to allow some imports later this year just to help stabilise prices.
|India’s egg processing industry needs a backup plan |
[29 September 2016] India exports roughly 15,000 tonnes of egg powder per year. Some 40% of the country’s exports go to Japan followed by Europe (30%), Russia and others. According to Viney Sharma, Consultant, the export market is seen to grow 5-7% per year. Despite this it could face challenges as almost all of the products are exported. “The industry is subject to international fluctuations. There is almost no domestic market to absorb the difference. The local market prefers shelled eggs as it is cheaper. India must create a local market and promote these products as processed eggs are safe and convenient,” he told Asian Agribiz at the recently-concluded IEC Global Leadership Conference in Kuala Lumpur.
|China imposes anti-dumping measures on US DDGs|
[29 September 2016] China has decided to impose anti-dumping measures on distiller's dried grains (DDGs) from the US by requiring importers to pay cash deposits on purchase, effective September 23, the Ministry of Commerce said in its preliminary ruling following an investigation launched early this year. Importers of the product must place deposits with China Customs at 33.8% of the import value, according to the ruling. Data from China’s Ministry of Agriculture shows that the nation imported 1.92 million tonnes of DDGs in the first seven months of 2016, down 46% from a year earlier.
|Indonesia is not serious about beef self-sufficiency|
[29 September 2016] Executive Director of the Institute for Development of Economics and Finance, Enny Sri Hartati said Indonesia’s government is not serious about achieving beef self-sufficiency. “The government should increase local beef production and decrease beef import volume,” she said. In 2015 the government was ambitious about this by targeting to import 50,000 heads of breeding cattle. The figure was then dramatically slashed to only 5000 heads, and until now this plan has not been realised. On the other hand, the government chose to flood the market with imported beef, not only with beef from Australia, but also with carabeef from India. The focus now is on protein self-sufficiency rather than beef self-sufficiency."
|Yeeda eyes beef markets in Southeast Asia|
[29 September 2016] Western Australia’s Yeeda Pastoral Company, which is mainly financed by Hong Kong based ADM Capital, has officially opened its Colourstone processing facility near Broome. The facility is capable of processing 37 heads of cattle per hour, or up to 70,000 heads per annum, on one shift. Chris Botsford, founding partner and joint CIO of ADM Capital, said demand for good quality beef in emerging markets is increasing. “Yeeda’s processing facility will produce halal certified beef that is in demand in various markets of Southeast Asia and the Middle East,” said Mr Botsford. Yeeda is a fully integrated beef production, processing and distribution business in far north Kimberley region, with 80,000 heads of cattle and capacity to increase its herd to 100,000 heads.
|Native chicken to be priority in animal protein self-sufficiency |
[29 September 2016] Indonesia is dependent on supply from foreign countries such as the US, Germany and France for commercial broiler and layer GGPS, GPS and PS. According to Nasrullah, Director of the Directorate General of Livestock & Animal Health of the Ministry of Agriculture, the time is right to focus on breeding native chicken. “It’s a long-term investment, but it’s important for the supply sustainability of chicken in the country,” he said. Mr Nasrullah revealed that the Ministry of Agriculture has included native chicken as one priority in the road map for animal protein self-sufficiency 2045. “We expect local companies to help produce and distribute quality native chicken breeds throughout the country,” he said.
|Mindanao pig producers have most potential for pork exports from Philippines|
[28 September 2016] Pig producers from Mindanao, particularly those in the Soccskargen region, have the most potential to export Philippine pork. “We have the most competitive, if not the cheapest, price throughout the Philippines,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz. The region includes General Santos City and nearby towns, which collectively make up one of the biggest pig production areas in the country. Earlier, Philippine Agriculture Secretary Manny Piñol said the government will support the revival of plans to export pork, but Mr Tan said there is need to study what is the most effective negotiation strategy to take for exports to happen: government to government, private to private or private to government.
|Thailand’s Bangkok Ranch sets up new subsidiary and joint ventures|
[28 September 2016] Thailand’s Bangkok Ranch (BR) will set up a new subsidiary and two new joint ventures, aiming to expand its existing and new business. The company will soon establish its new wholly owned subsidiary, Crowned Eagle Company limited. Crowned Eagle, which has a registered capital of USD 288,882, will engage in retail, food and restaurant business. Moreover, BR will set up two new joint ventures, Kosovo Food Company limited and Heng Tai Company Limited. BR’s investment value in Kosovo Food will not exceed USD 168,781 and it will engage in food manufacturing.
|Sumber Unggas supplies black chicken to supermarkets in Jakarta|
[28 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeder's based in West Java, has started selling Cemani (black chicken) carcass to retailers in the Greater Jakarta. “We have supplied our Cemani carcasses to Carrefour and Lotte Mart. A 600-700g Cemani carcass retails at USD 7.65,” Naryanto, owner and Managing Director told Asian Agribiz. “Demand is growing. Currently we have around 3000 Cemani chicken PS in our breeding facility in Bogor regency. We plan to increase the PS numbers following the increasing carcass demand,” he said. Sumber Unggas has a 2000 bird/hour chicken processing plant to process its Cemani chicken.
|China extends anti-dumping duties on US chicken|
[28 September 2016] China has decided to maintain anti-dumping duties on imports of US white-feather broiler products for another five years, effective September 27, said the Ministry of Commerce. The duties are mostly set at 60.7%, with Pilgrim's Pride, Tyson Foods and Keystone Foods incurring 73.8%, 49.5% and 46.6%, respectively. Earlier, China decided to impose five more years of anti-subsidy duties on US chicken. Both the duties expired last September, and a new investigation by the commerce ministry found that “the domestic broiler industry could be jeopardised if the duties stopped”.
|Proper system should be in place to control poultry diseases|
[28 September 2016] Diseases such as avian influenza can only be controlled if the birds are culled. According to Ben Dellaert, Chairman, International Egg Commission (IEC), there must be a system to have disease registered as soon as possible or it will be difficult to stem the outbreak. “Most important here is a compensation system. Producers must report outbreaks but if they do not know how it will end financially for them they may be reluctant to report. So it is important for governments to have a decent compensation scheme. This is done differently in different countries,” he told Asian Agribiz at the recently concluded IEC Global Leadership Conference in Kuala Lumpur.
|Indonesia’s Modern International to relocate low-performing 7-Eleven outlets|
[28 September 2016] In order to achieve a total income of USD 92 million, Modern International, the operator of 7-Eleven in Indonesia, has decided to consolidate its business and relocate several low-performing outlets. “Our main target consumers are office workers. So we will relocate the low-performing outlets to more prospective locations,” said Neneng Srimulyati, PR Corporate Communication. In the second half of this year, Modern, which currently has 188 7-Eleven outlets, plans to open 12 new outlets. For this expansion, the company has allocated around USD 765,000.
|Putra Perkasa Genetika to launch hybrid duck|
[27 September 2016] After taking five years of selection and more than USD 153,000 in investment, Indonesia’s Putra Perkasa Genetika will soon launch its meat-type duck Gunsi 888. Gunsi 888 is the crossbreed of native Mojosari duck and Khaki Campbell duck. Ang Hendra, owner & Managing Director told Asian Agribiz that the hybrid duck takes only 35 days to reach 1.2-1.4 kg of harvest weight. Currently Putra Perkasa produces 550,000 DOD/month from its 60,000 PS farm in Gunung Sindur, Bogor. With the new hybrid duck, the company plans to increase its DOD production to 1 million/month in 2017, and then 2 million/month in 2018. For this target, Mr Hendra said the company has prepared 24 farming houses and eight incubators with a capacity of 70,000 eggs per incubator.
|Vissan imports breeders to improve productivity, traceability|
[27 September 2016] Viet Nam Meat Industries JSC (Vissan) has brought in 220 GGPs from the US which the company said will result in better productivity and lower cost, as well as allow traceability in Vissan’s closed production chain. Luu Ngoc Giao, Director of Vissan’s swine production farm, said that “importing breeders is an important part in our strategy of developing the productivity and quality of the breeding herd and completes the company's 3F (Feed-Farm-Food) traceability program.” The GGPs consist of Duroc, Landrace and Yorkshire breeds from Clayton Agri-Marketing and Vissan expects to start selling commercial pigs from these breeders in 10 months.
|Increase of 5-7% in Thai chicken meat production in 2017 |
[27 September 2016] Thai chicken meat production is forecast to increase by 5-7% in 2017 due to potential growth in export demand driven by the robust prices for live broilers and chicken meat and the anticipated increase in chick production capacity, according to the USDA's GAIN report. Also, reflecting trends in the tourism industry and an anticipated recovery in the Thai economy, domestic consumption of chicken meat should increase by 4-5% in 2017, as compared to 3% in 2016. This year, Thailand’s broiler industry successfully avoided the potential supply bottleneck which could have occurred after the Thai Government imposed an import ban on chicken genetics from the US in December 2014. Chicken meat production for 2016 is estimated to grow by 5% over the 2015 level.
|IEC to push for sustainable production at OIE working group on animal welfare|
[27 September 2016] There are regional differences with egg production and one global recommendation for animal welfare for the industry will not work. Ben Dellaert, Chairman, International Egg Commission (IEC), said the World Organisation for Animal Health’s advice on animal welfare of hens is due in 2019. Discussions start end of the year and the IEC is a participant in the working group. “In the US and Europe there is demand for cage-free products. In Latin America and Asia the demand is different. Here it is important to deliver affordable eggs sustainably. Market and science must be the driver of the recommendation,” he told Asian Agribiz at the recently-concluded IEC Global Leadership Conference in Kuala Lumpur.
|Australian beef, cattle exports face challenges from Indian carabeef|
[27 September 2016] Australian Meat Industry Council Chairman, Lachie Hart said the biggest challenge facing Australian beef and live cattle exports to Indonesia is the importation of cheap Indian buffalo meat. “It is something we are watching and we are concerned from a couple of fronts,” he said. “It is a cheap protein [the buffalo meat from India]. It is certainly going to compete directly with our secondary cuts and our offal items in that particular market. But I am concerned that we don't see Indian buffalo meat imports undermining the whole market in Indonesia,” Mr Hart explained. According to him, it is important for Indonesia to maintain some level of base pricing to ensure its own domestic production is viable and sustainable in the long-term.
|Japan, Korea interested to invest in India’s seafood industry|
[27 September 2016] Two major forces in the seafood sector, Japan and Korea, have expressed interest in investing in value addition of seafood products in India which have touched USD 4.5 billion annually in exports, according to Nirmala Sitaraman, Union Commerce Minister. “Japan and Korea can bring the technology and best practices from the world over and implement it here in a cost effective manner,” Ms Sitaraman said. At present Andhra Pradesh accounts for 45% of India’s total seafood exports. “We want to increase it to 60-70% in the next couple of years. We have already increased allocation for the seafood sector,” said N Chandrababu Naidu, Andhra Pradesh Chief Minister.
|Thailand’s Bangkok Ranch to expand its food business|
[26 September 2016] Thailand’s Bangkok Ranch (BR) aims to expand its food business in European markets, Joseph Suchaovanich, Managing Director of Asia and Asia Pacific at BR told Asian Agribiz. “BR foresee intense competition in the live ducks segment in Europe,” he said. Meanwhile, Chinese players have expanded their roasted duck business in European markets. BR recently bought a food processing plant in Pathum Thani province and the company is sourcing equipment for the new plant. “The combined investment will be around USD 20 million. In the near future, we will export more processed SKU of duck meat to Europe, Japan and other countries,” Mr Joseph said, adding that these new products will offer better profit margins and help reduce pressure from conventional products and markets.
|Sumber Unggas to produce 100k native chicken DOC a week|
[26 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeder based in West Java, early next year will start to construct five new native chicken PS houses with an investment of USD 191,000. Naryanto, owner and Managing Director told Asian Agribiz that the new semi-closed houses are targeted for operation at the end of 2017. “With the new houses, we will be able to produce 100,000 native chicken DOC per week,” said Mr Naryanto. Sumber Unggas produces different types of native chicken DOC including KUB, selected Sentul, KUB-Sentul crossbreed, Cemani (black chicken), Kedu and Pelung.
|Muyuan Foods to build 1m head pig farm in central China|
[26 September 2016] Chinese pig producer Muyuan Foods said it has signed an agreement with the city government of Laohekou in central China to build a pig farm that is able to produce 1 million heads a year. A 300,000 tonne feedmill will be added to the project that is estimated to cost over USD 172 million. Muyuan’s first-half live pig sales increased 35% year-on-year to 1.15 million heads, including 0.83 million finished pigs and 0.32 million piglets. The company targets to produce 2.8-3.5 million pigs this year.
|France to establish sustainable pork production chain in Mekong|
[26 September 2016] Paris has just inked a cooperative agreement between French enterprises and Vietnamese pork farmers to establish a safe pork production chain called ‘Le Porc du Mekong’. The agreement aims to produce safe, high quality pork products as well as establish a transparent, strictly controlled closed pork production system in Vietnam’s Mekong Delta. French companies that are participating include Neovia Vietnam to provide feed, Grimaud Group for breeders, and Le Boucher, who will take charge of processing and distributing finished products to the market. Already some 600 Vietnamese pork producers have expressed their wish to officially participate in the project.
|Indonesian government recommends import of 66,000t of beef|
[26 September 2016] Indonesia’s Ministry of Agriculture has given import recommendations to 14 importers to bring in 66,158.5 tonnes of beef to the country for the horeca and meat processing industries. Of this figure, allocations for secondary cuts and industrial meat are 21,991 tonnes and 21,765 tonnes, respectively, while the remainder is for premium cuts. Sri Mukartini, Director of Veterinary Public Health said: “We don't use quarter-based import system anymore. Beef import can be done throughout the year.” Of the 14 companies, Ms Mukartini said Agro Boga Utama (11,275.7 tonnes), followed by Indoguna Utama (9000 tonnes) and Bayu Jaya Lestari (7000 tonnes), received the largest import quota.
|Nampa members eye regional export markets|
[23 September 2016] Indonesian meat processors incorporated under the National Meat Processors Association (Nampa) are considering exports. Ishana Mahisa, Nampa Chairman told Asian Agribiz that they are exploring market potential in the Southeast Asian region. “Canning Indonesia Products, our member based in Bali, exports its canned meat products to Brunei and Vietnam. In the near future, San Miguel Pure Foods Indonesia will also export its products,” he revealed. Mr Mahisa said this is proof that the government has to support this industry. “We hope the government will allow imports of chicken MDM [mechanically deboned meat] to further develop this promising industry,” he added.
|China lifts 15-year ban on US, Canadian beef imports|
[23 September 2016] China has lifted a ban on imports of deboned and bone-in beef from US cattle below 30 months, effective September 22, said the Ministry of Agriculture (MOA) and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). The US beef imports are still subject to Chinese standards on traceability and quarantine, which will be released later, said the two ministries in a joint statement. Meanwhile, the AQSIQ and MOA said the nation also lifted a ban on Canadian bone-in beef from cattle below 30 months, effective September 19. Products from the US and Canada were banned by China from 2001 on concerns over the spread of mad cow disease.
|Thailand’s CPF sees growth potential in premium sausage |
[23 September 2016] Although the market value of premium sausage is small in Thailand, the segment has future growth potential, Thailand’s Charoen Pokphand Foods (CPF) told Asian Agribiz. “We believe that the premium sausage market will continue to grow. Sausage is easy to consume and the products are convenient and suitable for all ages,” it said. Moreover, the passion for food is growing in Thailand, opening more opportunities for premium sausage. CPF has launched its premium sausage under the Bucher brand. The brand targets urban consumers, who prefer original sausage recipes. The company said that its raw material, including pork and chicken meat, is free of growth promoters and beta-agonist. CPF has developed original German sausage recipes for the Bucher brand.
|Sumber Unggas receives breed acceptance certificate|
[23 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeders based in West Java, yesterday received the breed acceptance certificate (SKLB) from the West Java Animal Husbandry Agency for the production of selected Sentul chicken PS. “With the SKLB, our customers will be guaranteed that the Sentul chicken PS we produce follows good breeding practices,” Naryanto, owner and Managing Director told Asian Agribiz. Currently Sumber Unggas is able to produce 3000 selected Sentul chicken PS DOC per month. The price of Sentul chicken PS DOC is USD 2.3. “Half is sold to native chicken breeders under the Indonesian Native Chicken Breeders Association [Gapali] and the rest is for my internal needs,” said Mr Naryanto.
|Nepalese millers lower feed prices over input price drop|
[23 September 2016] The price of poultry feed in Nepal has contracted by as much as USD 0.02/kg. Price of a 50-kg bag of broiler feed has come down by USD 0.93, while a 50-kg bag of layer feed now costs USD 0.69 lower. Rabin Puri, General Secretary of Nepal Feed Industries Association, said the association decided to reduce the price of feed after the price of key inputs fell. “The price of soybean meal and corn has come down. It is expected to go down further,” he added. Over a dozen companies in the country are producing poultry feed. All of them have lowered their price following the decision of the association.
|Eggs offer a good daily dose of Vitamin D|
[22 September 2016] "Enhancing eggs with Vitamin D can help producers add to their margins as well as contribute to better health for consumers," Linda Christine Browning, Nutrition Consultant, University of Sydney, Australia told Asian Agribiz on the side-lines of the International Egg Council's Leadership Conference in Kuala Lumpur, Malaysia yesterday. "Vitamin D is good for strong bones and controls 85% of the calcium transfer across the intestines. Its importance to human health is profound and eggs are a valuable source of Vitamin D," she explained. Dr Browning will be addressing participants at Asian Agribiz's Layer Feed Quality Conference in Jakarta, Indonesia and Kuala Lumpur in October. More details and registration form are available here.
|Indonesia to increase corn planted area to meet feed industry demand|
[22 September 2016] Indonesia’s Ministry of Agriculture has firmly said that it will continue to suspend corn imports. To meet local demand, especially from the animal feed industry, the ministry has allocated USD 228 million to increase corn planted area in the country. The ministry targets to open 724,000 ha this year and 300,000 ha next year for corn planting. “We will support corn farmers with hybrid corn seed, fertilizer and pre and post-harvest equipment,” said Andi Amran Sulaiman, Agriculture Minister.
|CP Vice Chairman joins Yum China board|
[22 September 2016] Yum! Brands Inc has named nine new directors for the board of Yum China Holdings, including Chan Yiu-Cheong, Vice Chairman of Charoen Pokphand Group. Mr Chan, the former President and CEO of Walmart China, has also been an Executive Director and Vice Chairman of CP Lotus since April 2012. The new board will be led by Fred Hu, Chairman and Founder of investment firm Primavera Capital Group that will make a USD 410 million strategic investment in Yum China, concurrent with the completion of Yum China’s spinoff from Yum! Brands. The spinoff is expected to occur on October 31, with Yum China to commence trading on the New York Stock Exchange as an independent company on November 1.
|Malaysia to roll out corn planting project to slash feed ingredients import bill|
[22 September 2016] Malaysia currently imports 4 million tonnes of corn worth about USD 775 million a year. According to Agriculture and Agro-based Industry Minister Datuk Seri Ahmad Shabery Cheek the import of corn causes a high outflow of currency to foreign markets. “The trade deficit for Malaysia’s agro-food was USD 4.5 billion in 2015 and feed made up USD 1.4 billion of the cost, about 50% from corn alone,” he said. The minister hopes roll out a corn farming project nationwide within two years to reduce the country’s dependency on imported corn by at least 50%. “Corn is a crucial raw ingredient for feed, but we import nearly 100% of it,” he said.
|Itochu’s Canadian subsidiary to expand production for Japan market|
[22 September 2016] Itochu’s Canadian subsidiary HyLife Group Holding plans to boost its pork production with a USD 87.9 million investment as demand from Japan continues to grow. HyLife expects supply to increase by 15% in 2018. The company will develop products that match consumer tastes and are priced about 30% below Japanese pork. HyLife is a swine integrator that produces feed, operates swine farms and does processing. It exports roughly 40% of its production to Japan. Pork consumption rose 3% in fiscal 2015, Japan’s Agriculture Ministry reported. More than half of the meat was domestic, with the rest coming from the US, Canada and Denmark. Mexican pork is also making gains.
|Japfa and Cargill jv in cooked poultry products production|
[21 September 2016] PT So Good Food, the Indonesian subsidiary of Japfa Ltd, and PT Cargill Food Investment Indonesia have entered into a 40-60 joint venture to produce and supply fully-cooked poultry products in Indonesia. The strategic partnership will further boost PT So Good Food’s capabilities in consumer food processing technologies, product innovation and quality assurance by leveraging Cargill’s broad industry expertise. Both Japfa and Cargill will also work together to produce a new range of value-added consumer food products. Besides toll manufacturing for PT So Good Food, the joint venture company, PT Cahaya Gunung Foods, will supply high quality products to the institutional sector as well as convenience stores and petrol kiosks in Indonesia. It will also have the capability to export products to the region.
|BRF buys 70% stake in Malaysian meat processor |
[21 September 2016] Brazilian food conglomerate BRF has entered into an agreement with Malaysian agri-food company FFM Bhd to acquire 70% stake in its subsidiary FFM Further Processing for USD 16 million. This comes as the business embarks on a major effort to enhance its position in Southeast Asia. BRF said its investment in the company is “In line with BRF’s strategy… to strengthen its focus in Muslim markets”. The further processing company produces 250 tonnes of frozen sausages, chicken nuggets and burgers per month. These products are sold under the brand names Marina and Seri Murni.
|Vasep to sue US over unreasonable anti-dumping tariff on shrimp|
[21 September 2016] The Vietnam Association of Seafood Exporters and Producers (Vasep) said it plans to sue the US Department of Commerce over its final conclusion in the 10th administrative review (POR10) of anti-dumping duties on shrimp products imported from Vietnam. Vasep denies the charges and will ask for the tariff to be brought back to zero level. According to the Vietnam Competition Authority under the Ministry of Industry and Trade, POR10 was applied to frozen shrimp shipments imported into the US from February 1 2014 to January 31 2015. Voluntary respondents are subject to an anti-dumping duty rate of 4.78% while the tariff imposed on other Vietnamese firms or exporters remains at 25.76%.
|Indonesia’s Ag Ministry ties with millers to absorb local corn|
[21 September 2016] Indonesia’s Ministry of Agriculte has signed an MoU with the Indonesian Feed Millers Association (APPI) to absorb 8.62 million tonnes of local corn at a competitive price for the next 12 months. As many as 41 feed millers will buy the corn at the government’s fixed price of USD 0.24 per kg. The cooperation will be implemented in 29 provinces, in which each province will have one miller as the coordinator. Desianto Budi Utomo, APPI Secretary General said the association is ready to support the program, especially while the government is halting corn imports, forcing them to rely on local corn for the production of animal feed.
|SOPA promotes sbm exports to five Asian nations|
[21 September 2016] Encouraged by a good harvest of soybean this season, India’s Soybean Processors Association (SOPA) is sending a five-member delegation to Far-East and South-East Asian countries to promote export of soybean meal (sbm). The government has extended its support to SOPA in its promotion efforts. The delegation, led by Chairman Davish Jain, will be visiting Thailand, the Philippines, Vietnam, Indonesia and Japan this month. According to Dr Jain, the delegation will explore markets in these countries and meet buyers and trade bodies. India's exports declined in the last couple of years, due to disparity in prices. In view of the good crop prospects, SOPA sees the possibility of India re-entering these markets with competitive prices.
Innovation leads value-added seafood category to big gains
[19 September 2016]
The value-added seafood industry across Asia continues to grow, backed by lifestyle changes, a growing middle class and consumers who are health conscious. But Asian consumers are not looking for ordinary seafood products, they demand convenient, healthy and delicious products.
Seafood moving towards further processed products in Thailand
Thailand has seen many value-added seafood products that suit consumer lifestyle and are beneficial to health, being introduced said Anurat Khokasai, CEO of Thailand’s Prantalay Marketing. However, value-added products alone are not enough to win over consumers. Prantalay understands Thai consumer behaviour and has identified some major trends. “Consumers want convenient, healthy and delicious food, at a good price. The food industry will change and follow the trends,” said Mr Anurat. In order to stay competitive and satisfy consumers, Pratalay produces a range of frozen and chilled products, ready meals, seafood snacks, fish noodles, imitation crab and shrimp.
CP Prima develops its further processed seafood business
Indonesia’s largest shrimp producer and processor Central Proteina Prima (CP Prima) is bullish about seafood based ready-to-cook (RTC) and ready-to-eat (RTE) products in Indonesia. Sutanto Surjadjaja, Vice President Director, said this category is relatively new in Indonesia. However, “we believe this category, along with the economic growth and lifestyle changes, will continue to grow,” he said. Currently, CP Prima has two further processing plants in Lampung and East Java with installed capacities of 350 tonnes/month and 100-150 tonnes/month, respectively. “In total, our current installed capacity is around 500 tonnes/month, while the used capacity is half. And we are now looking for a location to set up a new plant,” Mr Surjadjaja said.
Adib to venture into further processed fish products
Indonesia’s Adib Global Food Supplies, a leading halal meat and seafood distributor and processor, plans to venture into further processing. “We have produced nuggets and balls from pangasius. It’s still on trials, but we will produce for commercial sales soon. For that, we will install a fish ball machine,” said Ardi Wijaya, Adib Vice President, adding that the company will also produce fish paste or surimi in the near future. Adib will focus on further processed products as the profit margin is good. Within the next five years, production of its further processed products should be bigger than the fillet production said Mr Wijaya. Meanwhile, every day Adib’s fish processing facility in Karawang, West Java processes 6 tonnes of pangasius and produces around 2.5-3 tonnes of pangasius fillet.
Consumption of aquatic products in China is set to grow
Zhanjiang-based prawn and tilapia integrator Guolian Aquatic Products Co is China’s largest exporter of prawns to the US, accounting for about 40% of the total. It is the only seafood company in China that can export shrimp to the US at no tariff. Nevertheless, the company has been expanding its presence in the domestic market since 2014 by introducing premium seafood worldwide for local consumers. “China has a population of nearly 1.4 billion, and people here have a special liking for delicacies,” Guolian said in a statement. “With the rise of their income level, more and more Chinese demand nutritios, and the consumption of aquatic products is set to grow,” it said. Guolian also added that product R&D is crucial for the seafood sector and seafood suppliers need innovations in nutrition and preservation to lead the consumption trend.
Gadre Marine bullish on India’s value-added seafood market
India’s Gadre Marine, a seafood processing and packaging unit, aims to double its revenue this year. “We have finished at USD 82 million,” said Arjun Gadre, second generation of the family business. Hence, the company targets sales of its value-added seafood products in local markets to reach 500 tonnes this year, from 250 tonnes last year. For exports the company last year exported 34,000 tonnes of fish and produced about 14,000 tonnes of value added products made from shrimp, squid, cuttlefish and other fin-fish. Meanwhile, Mr Gadre said the taste and habits of the consumers in India are changing. Especially in seafood, now the customers are accepting the frozen fish due to its good quality and availability throughout the year. Also the young generation prefer ready-to-cook and ready-to-eat seafood due to its cooking convenience.
Thailand’s CP Foods expands to India
Thailand’s Charoen Pokphand Foods (CP Foods) has started a processing plant in India, with plan to install machinery for producing cooked shrimp for the US market, said an executive of the company. In March, the company started production in a plant in Visakhapatnam, Andhra Pradesh. At the moment, CP Foods is looking to ramp up to 6000 tonnes of finished product volume. The focus is on commodity products at the moment, but CP Foods will gradually introduce cooked products and then other value-added items in the future, the executive said. CP Foods has leased a plant, he said. “We will put in a cooked line, later this year or early next year.” Meanwhile, the company has expanded production from its own farms in India to 1500 tonnes, he said.
Thai Union eyes India market
Thai Union Group (TU) is expanding to India, driven by the impact of EMS in Thailand. “We don’t want to rely on only one source. If disease comes, we want to minimise the risk, manage the risk. For Thai Union and also our customers,” said Rittirong Boonmechote, TU President for Global Shrimp Business. TU has a joint venture in India. Test production will start in June in Avanti Foods, the Indian joint venture plant with Avanti Feeds. Mr Rittirong said he wants the plant to be able to produce a full range of products, including value-added. “We can provide more variety of sources all of the same quality, with everything managed by our people,” he said. The plant will house raw, cooked and value-added production lines with raw material production capacity of over 25,000 tonnes a year, Mr Rittirong said.
Milkfish products in the Philippines
When it comes to further processing, the product that gets the most attention in the Philippines is the milkfish, locally known as bangus. It is now available in a variety of cuts and RTC and even RTE preparations in supermarkets. The most common processed milkfish products on the market today are boneless bangus. For most processors, domestic market where margins are better, is priority. Although popular among Filipinos, many overseas markets are still unfamiliar with the milkfish. Thus, export volume is relatively small. One big processor that is present in the export market for milkfish is Fisher Farms Inc (FFI). It exports about 60% of its products. About 30% goes to the horeca industry and only 10% is served in the retail market. FFI has been introducing and promoting value-added milkfish products in supermarkets and groceries.
Challenges in the Philippines’s value-added seafood industry
Although the seafood potential is huge, there are challenges to value addition in the Philippines. In the Philippines one challenge is that most local consumers still prefer their fish fresh. The FAO notes that about 70% of the fish is either consumed fresh or chilled. Philippine processors, meanwhile, are increasingly turning to mechanisation and better technology to reduce cost and ensure consistent quality. However, the next challenge is consistent supply, especially for processors of seasonal products like shrimp, tuna, cuttlefish and crabs. Chingling Tanco, Managing Director of Mida Trade Ventures International Inc and Mida Food Distributors Inc, said many local processors in the Philippines are unable to achieve economies of scale because supply of raw material can run short in the local market.
Growing RTE market in Malaysia
Malaysian medium-sized company Seiko Foods, a processor of halal value-added seafood products, has adopted a new strategy for the local market. The company produces ready meals packed in aluminium trays. The containers act as both baking trays to cook the frozen meal as well as a plate to eat the meal. This has given the company the breakthrough it needed to advance into the RTE market. The company has introduced Yellow Tumeric Sauce, Spicy Thai Sauce, Sambal Tumis Sauce and Ginger and Garlic Sauce, all using fillets of the white tilapia. According to Alan Lim, Seiko Foods CEO, the products were developed for the China market. The company is hoping to get funds to be able to export its products.
Malaysia’s Figo Foods expands capacity of seafood products
Malaysian company Figo Foods, a subsidiary of QL Resources, is the largest surimi fish paste maker in Asia. “Besides adding value, we want to give our customers convenience,” said Lee Teck Wee, Figo Foods Executive Director. The company produces various value-added products including cuttlefish balls, fish balls, prawn balls, and samosa. By June 2017 Figo Foods hopes to fully operate out of a new processing plant with a capacity to produce 40 tonnes/day of seafood products and is expandable to 60 tonnes/day. Its existing plant, can produce up to 12 tonnes of seafood per day. One of many reasons for the new plant is parent company QL Resources’ decision to enter the convenience store business with Japanese franchise FamilyMart. When FamilyMart opens it outlets, Figo Foods hopes to be ready with its range of premium RTE products.
|Cargill Indonesia building new feedmill in East Java|
[16 September 2016] Cargill Indonesia is currently setting up a new feedmill in Pasuruan, East Java with an installed capacity of 100,000 tonnes/year. This facility is expected to start operations in early 2017. Arief Susanto, Director told a local media that the construction is already around 70-80%. “Once the feedmill is ready for operation, we will use the capacity gradually. In the first phase, we will use around 30-40% of the installed capacity,” Mr Susanto said. With the addition of the new feedmill, Cargill Indonesia’s total feed production capacity increased to 400,000 tonnes/year. In the country the company already has six feedmills located in North Sumatera, Banten, West Java, Central Java, East Java and South Sulawesi.
|Vietnam to focus on native chicken development|
[16 September 2016] Vietnam’s Department of Livestock Production said the price of commercial broiler will continue to decline and has urged local enterprises to focus on stocking coloured feather chicken, or native chicken. It justified this call by saying that coloured chicken better suits local consumer preferences and requires low investment. Besides it uses local feed which is easily available and cheap compared to commercial feed. Coloured chicken is also said to be better priced in the local market. White chicken growers in Vietnam and especially in the southern poultry production hub of Dong Nai and Binh Duong provinces, are facing losses due to heavy dependence on input elements such as breeding stock, feed, veterinary drugs and low breeding technology as well as high production cost.
|GGL develops grassroots cattle breeding program|
[16 September 2016] Indonesia’ Gunung Sewu Group’s subsidiary Great Giant Livestock (GGL) is helping to support Indonesian cattle farmers to increase their herds. Concerned about the sustainability of the beef industry, GGL has a grassroots breeding program underway targeting small farms. Dayu Ariasintawati, Director said GGL is introducing stock with stronger genetics to improve local herds. “That’s part of the teaching and how to do the breeding to avoid negative selection,” she said. Ms Ariasintawati further explained that the company wants to work with farmers to define any opportunity to develop the business model. “Hopefully with this operation, with careful calculations, we can have a model that’s beneficial for both parties,” she added.
|Korea, Japan top buyers of US beef|
[16 September 2016] Asian markets outside China, notably South Korea and Japan, were the biggest buyers of US beef in July, said trade data from the US Meat Export Federation. Beef exports to Japan increased by 12% compared to a year ago while beef shipped to South Korea rose by 37%. Both countries also increased imports of US beef offal in July. January to July imports of US offal are up 6% from last year’s figure with the US exporting a total of 185,722 tonnes of beef by-products worth USD 4921 million. “We are pleased to see demand for US beef variety meats increasing in other markets,” said Philip Seng, USMEF President and CEO.
|Russia looks to flood Asia with soy, wheat and fish|
[16 September 2016] In five years the Russian Far East hopes to export food products to Asian countries. The devaluation of the rouble, the cost of labour and energy in Russia has decreased significantly making agricultural products up to 15% cheaper than in China, said Vitaly Sheremet, KPMG Partner in Russia and China. The most promising markets for the Russian Far East are China, South Korea and Japan, he added in an article. According to the Russian Ministry of Agriculture, Russia faces a huge trade deficit with Asian countries in agricultural products. Exports from Russia total just 29% of the overall trade between Russia and Asian countries.
|Shuanghui to sell chilled pork products on JD.com|
[15 September 2016] China’s top pork processor Shuanghui Group said it has signed an agreement with JD.com to sell its chilled pork products via the Chinese e-commerce giant, which has about 180 million active users. The products put up for online sales include pork slices, dices and minces, and will be expanded to prepared items, soup dishes and snacks. Shuanghui introduced China’s first chilled pork processing line in 2000, and now the company has 18 chilled pork complexes across the country and is able to deliver its products to almost all provinces within a day with cold chain. “There is great potential for chilled pork consumption in China, as warm meat still dominates the market, while chilled products account for only 20%,” Shuanghui said.
|Bayer and Monsanto to merge|
[15 September 2016] Bayer and Monsanto yesterday announced that they signed a definitive merger agreement under which Bayer will acquire Monsanto for USD 128 per share in an all-cash transaction. Monsanto's Board of Directors, Bayer's Board of Management and Bayer's Supervisory Board have unanimously approved the agreement. This transaction brings together two different, but highly complementary businesses. The combined business will benefit from Monsanto's leadership in Seeds & Traits and Climate Corporation platform along with Bayer's broad Crop Protection product line.
|Indonesia to issue permits to import 700,000 cattle next year|
[15 September 2016] Indonesia’s government said it will issue permits to import 700,000 cattle for slaughter in 2017 as well as to ship in additional buffalo meat from India, as it looks to control climbing food prices. “This is being done to push down prices that are still high, and to prepare for demand during the Muslim fasting month in 2017,” said the Economic Ministry in a statement. Indonesia ships in virtually all its cattle from Australia - a trade that was worth nearly USD 600 million in the last financial year. The government late last year estimated that the country will import around 700,000 heads of cattle in 2016.
Regional dairy update
[15 September 2016]
Vinamilk eyes second milk company in the US
Vietnam Dairy Products JSC, or Vinamilk, Southeast Asia’s biggest milk is seeking to buy a second company in the US as part of its global merger and acquisition strategy. Chief Executive Officer Mai Kieu Lien in an interview with Bloomberg said the deal is expected to close as early as next year. She declined to give the name of the target or the value of the deal. Vinamilk already has a stake in California-based Driftwood Dairy. Vinamilk targets annual revenue of USD 3 billion by end 2017.
China’s Fortune Ng Fung to spin off dairy business
Chinese beef producer Fortune Ng Fung Food Co said it is planning to put its dairy branch up for sale, so as to focus on its core business. The dairy farm, opened in 2004, is able to house up to 6000 cows. It now has a stock of 3493 heads, producing about 12,000 tonnes of milk a year and is a key raw milk supplier to China’s top dairy producer Yili. The assets are valued at USD 24 million. Meanwhile, Fortune Ng Fung is expanding its beef business with overseas acquisitions. It recently announced plans to buy two more Australian cattle farms, adding to its Woodlands farm that owns a stock of 9309 Angus and Wagyu cattle.
Visakha Dairy expands business reach
India’s Sri Vijaya Visakha Milk Producers Company Ltd, popularly known as Visakha Dairy, continues to expand its market share beyond Visakhapatnam city of Andhra Pradesh state. Chairman Adari Tulasi Rao said the company has already expanded its business in Odisha, West Bengal, Chattisgarh and Madhya Pradesh. Visakha Dairy enjoys an estimated 10% market share in UHT milk after Amul. It achieved a turnover of USD 164 million in 2015-16 by focusing on product diversification. Its milk procurement has increased to over 700,000 litres per day. In addition, the company has expanded its aseptic packing station to produce 300,000 litres/day of UHT milk.
Imported dairy cows boost Pakistan’s dairy sector
Pakistan has seen investments worth USD 360 million on imported dairy cows and farming technologies over the last decade, raising its milk production to 1 million litres per day. Imran Saeed Khan, Regional Business Development Manager at the Australian Trade and Investment Commission said that local dairy farms are currently earning USD 667,000 on milk sales, with farm price of milk hitting USD 0.57 per litre. “In contrast to indigenous cattle that produces much less milk, high yielding exotic dairy cattle of Holstein-Friesian and Jersey breeds and their crosses produce about 2-3 times more milk,” Mr Khan said. Official figures showed that the country imported 5205 exotic dairy cows in the July-March period of 2015/16. This added approximately 39,000 tonnes of milk per annum in the commercial milk system.
|Thaifoods Group expects better H2 due to rising pork and chicken prices |
[14 September 2016] Thailand’s Thaifoods Group (TFG) expects good earnings in the second half of this year due to rising chicken and pork prices, efinanceThai reported. Pork prices is currently at USD 2/kg, compared to USD 1.66/kg last year. TFG expects broiler prices to be around USD 1.29/kg in H2 and next year, up from USD 1-1.03 /kg in 2015. Cherdsak Kukiattinun, Chief Operating Officer of TFG said income will also be driven by rising chicken and pork demand in Thailand and overseas markets. Mr Cherdsak said TFG’s revenue will grow 10-20% in 2017, up from an estimated revenue of USD 573.88 million this year. Moreover, the company will supply its products to 30 restaurants in Thailand, up from 10 currently. And TFG will increase its chicken sausage production capability to 30 tonnes a day, from 15 tonnes currently.
|China starts Arbor Acres GP imports from New Zealand|
[14 September 2016] Jiangsu Jinghai Poultry Industry Group in east China recently imported 17,472 sets of Arbor Acres GP, making it the first Chinese import of the broiler breed from New Zealand, according to the official website of Nantong City where Jinghai is based. The occasional avian influenza outbreaks worldwide has led China to import broiler GP only from New Zealand and Spain, while international breeders are said to be expanding their capacities in the two countries to tap the Chinese market. Nevertheless, China’s first-half introduction of broiler GP was less than 110,000 sets, compared with 720,000 sets last year and the 1.54 million sets at its peak in 2013.
|KKR to boost exposure to Asia|
[14 September 2016] US private equity firm KKR & Co has started talks with investors for a third Asia fund, targeting a record USD 7 billion with a formal launch expected by year-end, people familiar with the plans said. The investors are looking to boost their exposure to fast-growing Asian countries such as China, India and Indonesia due to their massive populations of increasingly affluent consumers and because they are churning out businesses with the potential to become global corporations. In China, KKR has made investments in China Modern Dairy Holdings, pork producer COFCO Meat, chicken meat company Fujian Sunner Development Co. Meanwhile in Indonesia, KKR this year invested in agro-food integrator Japfa Comfeed Indonesia.
|Godrej Tyson to grow its market share in breakfast, snacking segments|
[14 September 2016] Godrej Tyson Foods, a 49:51 joint venture between India’s Godrej Agrovet and US’ Tyson Inc, is looking at a larger share of the breakfast and ready-to-cook frozen snacks categories. Its breakfast offerings include cold cuts (pre-cooked/cured meat – mostly sausages) and a variety of snacking options (both non-veg and veg) through its ‘Yummiez’ brand. According to Arabind Das, Godrej Tyson COO, the target is to double the market share. The company enjoys a market share of approximately 12%. “We plan to grow the category at 25-27% against the industry growth of 16-19%,” he said. The frozen processed food market in India is pegged at USD 120 million.
|South Koreans eat more processed meat products|
[14 September 2016] A diet that includes a growing amount of animal protein and time pressure that favours quick-serve food is fuelling sales of processed meat products in South Korea. The Ministry of Agriculture, Food and Rural Affairs and the Korean Agro-Fisheries & Food Trade Corp said the market for canned meat products, including ham and sausage, rose 12.4% in two years, to reach almost USD 1.11 billion in 2015. Sales grew 6.6% to USD 320.6 million in the first quarter of this year alone, compared with the same quarter last year. This is a 21.9% increase from the same period two years ago. Ham ranked number one among processed meats, accounting for 58% of the sales.
|Vietnam exploits potential of value added duck egg exports|
[13 September 2016] Omega-3 enriched duck eggs, salted duck eggs, and century duck eggs are added value duck egg products that present good export potential for Vietnam, which has the world’s second largest duck and duck egg production. The country produces 70 million ducks and 3.6 billion duck eggs per year. Data from the General Department of Vietnam Customs shows that Vietnam is among the top ten century-egg producers in the world. "Vietnam’s value added duck eggs has good export potential. We sell salted eggs and century eggs to the Chinese community in Brunei. We also export 20 containers monthly to Singapore and we are targeting other Asian markets like Malaysia and the Phillipines," Dam Van Hoat, General Director to Vietfarm Trading and Manufacturing Co Ltd, said in a statement.
|CV Mandaria sets up fish processing plant with UK as target market|
[13 September 2016] Indonesia’s CV Mandaria based in Tolitoli regency, Southeast Sulawesi, said the company has partnered with an investor from UK to set up a fish processing plant in the regency. Muhammad Pensi, Director said the project started in August this year. “Once the project is completed, we will purchase catch fish, especially tuna, from fishermen in the region then process it. Meanwhile, the investor will help with exports to and distribution in the UK,” said Mr Pensi.
|Thailand’s CPF joins Dow Jones Sustainability Index for second year |
[13 September 2016] Thailand’s Charoen Pokphand Foods (CPF) has made it into Dow Jones' Sustainability Indices (DJSI) in emerging markets category for the second consecutive years. CPF was among 33 companies in the food category. CPF was selected based on an assessment of the company’s economic, social and environment contributions. Mr Adirek Sripratak, President and CEO of CPF, said CPF has taken a step forward on the issues of sustainable development, which spans across its supply chain. CPF has put sustainability at the core of its business, Mr Adirek said, adding the company’s social responsibility has focused on three pillars including food security, self-sufficient society and balance of nature. DJSI is the first global index to track the leading sustainability-driven companies worldwide.
|Rising consumption in Vietnam bodes well for EU producers|
[13 September 2016] With Vietnam’s poultry consumption expected to increase 37% by 2021 and local production seen to rise by only 27%, EU producers sees a lot of potential for its poultry exports to the country. Experts at a workshop titled ‘High quality, QAFP (Quality Assurance for Food Products) certified poultry meat from the EU’ held in Ho Chi Minh last month said that in 2013, Vietnam’s poultry imports from the EU was only USD 8.24 million, but this soared 113% the following year. By 2021, Vietnam’s poultry imports is forecast to go up 49%.
|India allocates over USD150m to increase livestock, fishery production|
[13 September 2016] India has earmarked over USD 150 million to fund different projects under various programs run by the union government to increase livestock and fishery production in the country while providing livelihood opportunities to farmers. The Central government has released USD 19.5 million to nine states for implementation of various poultry and livestock development programs, and USD 24 million has been released for vaccination under the Livestock Health and Disease Control program. The government has released USD 2.6 million to support programs under the National Program for Bovine Breeding and the Cattle Mission. For approved projects under the National Program for Dairy Development, the government has released USD 36 million to 17 states. The programs are intended to double farmers’ incomes.
Indian buffalo meat imports to stabilise beef price in Indonesia
[12 September 2016]
The import of Indian buffalo meat is intended to help stabilise beef prices that have climbed as a result of beef and cattle import restrictions. Bulog is selling buffalo meat for USD 5 per kg to consumers. Beef prices are still at around USD 9-10 per kg. “Buffalo meat imports provide a meat alternative that’s cheaper, healthy and halal,” said Djarot Kusumayakti, Bulog CEO. ARIEF FACHRUDIN sheds light on the issues surrounding Indonesia's beef trade.
Indonesia imports extra buffalo meat from India
Indonesia’s State Logistics Agency (Bulog) has reached an initial agreement to import an extra 70,000 tonnes of buffalo meat from India this year, as it seeks to balance the effects of food import controls aimed at improving self-sufficiency. Wahyu, Bulog Procurement Director said the deal would bring Indonesia’s total buffalo meat imports to 80,000 tonnes in 2016. The first shipment of 720 tonnes recently arrived and will be sold in traditional markets in Greater Jakarta, while the remainder of the first 10,000-tonne order will be imported by the end of September.
Buffalo meat as an alternative
Bulog has introduced buffalo meat as an alternative to daily meat consumption. It recently staged a media event where it gave hundreds of its employees and reporters the opportunity to taste various dishes made from Indian buffalo meat. Djarot Kusumayakti, Bulog CEO admitted that buffalo meat is less popular compared to beef. However, “it’s only USD 5 per kg, much cheaper than the price of beef at USD 9,” said Mr Kusumayakti. “Buffalo meat is nutritious. It contains 69% zinc and 10% protein, and is low in cholesterol.” Previously, Enggartiasto Lukita, Trade Minister, assured that buffalo meat imports from India will continue despite initial concerns that the public will reject the product.
Indian buffalo meat may affect local cattle farmers
The Indonesian government's policy to import buffalo meat from India in large amounts may affect the price of local live cattle. Indian buffalo meat will be sold at USD 5 per kg in the local markets, which is far cheaper than the price of local beef of around USD 9-10 per kg. Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI), is worried that the policy will not motivate local farmers to raise beef cattle. “Since the government has failed several times to achieve beef self-sufficiency, in the last 3-4 years the price of live cattle and beef in the market has reached a new balance. As a consequence, farmers have to buy feeder cattle at higher prices. Now with the existence of cheap Indian buffalo meat, who will be responsible for the farmers’ losses?” Mr Boediyana asked.
Nampa welcomes Indian buffalo meat
Players in the meat processing industry welcomed the government’s move to import Indian buffalo meat. Haniwar Syarief, Executive Director of the National Meat Processors Association (Nampa) told Asian Agribiz: “Indian buffalo meat will make us more competitive in end-product price as it is cheaper than Australian beef.” Ishana Mahisa, Nampa Chairman told Asian Agribiz that the entry of Indian buffalo meat will help meat processors in the midst of the increasing price of boneless chicken. “Meat processors will switch to Indian buffalo meat as it’s relatively cheap and offers good taste and texture to processed meat products such as sausages,” Mr Mahisa said. However, Nampa hopes the buffalo meat is only allocated for the meat processing industry, not for end-consumers since it will negatively affect local cattle farmers.
List of Indian buffalo meat exporters to Indonesia
Based on several investigations, the Indonesian government has finally allowed 10 Indian buffalo meat processors & exporters to export frozen deboned and deglanded buffalo meat to Indonesia. Asian Agribiz received names of the suppliers from Indonesia’s Ministry of Agriculture, they are: Al Kabeer Export Pvt Ltd (Telangana), Amroon Food Pvt Ltd (Uttar Pradesh), Fair Export Pvt Ltd (Uttar Pradesh), Frigerio Conserva Allana Pvt Ltd (Telangana), Frigerio Conserva Allana Pvt Ltd (Uttar Pradesh), Frigorifico Allana Pvt Ltd (Maharashtra), HMA Agro Industries Ltd (Uttar Pradesh), Indagro Foods Pvt Ltd (Uttar Pradesh), Mirha Export Pvt Ltd (Punjab) and MK Overseas Pvt Ltd (Punjab).
|Indonesian broiler farmers demand market segmentation, protection|
[9 September 2016] Hundreds of commercial broiler farmers from different associations from West Java, Indonesia visited the Ministry of Agriculture on Wednesday to convey their needs. Hidayat Noor, a spokeperson of the Bandung Farmers Communication Forum told Asian Agribiz that so far this year they are struggling to survive in the business. "We asked the government to immediately set the floor price of live birds at USD 1.5 per kg,” Mr Noor said. During the discussion, the farmers asked the government to limit integrators’ interests to a maximum at 30%, as well as prohibit integrators to sell live birds at traditional/wet markets. “We need policies on market segmentation and protection for small-medium scale broiler farmers to beat unfair competition,” Mr Noor added.
|China’s Xuanwei to expand ham further processing|
[9 September 2016] Xuanwei city in southwest China’s Yunnan province said it targets to extend half of its 60,000 tonnes of traditional hams into further processed products by 2020. Last year, the city produced 50,000 tonnes of hams valued at USD 300 million. Of this, 10,000 tonnes went into processed products like cooked ham, ham slices and mooncakes. “We will add value to the industry with more further processing, and the market is expected to grow to USD 750 million in 2020,” Fan Meigang, Director of Xuanwei Ham Administration Office, told Asian Agribiz. Xuanwei Ham is one the top three traditional ham categories in China, with a national market share of about 30%, according to the China Meat Association.
|Thailand raises demand for US feed ingredients |
[9 September 2016] The Thai Feed Mill Association’s forecast of feed demand remains unchanged at 18.6 million metric tonnes in 2016, up approximately 4% from 2015, according to the USDA's GAIN report. Feed industries rely more on imported feed ingredients which currently account for approximately 60% of total feed demand due to insufficient locally produced feed grains and co-products. Thailand’s import demand for US feed ingredients is expected to trend upwards, particularly for soybean and soybean meal, and distiller’s dry grain with soluble (DDGS). Meanwhile, Thailand’s wheat imports in marketing year 2015/16 was higher than expected, particularly for feed wheat due to the shortage of domestic supply of broken rice and corn for swine and poultry feed rations.
|Indonesia to shift fish processing development to eastern regions|
[9 September 2016] Indonesia’s Chamber of Commerce and Industry (Kadin) supports the Ministry of Fisheries and Marine Affairs’ plan to develop fish processing units in eastern Indonesia. “Kadin strongly supports the plan since the supply of fish from the region is abundant. This move will make costs of transportation and logistics more viable,” said Andi Rukman Karumpa, Kadin Deputy Chairman for Eastern Indonesia. So far, many fish processing plants are built in Java because most of the fishing vessels come from western Indonesia. However, Susi Pudjiastuti, Minister of Fisheries and Marine Affairs, wants the development of fish processing centres to be shifted to outside Java such as Kalimantan, Sulawesi and Papua. Based on the ministry data, there are 718 fish processing plants in the country, of which over 60% are located in Java.
|India’s soybean meal exports contract 66%|
[9 September 2016] The Soybean Processors Association of India has said that the export of soybean meal and its other value-added products during August 2016 was just 10,615 tonnes compared to 31,157 tonnes in August last year, registering a fall of 66%. The country’s soymeal exports in 2015-16 fiscal year ended March 31 dropped 74% from a year ago to 387,297 tonnes. Sri Lanka, Indonesia, Japan and Taiwan were key buyers of Indian soymeal in the year. Soybean prices in India jumped due to lower production, making local soymeal expensive compared to supplies from South America, said dealers.
|Vietnam, World Bank to commercialise PED vaccine|
[9 September 2016] Vietnam and the World Bank are cooperating to boost the production and commercialisation of PED vaccines in the country, with a 34-month project titled ‘Developing the technology of producing PED vaccine for farmed swine.’ The project will cost USD 3.4 million, to be jointly funded by the World Bank (40%) and a group of Vietnamese producers led by Duc Hahn Marphavet Veterinary Medicine JSD, and is expected to enhance Vietnam’s capacity to produce vaccines, especially PED, and reduce its reliance on imported vaccines.
|Biotech Farms to prioritise pork exports|
[8 September 2016] Biotech Farms, one of the farms accredited by the Singapore Agri-Food & Veterinary Authority to export pork to Singapore, welcomes the news that the government is again pursuing pork exports to the city state. The company owns one of the country’s most modern farms, and supplies pork primarily to its sister company, KCC Malls Supermarkets. Dr Harold Eslabon, who is in charge of Biotech’s day to day operations, told Asian Agribiz that exports “will be our top priority because our slaughterhouse project and expansion in our swine operations are designed for the export market.”
|Indonesia to impose tax on raw fish exports|
[8 September 2016] Indonesia’s Ministry of Fisheries and Marine Affairs in the near future plans to impose a tax on raw fish exports. This is aimed at developing the domestic fish processing industry and to increase processed fish exports. Nilanto Prabowo, General Director of Fish Products Competitiveness, said of the total fish exports from the country, 50% is processed fish. “We want to raise this figure,” he said. Based on the Statistic Central Agency data, during the first half of this year Indonesia exported 94,397 tonnes of fish products to the US and 54,384 tonnes to Japan, up 15.56% and 7.04% respectively over the previous year.
|Wens pig farming segment’s H1 profit exceeds 40%|
[8 September 2016] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said its pig farming segment’s gross profit margin stood at 40.28% in the first half of 2016, compared with 9.69% a year earlier. The company’s H1 pig sales rose 14.61% to 8.05 million heads, driving the segment’s revenue up 71.61% at USD 2.77 billion. Wens set up 18 new pig complexes during the period, with farms under construction, to have a combined capacity of 2.2 million pigs, in addition to an over 9-million-head contracted capacity in northeast and southwest China. The company also saw its H1 yellow broiler sales up 10.33% at 364 million birds, though the segment’s gross profit margin fell to 12.26% from 15.18%.
|Indonesia opens its market for Mexican beef, cattle|
[8 September 2016] The Indonesian government has approved imports of beef, feeder cattle and breeding cattle from Mexico. Juan Permata Adoe, Vice Chairman for Food Processing and Livestock Industry of the Indonesian Chamber of Commerce & Industry, said players in the beef industry have responded positively. “We also expect the government to open the market to Brazilian beef and cattle,” Mr Adoe said. “Ultimately, it’s about price. Exporters from Mexico and Brazil can offer better prices than Australia.” From January to August imports reached 402,163 heads of feeder cattle, or 67% of the total import quota allowed by the government.
|Sasso, Hendrix Genetics to ally on coloured broiler breeding|
[8 September 2016] France-based Sasso, a specialist in coloured broiler breeding and genetics company Hendrix Genetics have signed a Memorandum of Understanding to connect the breeding activities of Sasso with the worldwide network and R&D centre of Hendrix Genetics. The move is seen to intensify Sasso’s breeding program and product development as well as give the company a stronger financial base for its asset renewal program and international expansion. Under the transaction, Sasso will strengthen its equity structure with new shares to Hendrix Genetics. The deal is expected to be completed before the end of the year.
|Maeil considering bid for McDonald’s operations in South Korea|
[8 September 2016] South Korea’s Maeil Dairy Industry Co Ltd is considering a bid for McDonald Corp’s South Korean operations, said a Maeil spokesman. He said Maeil, South Korea’s second largest dairy company, has not yet decided whether to proceed with an offer. He declined to comment on any potential acquisition partners. CJ Corp and NHN Entertainment Corp were among South Korean companies that have previously shown interest in the fast food giant’s business in the country. Investment banking sources said the sale could fetch around USD 268-448 million.
|New chicken processing plants on the cards for Indonesia|
[7 September 2016] Indonesia’s chicken processing industry will see new plants in operations within the next 2-3 years. Rudy Hudin, Country Manager Indonesia of Marel, told Asian Agribiz that China’s New Hope Group plans to set up a 6000 bird/hour processing plant in the country. A newcomer Konspol Group from Poland, plans to set up a 12,000 bird/hour chicken processing plant in Sukabumi, West Java, which will be followed by the construction of a further processing plant. Bounty Segar Indonesia, the jv between the Philippines’ Bounty Fresh and Indonesia’s Triputra Group, will build a 6000 bird/hour chicken processing plant and a 2 tonne/hour further processing plant. Meanwhile, the jv company of Indonesia’s Indofood and Malaysia’s CAB Cakaran will also set up a 6000 bird/hour chicken processing plant and a 2 tonne/hour further processing plant which will produce sausages and nuggets.
|Myanmar workers sue Thailand’s Betagro over labour abuse|
[7 September 2016] Myanmar migrant workers recently filed a lawsuit against Thailand’s Betagro alleging forced labour on a chicken farm in Lopburi province. The 14 workers are demanding USD 1.3 million in compensation for being overworked and underpaid on a Thai chicken farm, AFP reported. Meanwhile Betagro, which has cut ties with the supplier farm, said that the Department of Labour Protection and Welfare in Lopburi province and National Human Rights Commission of Thailand have already investigated this case and found that the employer was not involved in human trafficking, slave labour, forced labour and human rights violations. Betagro also said this presents an opportunity to improve labour standards in the industry.
|Poultec saves costs with 100 ft wide broiler houses|
[7 September 2016] Malaysian broiler company Poultec Enterprise Sdn Bhd installed the country’s first 100 ft wide poultry house. Tan Soon Nam, MD, said by going this wide the company managed to lower its building costs by 20-25%. The other advantage is space. “Now we don’t need a large piece of land to house 55,000 birds. When we reduce land space we reduce labour cost. Now we only need two staff for this number of birds compared to six before,” he told Asian Agribiz. “The 100 ft house is divided into five areas. Each area holds 11,000 birds. We have this division so that they will be well spread out, and to avoid a stampede.”
|Philippines revives plans to export pork to Singapore|
[7 September 2016] After meeting with pig producers in Mindanao, Philippine Agriculture Secretary Emmanuel Piñol said the government will revive plans to export pork to Singapore. The country was supposed to ship pork to the city state from Mindanao in 2008, but the shipment was halted after the Ebola Reston virus was detected in some samples from pigs in Luzon. The country however remains among the Singapore Agri-Food & Veterinary Authority’s list of approved pork exporters. Mr Piñol is also continuing efforts to begin pork exports to Japan under the Japan-Philippines Economic Partnership Agreement.
|New Hope Liuhe sees positive growth in feed sales|
[7 September 2016] China’s top feed miller New Hope Liuhe Co said its first-half feed sales volume rose 3.73% to more than 6.90 million tonnes, the first positive growth in a couple of years. Revenue from the segment, however, fell 9.50% to USD 2.73 billion, due to lower selling price of its feed products reflecting lower raw material costs. Gross profits were down 13.40% at USD 171.30 million, and the company attributed this to its earlier stock of high-cost raw materials. “We used up the raw material stocks in the first half of 2016, and better performance is expected for our feed business in the second half,” New Hope said.
|Bangladesh farmers need capital to revive their business|
[7 September 2016] Poultry farms in Bogra, Bangladesh were forced to close due to lack of capital and government subsidies. Local sources said about 250,000 people became unemployed directly and indirectly due to this. According to the Bogra District Poultry Owners Association, there were over 5200 poultry farms and 60 hatcheries in the district in 2014. Currently, over 550,000 people are involved in the industry. Nurul Ameen, General Secretary of the association said 40% of the poultry farms were destroyed in a storm in April 2015. Even though the government has instructed banks to provide loans on easy terms, farmers are being denied this or offered loans at 12-17% interest, Mr Ameen said.
|Thailand softens fee hike plan for poultry industry|
[6 September 2016] Thailand’s new Animal Slaughter and Sale of Meats Control Acts will see a slaughter fee hike of only USD 0.0058 per unit of poultry, much lower than the earlier fee of USD 0.114. Nine poultry associations expressed concern over the earlier high fees saying it will encourage illegal slaughtering, negatively affect consumers and reduce the industry’s export competitiveness. “The poultry associations have accepted the new plan,” Dr Sorravis Thaneto, Deputy Director General of Thailand’s Department of Livestock Development (DLD) told Asian Agribiz. The existing Act has a slaughter fee of USD 0.0028 per unit of poultry, but that has been waived for many years. The new law aims to improve food safety and punish below standard slaughterhouses.
|Indonesia to remove bottlenecks for India’s carabeef|
[6 September 2016] Indonesia recently reassured India that it will work to remove the bottlenecks in its market for Indian carabeef imports. This was discussed at a meeting in India between India’s Agriculture Minister Radha Mohan Singh and a 15-member Indonesian delegation led by Ahmed Mujhani. In March this year, Indonesia’s President Joko Widodo signed a decree allowing zone-based meat imports from India after its audit team confirmed the country has excellent mechanism for meat processing and quarantine control. In September 2015, the audit team from Indonesia inspected abattoirs and research institutions in India and found more than 50 bovine processing plants which are above international standards.
|Halal beef producer Yisai’s H1 revenue up 23%|
[6 September 2016] Henan Yisai Beef (Stock) Co, a halal beef producer based in central China, said its first-half operating revenue rose 22.71% year-on-year to USD 75 million. Gross profit margin fell to 15.30% from 19.07% a year earlier. Yisai sells chilled/frozen beef, processed beef products, as well as cattle feeds, and the company attributed the growth to its market expansion into all provincial capital cities in China. Yisai is building a 200,000-cattle complex in north China’s Inner Mongolia.
|Poland sees higher meat exports to Vietnam|
[6 September 2016] Poland has seen higher meat exports to Vietnam in the past few years and expects the trend to continue once the EU-Vietnam free trade agreement (EVFTA) is endorsed. According to the Department General of Customs, Vietnam’s import of Polish pork increased sevenfold between 2012 and 2014, reaching 836 tonnes valued at USD 788,000. Vietnam is Poland’s largest trade partner in Southeast Asia. In addition to pork, Poland also exports poultry and beef to Vietnam.
|Poultry can help end hunger, malnutrition in Bangladesh|
[6 September 2016] The poultry industry has the potential to help Bangladesh achieve the United Nations’ Sustainable Development Goals (SDGs) of eliminating malnutrition and ensuring better health for its citizens. “Hunger and malnutrition pose major barriers to our development. In meeting the demands for protein, the poultry industry is playing a pivotal role,” said Sirajul Hoque, General Secretary of World’s Poultry Science Association–Bangladesh Branch. “By 2021, our per capita chicken consumption is expected to increase to 8.42kg, and we can achieve SDGs in the field of ending hunger and removing malnutrition,” he added. According to Bangladesh Poultry Industry Coordination Committee, 45% of animal protein in the country comes from the poultry industry.
|Japfa to sell off more CGE stocks|
[6 September 2016] Singapore-based Japfa Ltd is likely to sell more shares in Ceylon Grain Elevators PLC (CGE), Sri Lanka’s local media reported. The fourth largest shareholder in the poultry firm, Japfa Ltd held about 6.48% in the company in June this year. “But they sold some 1.27% in March this year,” one analyst said. He said around 1.5 million shares may be on offer in the coming months. Analysts say that growing purchasing power will augur well for CGE and expect reduced cost of production and improved margins on the back of importing and stocking of cheaper corn from new found low cost destinations.
|Shandong publishes standards for humane broiler slaughtering|
[5 September 2016] The Shandong province in east China said it has published standards for broiler slaughtering designed to be more humane, the first of its kind in the country. The standards, effective August 29, were developed by a team led by the Qingdao Agricultural University, with local companies including Nine Alliance, New Hope Liuhe and CP China also participating. “The protocols are non-compulsory, referring to similar EU standards- particularly those in UK- and practices by leading broiler processors in Shandong,” Sun Jingxin, who was in charge of the program, told Asian Agribiz. “Actually some processors like Nine Alliance have already met the standards in their premium products for export,” Professor Sun added. Shandong is a major region for poultry production in China and its chicken exports account for more than 40% of the nation’s total.
|AP Nutripharma offers cordyceps as AGP substitute|
[5 September 2016] Singapore-based AP Nutripharma is cultivating cordyceps to create OrganicPro, additives that inhibit the growth of bacteria. Recent tests have shown that cordyceps “can operate like antibiotics and promote good animal performance,” Dr Xu told Asian Agribiz. The company produces four tonnes of OrganicPro for sale in India, Israel and New Zealand. “We have not gone all out in sales. In this business producers are more accepting of products from the west so it is not easy for us to penetrate this market,” said Dr Xu. But the industry is changing. Dr Xu said consumers are driving the push for safe food, and alternatives to AGP is in demand.
|Japfa Indonesia optimistic of 15% net sales growth|
[5 September 2016] Indonesia’s agri-food company Japfa Comfeed Indonesia recorded a positive performance during the first half this year. Its H1 net sales reached around USD 1 billion, an 11.29% increase from the previous year, while net profit reached USD 72.59 million, a turnaround from last year when it recorded a net loss of USD 20.49 million. The company said the positive performance was driven by stable supply and demand of DOC and broilers in Q2, as well as the Ramadhan festival which boosted consumption. “The appreciation of rupiah and the weakening prices of feed raw materials gave a boost to us,” said Putut Djagiri, Senior Vice President, Deputy Head of Corporate Finance. Japfa is projects a 10-15% net sales growth this year from last year’s USD 1.88 billion.
|Bangladesh to examine pros and cons of FDI in poultry industry|
[5 September 2016] The government of Bangladesh is considering controls over foreign investors in the country’s fast growing poultry industry after local players said they are concerned about being overtaken by overseas giants. Narayan Chandra Chanda, Minister of Fisheries and Livestock said the ministry “couldn’t assess yet whether foreign investments in the poultry sector will be helpful or hurt farmers. However, an expert committee will be formed soon to examine the issue. Local industry players noted that while only seven foreign poultry companies are operating in the country – five of them from India – they control around 35-40% of the market. Other major players include Charoen Pokphand from Thailand and New Hope from China.
|Rising poultry consumption in Vietnam bodes well for EU producers|
[5 September 2016] With Vietnam’s poultry consumption expected to increase 37% by 2021 and local production seen to rise by only 27%, EU producers see potential for poultry exports to the country. Experts at a workshop titled ‘High quality, QAFP (Quality Assurance for Food Products) certified poultry meat from the EU’ held in Ho Chi Minh last month said that between 2013 and 2014, Vietnam’s poultry imports from the EU grew more than 113%. Mariusz Boguswewski, Economic Counsellor at the Polish Embassy in Vietnam said the EU is currently running a series of trade promotion activities to promote EU’s QAFP certified poultry meat to the Vietnam market.
|India registers nine new livestock breeds|
[5 September 2016] Nine new breeds of livestock have been registered by India’s Karnal-based National Bureau of Animal Genetic Resources, taking the total number of indigenous breeds to 160. The newly identified and registered breeds include Badri cattle (in Uttarakhand), Teressa goat (in Nicobar Island), Kodi Adu goat (in Tamil Nadu), Chevaadu sheep (in Tamil Nadu), Kendrapada sheep (in Odisha), Tenyi Vo pig (in Nagaland), Nicobari pig (in Nicobar Island), Doom pig (in Assam) and Kaunayen chicken (in Manipur). Trilochan Mohapatra, Director General of Indian Council of Agricultural Research, said registration of various unique populations as breeds will help in inventorisation, improvement, conservation and sustainable utilisation of animal genetic resources of the country.
|Feeding layers for longer productive life|
[2 September 2016] In a bid to increase efficiencies, egg producers are on the lookout for ways to produce birds with longer laying cycles. Marcus Kenny, a nutritionist from Hy-Line International with extensive experience in the poultry industry, will speak at the 2016 Layer Feed Quality Conference to discuss nutritional recommendations to prepare pullets for a long productive life, as well as talk about feeding for longer laying cycles without sacrificing egg shell quality. Mr Marcus is just one of several experts who will present actionable take home messages to help producers improve their profitability, productivity and sustainability. Organised by Asian Agribiz, the conference will be held in Jakarta, Indonesia on October 17-18 and in Kuala Lumpur on Oct 20-21. Click here for further information and registration.
|Slight tightening of egg supply in the Philippines|
[2 September 2016] The price of eggs in the Philippines has inched up a bit due to a slight tightening in supply. An industry official, who did not want to be identified, told Asian Agribiz that this is likely due to birds not being able to hit ideal efficiencies due to a variety of factors, including sporadic cases of Newcastle Disease, a change in weather patterns that has led to some respiratory problems, as well as possible toxins in feed raw materials. He added however, that there is no cause for alarm as the industry is addressing the issue and supply is gradually normalizing.
|Poultec achieves good results with wider houses|
[2 September 2016] Broiler company Poultec Enterprise Sdn Bhd is likely the farm with the widest house, measuring 100 ft, in Malaysia allowing for 55,000 birds per house. The company stocked its first 100 ft-wide house last July. Tan Soon Nam, MD, told Asian Agribiz that the company was bracing itself for uneven or poor wind speed and ventilation but did not face these problems. “We are seeing more uniformity here. We are also happy with the differences in weight between male and female, it is not too great at about 300g.” The first three batches recorded a mortality of 2-3%. The birds reached 2.4 kg in 37-38 days, and FCR stood at 1.45.
|CP Indonesia to tap markets in second-tier cities|
[2 September 2016] Indonesia’s largest poultry integrator Charoen Pokphand (CP) Indonesia plans to strengthen its presence in second-tier cities to tap new growth potential. Tjiu Thomas Effendy, President Director, said the company will focus on markets outside of large cities to boost consumption. “Consumption of chicken in regional areas may still be relatively low compared to larger cities, but the economy is now more spread out rather than centred on cities, so we feel that the potential is there. People outside of large cities need good quality protein too,” Mr Effendy said.
|US pork exports to the Philippines up 6% in the first half|
[2 September 2016] US pork exports to the Philippines neared 16,000 tonnes in the first six months this year, up 6% year-on-year, data from the US Meat Export Federation showed. The higher volume also resulted in higher earnings for US pork at almost USD 37 million, 23% more than the previous year. The Philippines, which imports a significant volume of pork as raw material for further processing, is one of the key markets for US pork in Southeast Asia. In June alone, exports to the country rose 54% in volume to 3454 tonnes and soared 125% in value to USD 10.3 million compared to the same month in 2015
|China’s Wellhope H1 slaughtering business revenue doubles|
[2 September 2016] China’s leading feedmiller Liaoning Wellhope Agri-Tech Joint Stock Co said it generated revenue of USD 128 million from its slaughtering business in the first half of 2016, up about 97% from a year earlier. However, the segment’s gross profit margin fell to 1.55% from 1.58% during the period. The company’s overall revenue, which also covers feed product sales and feed ingredient trade, rose 18% to USD 755 million. Overall gross profit margin stood at 10.46%. Wellhope, in which Royal De Heus of the Netherlands holds a 9.63% stake, has ventured into integrated broiler business. It is also expanding pig farming by investing in a breeder and commercial farm in north China’s Hebei province.
|China’s Jinzi Ham's H1 e-commerce sales slows down|
[1 September 2016] China’s top ham producer Jinzi Ham Co said its e-commerce sales of the product totalled USD 3.10 million in the first half of 2016, up from USD 2.95 million last year, when it saw a 94% year-on-year growth from the channel. The company’s traditional ham sales stood at 612.52 tonnes, down from 800.66 tonnes a year earlier, while sales of its premium Bama Ham, a duplicate of Italy’s Parma, fell to 95.19 tonnes from 181.30 tonnes. Jinzi’s first-half revenue was down 20% at USD 13.60 million, and the company attributed the fall to “a changing market environment.”
|US beef exports to Indonesia up more than 400%|
[1 September 2016] Indonesia recently revised its restrictive import policies, which will now allow for imports of all beef muscle cuts and a range of beef variety meat items including livers, hearts, lungs, tails, tongues and feet. Joel Haggard, Senior Vice President for the Asia Pacific of the US Meat Export Federation, said Indonesia’s large population and expanding economy make it a significantly promising market for US beef exports. US beef exports to Indonesia rose more than 400% year-on-year in the first half of 2016, reaching 3271 tonnes, and more than doubled in value to just under USD 15 million. Mr Haggard is hopeful that more US processing plants will soon become eligible to serve Indonesia, a move that could further enhance US beef’s presence in the market.
|HCMC to oversee high tech-guaranteed pork with CCTV|
[1 September 2016] Ho Chi Minh City in Vietnam will install surveillance cameras and increase inspections at kiosks selling pork as food safety becomes a national issue. This is part of a pilot project using smartphone apps and ID bands mounted to pigs to monitor pork quality. The project, to start in November, is an attempt to keep traders from blending in pork of unknown origin to sell with clean pork, said Nguyen Ngoc Hoa, Vice Director of the city's Department of Industry and Trade. The project will kick off at 12 slaughterhouses, two wholesale bazaars, several inner-city bazaars and supermarket chains, namely Co.opmart, Satra, Vissan, An Ha and Sagrifoods.
|KFC appoints new franchisee in Thailand|
[1 September 2016] Yum Restaurants International (Thailand), the franchiser of KFC in Thailand, has appointed its new franchisee, Restaurant Development Company Ltd (RDCL), the Nation reported. Under the agreement, RDCL will acquire 130 existing KFC restaurants in Bangkok and Southern province of Thailand and will open 100 KFC restaurants by 2020. Waewkanee Assoratgoon, General Manager of Yum Restaurants International (Thailand) said that the deal will underpin its growth strategy to 800 stores in Thailand by 2020. KFC expects to have 585 stores by end-2016, with 217 operated by Central Restaurants Group, 238 by Yum and 130 by RDCL.
|US, India continue negotiations over WTO poultry dispute|
[1 September 2016] Trade officials from the US and India are working to conclude an agreement that could mean India would not have to pay an annual penalty for failing to comply with a WTO ruling, an Indian official said. If an agreement is reached, a compliance panel will be established and will determine how much compensation – if any – India would have to pay the US. The two countries are trying to settle a dispute over poultry imports from the US that started when India banned the import of frozen chicken legs from the US to stop the spread of avian influenza. A WTO panel confirmed that India’s ban was more trade restrictive than necessary, and unfairly discriminated against US imports.
|Giant Russian agro firm to export pork to Vietnam|
[1 September 2016] Rusagro Group, one of the largest vertically integrated enterprises in Russia, plans to export pork to Vietnam beginning next year. “Shipments are expected to start next year,” said Maxin Basov, General Director of Rusagro. Russia’s largest meat processor ABH Miratorg has also been licenced to supply poultry, pork and beef to Vietnam, according to the Vietnam Enterprise newspaper. “With a population of about 90 million people, Vietnam is an opportunity for us to export a variety of chilled and refrigerated meat products, especially pork and offal,” said Viktor Linnik, Miratorg’s Chairman.
|Expert to talk on pullet and hen nutrition at Layer Feed Quality Conference|
[31 August 2016] Dr Doug Korver, Professor of Poultry Nutrition from the University of Alberta in Canada will keynote this year’s Layer Feed Quality Conference with two presentations: one on pullet nutrition as a key to success in layer farming, and the other on hen nutrition for longer laying cycles. The conference, organised by Asian Agribiz, will be held in Jakarta, Indonesia on October 17-18 and in Kuala Lumpur on Oct 20-21. With its theme ‘Science, trial data, application’, the conference will address key issues with actionable take home messages to help producers improve their profitability, productivity and sustainability. More details and registration here.
|Tangrenshen to buy controlling stake in Inve’s former China unit|
[31 August 2016] Chinese feedmiller and pig integrator Tangrenshen Group said it has signed a framework agreement to buy a 51% stake in Shenzhen PremierInve Biotechnology Co, a former China unit of Belgian feed company Inve, for USD 24.43 million. PremierInve, which is now wholly owned by its Chairman Li Zhi, has an annual pig feed capacity of 150,000 tonnes. Tangrenshen’s feed sales rose 20% to 1.6 million tonnes in the first half of 2016, and it eyes full-year feed sales of 3.6 million tonnes. The company is also planning to invest total USD 1.35 billion in pig farming over the next 10 years, targeting to produce six million pigs a year by 2025.
|CP Indonesia eyes 15% sales growth|
[31 August 2016] Indonesia’s largest poultry integrator, Charoen Pokphand (CP) Indonesia, is eyeing a 15% growth in overall sales this year to USD 2.58 billion this year. The company still primarily relies on the sale of poultry feed and DOCs, which contributed 59% and 29%, respectively, to its revenues in Q1 2016. Net profits are projected to increase by 18% to around USD 162 million, thanks in part to an expected strengthening of the rupiah. CP Indonesia has no plans to set up new plants this year, as it wants to focus on improving the efficiency of existing operations. The company is looking to use 60% of its USD 82 million capital expenditure this year for maintenance, such as upgrading processing plants. As of June, it has invested roughly USD 30 million of the earmarked capex.
|Japan may reopen its market to US lamb|
[31 August 2016] Japanese regulators are considering reopening its market to US lamb exports, which are currently banned due to concerns with scrapie. Peter Orwick, Executive Director of the American Sheep Industry Association said after Taiwan reopened its market to US lamb, there is also a good chance Japan will lift its ban. “There are always more market opportunities for the highest end product but it’s taken close to 15 years to get Japan to agree to possibly lift their ban,” he added. He noted that the Japanese market opening is not dependent on the Trans Pacific Partnership agreement, however, if that is approved it would help lower tariffs.
|KFC Sri Lanka wins YUM! Outstanding Performer 2015 |
[31 August 2016] YUM! Brands recently recognised KFC Sri Lanka as the Outstanding Performer for 2015 within the Indian Subcontinent for its exceptional sales growth. KFC Sri Lanka has 27 restaurants island wide serving 10 million meals yearly. Local franchisee Cargill Ceylon PLC has successfully infused local tastes with the international brand. Localised dishes such as the KFC Chicken Buriyani, KFC Spice Rice and KFC Chicken Charger are now served next to the signature KFC meals that are available the world over. “KFC owes its success to food that is freshly prepared in-store,” Ranil Irugalbandara, General Manager of Restaurants sector said.
|Broiler prices in India fall due to Shrawan festival|
[31 August 2016] After staying high for two months, prices of broiler chicken in India declined sharply due to falling consumer demand in the month of Shrawan, during which most people prefer to consume only vegetarian food. Data compiled by Papaak.com showed broiler chicken prices in Vizag dropped 25% in the past month to trade currently at USD 1.01/kg. Similarly, broiler chicken in Bihar is sold at USD 0.91/kg now, a 20.8% drop from a month ago. Chicken farmers’ margins have squeezed dramatically between falling finished products’ prices and rising raw material costs. As a consequence, most medium and small-size farmers have reduced their production capacity which would reduce availability during the ensuing peak demand season after Diwali.
|CP launches largest layer farm in east China|
[30 August 2016] CP China said it has completed the introduction of 270,000 Hy-Line Brown commercial chicks to its Cixi complex in Zhejiang province, making it the largest layer farm in east China. It is also the company’s second largest layer farm in the country, following one in Beijing with a stock of three million layers. The Cixi farm, costing about USD 34 million, is expected to run at full capacity by August 2017, when it could produce 190 million eggs a year. “We target to serve the demands on premium branded eggs in the Yangtze River Delta region, which includes major cities of Shanghai, Hangzhou and Ningbo,” said CP China.
|US DDGS exports to Southeast Asia up more than 50%|
[30 August 2016] US DDGS exports to Southeast Asia has grown more than 50% to 1.7 million tonnes as of end-August, the US Grains Council said on its website. Vietnam, Thailand and Indonesia posted the biggest rise at 76%, 42%, and 29%, respectively. The agency said that at the current rate, exports to Southeast Asia has exceeded those to Mexico. Meanwhile South Korea’s US DDGS imports also grew by 39%.
|Fast Food to open 11 KFC outlets in H2|
[30 August 2016] Fast Food Indonesia, the operator of KFC in Indonesia, said it plans to open 30 new resto-style outlets this year. According to Justinus Juwono, Financial Director, in the first half the company opened 19 outlets, with the remaining 11 outlets targeted to open in the second half. “If the target is achieved, we will have 570 outlets in the country,” he said. In addition, Fast Food also plans to open six new KFC Box outlets. On its financial performance, Mr Juwono said its net profit surged by 55.75% to USD 3.25 million in the first half, driven by its strategies on efficiency.
|Thailand’s CPF commits to international labour standards|
[30 August 2016] Thailand’s Charoen Pokphand Foods (CPF) said it has committed to comply with international labour standards and will encourage stakeholders to comply with good labour practice guidelines. The country’s broiler sector earns some USD 2.6 billion in export earnings annually, however, labour welfare has become a burning issue, with good labour practices, fair and equitable treatment now being central to discussions. Prasit Boonduangprasert, Executive Vice President of CPF said in addition to quality, product integrity and prices, international customers also want assurance from producers that farm labourers are not subject to abuse “including child and illegal labour as well as human trafficking.” Moreover, they also expect environment-friendly products.
|Tilapia to become Vietnam’s key export item|
[30 August 2016] Vietnam’s Ministry of Agriculture and Rural Development plans to promote tilapia into a key export. By 2020, the country’s total tilapia production is estimated to reach 300,000 tonnes, of which some 50-60% would be eligible for exports with expected turnover of about USD 130-150 million. “In 5-7 years, tilapia will become Vietnam seafood’s key export item and partly replace pangasius,” said Prof Le Thanh Hung of Nong Lam University. The Vietnam Association of Seafood Exporters and Producers confirmed that the country’s tilapia exports have grown rapidly in the last three years. Vietnam is exporting frozen fillet and whole tilapia to more than 60 markets, with America, China and Taiwan being the leading destinations.
|QL Resources net profit up marginally due to seafood sector|
[30 August 2016] QL Resources, a Malaysian agro-food company, said that net profit rose 3% year-on-year to USD 2.58 million for the first quarter ended June. It also reported a 2.2% increase in revenue to USD 165.54 million in the corresponding quarter, it noted in the filing to the Bursa Malaysia. Revenue from its marine product segment rose 16% while its other divisions saw a drop in sales due to raw material production and delivery issues. QL Resources’ three main businesses are marine product manufacturing, palm oil production and integrated livestock farming. Each contribute 32.18%, 13.33% and 54.47% respectively to the company.
|Sumber Unggas to produce marinated native chicken products|
[29 August 2016] Indonesia’s native chicken producer Sumber Unggas plans to produce marinated products in the near future. Naryanto, owner, told Asian Agribiz that so far the firm, which has a 2000 birds/hour processing plant, only produces fresh chilled native chicken carcase retailed to supermarkets, hotels and caterers. “There are many potentials in the processing sector that I haven’t tapped, one of them is marinated products. We see a good market potential in marinated products. Therefore, we want to venture into this market in the near future. To support this project, we also plan to set up retail outlets that only sell different types of processed native chicken products,” he explained. He added that around USD 7500 will be allocated to buy a marinating machine.
|Seafood firms fret over wage hike plan|
[29 August 2016] Labour-intensive seafood processing companies have expressed concern over a possible region-based minimum wages hike by an average 7.3% next year. The Vietnam Association of Seafood Exporters and Producers (Vasep) has urged the Government to suspend plans from the National Wage Council, which passed the 2017 minimum wage raise plan. Vasep also proposed that wage adjustments be made every two or three years, instead of annually, and insurance payments for workers also be reviewed. The group said high labour costs will undermine their competitiveness in the global markets.
|Taiwan DDGS use on the rise|
[29 August 2016] While inclusion rate is still low, the use of DDGS in Taiwan is on the rise, said Clover Chang, Office Director of the US Grains Council (USGC) in Taiwan, adding that the agency is “trying to encourage producers to increase that percentage to create better quality feed.” Last week, the USGC sponsored the visit of a group Taiwanese grain buyers to the US to learn more about the “production, application, grading and quality standards for US DDGS.” The group also visited a poultry farm to learn more about egg processing and feedmill operation, as well as gained grain storage and overall plant maintenance information to help improve their own plant processes.
|Odisha state to increase its seafood export|
[29 August 2016] India’s Odisha state government has set an ambitious target to export seafood worth USD 447 million during the current fiscal. “Odisha has witnessed increase in seafood exports from 14,161 tonnes in 2007-08 to 35,630 tonnes in 2015-16,” said Bishnupada Sethi, the Fisheries and Animal Resources Development Secretary. Mr Sethi added that the state had exported seafood worth USD 714 million in the last three years and the products have a great demand in Southeast Asia, the US, Europe and Japan. “We have produced 13,137 tonnes of fish, crab, prawn and squid from Chilika lake alone,” he said. To further support the seafood industry, the state government has decided to create necessary infrastructure like air cargo handling at Biju Patnaik International Airport. The state government is partnering Airports Authority of India for the cold storage which is likely to be completed this year itself, said Mr Sethi.
|Calls for creation of Department of Fisheries|
[29 August 2016] Philippine Department of Agriculture (DA) Secretary Emmanuel Piñol called on lawmakers to prioritise the passage of bills that will create a Department of Fisheries and Aquatic Resources to ensure the protection of Philippine waters, marine resources and the rights of local fishermen. There are currently six bills pending in Congress toward this goal. Although the DA currently has the Bureau of Fisheries and Aquatic Resources, many industry players feel that a centralised agency focused on fisheries and marine resources will be better able to address their needs.
|Thai authorities, broiler association agree to improve labour practices|
[26 August 2016] Thailand’s Department of Labour Protection and Welfare, Thailand’s Department of Livestock Development and Thai Broiler Processing Exporters Association signed a memorandum of understanding (MoU) last week to improve labour practices and resolve labour abuse issues in the poultry industry. Pannee Sriyudhasak, Director General of the Department of Labour Protection and Welfare said that Thai government and the poultry industry will support and encourage players in the industry, ensuring that their hiring practices comply with the law. The three parties have jointly developed good labour practices guidelines for poultry farm and hatchery in Thailand. The main principle of the guidelines is the poultry industry will not use child labour and forced labour. Moreover, the industry will not be involved with human trafficking.
|Sumber Unggas to double its native DOC production in 2017|
[26 August 2016] Indonesia’s native chicken company Sumber Unggas has said that it targets to double its native DOC production to 60,000 chicks per week in 2017. Naryanto, owner, told Asian Agribiz that to achieve the target he has invested in new houses to increase the number of its native chicken PS. Sumber Unggas currently has 15,000 birds of native chicken PS which consists of Kedu, KUB, Pelung and Cemani breeds. Of its current 30,000 native DOC/week production, 50% is sold to free market – mostly in West Java -- while the remainder is raised at its own facilities which then to sell as both live and dressed birds.
|China to levy five more years of anti-subsidy duties on US chicken|
[26 August 2016] China’s Ministry of Commerce said the nation will maintain anti-subsidy duties on imports of US white-feather broiler products for another five years, effective August 30. The duties were mostly set at 4.1%, with Tyson Foods suffering 4.2% and Keystone Foods 4.0%. The previous five-year duties expired last September, and a new investigation by the commerce ministry found that “the domestic broiler industry could be harmed if the duties stopped”.
|Jollibee opens new outlet in Hanoi|
[26 August 2016] Jollibee Vietnam Co Ltd has recently opened its fifth outlet in Hanoi, raising its total number of outlets in Vietnam to 81. According to Tran Ngoc Hoai Thuong, Public Relations Manager, in such a competitive market the maintenance and development of a fast food brand requires a mission that is attached to customers. Jollibee Vietnam revealed plans early this year to open 20 outlets in Vietnam each year. Jollibee has fewer restaurants than its fast food rivals in Vietnam, including Lotteria, which has more than 200 outlets, and KFC, with more than 140.
|Corn quality variation demonstrates benefits of NIR|
[26 August 2016] Variation in corn quality could be adding significant costs to poultry and swine producers. Data collected from feedmills around the world, from January to May this year, showed that the apparent metabolisable energy content in corn can vary by more than 400 kcal/kg. Dr Sophie Parker-Norman, AB Vista Global Technical Manager said in a typical corn-based broiler diet, this equates to a potential variation in the finished feed of 270 kcal/kg. She said the data demonstrates the need for sample analysis, and encourages the use of rapid technologies such as near infrared (NIR) spectroscopy where diet formulations can be adjusted for corn variability.
|New Hope to build two pig complexes in Vietnam|
[25 August 2016] China’s New Hope Liuhe Co said it will build seven more pig complexes by 2018, including two located in south and north Vietnam. Total investments are projected at USD 407 million, and the seven complexes will have a combined annual capacity of 2.30 million pigs. Constructions will start from September. In early July, the company announced plans to build 11 new pig complexes in China with a combined annual capacity of 4.91 million heads. New Hope targets to produce 10 million pigs a year by 2020.
|Bee Cheng Hiang to open outlet in Ginza|
[25 August 2016] Singapore bak kwa producer Bee Cheng Hiang will open an outlet in Ginza, Japan, late September. According to Group General Manager, Daniel Wong, the company has had to adhere to Japan’s food safety laws, which are stringent when it comes to the source of meat used as well as the manufacturing process. This is especially so because Singapore does not have sources of meat, and has to import them, Mr Wong told Channel News Asia. Its trade agency IE Singapore’s Group Director, Lee Yee Fung, said import regulations are often challenging because food safety is on the top of every regulators’ mind.
REGIONAL DAIRY UPDATE
[25 August 2016]
SFS to revolutionise small dairy farms in Vietnam
Israeli-Dutch company Smart Feed Solutions (SFS) will work with small household dairy farms in Vietnam to increase milk yield and the overall quality of local dairy farms. “More than 60% of the industry is made up of small household farmers holding around four and 70 cows,” said Ronen Zexer, SFS Co-founder. With its feed plant in Long An completed the company is ready to begin selling its total mixed ration and services to counter issues such as data management, fertility, somatic cell counts and general husbandry needs. “We believe that one year down the road, farmers will see a big change in their business,” he said added that productivity could improve by 40-50%.
China’s dairy products import up 26%
China’s imports of dairy products jumped 26% in the 12 months ended June 30, reported the NZHerald. China led growth among dairy importers, with strong gains for whole milk powder, fluid and fresh dairy and infant formula. Imports into Asia ex-China gained 3%. Global dairy exports also remain strong. New Zealand dairy exports rose 7% in the June 30 year. Australian exports were up 8% in the 12 months ended May 31. EU exports climbed 12% in the year to April 30, while US exports fell 8% in the year ended May 31. The US “continues to see increased domestic demand and less competitive export prices”, Fonterra said.
Vinamilk works towards global presence
Investment in foreign countries will be one of Vietnam Dairy Product Joint Stock Company’s primary strategies in the coming year, said Mai Lieu Lien, CEO. In June, the company, better known as Vinamilk, introduced made-in-Vietnam products to the US. This feat was successfully accomplished through its Californian subsidiary, Driftwood Dairy. Vinamilk purchased 70% of the struggling US dairy factory in 2013. After two years, Driftwood began to generate profit, prompting Vinamilk to buy 100% of Driftwood’s shares end last year. In addition to the US, Vinamilk’s products are now present in 40 countries and territories in the world, generating around USD 250-270 million in revenue every year.
Vinamilk buys US-based Driftwood Dairy
Vietnam Dairy Products Corp, or Vinamilk, bought Driftwood Dairy Inc, one of California’s largest processors of milk and dairy products. The deal that was reportedly worth USD 70 million but sources said the price to be closer to USD 30 million. Driftwood Dairy was owned by private equity firm Marwit Capital. The dairy company is known as the largest supplier of milk and juice to K-12 school districts in Southern California. “And I believe one of the most significant transactions to date involving the acquisition of a US business by a leading company based in Vietnam,” Chris Britt, Marwit’s Managing partner, said.
FrieslandCampina Vietnam exports dairy products to Hong Kong
FrieslandCampina Vietnam shipped its first consignment of sterilised milk to Hong Kong early July. The consignment included five types of sterilised milk under the Dutch Lady brand name, which were processed and packed in Binh Duong plant. This is the initial success of FrieslandCampina Vietnam to infiltrate Hong Kong, which is a stable and demanding market with strict requirements on product quality. The company plans to export around 1 million milk cartons to Hong Kong annually, which helps consume another 335 tonnes of fresh milk from farmers and generate more jobs for local people. It also opens an opportunity to export other dairy products to other Asian countries.
|2016 Layer Feed Quality Conferences to provide latest regionally-relevant research, practical information|
[24 August 2016] The 2016 Asian Agribiz Layer Feed Quality Conference focuses on providing the latest regionally-relevant research and practical information from leading regional and international speakers from academia and industry. With the theme ‘Science, trial data, application’ the conference will address key issues with carefully selected papers for the Asian layer industry, with actionable take home messages to help producers improve their profitability, productivity and sustainability. The conference considers three major themes:
• Tackling pullet nutrition
• Extending the laying cycle
• Winning with home-mixing
The conference will be held in two locations: Jakarta, Indonesia (October 17-18) and Kuala Lumpur, Malaysia (October 20-21). Click here for the program and registration form.
|Shuanghui H1 pig slaughtering flat at 6.21m heads|
[24 August 2016] China’s top pig processor Henan Shuanghui Investment & Development Co said it slaughtered 6.21 million hogs in the first six months of 2016, up 0.09% from a year earlier. Chilled, frozen and processed pork sales rose 11.16% to total 1.44 million tonnes during the period, driving the company’s operating revenue up 25.41% at USD 3.85 billion. Its net profit increased 8.51% to USD 324.37 million. “We achieved a good first-half operating result by overcoming the difficulties of rising hog prices and emerging alternatives to pork products,” Shuanghui said.
|Nitrate improves food safety of meat products|
[24 August 2016] Despite periodic controversy regarding human health concerns from nitrate consumption, Andrew L Milkowski, Adjunct Professor of Meat and Muscle Biology Laboratory at the University of Wisconsin-Madison, the US said that a building base of scientific evidence about nitrate and nitrite continues to affirm the general safety of nitrate and nitrite in human health. “Moreover, nitrate improves food safety of meat products. It is an anti-botulinum. So it protects meat products from allowing the growth of clostridium botulinum,” he said during the recent 62nd International Congress of Meat Science and Technology in Thailand. Prof Milkowski explained that for every kilo of meat, it has one botulinum spore in the meat. And botulinum spore can grow if the temperature is right and it will produce botulism toxin. “A microgram of botulism toxin will kill many people. So nitrate is important for that purpose,” he said.
|Philippine pork production up in Q2|
[24 August 2016] Philippine pig production stood at 549,320 tonnes in Q2 2016, up 7.4% from the same period last year, the Philippine Statistics Authority (PSA) said in its latest Performance of Philippine Agriculture Report. This brings up the sector’s output to 1,076,530 tonnes for the first six months this year, nearly 6.6% higher than the reference period in 2015. According to the PSA, election-related spending helped boost demand for pork and other meat products that led to higher slaughter volume during the period. The higher production volume offset the decline in average farm prices to boost the sector’s Q2 gross production value to around USD 1.1 billion, up 2.6% from the previous year.
|BASF launches new phytase in Pakistan|
[24 August 2016] BASF has launched Natuphos E, a new phytase for animal nutrition, in Pakistan. With unprecedented enzyme stability, Natuphos E helps poultry utilise phosphorous and key nutrients more efficiently, bringing a wide range of benefits to the animal feed industry and local farmers. “As the first company to market a phytase for feed more than 25 years ago, BASF is once again proud to be setting a new standard in feed phytase technology,” said Faisal Akhtar, Managing Director, BASF Chemicals & Polymers Pakistan (Pvt) Ltd. “The industry’s feed output currently stands at 6.5 million tonnes a year and is expected to double by the year 2020. Natuphos E will ensure more efficient and sustainable output for the feed industry.”
|Betagro gears toward high value-added products|
[23 August 2016] From a research standpoint, Betagro is gearing its focus toward high value-added products, Rutjawate Taharnklaew, Betagro Vice President for Research and Development Center told Asian Agribiz. For example, Betagro has extracted lysozyme from egg albumen and one local cosmetic company has contacted the company. “We are now in talks for a deal. They want to buy our raw material (lysozyme) and use it in their product ingredients,” he said, adding that Betagro is seeing business opportunities to use lysozyme in different industries. Lysozyme is an important component of egg white with antibacterial properties. Moreover, Betagro is working with the Faculty of Medicine of Khon Kaen University. The company has produced chicken soup (chicken peptide) and the product is being tested on human. “We will focus on hospitals and we view it as a social business,” he added.
|DaChan Food processed chicken sales up 28% in H1|
[23 August 2016] China’s DaChan Food (Asia) Ltd said its domestic sales volume of processed chicken achieved a growth of approximately 28% in the first half of 2016, thanks to “the implementation of effective marketing strategies”. The segment’s export sales to Japan remained unchanged, but the gross profit in export soared 65.9% with an adjustment of export product structure and depreciation of RMB. “We will highlight our position as a food supplier this year, while cutting down the farming business,” Li Jinghui, Senior Vice President told Asian Agribiz. DaChan’s overall revenue, including sales of chilled/frozen chicken, feed and processed food, fell 16.9% to USD 566.30 million in the first half, while its net profit was at USD 1.15 million, compared with loss of USD 6.67 million a year earlier.
|Philippine chicken output down slightly in H1|
[23 August 2016] Philippine chicken production fell slightly by 0.16% in the first half of this year, reaching 817,820 tonnes compared to 819,110 tonnes in the same period in 2015, latest data from the Philippine Statistics Authority (PSA) showed. Despite the lower output, the industry’s gross value still grew 8.8% to top USD 1.6 billion compared to last year. The PSA attributed the growth to higher farm price, which averaged USD 2/kg in the first half of this year, up near 9% from 2015.
|Vietnam foodstuff distribution market to grow at 9.8%|
[23 August 2016] The Vietnam food distribution market – covering full service, restaurants, as well as fast food chains, and the supermarket, hypermarket, convenience stores and the traditional market distribution formats – is expected to grow at a CAGR of 9.8% over 2016-2021. The recent Research and Markets report covers the meat and poultry, grains and seeds, dairy and seafood, among others. The market is driven by rising consumption of processed food and the upsurge in modern grocery retail sector. Other factors propelling growth are surging production coupled with growing imports of a variety of food products, and strong demand from various end users such as hotels and businesses.
|Most Chinese consumers want pork with better animal welfare|
[23 August 2016] About 72% of Chinese consumers would like to pay premium prices of 5-10% for pork with better animal welfare, and another 3% are willing to pay extra of up to 25%, according to a survey made by the World Animal Protection and the Chinese Veterinary Medical Association (CVMA). The survey, covering 2070 respondents in the Chinese metropolises of Beijing, Shanghai, Guangzhou and Shenzhen, also found that 77% of the consumers would change retailers to pursue animal welfare pork. The CVMA said it is drafting animal welfare standards for broilers, layers, pigs, and beef and dairy cattle. Pork accounts for 64% in China’s meat consumption.
Onsite at Asian Agribiz' 2016 Broiler Feed Quality Conference in Bangkok, Thailand
[22 August 2016] Reports by RACHAEL PHILIP and PAYUNGSAK WIRIYABUNDITKUL
Older birds may need supplementary enzymes more than chicks
The adage that young chicks require exogenous enzymes to boost poor digestive function may not be entirely correct, said Dr Aaron Cowieson, Principal Scientist, DSM Nutritional Products, Scotland. While young chicks have a limited capacity to produce endogenous enzymes, their intestinal track accounts for a more substantial proportion of their body mass compared to grower/finisher broiler. Findings suggest that intestinal mass and enzyme activity may be more limiting in birds from day 35 onwards. “Thus it may be more appropriate for supplementary enzymes such as lipase, amylase and protease in heavy broilers where the intestine and pancreatic tissue are increasingly diminished in proportion to their metabolic weight,” he said.
Larger grain particle size promotes better nutrient absorption
A slower gut passage rate can make for better nutrient absorption and influence feed consumption ratio in broiler. Grains such as corn and wheat should be ground coarser to stimulate a more normal gizzard development and function, said Alex Chang, Poultry Nutritionist, Global Technical Operations, Aviagen, Australia. “Small grain particles give a larger surface area and this may give rise to rapid feed passage in the gut. Larger particles size, meanwhile, results in longer feed retention time in the gut. This helps release the starch entrapped in cereal grain cells and encourage more beneficial bacterial fermentation in the caeca,” he said. Mr Chang said the target for particle size should be 800-1000 microns.said.
Mycotoxin risk assessment should look at effects, interaction of toxins
Field tests have shown that mycotoxin multi-contamination is found frequently. Risk assessment of mycotoxin in animal production should account for the effects of individual toxins as well as the effects of their interactions as even at levels considered safe by the European Union, mycotoxins can compromise nutrient absorption, permeability, immunity and microbiota balance resulting in lower productivity and poor animal health, said Marisabel Caballero, Product Manager, EW Nutrition, Germany. “The use of an adsorbent, which combines anti-mycotoxin and anti-bacterial toxin properties is an alternative that adds value against these challenges,” she said.
Creatine can help birds utilise energy deposition more efficiently
The requirement for creatine is proportionally greater in modern fast growing broilers. The semi-essential nutrient can be endogenously synthesised by the animals but this can only provide about 70% of creatine requirement. The remainder must be provided as a dietary source. “Adding creatine can save energy in broiler diets,” said Dr Yumin Bao, Regional Technical Sales Manager, Nutrition and Care, Evonik (SEA) Pte Ltd. “Dietary energy is the largest contributor of any nutrient to total feed cost, so the function of creatine in energy metabolism may help fast-growing birds to more efficiently utilise energy deposition,” he explained.
Early nutrition strategies for peak performance in broilers
Nutrition during the starter phase of broiler chickens is not only useful for development of digestive function, but also for long-term productivity, said Dr Paul Iji, Professor of Animal Science, University of New England, Australia. Although the focus of early nutrition has usually been on provision of energy, chicks would benefit from a more balanced nutrient profile, particular amino acids. Meanwhile, spray-dried plasma protein (SDPP) contains diversity of functional proteins and biologically active compound. “Inclusion of SDPP in the starter diet has positive effects on broiler performance,” Dr Iji said, adding that SDPP could be included at between 5 and 20 g/kg of starter diets, depending on the diet cost and rate of return. Moreover, SDPP could support body growth and health of broiler chickens under high-pathogen conditions.
Benefits of methionine beyond performance
Modern broiler strains reach market weight so fast that their early rearing days are more critical than before, said Dr Yves Mercier, Research Manager Amino Acids at Adisseo. During the first 10 days of life, chicks build their important physiological functions with support of adequate nutrition. Although the recent research has revised methionine requirements of the chicks, the most important aspect of early methionine supply appears to bring benefits beyond preparation for further growth. “Methionine, cysteine and further sulfur compounds are critical to support immunity, antioxidant systems and protein’s accretion,” Dr Mercier said, adding that the requirements of sulfur amino acids (SAA) during the early stage cannot be judged simply based on achieving growth performance.
Feeding breeder improves chick quality, offspring performance
Alex Chang, Poultry Nutritionist, Global Technical Operations at Aviagen said that broiler breeder nutrition affects not only breeder performance, but also chick quality and offspring performance. Undersupply of nutrients into and through lay has a very significant impact on breeder production and progeny performance. “Protein, energy, fatty acid source, vitamins and minerals, pigments and certain additives can play an important role on chick quality and offspring performance,” Mr Chang said, adding that the impact of breeder nutrition on progeny performance in the field is likely to be greater under conditions of poor breeder flock uniformity, low vitamin and trace mineral contents or certain kinds of stress in the broiler shed. “In short, broiler performance can be economically improved by optimising breeder nutrition,” he said.
|CP Pokphand kicks off food business in China|
[19 August 2016] Hong Kong-listed CP Pokphand Co said it commenced a trial production in its food processing plant in Qingdao, east China, in the first half of 2016, following a partial commercial production in its Qinhuangdao plant late last year. Lv Pan, Vice Chairman of Agro-industry & Food Business at CP China, told a conference earlier that the two plants were designed to produce Chinese dim sums like baozi, jiaozi and shaomai, with a combined capacity of 200,000 tonnes a year. “As the food business is still at a start-up stage, our feed business continued to represent nearly the entirety of our China’s agri-food business revenue, which stood at USD 1.34 billion in H1, or 55.5% of the total,” said CP Pokphand. The remainder came from its Vietnam’s agri-food business.
|Sierad records USD94m of net sales in H1|
[19 August 2016] Indonesia’s poultry integrator Sierad Produce has said that it recorded an 18.27% increase in net sales to USD 94 million in the first half of this year. With this satisfying performance, the company targets to book USD 244 million in net sales with a net profit of USD 3.2 million this year. On expansion side, Sierad has allocated a capital expenditure of USD 35.7 million for building 12 commercial broiler farms and maintenance of machines and equipment.
|Disposal of smuggled pork halted temporarily|
[19 August 2016] The disposal of at least 800 tonnes of smuggled pork has been temporarily stopped by the Philippine Bureau of Customs (BoC). In the last week of July, the BoC recommended the condemnation of at least 800 tonnes of imported pork meat contained in 32 40-foot container vans. However, in a letter to BoC Commissioner Nicanor Faeldon, Samahang Industriya ng Agrikultura (Sinag) Chairman Rosendo So aired the industry’s concern that the place and the company are worrying given that the company tasked to dispose of the meat “might be the same company that has been investigated by the [Philippine] Senate” for involvement in onion smuggling, while the husband of the Mayor of Palayan City, where the rendering of the condemn meat was supposed to happen, has also been implicated in a Senate investigation on rice smuggling.
|Korean-Vietnam sausage deal delayed|
[19 August 2016] Daesang Corp, a South Korean food-making conglomerate, has yet to complete its purchase of an almost full stake in Vietnamese sausage producer Duc Viet Food Joint Stock Company, which was expected to be finalised by August 5. International and local media had reported that Daesang was set to acquire 99.99% of Duc Viet Food for USD 32 million to make inroads into Vietnam’s meat processing market with its high growth potential. “Daesang has not finished all necessary documents for the acquisition. The deal is unlikely to happen this month,” a source familiar with the matter said.
|Animal vaccines market to reach USD7.7b by 2021|
[19 August 2016] The global veterinary vaccines market is poised to reach USD 7.7 billion by 2021 from USD 5.8 billion in 2016, growing at a CAGR of 5.8% during the period, said a MarketsandMarkets report. Europe holds the largest share of the market this year, but the report expects Asia to register the highest growth during the forecast period. In Asia, market growth will be concentrated in China, India, Thailand and South Korea. While increase in livestock population and repeated breakouts of livestock diseases, initiatives by government agencies and animal associations are driving the market, the rising costs of storage and maintenance of vaccines could hinder its growth.
|Huaying starts cooked chicken exports to Japan, South Korea|
[18 August 2016] China’s top duck integrator Henan Huaying Agricultural Development Co said it has completed its first shipment of cooked chicken products to Japan and South Korea, paving the way for broader exports of the products. The company slaughtered 6.13 million broilers in the first half of 2016, in addition to 17.12 million ducks. Meanwhile, its output of cooked products, including duck blood, was at 5346 tonnes, more than half of which were for exports. Huaying’s first-half revenue rose 14% to USD 159 million, while net profit jumped 224% to over USD 10 million amid a significant decline of operating expenses.
|CAB Cakaran on track to achieve target revenue|
[18 August 2016] Malaysia’s CAB Cakaran Corp Bhd is on track to achieve USD 250 million in revenue this fiscal year ending Sept 20, 2016. Christopher Chuah, Group Managing Director said the group achieved a revenue of USD 130 million for the six months of the 2016 fiscal year ended March 31. “Our Singapore subsidiary Tong Huat Poultry Processing has benefited from the growth in demand and is expected to generate about 10% of group revenue for the 2016 fiscal year. Our company in Johor, CAB Cakaran Sultan Sdn Bhd, which started operations late last year, has also contributed recently. It serves the Johor and the Singapore markets,” Mr Chuah told a local daily.
|URC Agro-Industrial Group post slower growth|
[18 August 2016] The Philippines’ Universal Robina Corporation’s (URC) Agro-Industrial Group, which includes its farms and feeds businesses, saw its revenues grow by 2.6% to USD 146.9 million for the first nine months of fiscal year 2016, which began in October 2015. The farms business, which includes the company’s hog and layer businesses, saw a 14.1% decline in revenues as both sales volume and average selling price of hogs fell. This was offset by a strong performance of the feeds business which rose 23.4% on the back of higher sales volume of hog feeds, dog food and game fowl feeds.
Onsite at the 62nd International Congress of Meat Science & Technology (ICoMST) 2016, Bangkok – Thailand
[18 August 2016] Reports by PAYUNGSAK WIRIYABUNDITKUL and ARIEF FACHRUDIN
Muscle profiling to improve the value of retail meat cuts
The Korean meat industry is showing trends towards marketing individual muscle cuts to improve the value of retail meat cuts, according to Seon-Tea Joo from South Korea’s Department of Applied Life Science Muscle Biology and Meat Science Lab, Gyeongsang National University. Prof Joo said muscle profiling will produce a value added meat cuts. To do that, up-to-date profiles for individual meat cuts is essential to enable accurate evaluation of nutritive and quality cuts. Prof Joo explained content of protein, fat, vitamins and minerals can vary substantially by individual muscle or muscle groups. “Thus data on these nutrients for all primal or sub-primal cuts are needed to inform the benefit of beef consumption,” he said. According to a research paper, muscle profiling research led to the development of new beef cuts from the shoulder, with increasing the value of market cattle by USD 50-70 per head.
Halal and animal welfare in meat production
Mustafa Farouk, Senior Scientist at AgResearch Ltd in New Zealand said that Islam and secular practices advocate zero-tolerance for any form of animal abuse in the meat supply chain from farm to slaughter. Despite the general harmony in the global Islamic and secular views regarding what constitutes good animal welfare, some proponents are bogged down by specific issues, such as differing opinions on the use of pre-slaughter stunning. Therefore, animal welfare is still being abused during industrial and cottage halal and non-halal meat production, he said. To reduce animal welfare abuse, Dr Farouk said that some measures should be carried out including educating halal consumers about animal welfare practices, post-employment training of staff for empathy and installation of CCTV in work places. “Consumers should use their purchasing power to eliminate bad actors from halal meat production chain,” he added.
Research on meat by-products utilisation continues
The efficient use of meat by-products is important to reduce the environmental damage and as an economical source capable to cover processing and disposal costs, said Fidel Toldra, Research Professor at the Institute of Agrochemistry and Food Technology in Spain. He sees that the use of edible meat by-products as a food or as ingredients in foods is expanding and research continues for new applications. Moreover, there are many applications of non-edible meat by-products in chemicals, pharmaceuticals, feed and pet food, fertilizers and energy. And giving added-value to by-products is essential. “The identification of peptides with relevant bioactivity in meat by-products is possible through the development of novel approaches using peptidomics and modern bioinformatic tools,” Dr Toldra added.
Onsite at the 62nd International Congress of Meat Science & Technology (ICoMST) 2016, Bangkok – Thailand
[17 August 2016] Reports by PAYUNGSAK WIRIYABUNDITKUL and ARIEF FACHRUDIN
Meat trends in global markets
According to David Hughes, Professor at the Imperial College in London, UK, global meat demand continues to grow, triggered by the increase of population. Of the growth, poultry and pork are showing the strongest growth. “Emerging countries dominate growth markets, with China overwhelmingly number one. However, developed country markets are static or declining,” said Prof Hughes. On consumer side, he observed that there are trends converging for more knowledge about the the livestock animals are grown, by whom, the environmental impact and engaging stories. For meat producers and processors, the trends will affect their profit margin. “Their profit margin is now not in the commodity nouns, but in the adjectives such as free-from, free-range, grass-fed, organic, omega-3 rich and etc,” said Prof Hughes.
Meat world is changing
Gordon Butland, Director of G&S Agriconsultants started his presentation by saying: “Our meat world is changing.” According to him, during 40 years, the industry grew based on population increase and growth in GDP that has strong correlation with consumption of animal proteins. However, from 2006, two significant things happened namely crops/ethanol and economic challenges. During the period of 2014-15 for instance, there were food scandal in China, serious avian influenza issues in the US and EU, exchange rates, collapse in oil prices, slow down in Chinese economy and Russian ban on imports from the US and EU. Due to these macro events, giant companies did geographical acquisitions and/or diversification. “JBS is now in every meat protein on nearly every continent. BRF cut out middle men. CP did large acquisition in Russia and greenfield projects in Africa. Shuanghui acquired Smithfield. And Cargill is into the Philippines and Indonesia,” Mr Butland mentioned.
A lesson from US family farms cooperative
Diana Endicott from US’ Kansas-based food cooperative Good Natured Family Farms got the opportunity to share their success story in bringing high quality meat and meat products from sustainable family farms to consumers. Ms Endicott said the key success factors of their cooperative rely on their partnership with the local supermarkets and economies of scale they created. “With the local retailers, we build the same passion. We also provide training for their meat managers, or even the owners, to see and learn first hand how we produce and process our meats,” she said, adding that the training is aimed to built trust and transparency. On marketing campaign, the cooperative uses ‘Buy Fresh Buy Local’ campaign where its retail partners put banners of stories of the family farms.
Luxury of wagyu beef
Wagyu beef has been a popular premium beef in the world. According to Michiyo Motoyama from the National Agriculture and Food Research Organization of Japan, the price of wagyu beef is so expensive (USD 70/kg for A5 grade with beef marbling standard no 12) because of its production and meat quality. “The animals regularly have massage. Sometimes beer is given to them. And their feed contains no antibiotic growth promoters – they are fed with hay, barley and soybean meal,” Ms Motoyama said. Meanwhile, to ensure quality of the meat, strict quality control is applied including breed certification, traceability and accurate meat (marbling) grading systems. The population of wagyu cattle in Japan is around 1.7 million heads, while per capita consumption of the meat is only 1kg.
Development of ethnic Chinese cured meat products
Ethnic Chinese cured meat products have entered the industrial scale. Qun Sun, Professor at Sichuan University, China mentioned that Jinhua ham is produced around 2-3 million pieces per year, while Xuanwei ham Rugao ham are around 4 million pieces and 0.3 million pieces, respectively. Dr Sun said in future Chinese cured meat products will go to the direction of healthier, nutritious and convenient products. “There are researches on quality improvement such as the composition of meat flavour and fermentation, and on safety enhancement such as nitrite alternatives and natural preservatives. In addition, innovative and green processing technology is also available,” she explained. However, there are challenges including raw material shortage and marketing difficulty, she added.
TRF develops native chicken breeds
Although Thailand is the 4th largest broiler exporter in the world, the country heavily relies on imported breed for the broiler production. With this in mind, the Thailand Research Fund (TRF) took the initiative to develop, as well as to conserve, Thai native chickens as alternative breeds for farmers in the country. “We started the project in 2002 by selecting four native chicken breeds. In 2008 we successfully selected the breeds and started to disseminate it to farmers for commercial farming. Starting from 2011, many farmers, even big companies, are interested to raise the breeds,” said Chancharat Reodecha, TRF Deputy Director for Research Utilization. “Now we are actively assisting the farmers to improve their knowledge on production, processing, food safety and market of the breeds.” Dr Reodecha added that total investment for the project has reached around USD 7 million.
|China Meat Association sees potential pork imports from Australia|
[16 August 2016] There is great potential for China and Australia to cooperate in pig farming and facility investment, thus facilitating future exports of Australian pork to China, said the China Meat Association (CMA). A delegation led by Li Shuilong, CMA Executive President, visited Australian pork producer Rivalea and processor Don KRC recently, making it the first business tour to the Australian pork industry by its Chinese counterparts. “Though the pork production in Australia is very small compared to China, it could offer demanding Chinese consumers with premium pork products,” the CMA said. China’s pork imports rose 138% to 762,359 tonnes in the first half of 2016, mostly from Europe.
|Indonesia’s cattle importers pushed to be breeders by regulation|
[16 August 2016] Indonesia’s government plans to require live cattle importers to start building breeding farms in order to get import licenses, said Enggartiasto Lukita, Trade Minister. He said the government requires a ‘compensation’ from cattle importers to give them an import quota. “The compensation is they have to be breeders, then we will give them import quota.” Mr Lukita explained that importers will have to present a five-year plan to build a breeding farm to the government as a precondition for import licenses. The ministry will issue a regulation soon for this plan.
|Thailand’s CPF Q2 net profit rises 35%|
[16 August 2016] Thailand’s Charoen Pokphand Foods (CPF) has posted a net profit of USD 115.50 million in Q2, up 35% from the same period of last year, backed by improvement of its livestock business both in Thailand and overseas, especially in Vietnam as well as the recovery of its shrimp business in Thailand. CPF’s sales revenue increased from USD 2.98 billion in Q2 2015 to USD 3.36 billion in Q2 2016, helped by higher sales from Thailand and its international operations. CPF’s revenue from its Thailand operations in Q2 grew 12% year-over-year, while revenue from its international operations in Q2 increased 13% year-over-year. Meanwhile, according to Thai brokerage SCB Securities, CPF expects its shrimp unit to return to net profit margin in 2017, the best performance since the early mortality syndrome (EMS) hit in 2012.
|JFC sales in China down 5.7%|
[16 August 2016] Despite a strong showing at home and most of its overseas markets, the Philippines’ Jollibee Food Corporation (JFC) admitted to a decrease in sales in China. Ernesto Tanmantiong, CEO explained that sales in China fell 5.7% “due to competitive pressure on Yonghe King, our largest brand there.” However, he noted that JFC’s two other China brands, Hong Zhuang Yuan and San Ping Wang, continue to perform strongly. The company’s 424 stores in the country are divided into 321 Yonghe King outlets, 59 San Ping Wang stores and 40 Hong Zhuang Yuan branches. It also owns the four Dunkin’ Donuts stores in China. Mr Tanmantiong added that JFC expects a strong recovery of its Yonghe King business in the months ahead with the launch of new products.
|Indonesia’s West Java develops Sentul chicken|
[16 August 2016] Indonesia’s West Java province is currently active to support the development of Sentul chicken, an indigenous meat-type chicken from the province. Dody Firman Nugraha, Head of the Livestock Agency of the province said GP of the chicken has been being developed in the Livestock Research Agency in Ciawi, Bogor (Balitnak Ciawi). Meanwhile, the PS have been being raised by some local companies to produce commercial Sentul DOC for farmer groups. Mr Nugraha claimed that the taste of Sentul chicken meat is more delicious than the taste of broiler meat. In addition, the price is also high – around 30% higher than the price of broiler meat. In other occasion, Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association told Asian Agribiz that Balitnak Ciawi has recently released selected Sentul chicken and has given pre-licences to AKI/Dedi Farm in Sukabumi and Sumber Unggas Farm in Bogor to multiply the breed. “The performance of Sentul chicken is much better than other native chickens. The bird is able to reach 1kg of harvest weight in 60 days with feed conversion of 2.6,” said Mr Zulkarnain.
|India’s buffalo meat export estimated to reach USD6b|
[15 August 2016] India’s ICRA has estimated that India’s export of buffalo meat over the next five years would reach close to USD 6 billion at a CAGR of 8%. “In the long term, ICRA expects buffalo meat exports to continue to report healthy growth, driven by improving infrastructure, a sizeable buffalo population the relatively lower price of Indian buffalo meat, and steady demand in the international market,” said Sabyasachi Majumdar, Senior VP of the credit rating and research institution. Indian buffalo meat exports have grown at a CAGR of 29% from USD 528 million in 2007-08 to USD 4 billion in 2015-16, accounting for approximately 20% of the world’s total buffalo meat exports (in volume terms) and becoming the largest volume exporter of buffalo meat, overtaking Brazil and Australia, ICRA said.
|Japfa delivers best quarterly profits in Q2|
[15 August 2016] Singapore-based leading agri-food company Japfa Ltd has announced its best quarterly results since 2013, as Core PATMI without foreign exchange for the 2nd quarter of this year grew by 194.4% to USD 51.9 million compared to the same period of last year. During the quarter, the group’s three core pillars – Japfa Comfeed Indonesia, Animal Protein Other and Dairy – together delivered a significant improvement in operating margin. As a result, operating profit increased by 144.5% to USD 107.8 million in the period. Tan Yong Nang, CEO said: “We have delivered our best quarterly profits in Q2 2016, backed by a better operating environment and our ability to consistently improve operational efficiency across all our core animal protein segments. Looking at our quarterly performance on a rolling basis, our strategic focus on diversification into new proteins and geographies has clearly supported the group through the ever-changing macro environment and local market fluctuations, and placed us on a stable footing to maintain a long-term growth momentum.”
|Indonesia’s Ag Ministry all out to lower beef prices|
[15 August 2016] It seems that Indonesia’s Ministry of Agriculture has been all out to push the price of beef down to USD 6/kg as requested by President Joko Widodo. After opening the beef import door as wide as possible to the private sector and allowing the import of ready-to-slaughter cattle, the recent effort was the ministry removed meat importers’ obligation to absorb local beef as much as 3% of their total import quotas. According to Andi Amran Sulaiman, Minister of Agriculture, the effort was aimed to encourage meat importers to maximally import beef to the country. In addition, “this policy will reduce the slaughter of local productive cows,” Mr Sulaiman added. Commenting on the policy, Rochadi Tawaf, Secretary General of the Indonesian Cattle & Buffalo Farmers Association (PPSKI) said: “Now, it is impossible for meat importers to buy local beef as the price is higher than the price of imported beef. They will flood the market with imported beef.”
|Godaco produces first items from Ben Tre cooking plant|
[15 August 2016] Vietnamese seafood processor Godaco Seafood has commissioned and begun production at its new valued-added product plant in Ben Tre, according to Jonathan Wilson, Executive Director. The first products to come off the lines in its opening days are hoped to be the first of many; not just pangasius, but other species too. “We are starting with pangasius, but we are able to do breaded shrimp and Nobashi stretched shrimp too,” said Mr Wilson as reported by Undercurrent News. “I can say that we are aiming to be processing several species in the plant by the end of the year.” Currently three frying lines are installed in addition to the tempura line, able to handle part- or fully-cooked breaded items, with further space to process shrimp, salmon or Alaska pollock. The new plant is designed with flexibility in mind, and depending on product mix, should be able to produce 15,000-20,000 tonnes of cooked products a year.
|Ultrajaya enjoys increasing milk products demand|
[15 August 2016] Indonesia’s Ultrajaya Milk Industry & Trading Company aims to grow its net profit by 33.8% this year to USD 53.2 million after netting USD 40 million in profits last year thanks to increased demand for its famous milk brand Ultra Milk. To achieve the net profit target, Ultrajaya has to up sales by 10-15% this year to around USD 368-384 million. The company relies solely on its existing products as it has yet to make any plans to launch new products this year. “Maybe next year we will launch new products,” said Eddi Kurniadi, Corporate Secretary. Ultrajaya has a dairy farm located in Pengalengan, West Java that raises around 3500 cows. The other dairy farm of the company is located in Sumatera where it plans to raise 12,000 cows.
WEB SPECIAL: Thailand takes steps to lift food safety at all levels
[12 August 2016]
Food safety is increasingly important in Thailand’s farm to fork livestock industry as consumers place a priority food hygiene and standards. The country will soon have a new law aimed at improving standards and punishing below standard slaughterhouses.
New law aims to boost food safety in Thailand
The new Animal Slaughter and Sale of Meats Control Acts said that all slaughterhouses in Thailand must employ either veterinarians or personnel who have attended the Department of Livestock Development’s (DLD) courses. Without them slaughterhouses will be forced to close down, Dr Sorravis Thaneto, DLD’s Deputy Director General told Asian Agribiz. The DLD will look out for animal diseases and residues of drugs such as including beta-agonist and antibiotics. Also, all slaughterhouses must clearly declare animal traceability under the new law. Dr Sorravis said the new law will be implemented at the end of this year.
Livestock OK program ups standards across value chain
Thailand’s DLD has improved food safety standards at modern trade and wet markets across the country, establishing consumer confidence in food safety, via its Livestock OK initiative. Dr Sorravis Thaneto, Deputy Director General of DLD said food safety is becoming more important in Thailand as consumers and trading partners are vigilant over food hygiene and standards. Under the initiative, retail outlets developed total traceability from farm, slaughterhouses to retail outlets with no residue in livestock products. More than 2500 retail outlets are part of the program. The DLD expects the number to reach 3000 outlets by year end. Dr Sorravis said “we emphasize quality over quantity”.
People and raw material play a key role in CPF’s food safety plan
“Our food safety standards start with our employee,” Sukhawat Dansermsuk, Chief Operating Officer of Food Business at Thailand’s Charoen Pokphand Foods (CPF) told Asian Agribiz. CPF has consistently trained its employees on food safety, he said. Raw material for CPF’s food business unit comes from CP Group, guaranteeing traceability. Throughout the value chain machines are used. Suppliers of spices and sauces receive regular visits from CPF employees checking on the quality of the products. “To ensure food safety, we need to focus on people, raw material and production process,” Mr Sukhawat said, adding that food safety is top priority for both consumers and CPF.
Betagro says drug-free chicken production achievable, but gives no time frame
Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz that the firm has gradually reduced the use of antibiotics for chickens. Betagro has put a process in place to deal with the use of antibiotics, making sure that it abides by the law. Moreover, the Group always observes withdrawal periods. “Betagro’s roadmap is to gear us towards drug-free chicken production. But we are discussing this issue internally and we haven’t set the time frame for reaching the goal,” he said, adding that drug-free chicken production is achievable. “We have a lot to prove and it is not a short story,” Mr Vasit explained. Meanwhile, Betagro raises vegetarian-fed chickens for exports.
|Indonesia to grow shrimp market share in China |
[12 August 2016] According to Johan Suryadarma, Vice President of the Indonesian Fishery Products Processing and Marketing Association (AP5I), Indonesia must take the opportunity to export frozen shrimp to China as demand from this country continues to grow. “China values shrimp supply from Indonesia. They recently helped 11 Indonesian shrimp packers to participate at a seafood shows there,” he said. However, “it’s not easy to compete in the Chinese shrimp market since Ecuador, Vietnam and Thailand are also vying to increase their exports,” he added. Based on AP5I data, there are 436 Indonesian fishery companies that have secured export permits to China.
|Egg prices in India hit record levels|
[12 August 2016] Egg prices in India reached record levels recently, with retail prices in some areas hitting USD 0.07 last month. Data on the wholesale prices of eggs showed that in the major consuming centres, prices in the first seven months of 2016 were 13-17% higher than last year’s levels. Egg prices cool off in the summer months of March to May, and begin to soar again from August or September, usually hitting highs in December and January. This year, prices remain elevated even in the summer months. India’s egg output has grown to 78.5 billion eggs in 2015 from 46.2 billion eggs in 2005.
|Thailand’s GFPT Q2 net profit surges 90%|
[12 August 2016] Thailand’s GFPT has reported a net profit of USD 10.95 million in Q2, up 90.53% from the same period of last year, backed by lower feed cost and higher profit from its joint venture companies. GFPT’s revenue declined 3.24% year-on-year to USD 112.19 million in Q2 due to falling revenue from its feed segment. GFPT’s revenue from chicken processing segment increased 3.48% in Q2. GFPT said that Brexit has limited impact to the firm since chicken export sales to UK contributed only 5% of its total revenue. Furthermore, most export sales are quoted by USD currency and all transaction are hedged by using forward contracts.
|McDonald's to sell Beijing JV stake to Hong Kong unit |
[12 August 2016] McDonald’s Corp is selling its 50% stake in McDonald’s Beijing to its wholly-owned Hong Kong unit for USD 263 million, said Sanyuan Foods, the other 50% shareholder in the joint venture. State-owned Sanyuan, a Beijing-based dairy producer, also said it has given up the priority to bid the 50% stake, as the fast food operations by McDonald’s Beijing are not in line with its main business. McDonald’s is struggling to attract bidders in the sale of its China and Hong Kong franchise, and the short list is reportedly to include Sanyuan Foods.
|Figo Foods’ new plant to boost production to 40 tonnes/day|
[11 August 2016] Malaysia’s Figo Foods Sdn Bhd, subsidiary of QL Resources Bhd, hopes to fully operate out of its new processing plant by next June. The plant will increase its value-added seafood production from 12 to 40 tonnes/day, expandable to 60 tonnes/day. Lee Teck Wee, Executive Director, told Asian Agribiz the seafood sector has the potential to grow. Another reason for the expansion is QL Resources’ decision to enter the convenience store business after its tie up with Japanese franchise FamilyMart. Figo Foods hopes to supply its range of premium RTE products for the stores.
|Feed millers await Bulog’s response over corn imports for H2|
[11 August 2016] The Indonesian Feed Producers Association has informed the State Logistics Agency, the only importer allowed by the government, to import corn as the country will need some 1.5 million tonnes of corn for the second half of the year. “Until now there is no response from the agency,” Sudirman FX, Chairman, said. Last year the government scrapped permits for private corn importers, causing producers to switch to wheat. This in turn caused imports of wheat to rise. This year the government is controlling wheat imports hoping feed millers will absorb local corn. But local corn is hard to secure, confirming the invalidity of local corn production data.
|Shandong Yisheng to lease breeder farms for northern expansion|
[11 August 2016] China’s top broiler breeder Shandong Yisheng said it plans to lease six breeder farms and a hatchery in Tangshan in northern Hebei province for 10 years, effective January 2017. Total rent will be USD 9.7 million, or 1.4 times the investment needed to upgrade the facilities by their owner. “The move will expand our production capacity and market share, and improve the geographical layout of our poultry farming,” Yisheng said. The company currently owns 21 broiler GP farms, seven layer GP farms, 16 broiler PS farms and four hatcheries, mostly in eastern Shandong province where it is headquartered.
|Thaifoods Group posts strong earnings in Q2|
[11 August 2016] Thailand’s Thaifoods Group (TFG) has recorded a net profit of USD 19.29 million in Q2, compared to a loss of USD 12.90 million in Q2 2015. TFG attributes its results to an increase in revenues from its poultry and swine businesses. TFG’s poultry revenue in Q2 was USD 88.63 million, up 20.15% from the same period last year. TFG’s sales volume of chicken was 78,755.10 tonnes in Q2 2016, up from 66,562.47 tonnes in Q2 2015, backed by an increase in capacity for exports and local markets. Meanwhile, its swine business posted USD 30.24 million in revenue in Q2, up 43.85% from Q2 2015. TFG’s sales volume of swine grew from 13,192.55 tonnes in Q2 2015 to 16,603.40 tonnes in Q2 2016 due mainly to increased capacity.
|San Miguel Pure Foods posts 37% profit hike in H1|
[11 August 2016] San Miguel Pure Foods Company Inc rode on the back of its Agro-Industrial division to post a USD 53.6 million net income in the first six months this year. Higher poultry volumes and favourable selling prices of chicken and feeds helped push the combines sales revenues of its Agro-Industrial business, which also include fresh meats to USD 796.2 million, up 8% over the last year. Meanwhile its Branded Value-Added business, which include processed meats, registered sales revenues of USD 259.7 million, also up 8% year-on-year.
|FAO Indonesia launches mobile app for layer farmers|
[11 August 2016] The Food and Agriculture Organisation (FAO) has recently launched the Petelur.id app in Indonesia. According to James McGrane, Team Leader of FAO Ectad Indonesia, the Android-based mobile application was developed for small and medium-scale layer farmers in the country. “This app can help layer farmers to record egg production, feed consumption, bird depletion, as well as analyse hen day production, feed conversion, mortality trends and other parameters. They can control all these parameters anytime and anywhere,” Mr McGrane explained, adding that the app was developed together with the Indonesian Poultry Vets Association and Intelijen Dynamics.
|InVivo to help improve pig genetic quality in Indonesia|
[10 August 2016] Pig genetics in Indonesia still lags behind that of other countries in the region. To upgrade the quality of genetics in the country InVivo Indonesia, France-based feed producer, this year plans to import GP from nucleus farming facility Choice Genetics, in the US. Choice Genetics is a subsidiary of France-based Groupe Grimaud focusing on swine genetics. A Harris Priyadi, National Sales Manager Livestock, InVivo Indonesia, told Asian Agribiz, the GPs will be raised at the company’s local partner’s farm in Solo, Central Java. “Our part is to import the GP and supply quality feed to the local partner who will raise the stock and produce commercial piglets for sale,” he said.
|Vietnam pig industry on an upswing|
[10 August 2016] Vietnam’s pig industry will see robust growth in the next two years as new entrants to the industry kick off their pig breeding operations this year. In a statement, Hoang Thanh Van, Directory of the Department of Animal Husbandry, said the country’s meat sector has seen many big companies venturing into the livestock market including Hoa Phat Group and Hung Vuong Group, respectively the country’s largest steel producer and largest pangasius producer. In just the first eight months this year, both companies combined to import more than 2170 GGP pigs into the country, with the target to produce both breeding pigs and commercial hogs for the local market.
|Broiler prices in Indonesia fall below production costs|
[10 August 2016] Independent small and medium-scale farmers are facing a tough time as the price of live broilers in Indonesia fell to USD 1.13 per kg last week. The average production cost is USD 1.40. Hartono, Supervisory Board Chairman, Indonesian Poultry Farmers Association, said there is excess supply of live broilers. “Big companies and integrators compete with each other to sell their live broilers, pushing the prices down,” he said. In the past independent farmers controlled around 70-80% of live broiler market but now they only hold 18-20%. “Big investments in this sector are not followed by balanced investments in processing plants and cold storage facilities,” he said.
|China’s 2016 SPEM transaction exceeds USD 1.5 billion|
[10 August 2016] The 2016 transaction on China’s state pig exchange market (SPEM) has exceeded USD 1.50 billion as of early August, said the government of Rongchang District in the southwest municipality of Chongqing where the bourse is based. The online trade included 4.30 million finished pigs valued at USD 1.37 billion and 1.46 million piglets at USD 0.13 billion. Founded in 2013, the Rongchang exchange said it has attracted traders from 29 provinces out of all the 31 mainland provinces in China, with daily transaction of up to USD 15 million
|India’s meat exports touch USD568m|
[10 August 2016] India exported meat and meat products was worth USD 568 million during April-May of the current fiscal year. The country’s main export destinations included Vietnam, Egypt, Malaysia, Saudi Arabia and Iraq. India mainly exports processed meat and meat of buffalo, sheep and goat. In quantity terms, the overseas shipments stood at 192,748 tonnes in the first two months of the fiscal year, said Nirmala Sitharaman, India’s Commerce and Industry Minister.
|Jollibee net income up 11.3% in Q2|
[10 August 2016] Jollibee Food Corporation (JFC) reported a net income of USD 34.8 million in the second quarter this year, up 11.3% year-on-year, while system wide sales rose 15.1% from a year ago. The growth is fueled by strong sales in the domestic market, which accounts for at least 80% of its global sales. Sales in Southeast Asia also grew by 37%, led by Singapore with 56% and Vietnam with 49%. However, sales in China is down 5.7% due to competitive pressure on Yonghe King, its biggest brand in that market. For the first half this year, JFC’s net income topped USD 65.33 million up 13.4% year-on-year.
|Thailand’s DLD enforces good labour practices on chicken plants |
[9 August 2016] All export-led chicken processing plants in Thailand must adopt good labour practices (GLP) in the next 2-3 months, Dr Sorravis Thaneto, Deputy Director General of Thailand’s Department of Livestock Development (DLD) told Asian Agribiz. The move comes after Betagro’s ex-contract farmer in Lopburi province allegedly abused its Myanmar migrant workers and seized their passports. Betagro Group has suspended business ties with that chicken farm. Dr Sorravis said the DLD will also enforce GLP on chicken farms. If the DLD discovers any farm abuses its labour, “we will withdraw its good agricultural practices licence and the farm will not be able export its products”.
|KRR acquires 10% of Japfa Comfeed Indonesia|
[9 August 2016] Japfa Ltd has confirmed that KKR Jade Investments Pte Lte acquired 10.44% of its Indonesian subsidiary PT Japfa Comfeed Indonesia Tbk on August 4. KKR Jade picked up some 441 million shares of Japfa Comfeed. The Indonesian agri-food producer also issued an additional 750 million new shares in its capital to KRR Jade. This leaves Japfa Ltd with 51% stake in its Indonesian subsidiary. KKR Jade Investments is a fund managed by Kohlberg Kravis Roberts & Co. KKR has been investing in and providing financial solutions to companies in Indonesia since 2013. It is an investor in Tiga Pilar Sejahtera Food, a leading food businesses.
|India’s seafood industry records lower exports |
[9 August 2016] Weighed down by various factors, seafood exports from India witnessed a dip in both quantity and value in 2015-16 compared to the previous fiscal year, said India’s Marine Products Export Development Authority (Mpeda). Seafood exports in 2015-16 stood at 945,892 tonnes worth USD 4.7 billion as against the record 1 million tonnes exported in the previous year for USD 5.5 billion. Frozen shrimp continued to be the major export item in the last fiscal, followed by frozen fish. A Jayathilak, Mpeda Chairman said the depreciation of the euro, weaker economic condition in China, and the devaluation of the yen contributed to the decline in exports.
|Danish pork producers see good opportunities in China|
[9 August 2016] Rising consumer demand amid a drop in pork production in China bodes well for Danish pork producers, with Denmark nearly doubling its pork exports to China in the first six months this year compared to the same period last year. A report by GlobalMeatNews (http://www.globalmeatnews.com/Livestock/Denmark-benefits-booming-business-with-China), citing data from the Danish Agriculture and Food Council (DAFC), said Denmark accounted for 83,009 tonnes (11%) of China’s total fresh and frozen pork exports of in H1, up 153% from last year. A DAFC spokesperson said Denmark is “confident we can double the export in value and volume” this year.
|Bangladesh traders seek to import Indian buffaloes|
[9 August 2016] Some traders in Bangladesh are eager to import buffaloes from neighbouring India, with the aim of setting up cattle farms. The traders have taken the initiative with a view to exporting buffalo meat to Russia and other countries. They also want to sell the meat in the local markets, said industry insiders. Shihab Enterprise has applied to the Ministry of Commerce to import 10,000 buffaloes from India, an official said. Bangladesh has estimated that there are 1 million buffaloes in the country, with Noakhali district being one of the major buffalo farming areas.
|Biotis to sets up new vaccine plant in West Java|
[8 August 2016] Indonesia’s Biotis Prima Agrisindo, a joint-venture between two Chinese companies announced a USD 100 million investment in a veterinary vaccine factory in Bogor, West Java. The plant is expected to be completed in Q3 this year and will have a total production capacity of 8 billion ampoules per year. Biotis was co-founded by drugs giant Pharmally International Holding Co Ltd with a 69% stake and China’s state-owned enterprise Harbin Weike Biotechnology Development Company with a 10% share. According to Huang Wen Lai, Biotis Chairman, Biotis will focus on producing competitively-priced avian influenza and Newcastle disease vaccines for the Southeast Asia market, particularly Indonesia, in its first phase.
|Seiko Foods ventures downstream with premium ready-to-eat products|
[8 August 2016] Malaysian seafood processor Seiko Foods is producing value-added premium products to counter shortage of raw material such as surimi and high production costs. It produces ready meals, such as Yellow Tumeric Sauce, Spicy Thai Sauce, Sambal Tumis Sauce, and Ginger and Garlic Sauce, all with white tilapia fillets, packed in aluminium trays just like the ones used on airlines. The containers act as both baking trays to cook the frozen meal as well as a plate off which to eat it, giving the company the breakthrough it needed to advance into the market. “Thailand appears to be spearheading the sector worldwide, we feel it is time Malaysia makes her mark in this sector too,” Alan Lim, CEO, told Asian Agribiz.
|New DA chief seeks to reverse transfer of meat inspection functions|
[8 August 2016] Philippine Agriculture Secretary Emmanuel Piñol is seeking the reversal of the circular that transferred the meat inspection functions of the National Meat Inspection Service (NMIS ) to the Health Department’s Food and Drug Administration (FDA). He said meat processors are at a disadvantage under the current regulations and added that the FDA officers do not have the expertise of NMIS officers. The Philippine Association of Meat Processors had earlier called on the new administration to overturn the circular that was signed by former Agriculture Secretary Proceso Alcala and former Health Secretary Janette Garin, noting that it would only duplicate functions and add to the already bureaucratic process of securing permits.
|Shandong Minhe starts operations at upgraded hatchery|
[8 August 2016] Chinese white broiler integrator Shandong Minhe Animal Husbandry Co said it had completed upgrading works and started operations at its second hatchery, now equipped with incubators from Belgium’s Petersime. The new hatchery has an annual capacity of 120 million chicks. Each incubator can house up to 129,000 eggs. “The modern equipment is expected to improve the quality and safety of our products,” Minhe said. The company owns a parent stock of 3.3 million sets and is able to hatch more than 300 million chicks a year with three hatcheries. It produces 20 million broilers a year, and has an annual output of 60,000 tonnes of processed chicken products.
|South Sulawesi grows as feed hub in eastern Indonesia|
[9 August 2016] South Sulawesi has emerged as a feed hub in eastern Indonesia. There are six feed millers in the province, namely Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Malindo Feedmill, Cargill Indonesia, Patriot Agung Sejati and Sinar Terang Madani bringing in total installed capacity of 1.25 million tonnes per year. Roughly half of the capacity is used, said Syahrir Akil, Chairman, Indonesian Feed Producers Association (APPI) for Sulawesi and Kalimantan. “Annually the millers need 300,000-350,000 tonnes of corn, while layer farmers in the province need around 75,000 tonnes [of corn]. All the corn needs are met by local supplies,” Mr Akil told Asian Agribiz.
|Indian state Odisha to open 53 fresh chicken outlets|
[8 August 2016] The eastern Indian state of Odisha will open 53 fresh chicken outlets in different districts and urban locations to facilitate hygienically-processed poultry meat and egg. Bishnupada Sethi, Secretary of the Fisheries and Animal Resources Department, said this will boost the development of the sector and keep in check roadside slaughtering of birds. “The decision to open more chicken fresh outlets was made after encouraging outcomes from three chicken fresh outlets opened in the city. The outlets will provide marketing support to broiler and layer farmers,” Mr Sethi said adding that the annual turnover of each of these outlets is around USD 150,000.
|Contaminated pork delivered to retailers in Hong Kong|
[8 August 2016] At least 40 slaughtered pigs contaminated with illegal drugs were sent to 27 retailers across Hong Kong, said government authorities. It is unclear whether the pork has been sold or consumed, but a spokesman for the Centre for Food Safety said it does not pose a serious health hazard to residents, and that they have already notified all retailers to stop selling the products. Urine samples from 319 pigs from two farms in China were found to be contaminated with remnants of salbutamol and clenbuterol. Fork Ping-lam, Food and Environmental Hygiene Department, Assistant Director, said 40 pigs left the Sheung Shui slaughterhouse, and they have launched an investigation.
|Vietnam’s Lam Dong province to develop sustainable beef production|
[8 August 2016] Vietnam’s central highland province of Lam Dong has approved the proposal of a beef cattle project targeting a 100,000-cow herd by 2020. The USD 4.8 million project will be contributed by the province’s fund and farmers. Zebu, Droughtmaster, Red Angus, Blanc Blue Belgium are among the breeds selected for the project. Until 2020, it is estimated that Lam Dong’s beef production will reach 43,780 tonnes, valued at USD 22 million. Lam Dong’s Department of Agriculture and Rural Development said the province is keen on establishing a high quality sustainable meat production chain that connects farmers to feed suppliers and meat buyers.
|No Brexit impact on CP Prima’s export volume to UK|
[5 August 2016] Indonesia’s largest shrimp producer and processor Central Proteina Prima (CP Prima) is actively expanding its market share in the EU and UK markets. Sutanto Surjadjaja, Vice President Director, told Asian Agribiz that Brexit does not have an impact on its export volume to UK. “However, since the pound is weakening and we sell our products in US dollar, the profit margin of our buyers is decreasing. They lobbied us for competitive prices,” he said. On EU’s strict import stipulations, Mr Surjadjaja said UK’s standards are even stricter. “Supermarkets in UK are concerned about food safety and traceability of food products they import. So Brexit will not affect the standards on food safety and quality.”
|More efficiency with Avinew effervescent tablets|
[5 August 2016] Rhone Ma (M) Sdn Bhd launched Merial’s Avinew Neo, or New Effervescent Option, in Malaysia recently. “Effervescent tablets make storage, handling and administering of the drug easy,” Dr Karen Yip, Marketing and Technical Director, told Asian Agribiz. “The tablets dissolve in water. It is quick and less complicated to administer compared to the former Avinew, which came in glass vials and is administered as an eye drop, via drinking water and as a spray,” she said. “Avinew in the glass vials are live vaccines. Farmers must use up the vaccination within an hour or its efficacy lowers.” Rhone Ma plans to introduce more vaccines in the tablet form, including Bioral H120 and Gallivac IB 88.
|Fujian Sunner H1 chicken sales up 25%|
[5 August 2016] China’s Fujian Sunner Development Co said its slaughtered chicken sales grew 25% in volume in the first six months of the year, driving its first-half operating revenue to USD 592 million, or up 23% year-on-year. Net profit, however, was at USD 37 million, compared with a loss of USD 53 million a year earlier. According to Sunner, China’s first-half introduction of broiler GPs was less than 0.11 million sets, compared with 0.72 million sets last year and the 1.54 million peak in 2013. “The segment will see a long-term shortage in 2016-2017, meaning better days for producers over the next three years,” said the company.
|Australia expands skills courses on red meat, cattle in Indonesia |
[5 August 2016] Australia’s Minister for Trade, Tourism and Investment, Steven Ciobo, announced the expansion of the skills development program under the Indonesia-Australia Partnership on Food Security in the Red Meat and Cattle Sector. The courses under the program have been successful at strengthening the bonds between the countries in the red meat and cattle sector. “Last year 70 Indonesians were trained in the cattle sector in Australia through courses run by Australia Awards in Indonesia and the Northern Territory Cattlemen’s Association Pastoral Industry Student Program. This year, that number will rise to 86,” he said.
|Pakistan’s poultry industry suffers losses|
[5 August 2016] Pakistan’s poultry industry has suffered a loss of around USD 411 million in one year and this loss may mount further because the prices of chicken and eggs do not follow the increasing cost of production. According to Rai Mansab Ali Kharal, Chairman of the Pakistan Poultry Association North Zone, if the present situation prevails, half of the farms may be closed, affecting the population who depend on the availability of affordable protein. He said average broiler price remained at USD 1.10/kg last year while production cost climed to USD 1.30. Meanwhile, the average price of broiler DOC was USD 0.20 per chick against the cost of production of USD 0.30.
|South Korea gives Philippine chicken a go-ahead|
[4 August 2016] The South Korean government has given a go signal for Philippine poultry exports, the Philippine Department of Agriculture announced. The Korean Animal and Plant Quarantine Inspection Agency and the Ministry of Food and Safety has recommended the approval of Johanna’s Chicken Processing Center and LDP Farms to export chicken meat after the two companies passed the country’s sanitary standards and processing requirements. Two other companies were also inspected but were recommended to implement improvements before being inspected again.
|Cambodia launches framework for livestock law|
[4 August 2016] After eight years in the works, Cambodia’s Agriculture Ministry this week circulated the framework for the country’s first law regulating the quality of domestic and imported meat products and livestock. The law, signed into effect in January, will serve as the foundation for rules governing the import and export of livestock and meat, veterinary practices to ensure animal health, enforcement of sanitation standards at slaughterhouses and regulation of chemical alterations to meat products. Alexandre Huynh, a representative of the UN’s FAO, said the law guarantees the quality of products. “It opens doors to investments and allows local producers to compete with imports,” he said.
|Thailand’s CPF embraces good labour practices|
[4 August 2016] Thailand’s Charoen Pokphand Foods (CPF) is working with the Department of Labour Protection and Welfare, and the Department of Livestock Development to promote the welfare and quality of life of stakeholders in the broiler business. Mr Virachai Ratanabanchuen, COO, for the chicken business, said the firm is committed to taking its labour practices to the next level, on par with international standards. “Good labour practice (GLP) is applied throughout our value chain,” he said. The company is also applying its GLP to its contract farmers. CPF recently trained 40 broiler farm owners in Nakhon Ratchasima, and will soon organise training in other provinces across the country.
|Masan attributes strong H1 results to animal protein segment|
[4 August 2016] Masan Group’s H1 2016 net profit almost tripled to USD 46 million compared to figures from a year ago. The company’s total revenue in the first half of the year was more than USD 856 million, a year-on-year increase of 83.8%. The company said its animal protein segment was the main contributor to its performance in the first half of the year. This segment contributed nearly 60% of the group’s total revenue. Revenue from the sales of animal feed rose 13.8% from last year to more than USD 491 million. The company said it had developed new products and focussed on pig feed, which generated the highest profit margin for Masan among all animal feed products.
|Philippines to explore organic chicken exports|
[4 August 2016] The Philippines might explore raising organic chicken on a commercial scale for export to South Korea, Philippine Agriculture Secretary Emmanuel Piñol said following a meeting with South Korean Ambassador Kim Jae-shin. Mr Piñol clarified, however, that the plan is still a proposal and that there is no commitment yet. He said chicken can be raised using commercial facilities, but will be fed all-natural organic feeds that “will be formulated by an Islamic engineer, so the products comply with halal standards”.
|Japfa Comfeed Vietnam gets positive feedback for probiotic feed|
[3 August 2016] Japfa Comfeed Vietnam Ltd has received the thumbs up from farmers and the feed industry for its probiotic feed, which now accounts for 20% of the company’s total production capacity and stands as one of its bestselling products. The company is using probiotics developed by Biospring Corp, which produces probiotics from heat resistant spores of bacillus strains. Nguyen Duy Cuong, Japfa Comfeed Sales Manager said trials using the probiotic feed on 100,000 layers led to an increase in egg size and improved egg yolk colour. Meanwhile, studies on pigs showed better growth rate and improved immune system.
|CPF India sees strong potential for burger segment|
[3 August 2016] The burger category in India is promising. Sanjeev Pant, Senior Vice President, Food Business, CPF (India) told Asian Agribiz it has seen huge growth in India over the years. CPF India’s Five Star Chicken recently launched two new variants in India, the Haryali Chicken Cheese Burst Burger and Spicy Mix Veg Burger. “Some 60% of Five Star audience are aspirational youth who is always on a look out for new flavours,” said Mr Pant. Five Star is present in key metros like Bangalore, Chennai, Kochi and other cities. CPF India said it is looking for good response not only from the metros but also from tier 2 and tier 3 cities. CPF India is a subsidiary of Thailand’s Charoen Pokphand Foods.
|FDA takes jurisdiction over cooked processed meat|
[3 August 2016] The Philippine Food and Drug Administration (FDA) has taken jurisdiction over cooked and processed meat beginning July 25 this year. It was previously under the National Meat Inspection Service. With the transfer, the Bureau of Animal Industry will no longer be issuing shipping permits for cooked processed meat but it will continue to issue shipping permits for uncooked, processed meats like burger patties and local fares like tocino, tapa and longganisa. Meanwhile, the issuance of the licence to operate permits of meat establishments has also been transferred to the FDA.
|Malaysia to produce 801m DOCs, 768m broilers in 2016|
[3 August 2016] Malaysian farmers are expected to produce 800.90 million day-old chicks and 767.85 million broilers this year, said the Department of Veterinary Services’ annual report. Last year the country produced 792.94 million day-old chicks and 737.61 million broilers. The cost of production for broilers in 2015 ranged from USD 1.12 to USD 1.22 per kg live weight. The Department noted that the cost of production was higher compared to the year before as the price of broiler feed increase by 1.28% from 2014. Despite this, the department said the poultry industry is the most successful segment of the livestock sector and has the highest output value per worker in the agriculture sector.
|Vietnam’s feed demand to grow 10% annually|
[3 August 2016] Despite stiff competition Vietnam’s feed industry is still seen as a potential market. This explains Hoa Phat’s plan to build a new feedmill next year, said Tran Tuan Duong, Hoa Phat Group, CEO. Mr Duong said the country expects a 10% growth in feed demand per year. This means Vietnam will need 20 million tonnes of feed by 2018. Meanwhile, Nguyen Thi Thu Kim, Analyst at Saigon Securities Inc, said the feed industry has become much more attractive to investors in the last few years. “The development of larger scale meat production has driven the demand for commercial feed production as a replacement for homemade feed in the past.”
|Input price rise gives pressure to margins of India’s feed producers|
[2 August 2016] Margins in India’s feed industry is shrinking as prices of corn and soy rise significantly after years of droughts. Producers like Cargill, CP Foods, Godrej Agrovet and SKM Feeds are unable to pass on the additional costs to consumer. Besides the demand-supply gap prices were also up due to hoardings by traders, alleged industry insiders. “The price rise in the past four months has strained our profits to the extent of 20-25% per tonne of feed,” said Balram Yadav, Managing Director, Godrej Agrovet. “If earlier we were able to passed on the cost to consumers now we can’t due to increasing competition, and are forced to take a hit.”
|Muyuan Foods H1 net profit soars on rising pig prices|
[2 August 2016] Chinese pig producer Muyuan Foods Co said its first half net profit rose dramatically to USD 162 million from USD 7 million a year earlier. Operating revenue doubled at USD 344 million. The company attributed the growth to a significant rise in finished pig prices, which grew 51% to USD 2.90/kg averagely in H1 2016. Muyuan’s H1 live pig sales increased 35% to 1.15 million heads, including 0.83 million finished pigs and 0.32 million piglets. The company has targeted to produce 2.8-3.5 million pigs this year, and “the goal is expected to be achieved”, judging by the H1 results, it said.
|US requests WTO to impose annual fine of USD450m on India|
[2 August 2016] The US wants the World Trade Organisation (WTO) to impose a fine of USD 450 million annually on India for hurting US trade interests with its failure to comply with a WTO ruling. For about seven years India had restricted US agricultural products like poultry meat, eggs and live pigs, to avoid avian influenza . The prohibition was via India’s avian influenza measures maintained through the Indian Livestock Importation Act, 1898. The US argued that India’s policy towards American poultry imports were discriminatory and violated WTO rules.
|Hung Vuong closer to completing pork expansion plan|
[2 August 2016] Hung Vuong Corporation is closer to completing the final phase of its USD 90 million pork expansion program with the arrival of 750 breeders from DanBred International last week. Under its contract with DanBred, signed last year, Hung Vuong will import 4200 pigs, of which 1500 are great grandparents while the rest are grandparents and parent stock. Two more deliveries, in October and November, will complete the importation. The company hopes to launch the first batch of Hung Vuong brande parent stock, commercial pigs and pork early next year.
|Philippines’ Unahco registers new feed additive|
[2 August 2016] Unahco, one of the largest producers of feed and veterinary products in the Philippines, announced that it has registered OxC-beta Livestock as an imported feed additive that can be used in all species in the country. OxC-beta is a product owned and developed by Canada-based Avivagen that has immune-priming and inflammation-moderating properties, making it a safe and effective alternative to in-feed antibiotics for maintaining optimal health and growth of livestock. The product is expected to be commercially available in the country over the coming months.
|Vietnam meat demand to peak by 2023, causing feed production to grow|
[2 August 2016] Meat demand in Vietnam will peak to 33.9kg by 2023 causing a spill over effect in the feed industry. According to a survey by Grand View, Vietnam feed industry will value at USD 10.55 billion by 2022, which is 50% higher than the current USD 7 billion. “It is estimated that the growth of feed demand in Vietnam is 10% per year, which means Vietnam will need 20 million tonnes of feed by 2018,” said Tran Tuan Duong, CEO to Hoa Phat Group. “The industry has become more attractive to investors . Large scale meat producers has driven the demand for commercial feed production as a replacement for homemade feed in the past," said Nguyen Thi Thu Kim, analyst at Saigon Securities Inc.
|Hotels, restaurants buoy processed pork consumption in India|
[1 August 2016] Although the processed pork market in India is relatively small, it has been growing at a rapid pace thanks to growing demand from hotels and restaurants that serve foreigners and wealthier Indian consumers, a report by the US Department of Agriculture said. However, demand is being served primarily by imports as the country’s pork industry remains small, unorganised and inefficient. In 2015, the country imported 527 tonnes of pork products like bacon, ham, salami and sausages and cuts such as belly, chops, loin, tenderloin, neck, shoulder, spare rib. The figure is up 28% from the previous year, with EU countries among the leading suppliers.
|Thai seafood processor PFP to open halal plant in Malaysia|
[1 August 2016] PFP Group, a major Thai frozen seafood processor, hopes to open a halal food factory in Malaysia after it concludes negotiations with its local partner. The company plans to build a USD 4.31 - 5.75 million manufacturing and distribution facilities in Malaysia, to add to its two existing 97 tonnes per day food processing plants in Thailand. PFP told a Thai local daily it was exploring new Muslim markets especially Indonesia in line with the government’s policy to make Thailand one of the world’s top five halal food exporters in five years. PFP produces imitation crab sticks, snow crab, fish tofu, Thai fish cake, imitation crab claw and imitation shrimp.
|Indonesia’s Dua Putra to commission new seafood plant|
[1 August 2016] Indonesia’s seafood company Dua Putra Utama Makmur will commission its USD 23 million seafood processing plant in Pati, Central Java, mid-August, said Witiarso Utomo, President Director. Currently the company already has three seafood processing plants and a 4000-tonne cold storage facility, all in Pati. The fourth plant, to be equipped with a 21,000-tonne cold storage facility, will increase the company’s shrimp and fish processing capacities from 8 to 100 tonnes/day and 5 to 13 tonnes/day, respectively. “We significantly increase our shrimp processing capacity since demand from export markets is big,” said Mr Utomo.
|New Hope to build broiler breeder farm in Myanmar|
[1 August 2016] Chinese livestock integrator New Hope Liuhe Co said it has decided to build a broiler breeder farm in south Myanmar. The planned farm will have a parent stock of 170,000 sets, and is able to hatch 15 million chicks a year. The total investment for the project is about USD 10 million. “We aim to build an integrated value chain by adding a breeder farm to our profitable feed business,” New Hope said. The company has been operating a feedmill in Myanmar for more than two years, and its feed sales peaked at 5000 tonnes a month.
|Asia’s protein boom|
[1 August 2016] US-based Brookings Institution estimates the Asian middle class will reach 1.7 billion by the end of the decade and will double to 3 billion by 2030. Economists see a surge in demand for meat products. The proportion of protein in Chinese households’ diet has gone from less than 20% to almost 25%, according to an International Monetary Fund analysis. Yet the IMF said per capita consumption of beef and pork is still well below what would be expected at current income levels, and predicted it will rise as wages head higher. This type of growth in the next 15 years will see world production of beef and poultry increase by 5%, lamb and mutton by 17%, fish by 30% and pork by more than 40%.
|New cooking plant to take Godaco further|
[29 July 2016] Vietnam’s Go Dang Joint Stock Company, better known as Godaco, opened its first pangasius further processing plant, early July. The vertically-integrated frozen pangasius fillet producer has five production lines that produce marinated, breaded, tempura, karaage for the Japanese market and shrimp. “Value-added will be a growth pillar for the company. We are the first pangasius company to do it on a large scale,” Nguyen Van Dao, General Director and Founder of Godaco, told Asian Agribiz. Until recently the business was 95% frozen fillet and 5% value-added. Mr Dao said he plans to grow value-added to a “meaningful initiative”.
|Thailand’s GFPT expected to post solid Q2 earnings|
[29 July 2016] Thai brokerage SCB Securities expects Thailand’s GFPT to report a Q2 net profit of USD 9.77 million, up 71% from the same period last year, driven by wider gross margin and higher equity income. GFPT’s Q2 earnings will also be backed by lower feed costs, better product mix (higher margin exports) and better equity income from both GFN and McKey. GFN is a joint venture between Japan’s Nichirei Foods Inc and GFPT, while McKey is a joint venture between Keystone Foods Inc and GFPT. However, GFPT’s sales is expected to slide 2% in Q2, hurt by a weaker feed unit that outstripped the improved farm and food units. For GFPT’s feed unit, sales volume continued to drop year-on-year as the firm faced greater competition from fully integrated players, especially in the shrimp feed business.
|McDonald’s to sell Malaysia, Singapore franchises|
[29 July 2016] McDonald’s Corp is planning to sell its 20-year franchise rights in Malaysia and Singapore to local franchise partners as it pursues an international turnaround plan put in place after CEO Steve Easterbrook took over last year. It said it was negotiating with suitable candidates for the Malaysia and Singapore markets but did not provide any details. It is revamping its ownership models throughout Asia, including plans to sell operations in China, Hong Kong and South Korea. In March the company said it aims to have 95% of its restaurants in the region under local ownership.
|Minerva eyes stronger presence in Asia |
[29 July 2016] Brazil’s beef processing giant Minerva has made its first investment in Australia, in a Brisbane-based non-packer exporter and trading company, IMTP Pty Ltd. The company is almost totally export focussed, servicing a wide range of international customers across Asia, North America and Russia. According to Minerva, IMPT will change its name to Minerva Foods Asia Pty Ltd, a likely indication where the main export focus for the company will be henceforth. “We see it as a strong opportunity for the Australian export business to grow,” Michael Connolly, Director, IMTP, said.
Onsite at Indo Livestock 2016 with ARIEF FACHRUDIN
[29 July 2016]
The 11th edition of Indo Livestock Expo & Forum opened on July 27 at the Jakarta Convention Centre in Jakarta, Indonesia.The show has 580 exhibitors from 38 countries promoting their products and technologies to make the production of livestock and the processing of meat, egg and dairy more efficient and sustainable. According to the organiser Napindo Media Ashatama, they expect to welcome 15,000 trade visitors and delegates during the three days.
Challenges abound for poultry industry
Indonesia’s poultry industry is still facing a tough situation, according to Don P Utoyo, President of the Indonesian Poultry Society Federation (FMPI). Problems like alleged broiler cartel, corn supply and control on wheat imports, as well as slowing economy and low purchasing power are hampering growth of the industry. “To address this, we needcooperation between the government, private sector, researchers, press and public,” Mr Utoyo told Asian Agribiz. Desianto Budi Utomo, Secretary General of the Indonesian Feed Producers Association (APPI), concurred, and said the industry is expected to grow at 8%. However, “the potential of Indonesia’s poultry industry is still good. In 2020, it’s predicted that the number of middle class will grow by 174%. This will drive consumption of poultry meat and eggs.”
Feed industry needs corn & wheat supply continuity
Supply continuity of energy sources like corn and wheat is still the main issue of the animal feed industry in Indonesia, according to Desianto Budi Utomo, Secretary General of the Indonesian Feed Producers Association (APPI). In the first half, corn imports reached around 800,000 tonnes. “For the second half, we have proposed to Bulog [the State Logistics Agency] to import 1.5 million tonnes of corn since local corn production during the period will not be sufficient to meet the feed industry's needs,” Dr Utomo told Asian Agribiz. However, he continued: “if the government loosens its control on feed wheat import and then allow us to import the commodity again, we will need less than 1.5 million tonnes of corn for the second half.” As of now, wheat imports has touched 2 million tonnes.
Cold chain logistics of meat in Indonesia expected to grow 6%
The growth of cold chain logistics in the meat sector in Indonesia is not significant, according to Hasanuddin Yasni, Executive Director of the Indonesian Cold Chain Association (ARPI). Mr Yasni told Asian Agribiz that cold storage investment in the meat sector is still dominated by chicken producers such as Charoen Pokphand and Japfa since they supply their products to QSR chains that grow throughout the country. “This year I believe the growth of cold chain logistics in the meat sector is only about 6% as the poultry industry is still having some problems. However, next year the growth can be 10% since many foreign investors from Japan, Thailand, China and India plan to invest,” he said. Based on ARPI data, total installed capacity of cold storage for chicken and beef is 1.3 million tonnes and 450,000 tonnes, respectively.
|Thailand’s Prantalay to launch frozen and chilled imitation shrimp |
[28 July 2016] Anurat Khokasai, Chief Executive Officer of Thailand’s Prantalay Marketing, told Asian Agribiz that the firm will launch frozen and chilled imitation shrimp under the Prantalay brand in the next two months. “Imitation shrimp is relatively new in Thailand and there are no competitors. This is a business opportunity for us,” he said, adding that imitation shrimp can be cooked in various ways. Prantalay invested around USD 857,000 for the machine and it will produce 20 tonnes of imitation shrimp a month in the first phase. Prantalay’s imitation shrimp will be produced from fish.
|DBE Gurney to open 1000 fried chicken kiosks by mid-2017|
[28 July 2016] Malaysia’s DBE Gurney Resources Bhd hopes to open 1000 HARUMi fried chicken kiosk in the next 12 months. Group Managing Director Datuk Alex Ding said it plans to offer franchise opportunities to entrepreneurs who are keen to start a business. The group’s subsidiary DBE Poultry Sdn Bhd signed a joint venture with Distinct Legacy Sdn Bhd and private investor Tengku Faizwa Tengku Razif to establish an entrepreneur development program that involves the setting up of HARUMi outlets. The company currently has more than 100 kiosks across the country. He said it is on track to achieve its target of 500 kiosks by year end.
|China targets 8mt annual beef output by 2020|
[28 July 2016] China has set a goal to produce 8 million tonnes of beef a year by 2020, up from 7mt in 2015, said the Ministry of Agriculture. In a guideline to promote the herbivorous animal sectors, the ministry said China should tap imports “to fill the domestic gap of meat supply, and to meet consumer demand”. Chinese companies will also be encouraged to invest in overseas forage farms and beef processing plants, the guideline said. China imported 295,721 tonnes of beef valued at USD 1.3 billion in the first half of 2016, up 61% and 48%, respectively, from a year earlier, according to China Customs.