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26 July 2016
|Indonesia’s Adib to develop cold chain|
[26 July 2016] Indonesia needs more capacity for cold logistics for its seafood industries. This has led Adib Global Food Supplies, Indonesia’s leading seafood distributor and processor, to increase its cold logistics capacity. “Cold chain is crucial for seafood and its value added products, and Indonesia is still lacks this. We plan to develop our internal & commercial cold storage facilities,” Ardi Wijaya, Vice President told Asian Agribiz. Adib currently has a 7000-tonne cold storage facility in Bekasi, West Java and reefer trucks to cover the Greater Jakarta region. This facility is equipped with CO2 refrigeration system from Japan. “We are one of several companies that has been using the CO2 technology. It’s better than the NH3 technology in terms of energy usage, maintenance, quality and eco-friendliness,” Mr Wijaya said. In the near future, he added that Adib plans to set up new cold storage facilities beyond the Greater Jakarta region.
|CPF expects its shrimp unit to return to net profit by 2017|
[26 July 2016] According to Thai brokerage SCB Securities, Thailand’s Charoen Pokphand Foods (CPF) expects its shrimp unit to return positive earnings before interest and taxes in 2016 and 2017, the best performance since the early mortality syndrome (EMS) hit in 2012. Local shrimp sales volume is increasing and could reach 300,000 tonnes in 2016, up 15% year on year, backed by more successful shrimp farming. The increased sales volume, together with a rise in price in the second half of this year (+6% year on year) is encouraging shrimp farmers to increase their volume. Meanwhile, SCB Securities expects CPF to report a Q2 net profit of USD 128.43 million, up 50% from the same period last year, driven by wider margin from its Thai livestock and aquatic units and better overseas livestock units.
|Malaysians consume 1.8m chickens daily|
[26 July 2016] Malaysians consume 1.8 million chickens and 2.8 million chicken eggs daily, said Agriculture and Agro-based Industry Minister Datuk Seri Ahmad Shabery Cheek. The country’s self-sufficient rate is 110% with 13 million birds produced a week. Some 12 million birds are consumed locally, and the balance is exported to Singapore. According to the Economic and Social Science Research Centre, Mardi, the production cycle for broilers is 5.33 times a year with a few operators reaching six times a year. FCR in Malaysia is 1.67 while annual mortality rate is 4.32%, making the industry very competitive.
|Dead cattle meat from other states turns up in Kerala|
[26 July 2016] A local television channel in Kerala, India, reported that groups were offloading meat of dead cattle from other states into Kerala for sale. During the TV footage of a sting operation, transporters admitted that such meat is transported into Kerala from Tamil Nadu, and that preservatives are used to help keep it from rotting. Following the strong stand by India’s federal government against cattle slaughter, cattle farmers in many states are in distress, with their aged cattle becoming a financial burden. Kerala, being a prominent beef-consuming state, is considered a good market for distressed cattle farmers who want to dispose of aged or sick cattle.
|NZ hopes to export beef, breeding cattle to Indonesia|
[26 July 2016] New Zealand Prime Minister John Key believes real progress has been made on securing a better deal for New Zealand farmers trying to export beef products to Indonesia. “Beef prices are high here [Indonesia] and there’s no question New Zealand exporters would put into the marketplace a high quality product, but at a lower price,” Mr Key said during his visit to Jakarta, Indonesia. Meanwhile, New Zealand is also looking to export cattle to Indonesia for breeding purposes. Mr Key said progress is being made on that front, but it is a matter of finalising a number of protocols, including making sure Indonesia meets animal welfare expectations.
|Pilmico expands feedmills in the Philippines|
[25 July 2016] Pilmico Food Corporation, a subsidiary of Aboitiz Equity Ventures Inc (AEV), finished the USD 6.3-million expansion of its two feedmills, one in Iligan City in Mindanao and the other in Capac, Tarlac Province in Luzon. The additional capacity is expected to support the company’s growing sales due to increasing demand, particularly from poultry and game fowl. As AEV’s food subsidiary, Pilmico is also engaged in swine production as well as flour production.
Deal reached on US imports of Vietnamese shrimp
[25 July 2016] The US and Vietnam signed an agreement resolving two longstanding World Trade Organisation disputes over exports of Vietnamese shrimp to the US, the US Commerce Department said. “The agreement also provides a framework for the settlement of certain US court litigation, as well as the resolution of certain outstanding duty claims covering various administrative reviews of the warmwater shrimp antidumping duty order,” the department said in a statement. Vietnam's Tuoitrenews said as a result of the deal, Minh Phu Group will no longer be subject to the antidumping duty order, while other Vietnamese exporters of warmwater shrimp will be affected by the order, it said.
|Indonesia targets corn self-sufficiency in 2018|
[25 July 2016] Indonesia’s Agriculture Minister Andi Amran Sulaiman has said Indonesia will be self-sufficient in corn in 2018. Mr Sulaiman claimed corn imports have declined 47% or around 800,000-1 million tonnes a year. “In 2018, at the latest, there will be no need to import corn both for human consumption and animal feed,” he said. Indonesia imports corn for animal feed mainly from Argentina and Brazil. In July 2015, the government temporarily stopped issuing corn import permits to feed millers, with the government making a broad push for food self-sufficiency and channelling imports through Bulog starting 2016.
Regional dairy update
[25 July 2016]
India’s Schreiber Dynamix hopes to process milk products next year
Schreiber Dynamix Dairies, a jv between American dairy major Schreiber Foods and the Indian dairy company Dynamix Dairies, has started operations of its second food processing and packaging facility at Fazilka International Food Park in Punjab, India. The facility has been set up with an investment of about USD 15 million, with Tetra Pak as the technology partner. The company hopes to start processing and packaging milk products by next year. Kandarp Singh, Managing Director of Tetra Pak South Asia Markets said: “Indian consumers are now increasingly switching to value-added and fortified milk products. There is also a significant growth in on-the-go consumption of beverages. So, besides traditional products, this capacity expansion will also facilitate introduction of innovative products and packaging.”
Amul Dairy to set up two new plants
India’s Kaira District Cooperative Milk Producers Union Limited or popularly known as Amul Dairy will set up two new dairy plants at Pune and Kolkata with an investment of USD 48 million. The Pune plant will have 600,000 litres/day capacity, while the Kolkata plant will process 1.5 million litres/day. “We already have a small plant in Pune but we are going to set up a new plant with 600,000 litres/day capacity which will include 100,000 litres/day capacity to manufacture ice cream,” said Dr K Rathnam, Managing Director. After the two new plants, Amul Dairy’s processing capacity will reach 5 million litres/day. It already has 13 plants in Anand, Mogar, Khatraj, Kanjari, Kapdivav in Gujarat apart from those at Virar, Pune, Kolkata, Punjab, Siliguri and one in the US.
Coral investment to give Sri Lanka dairy industry a boost
Sri Lankan real estate developer Coral Holdings (Pvt) Ltd is diversifying into the dairy sector. The company will invest USD 3.43 million on a dairy farm in Killinochchi. Dr S Pirabaharan, Chairman, told a local daily that he hopes to import 500 milch cows within the next three months under an agreement between the Australian Wellard Company and the Sri Lanka government. “We will use modern technology like artificial insemination to breed cows. We hope this will take Sri Lanka even closer to be self-sufficient in milk.” He said that under the second phase they would look at manufacturing of dairy products for the local market.
New Australian facility to feed Asia’s demand for infant formula
A new dairy processing plant in Queensland, Australia, is hoping to tap into the strong demand for infant formula in Asia. The USD 27 million facility, a joint venture between Nature One Dairy and Au Lait Australia, is also eyeing the fresh milk segment in Asia. Called the Toowoomba Integrated Milk Project, it plans to export 30 million tins of formula and is confident it can supply two jumbo jets a day of fresh milk flying out of Toowoomba’s new private international airport. “About half of our raw milk supply would go to the production of infant formula and the remaining will be fresh milk and UHT,” Steve Laracy, Managing Director of Au Lait, said.
India to see largest growth in milk production by 2025
By 2025 India is expected to have the largest growth in milk production, outpacing the EU, to become the largest producer in the world, according to the latest OECD-FAO Agricultural Outlook 2016-2025 [http://www.oecd-ilibrary.org/agriculture-and-food/oecd-fao-agricultural-outlook-2016_agr_outlook-2016-en]. Pakistan will see the second largest increase in production with an average growth rate of 3.4% per annum. The vast majority of milk production for both countries is consumed domestically in its fresh form, and does not imply an increase in processed dairy products. Meanwhile the largest share of milk consumption is in the form of fresh dairy products, taking up 52% of the world’s total milk production.
Fonterra targets growing Southeast Asian markets
Fonterra Brands is securing its spot in the region as Asian markets advance and demand for dairy products grow. “The demand grows not only for protein but for security and quality in its food. That’s where Fonterra fits in,” said New Zealand Prime Minister John Key at the year-old USD 25 million Fonterra plant in Indonesia. It is Fonterra’s largest investment on the region in a decade. The plant makes pudding, cheese balls, cheese sticks and other dairy goods especially tailored for Indonesian consumers. The plant “allows us to produce high quality dairy nutrition to meet Indonesias’ increasing demand for dairy,” he said.
Godrej Agrovet considered for IPO
Indian billionaire Adi Godrej is considering an IPO of his group’s animal feed unit Godrej Agrovet, the largest producer in India, as business thrives in the biggest milk-drinking country in the world. “Godrej Agrovet may be listed in the future. The company [which made two acquisitions last year] is growing rapidly and is open to more purchases domestically,” he said. The company seized on milk’s prospects in India by buying control of Creamline Dairy Products Ltd last year for an undisclosed sum.
|Jakarta provides subsidised meat for school children|
[22 July 2016] The Jakarta administration will provide subsidised frozen meat at several Jakarta schools in a bid to boost students’ performance by improving their nutritional intake. Mujiati, Head of Jakarta Food Security, Agriculture and Fisheries Agency said affordable frozen beef and chicken will be sold at bazaars at which only holders of Jakarta Smart Cards (KJP) can purchase the meat. “The bazaars are aimed at helping students get better nutrition to boost their performance at school,” she said. The agency sells frozen beef and chicken to KJP holders for USD 2.9 and USD 0.7 per kg, respectively, much lower than the current market prices of USD 6.8 and USD 2.7.
|China H1 pork output down 3.9% |
[22 July 2016] China’s pork output stood at 24.73 million tonnes in the first half of 2016, down 3.9% from a year earlier, said the National Bureau of Statistics. The nation produced 319.59 million finishing pigs during the period, down 4.4% year-on-year, while its stock of live pigs was down 3.7% at 402.03 million heads. Meanwhile, the Bureau said China’s harvest of summer crops, most of which is wheat, totalled 139.26 million tonnes, down 1.2%. “The summer harvest was less than last year's record, but still the second highest amount in history,” it added.
|Sri Lanka’s chicken sellers protest against controlled price initiative|
[22 July 2016] Chicken sellers in Hatton, Bogawanthalawa and Maskeliya areas in Sri Lanka are protesting against the move by the government to introduce a controlled price for the meat. They have launched a protest by closing their shops. The sellers claim that they cannot sell chicken for USD 3.4. They added that the meat can be sold at the controlled price if poultry farmers are provided relief from taxes so that they can sell wholesale chicken at a lower price.
|Indonesia readies site on Bangka-Belitung for cattle breeding|
[22 July 2016] Indonesia has prepared a 100 ha site in the Bangka-Belitung Archipelago for a cattle breeding operation, said Ferry Mursyidan Baldan, Agrarian and Spatial Planning Minister. “An island in the province is ready for investors,” said Mr Baldan. Aside from this, he said the ministry has already prepared five more islands to develop cattle breeding in the country, but refused to name them to avoid land speculation. Indonesia currently operates seven cattle-breeding farms in West Sumatra, East Nusa Tenggara, Bogor in West Java and Pare-Pare in Central Sulawesi.
|CJ CheilJedang to grow insect breeding technology before moving downstream|
[22 July 2016] CJ CheilJedang Corp wants to first focus on farming technology to breed and mass produce ingredients before producing food products made from insects. This will give it a competitive edge in the market. It is expected to start manufacturing food using insects as ingredients by 2019. Moon Byung-seok, head of food research, said the company arrived at the decision “after concluding that the local edible insect farms would not be enough to provide a stable supply”. Although the number of farms growing edible insects in South Korea tripled to 724 in 2015 from 265 in 2011, most are small. The company plans to apply edible insects to food supplements, snacks and food for patients and pets once the research is completed.
|Brexit unleashes uncertainty on Thailand's chicken exports|
[21 July 2016] The European Union has granted Thailand a quota of 270,000 tonnes per annum for chicken meat, in which around 140,000 tonnes are exported to the UK, Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association said. In the short term, Brexit has reduced Thai chicken export prices because the pound has fallen and clients have bargained for lower prices. “Before Brexit, our export price of raw chicken meat to the UK was USD 2,400-2,500 a tonne. After Brexit, it has fallen to USD 2,300-2,400 and it may fall further,” he told Asian Agribiz. If the UK decides not to set an import quota and open its market to competition, “it will be more difficult for Thai producers due to address competition, especially with lower prices from Chinese producers,” Mr Kukrit added.
|KPPU to decide on broiler PS culling |
[21 July 2016] Indonesia’s Ministry of Agriculture has released the regulation to control poultry DOC production in the country. In the regulation, all DOC (from GGPS to PS) producers have to help stabilise DOC supply and demand. Surahman Suwandi, Director of Animal Breeding & Production of the Directorate General of Livestock & Animal Health said the regulation had been discussed with the Business Competition Watchdog Agency (KPPU). “KPPU promises to give a written response on the regulation and whether to proceed or not with the broiler PS culling program,” Mr Suwandi said. From the planned 6 million broiler PS, 3 million has been culled as of now.
|China announces merger of grain trader Chinatex with Cofco|
[21 July 2016] China has announced the merger of Chinatex Corp with Cofco, two of the nation’s top three grain trading groups. Chinatex, also the nation’s top textiles trader, will become a subsidiary of Cofco following the merger. A person close to Chinatex told Asian Agribiz that China Grain Reserve Corp, the other state-owned grain trader and also known as Sinograin, is also likely to be merged with Cofco, indicated by Chairman Zhao Shuanglian’s position transfer from Sinograin to Cofco. “The mergers would help buoy prices of major grain like corn in China, since the new entity must not want continued losses for its corn stockpiling,” the source said.
|North Sumatra records corn production increase|
[21 July 2016] Indonesia’s North Sumatra has recorded an increase in corn production. Last year the province produced 1.52 million tonnes over 1.16 million tonnes in 2014, with improved productivity per ha from 5.7 tonnes to 6.2 tonnes. Wien Kusdiatmono, Head of the North Sumatra Central Bureau of Statistics said the productivity of corn in the province has continued to rise in the past three years. “Expansion of harvest area also contributed to the increase. In 2015 the harvest area expanded to 243,770 ha,” she said.
|South Korea lifts ban on US poultry|
[21 July 2016] South Korea has agreed to lift the ban it placed on US poultry in reaction to outbreaks of avian influenza last year and earlier this year. The decision means that US exporters are now able to ship chicken and turkey to South Korea so long as the poultry was processed after June 1, US Agriculture Secretary Tom Vilsack said. “We’re pleased that the market has reopened to our products, which are in high demand in South Korea,” said Jim Sumner, President of the USA Poultry and Egg Export Council. In 2014, US chicken exports were valued at USD 98.2 million and turkey shipments at USD 7.4 million, making it the 14th largest market for chicken and the sixth biggest turkey export market.
|Asian Agribiz Broiler Feed Quality Conference 2016|
Feed hygiene and salmonella – Comprehensive, integrated and multiple hurdle approach
[20 July 2016] A low level of participation in feedmill and feed hygiene is associated with high risks and so is no longer an option in modern poultry production. Increasing levels of participation and intervention are associated with progressively reduced risk. Whilst interventions can be ratcheted up or down, the ‘default’ level of participation and intervention options need to be determined by risk assessment. Having identified the Salmonella risk using the principles and application of HACCP, Dr Rick Carter, Pacific Technical Services Manager, Kemin Agrifoods Asia Pte Ltd, Singapore will consider an appropriate preventative and corrective Salmonella hazard control programme. This should create multiple hurdles for Salmonella with the right combination of hurdles helping to ensure the production of Salmonella free feed. Details of the conference on August 18-19 in Bangkok can be accessed here.
|CP China takes 12% of Chinese livestock vaccine producer|
[20 July 2016] CP China has taken a 12% stake in Qingdao Yebio Biological Engineering Co, a leading livestock vaccine producer in China, for USD 39 million, Yebio’s second-largest shareholder Shenghua Biok said in a statement. Following CP’s investment, Shenghua Biok’s holdings will be diluted to 33% from 38%, while the China Animal Health and Epidemiology Centre, a division of the Ministry of Agriculture, is still the largest shareholder with 41%. Yebio posted a net profit of USD 35 million in 2015, according to the statement.
|Indian poultry players demand level playing field |
[20 July 2016] India will have to change its rules pertaining to the import of chicken legs from the US, following the WTO ruling in favour of the US. “The playing field is not level. Farmers in the US use GM corn and soy which Indian famers cannot use. With GM soy and corn being cheaper, the cost of production is lower for US farmers and they can afford to dump cheap chicken legs into India. The government therefore should provide a level playing field for domestic farmers,” said Balram Yadav, Godrej Agrovet Managing Director. Meanwhile KG Anand, Venkateshwara Hatcheries General Manager said: “There will be no major impact on fresh chicken consumers as the US would bring in only frozen chicken. But it would definitely affect the overall sentiment badly.”
|AACo eyes Asia’s premium beef market |
[20 July 2016] Australia’s beef producer Australian Agricultural Company (AACo) will roll out new premium brands as it moves to capitalise on growing income levels among Asia’s middle class. Jason Strong, Managing Director said Asia’s middle class was projected to grow to 3 billion people by 2030, boosting demand for quality beef. “As the middle class grows, so too will its appetite for quality produce – especially protein,” Mr Strong said. “AACo does not want to feed Asia’s mega-sized middle class. What we want to do in Asia, Europe, America and the rest of the world is to supply premium beef.”
|Growing demand push up pork prices in Japan|
[20 July 2016] Higher demand, which outpaced supply, has jacked up prices of wholesale pork in Japan to USD 4.98/kg in May and continued to rise in June. According to the Rabobank’s Pork Quarterly Q3 2016 report, local demand for pork is on the rise as consumers turn away from high-priced beef to more affordable alternatives. Rabobank forecast that local supply will continue to be pressured in the coming months, and with stiff competition for pork imports with China, pork prices in the country will remain at elevated levels into Q4.
|Thailand’s poultry industry worry about fee hike plan|
[19 July 2016] Nine Thai poultry associations are concerned about the draft amendment to Animal Slaughter and Sale of Meats Control Acts, which plans to increase slaughter and meat sales fee. Poj Aramwattananont, Vice-Chairman of the Thai Chamber of Commerce said the new law aims to raise food safety standards and reduce illegal slaughterhouses. However, the fee hike plan, a total of USD 0.114 per unit of poultry, may encourage illegal slaughtering. The existing Acts charge a slaughter fee of USD 0.0028 per unit of poultry, but that has been waived for many years by the government. Mr Poj said the higher fee will also reduce Thai poultry industry’s export competitiveness because production costs will surpass those of competitors including Brazil, China and the US.
|Malaysia’s IB incidence not alarming|
[19 July 2016] The current outbreak of infectious bronchitis (IB) in Malaysia, which has left thousands of broilers dead, is not alarming. According to Dr Karen Yip, Marketing and Technical Director, Rhone Ma Malaysia Sdn Bhd. Despite talks of a new strain, the latest strain has already been in the country for a few years. “It is not alarming. It may affect performance and producers may have to wait another 2 or 3 days to harvest,” she told Asian Agribiz. The disease could have been triggered by the recent hot spell and also unstable quality of feed raw ingredients. Also not all farms ritually vaccinate their birds. The company, however, has been seeing a sudden increase of orders for its IB vaccination since early this year.
|China’s Fortune Ng Fung to buy two more Australian cattle farms|
[19 July 2016] Chinese beef producer Fortune Ng Fung Food Co said it is planning to buy another two farms in Australia to expand its cattle farming and processing capacity. The Glenbrae and Leumeah farms, both about 400 km southwest of Brisbane and close to Fortune’s existing Woodlands farm, cover a combined area of 4,908 ha. Fortune Ng Fung will inject USD 5.37 million to its wholly-owned unit Fucheng Australia to fund the acquisitions. The unit has invested USD 32.91 million in the Woodlands farm that owns a stock of 9,309 Angus and Wagyu cattle.
|Pig prices tumble in Dong Nai|
[19 July 2016] After enjoying record prices in April this year, when live pigs fetched USD 2.41-2.49/kg, live price in Dong Nai province in Vietnam has dropped 23% to USD 1.87-1.92/kg in July as demand from Chinese traders declined. The high prices encouraged local farmers to expand production of oversized pigs, which are preferred by Chinese buyers, by 30-40%. However, local buyers prefer smaller pigs. Dong Nai Livestock Association Vice Chairman Nguyen Kim Doan expressed fear that if the current market demand remains unchanged, many farmers who expanded will face losses in the coming months.
Indonesia sets quarantine protocol for Indian carabeef imports
[19 July 2016] The Quarantine Agency of Indonesia’s Ministry of Agriculture, together with India’s Quarantine Authority, is now setting the protocol for carabeef or buffalo meat imports. “The protocol will be ready at the end of July,” said Banun Harpini, Head of the Quarantine Agency. “Under the protocol, we asked India’s Quarantine Authority to guarantee that all carabeef exported to Indonesia are of good quality and free from FMD [foot and mouth disease], as well as to ensure safety at processing facilities and to ports of shipment.” Ms Harpini believes the re-entrance opportunity of FMD to Indonesia is small as the carabeef will be imported in frozen form. “The risk is small if compared with live cattle imports,” she added.
|South Korean pork production rebounds|
[19 July 2016] South Korea slaughtered 1.35 million pigs in the first five months of this year, up 6.3% from the previous year, indicating continued strong growth in South Korean pork production after producers battled PEDv in 2014, Rabobank said in its Pork Quarterly 3Q 2016 report. The growth is supported by growing domestic demand, which has helped push prices of hogs to USD 3.70/kg in June. Rabobank sees production will continue to recover, as total sow herds are up, noting that the main challenge for the country’s pork industry is “being able to adjust production growth in line with demand.”
|Sumber Pakis grows pig breeding business|
[18 July 2016] Indonesia’s Sumber Pakis, a pig farming company based in East Java, aims to focus more on breeding rather than on its fattening business because of better returns. Male and female breeders weighing 75kg are sold at USD 6.49/kg and USD 5.73/kg respectively, about three times higher than the price of commercial live pigs. Andrew Djuana, Managing Director told Asian Agribiz that the company has a permit from the Ministry of Agriculture to import frozen semen. “We import frozen semen regularly from Swine Genetics International in the US,” he said. The company, which currently has around 170-200 sows at its farm in Probolinggo, has been selling its breeding pigs to farmers in East and Central Java. Demands also come from Nusa Tenggara, Papua and North Sulawesi, however transportation is still the main challenge for these regions.
|Lower Thai egg prices imminent|
[18 July 2016] Thai egg prices has recently risen due to falling egg supply and severe drought. Prices of mixed sizes of eggs are currently at USD 0.088-0.090, compared to USD 0.071 at the end of 2015. However, Thailand has entered the rainy season and cooler weather has set in. Egg supply in Thailand is set to increases to 40 million eggs, up from 36-38 million in February. Mongkol Pipatsattayanuwong, President of The Association of Hen-Egg Farmers, Traders and Exporters told Asian Agribiz that “when egg supply increases but demand stays the same, it will drag down egg prices and it will likely happen from September onward,” he said, adding he cannot estimate how much the price will fall because it will depend on the situation.
|China lifts bans on Russian poultry products|
[18 July 2016] China has lifted a ban on import of poultry products from Russia, said the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and the Ministry of Agriculture. “The decision was based on the risk assessment results,” the two ministries said in a joint statement, adding that ornamental birds and wild birds are still subject to the ban. China banned Russian poultry products in 2005 due to avian influenza outbreaks. In June this year, Russia reported new AI among wild birds in Respublika Tyva.
|CPF to acquire Sri Lanka’s Norfolk in Q3|
[18 July 2016] Thailand’s Charoen Pokphand Foods (CPF) announced that it will spend USD 4 million to buy an 80% stake in Sri Lanka’s Norfolk Foods (Private) Limited (Norfolk). CPF Investment Limited (CPFI), a wholly owned subsidiary of CPF, will acquire 2,752,800 ordinary shares of Norfolk in the third quarter of this year. As a result, Norfolk will become an indirect subsidiary of CPF. Norfolk engages in manufacturing and distribution of ready-to-eat food products such as samosa, processed chicken, meat stuffed with cheese and sausages under the Crescent trademark. Norfolk’s products are distributed through local distributors, hotels, restaurants and retail shops in Sri Lanka. Norfolk has a current capacity of 400 tonnes per month and it has a 21% share in the ready-to-eat food segment in Sri Lanka.
|Indonesia allows import of secondary meat and offal|
[18 July 2016] Indonesia’s Ministry of Agriculture will soon release a revision in the policy of secondary meat & offal import, allowing the private sector to import the products. “With the revision, we aim to stabilise the price of beef in the local market, as well as to give more product choices to consumers. The products however, have to be imported from countries that are free from foot and mouth disease,” said Andi Amran Sulaiman, Agriculture Minister. Before the revision, only state-owned companies were allowed to import secondary meat and offal.
|EW Nutrition to launch activo liquid in Vietnam|
[18 July 2016] EW Nutrition Vietnam Ltd, is launching activo Liquid in Vietnam. The on farm application has shown to be an effective tool where antibiotic treatments are ineffective due to resistance. With the product registration process complete Innochems will be the first channel marketing partner to have activo Liquid available for sale to farms in Vietnam. Robert Nichol, Managing Director, EW Nutrition South East Asia/Pacific, told Asian Agribiz that “activo in feed and activo Liquid on farm is a unique natural use of secondary plant compounds (SPCs) that reduces inflammation in the gastrointestinal tract and breaks the dysbiotic cycle and improves animal GI heath and performance."
|Asian Agribiz Broiler Feed Quality Conference 2016|
Going beyond carbohydrate hydrolysis
[15 July 2016] There is a plethora of reports about the advantageous impact of carbohydrases on energy utilisation in broilers, but the knowledge regarding the effect on other nutrients of interest is still scant, especially in minerals. Dr Alex Wu, Regional Technical & Business Development Manager, Adisseo Asia Pacific Pte Ltd will consider the effect of a novel carbohydrase complex on the digestibility of phosphorus and calcium in broilers fed wheat- or corn- diets at this conference, on August 18-19 in Bangkok. More details here.
|Layer associations encourage Thais to eat more eggs|
[15 July 2016] The Association of Hen-Egg Farmers, Traders and Exporters, the Layer Farmer Association and the Southern Layer Farmer Association jointly launched a campaign, aiming to encourage Thais to eat more eggs. The three layer associations want Thai people to eat 300 eggs a year by 2018, up from 220 currently. Thailand produces 15,500 million eggs a year, valued at USD 1.42 billion. However, egg consumption grew only 4% a year in the past 10 years. Mongkol Pipatsattayanuwong, President of The Association of Hen-Egg Farmers, Traders and Exporters said that chicken eggs are high-quality proteins and beneficial to health for all ages. Moreover, eggs are relatively cheap and easy to buy, he said.
|Bulog to introduce buffalo meat to Indonesia|
[15 July 2016] Indonesia’s State Logistics Agency (Bulog), the body tasked with managing imported Indian buffalo meat, said the imports will arrive in Indonesia around end July and will be sold at USD 4.58/kg, half the current price of beef, which now goes for around USD 9.16/kg at local markets. Djarot Kusumayakti, Bulog President Director acknowledged that the primary challenge will be to convince the public that the Indian buffalo meat is safe for consumption. “We’re the first institution instructed to introduce buffalo meat into the local market, so we have to show that it’s healthy,” Mr Kusumayakti said. However, response from beef sellers in local markets is frosty. Asep, a vendor at Perumnas Klender market, dismissed suggestions he might later sell buffalo meat, pointing to the lack of demand for the commodity.
|Malaysia’s DVS acts on reports of IB outbreak|
[15 July 2016] Malaysia’s Department of Veterinary Services said it has swung into action to contain the infectious bronchitis (IB) outbreak that has left thousands of chicken dead. Agriculture and Agro-based Industry Ministry Deputy Secretary-General (Policy) Mohd Sallehhuddin Hassan said initial reports showed that some farmers did not use IB vaccine while some claimed the existing vaccine stocks were no longer effective. “We do not deny that there is an outbreak (of IB), it is not uncommon,” he said adding that his ministry did not dismiss the possibility of the need for new vaccine stocks if it was true that the existing stocks were not effective.
|China to drive pigmeat production towards 2025|
[15 July 2016] Global pigmeat production is expected to grow after 2016, driven by China, where herd size is expected to stabilise after years of substantial reductions, revealed the latest OECD-FAO Agricultural Outlook 2016-2025 report. The country saw a drop of 25 million pigs between 2012 and 2015. Another factor contributing to China’s output expansion in the coming years is further consolidation of the pork sector. China and Brazil, meanwhile, is tagged as the two largest meat producers, where output is expected to expand considerably over the outlook period. China’s production will benefit mostly from economies of scale as small production units grow into larger, increasingly commercial enterprises.
|NZ seeks trade access in Indonesia|
[15 July 2016] New Zealand’s Prime Minister John Key heads to Indonesia later this month to boost trade, particularly for beef and other products. In 2010 Indonesia was New Zealand’s second largest beef market, taking 48,823 tonnes worth USD 185 million, but in a bid for self-sufficiency access dropped to 8899 tonnes in 2015 - a decline of 82%. The Ministry of Foreign Affairs and Trade estimates the accumulated (yoy) trade impact of limiting beef exports from New Zealand is between USD 500 million to 1 billion. Tim Ritchie, New Zealand’s Meat Industry Association Chief Executive said the restrictions and the fluctuations, uncertainty and unpredictability of the import licensing system had made Indonesia a challenging market for beef exports.
|Indonesia’s sausage imports from Malaysia may reach USD9m |
[14 July 2016] Import of sausages from Malaysia are alarming the meat processing industry in Indonesia, according to Haniwar Syarief, Executive Director of the Indonesian Meat Processors Association (Nampa). He told Asian Agribiz that in the first quarter of this year the import value reached around USD 2 million, and may touch USD 8-9 million by end 2016. “In 2012, the import value was only USD 200,000 and jumped to USD 6 million in 2015,” Mr Syarief said. The sausages are imported directly from Malaysia to Batam Island. He added that the imported sausages are of premium quality. “Malaysia can sell it cheaper since their meat processors use cheap beef from India.”
|Yunnan Shennong to build first PIC GGP farm in southwest China|
[14 July 2016] Yunnan Shennong Agricultural Industry Group said it has signed an agreement with PIC China to introduce 5200 heads of GGP and GP sows. The herds will be stocked at its Dali facility that is under construction and will be the first GGP farm for PIC in southwest China. Shennong has been partnering with PIC since 2003 and its Xuanwei facility has a stock of 6150 PIC sows. “We aim to produce 2 million pigs a year by 2020, and we are seeking a Shanghai IPO to fund the expansion,” Chairman & President He Zuxun told Asian Agribiz. The company produced 87,830 finishing pigs in 2015, and the output is expected to be doubled this year, according to Mr He.
|RNI to integrate sugar cane and beef cattle|
[14 July 2016] Indonesia’s state owned company Rajawali Nusantara Indonesia (RNI) has said that it plans to develop an integration of sugar cane plantation and beef cattle farming in 2017. Didik Prasetyo, President Director said the company plans to set up a subsidiary to focus on developing the project. “For the project, in the second quarter we have imported 407 heads of beef cattle. And we have sought a permit from the government to import 1500 heads in the third quarter,” Mr Prasetyo said, adding that in the next stage the company hopes to venture into cattle processing.
|Pork prices in China to peak in Q3|
[14 July 2016] Pork prices in China began fluctuating in June, but is expected to rise and peak in Q3, Rabobank said in its Pork Quarterly Q3 2016 report. With supply forecast to bottom out and demand starting to pick up seasonally, prices are expected to peak sometime during the coming months. Pork imports, seen to exceed 2 million tonnes this year, will partially supplement the shortage but will remain a small percentage of the total supply.
|US seeks trade sanctions in India poultry dispute|
[14 July 2016] The US is seeking trade sanctions against India after winning a dispute at the WTO on Indian restrictions on imports of US poultry meat, eggs and live pigs, the WTO said. The US Trade Representative’s office commented that US annual exports of poultry meat to India could exceed USD 300 million once the restrictions are removed. India had 12 months to comply with the ruling. The US argued that it had not had an outbreak of high pathogenic avian flu since 2004, while India had 90 such outbreaks between 2004 and 2014.
|Methionine in chicks: benefits beyond performance|
[13 July 2016] During the first days of life, birds face an adaptation phase involving the set-up and maturation of digestive and absorptive function but also muscle growth and the set-up of the immune system. Methionine requirements of the chicks have been recently revised but the most important aspect of early methionine supply seems to be the beneficial effect it can give beyond the early performance by preparing further growth. At the Asian Agribiz Broiler Feed Quality Conference, 18-19 August, Bangkok, Dr Yves Mercier, Research Manager, Amino Acids, Adisseo France will discuss the impact of methionine sources during this early development stage. More details here.
|Guangdong Wens sells over 8 million finishing pigs in H1|
[13 July 2016] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said it sold 1.25 million finishing pigs valued at USD 444.28 million in June, down 5.17% and 7.09%, respectively, from a month earlier, but up 7.63% and 50.91% year-on-year. In the first half of 2016, the company sold 8.05 million pigs valued at USD 2.66 billion, according to data calculated by Asian Agribiz. Wens did not provide half-year comparative figures, but its 2015 annual report shows that the company sold 15.35 million pigs valued at USD 4.08 billion last year.
|Santori imports breeding cows from Australia|
[13 July 2016] Indonesia’s Santosa Agrindo, a subsidiary of Japfa Comfeed Indonesia has imported 1912 breeding Brahmann Cross cows from Australia to be raised in East Java under a contract farming model with farmers in the province. Dayan Antoni, Head of Breeding said 1600 heads will be allocated for the contract farming while the remainder will be raised by Santori at its facility in East Java. Meanwhile for its breeding facility in Lampung, Mr Antoni said the company plans to import 3000 breeding cows from Australia. “Of the figure, as many as 1200 heads have arrived at the facility. The remainder will arrive in the second half,” he said.
|Taiwan lifts ban on Canadian beef|
[13 July 2016] Canada said Taiwan has lifted its temporary ban on Canadian beef, removing the trade barrier it imposed after an outbreak of mad cow disease in Alberta last year. Prior to the ban, some USD 9.2 million of Canada’s USD 1.5 billion in total annual beef exports went to Taiwan, making it Canada’s seventh largest beef market. The Canadian Cattleman’s Association said that Taiwan is one of the last holdouts among several countries that banned Canadian beef in relation to mad cow disease.
Meat prices appreciate for third consecutive month
[13 July 2016] The FAO Meat Price Index averaged 158.3 points in June, 3.8 points (2.4%) higher than its revised May value. For the third consecutive month, average quotations strengthened for all categories of meat, particularly those of pigmeat and ovine meat, while smaller increases were registered for bovine and poultry meat. Poultry meat prices have exhibited a moderate but steady increase for the year so far, rising by 10% since January. Brazil in particular has experienced strong growth in sales, especially to Japan and Saudi Arabia.
|Bunge, Wilmar, Quang Dung form jv in Vietnam|
[13 July 2016] Bunge Ltd, Wilmar International Ltd and Quang Dung Ltd recently inked a deal forming the biggest joint venture in vegetable oil and feed ingredients in Vietnam to create a stable three-leg closed business model, increasing their appearance in one of the fastest growing industries in Vietnam as well as in Asia. Both Bunge and Vietnam will hold 45% of the jv while Quang Dung has secured 10%. Quang Dung is the owner of Greenfeed. Soren Schroder, CEO, Bunge Limited said the collaboration would tighten operating, marketing and logistics synergies throughout the Vietnam oils and soybean meal value chains and help the three parties achieve the highest efficiency from the lowest operational cost.
|Thailand to export more raw chicken meat to Japan |
[12 July 2016] Thailand is expected to export 120,000 tonnes of raw chicken meat to Japan in 2016, up from 100,000 tonnes last year, Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. Thai chicken producers have identified market opportunities in raw chicken meat in Japan. “We are producing more value-added chicken meat by manually cutting up chicken parts. By doing this, we can differentiate our products from Brazil,” he said. Thailand exports around 200,000 tonnes of cooked chicken meat to Japan annually. Japan is Thailand's largest export market for chicken products. In total, Mr Kukrit said Thailand will export around 700,000 tonnes of chicken meat this year, up from 681,000 tonnes last year.
|Cofco Meat to add 1.2 million pig production capacity in 2016|
[12 July 2016] Cofco Meat Holdings Ltd, the fourth largest pig producer in China, said its annual pig production capacity is expected to exceed 3.5 million heads this year, up from 2.3 million at the end of 2015. The capacity will be further expanded to 5.5 million heads by 2020. Last year, Cofco Meat produced 1.2 million pigs and sold 127,800 tonnes of fresh pork. It also imported 107,200 tonnes of frozen meat in 2015, ranking second in China’s meat import market by volume. The company, whose minor shareholders include Itoham, KKR and Temasek, is seeking a Hong Kong IPO, making it the ninth listed unit of state-owned Chinese agribusiness conglomerate Cofco.
|Malindo posts positive Q1 performance|
[12 July 2016] In the first quarter of this year, Malindo Feedmill, one of the largest poultry integrator in Indonesia, recorded a 15.87% increase in net sales to USD 99 million. The company’s net profit grew 187.6% year-on-year to USD 4 million. During its public expose in Jakarta attended by Asian Agribiz, Rudy Husin, Finance Director said the achievement was driven by an 11.1% increase in poultry feed sales, a 44.1% hike in DOC sales and 1.7% sales growth in the broiler business. In order to prevent the impact of currency fluctuation and slowing economy, the company will undertake scalable and targeted business expansion, expand its market share and increase efficiency at all production lines.
|Food prices up for the fifth consecutive month|
[12 July 2016] The FAO Food Price Index (FFPI) gained 6.6 points in June 2016, compared to May and 1% below the corresponding month last year. Not only did the June increase mark the fifth consecutive monthly rise in the value of the FFPI, but it also represented the largest monthly increase witnessed over the past four years. The Cereal Price Index was up 4.4 points (2.9%) in June from May, but still 3.9% below the June 2015 level.
Indonesian dairy update
[12 July 2016]
Greenfields to invest USD345m in milk production facilities
Greenfields Indonesia, the largest integrated dairy company in Indonesia, has committed to invest around USD 345 million in the next 10 years to set up new dairy cattle farms and milk processing plants in the country. The massive expansion plan is aimed at increasing its milk production by six-fold to 260 million litres, as well as to reach an export target of USD 105 million. For this, it eyes new export markets to Taiwan, Vietnam, Cambodia, Myanmar, Maldives and Papua New Guinea. Handojo Santosa, Executive Deputy Chairman of Japfa Ltd in a statement said: “Greenfields is a big and integrated dairy cattle farm and milk processing company in Indonesia. Its products have been being exported to Singapore, Malaysia, Hong Kong, the Philippines and Brunei.” Greenfields is part of Singapore-listed Japfa Ltd.
Dairy goat farming in Indonesia continues to grow
The dairy goat population in Indonesia continues to increase at a rate of 2.7% every year, according to an official of the Ministry of Agriculture. Based on the Ministry's data, the goat population in the country in 2015 reached 18.9 million heads (both dairy and meat types). Muladno Basar, Director General of Livestock & Animal Health said previously dairy goat farming was concentrated only in Java and some parts of Sumatera. But now it has extended to Bali, Kalimantan, Sulawesi and all parts of Sumatera. According to Dr Basar, high selling price of goat milk has triggered many farmers to raise dairy goat. “The price at farm level is around USD 1.5-3 per litre, far higher than the price of cow milk of only USD 0.3 per litre,” he said.
AustAsia to increase pasteurised milk sales in Indonesia
AustAsia Food, a subsidiary of Indonesia's Japfa Group, targets its pasteurised Greenfields milk sales in Indonesia to reach USD 38.5 million this year, a 32% increase from the previous year. Syahbanta Sembiring, Indonesia Country Head of Sales & Marketing said the production of Greenfields milk is now around 42 million litres per year – 53% is retailed through modern markets while the remainder is sold to food services. “We focus on these two markets. To increase our sales, we will add more distributors this year,” said Mr Sembiring. He added that the potential market of fresh milk in Indonesia is big. Per capita consumption of milk in the country is around 11-12 litres, compared to developed countries that consume around 30 litres.
|Brexit may be positive for Philippine livestock and meat industries|
[11 July 2016] The UK’s decision to leave the European Union is not expected have a major impact on the Philippines’ livestock, poultry and meat industries, and in the short term may even have positive consequences. Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that while a lower GBP "may make UK’s pork more attractive, their cost is probably still higher than other EU and North American producers.” Similarly, it is not a major source of poultry and processed meat products for the Philippine. Meanwhile, Vicente Lao, owner of Maharlika Agro-Marine Ventures Corp, which sources its breeders from UK’s Cherry Valley, told Asian Agribiz that “at the moment, we even have an advantage” because of the GBP’s depreciation.
|Japfa Indonesia to book positive performance|
[11 July 2016] The income of Indonesia’s second largest poultry integrator Japfa Comfeed Indonesia is predicted to reach USD 2.1 billion this year, an 11.8% increase from the previous year, according to an analyst. The company’s profit is predicted to grow 72.5% to USD 61.6 million. Marlene Tanumihardja, Analyst at Samuel Sekuritas said the financial performance will be driven by better purchasing power and currency appreciation. In the first quarter of this year, Japfa recorded an income of USD 54.8 million, a 36.5% appreciation over last year.
|China's commerce ministry warns of fraud risks in meat imports|
[11 July 2016] China’s Ministry of Commerce reminded the nation’s trade companies to enhance their awareness of risk prevention as some unscrupulous traders posed online as qualified Brazilian meat exporters, negotiating with Chinese traders and taking deposits. Brazil resumed beef exports to China in July 2015 and has become the largest supplier to China. In the first five months of 2016, Brazil exported 72,825 tonnes of beef valued at more than USD 333 million to China, which also imported 15,655 tonnes of Brazilian pork during the period.
|Indonesia releases preference price for corn|
[11 July 2016] Indonesia’s Ministry of Agriculture recently released the reference price of corn of USD 0.24 per kg. Nasrullah, Animal Feed Director of the ministry hopes from the policy, both corn farmers and feedmillers in the country will achieve a win-win pricing. In other developments, the ministry is optimistic that national corn production this year will touch 21.53 million tonnes. Last year the ministry claimed the production of corn reached 19.61 million tonnes. Meanwhile, the import of corn from January to May fell 47.5% to 881,000 tonnes since the government limited imports of the commodity to push feedmillers to buy local corn.
|Hong Kong relaxes restriction on UK beef import|
[11 July 2016] Hong Kong's Centre for Food Safety (CFS) has announced that the import restriction on beef from the United Kingdom has been relaxed. This means that deboned beef and bone-in beef from cattle of all ages and offal, excluding specified risk materials and mechanically separated meat, can be imported from the UK. “Each consignment of beef must have the CFS' prior written permission and be accompanied by a health certificate when being imported," the CFS said. Previously, all offal and bone-in products from cattle 30 months old or above were not allowed for import.
|Sumber Unggas to produce 200k native chicks|
[08 July 2016] Indonesia’s Sumber Unggas Farm, a native chicken producer based in West Java, plans to increase its monthly DOC production from 120,000 to 200,000 chicks. Owner Naryanto told Asian Agribiz that it recently installed a new multistage incubator from Jamesway with a capacity of 90,000 eggs. In the near future, it plans to install three more incubators. Currently the firm has 20,000 PS and it plans to increase the number in the near future. Besides breeding, the firm has also ventured into commercial farming with a population of 600,000 birds and processing with a 2000 bird/day processing plant.
|De Heus opens Shanghai office|
[08 July 2016] Royal De Heus of the Netherlands has opened an office for its Chinese export operation in Shanghai. The new office, De Heus (Shanghai) Feed Co Ltd, will help De Heus improve its international supply chain by operating more closely with micro-ingredient suppliers in the region, said Ben Tacken, Global Director-Purchasing and Trading at De Heus. Mr Tacken told an audience of Chinese vitamin and amino suppliers at the opening ceremony that De Heus is committed to further developing its premix capacities. Sun Lige, Purchasing Director at Wellhope, a major Chinese feed company, said his company would be helping De Heus better understand Chinese market dynamics. De Heus is Wellhope’s second-largest shareholder, holding 9.63% of its shares.
|Indian carabeef to make Nampa members more competitive|
[08 July 2016] The Indonesian Meat Processors Association (Nampa) appreciates the government’s policy to allow beef imports from other countries such as India, Spain, Mexico, Brazil and Argentina. Specifically on Indian carabeef, Haniwar Syarief, Nampa Executive Director told Asian Agribiz that this will increase competitiveness in end-product prices. “The price of Indian carabeef is only around USD 3.5/kg, compared with the price of Australian beef of around USD 5,” he said. According to him, 10 Indian slaughterhouses have been inspected and approved by the government. Nampa also hopes Indian carabeef is only allocated for the meat processing industry, not for end-consumers since it will negatively affect local cattle farmers.
|Thailand’s CPF buys stakes in two Chinese firms|
[08 July 2016] Thailand’s Charoen Pokphand Foods (CPF) announced last week that it will spend around USD 127.8 million to buy a 30% stake in China’s Banner Infant Dairy Products (Banner) and a 12% stake in Qingdao Yi Bang Bio-Engineering (Qingdao Yi Bang). CP Pokphand’s [a subsidiary of CPF, is an investment holding company listed on the Stock Exchange of Hong Kong] indirect wholly owned subsidiaries Chai Tai (Beijing) Investment Management will subscribe for 285.43 million new ordinary shares of Banner and Chia Tai (China) Investment will subscribe for 3.4 million new ordinary shares of Qingdao Yi Bang. Banner is engaged in the manufacture and sale of formulated infant milk powder, while Qingdao Yi Bang is engaged in the manufacture and sale of animal vaccine.
|Andhra Pradesh govt to set up one hatchery in every district|
[08 July 2016] India’s state government of Andhra Pradesh will set up one hatchery in every district in the state to improve the socio-economic status of traditional poultry farmers. The hatcheries will be set up by the animal husbandry department to promote the poultry industry in the country. These hatcheries will promote improved native chicken strains like Vanaraja, Gramapriya and Aseel breeds in public-private partnership (PPP) for rearing chicks. The government hopes to provide an alternative source of income and to address the issue of protein deficiency in the diet of the rural poor.
|New Hope to build 11 new pig complexes by 2018|
[07 July 2016] China’s New Hope Liuhe Co said it will start construction of 11 new pig complexes in July. The complexes, a duplicate of its Xiajin facility in Shandong, will be located in six provinces including Shandong, Sichuan and Hebei, with a combined annual capacity of 4.91 million heads. Total investments are projected at USD 836 million and the construction will last 2-2.5 years. “The new projects are expected to promote our strategic transition to a meat supplier from a feed miller,” the company said. Earlier this year, New Hope Liuhe announced plans to produce 10 million pigs in 3-5 years with contract farming.
|Ample supply of chicken in the Philippines|
[07 July 2016] Despite the rise in live prices of chicken, there is no shortage in the Philippines. United Broiler Raisers Association (UBRA) President Elias Jose Inciong told Asian Agribiz that the live price is relative to the wet markets, which demand heavier birds. Out of necessity, either because of the weather or concerns over disease, producers are harvesting their birds earlier. This means there are less of the heavier birds for the wet markets. He added however, that there is no shortage of chicken in groceries and supermarkets, as well as for institutional clients like the roasted chicken industry, hotels and restaurants.
|KPPU recommends tariff system for cattle imports|
[07 July 2016] Indonesia’s Anti-Monopoly Agency (KPPU) has proposed abolishing a cattle-import quota system and replacing it with tariffs, in a bid to break the stranglehold of local cartels blamed for surging beef prices. “The limit on imports is causing a lack of supply because it’s not balanced with the growth of the local cattle population,” said Syarkawi Rauf, KPPU Head. “The beef prices become even more excessive because there are people who take advantage of that government policy,” said Mr Rauf. He added that the KPPU has urged the President to replace cattle import quotas with a tariff system to limit the opportunities to stockpile livestock to squeeze out greater profits.
WEB SPECIAL: Brexit and its impacts on the animal protein sector in Asia
[07 July 2016]
With the UK's exit from the European Union, the biggest impact most producers that Asian Agribiz spoke to, seem to be related to currency and exports. Gordon Butland, Director at G&S Agriconsultants Co Ltd told Asian Agribiz that there are two possible short term issues. Firstly, how will the EU quota system work in the future for Thailand's chicken exporters as negotiations within the EU will take a long time. “A more immediate issue is currency with the GBP already dropping and expected to drop more. This could affect exports to the UK,” Mr Butland said. However, “it’s still early days yet,” he added.
Indian seafood exporters see hope
The Indian seafood exporters see an opportunity to boost exports. Exports to EU nations plunged due to stricter norms and restrictions imposed on import of Indian seafood items. Exporters feel that shipments to the UK will rise to the level during the pre-EU days. “While 30-40% of Indian seafood products were exported to UK [prior to formation of EU], it later plunged due to stricter import norms and stipulations,” said Ajay Dash, the Indian Seafood Exporters Association, Odisha region. “With Brexit, we are hopeful that trade relations with UK for export of Indian seafood products will revert,” he added.
Brexit will not affect Philippine livestock and meat industries
The UK’s decision to leave the European Union is not expected have a major impact on the Philippines’ livestock, poultry and meat industries. Edwin Chen, President of the Pork Producers Federation of the Philippines told Asian Agribiz that while a lower GBP may “make UK’s pork more attractive, traditionally, the UK is not a pork exporting country, so their cost is probably still higher than other EU producers and North America.” Similarly, it is not a major source of poultry and processed meat products for the Philippines, thus the Brexit vote is not seen to impact these industries.
Exports to UK to face more barriers
Vietnam’s exports to the UK is expected to face barriers, said Dang Hoang Hai, Head of the Ministry of Industry and Trade’s European Market Department. Vietnamese commodities shipped to the UK transit in the Netherlands, Belgium and Germany. With Brexit Vietnamese exports will be forced to redo customs clearance and food hygiene and safety checks before reaching the UK. Brexit will greatly affect shrimp exports as the UK is the largest importer of Vietnamese shrimp, and is one of the markets reporting an increase in import turnover. Mr Hai also said Brexit will affect the signing of the EU-Vietnam free trade agreement.
Limited impact on Thailand’s Bangkok Ranch
Thailand’s Bangkok Ranch (BR) sees limited immediate impact on its earnings due to its currency-hedging policy, Chonlachart Worawuitthichongsathit, Assistant to CEO at BR told Asian Agribiz. BR has production bases in both Thailand and the Netherlands. In the Netherlands, BR has a production capacity of 5 million ducks a year. “It’s a natural hedge for us in the Netherlands because our costs and sales have been done in Euro,” he said. However, Brexit breeds uncertainty and it may negatively affect European economy and its purchasing power. BR exports its duck products from Thailand to the EU and the UK and revenue from this section (excluding the Netherlands) is less than 10% of BR’s total revenue.
Impact on preferences to smaller shrimps
Armand Ardika, CP Prima Investor Relations Head in Indonesia said demand for shrimp is likely to remain stable. “Consumers may prefer smaller shrimp at lower prices as the economy contracts but we will always follow market demand and customise the products,” he said. CP Prima will soon export more frozen shrimp and food to Europe as it is seeing growing demand after recently receiving the certificate from US-based Aquaculture Stewardship Council (ASC). Mr Andika said after the certificate was issued, the company has received more orders from various distributors from the UK, Norway and Denmark.
Little effect on Thailand’s shrimp export
“The EU is not our main market and Brexit will have little direct impact on Thailand’s shrimp exports,” Suraphol Pratuangtum, Honorary President and Technical Advisor of Thai Shrimp Association told Asian Agribiz. Thailand exported 7325 tonnes of shrimp to the EU in the first 10 months of last year and the value of Thai shrimp exports to the EU was USD 82.78 million. But, the EU removed Thailand’s tariff privileges in 2015 and the duty on frozen shrimp exports rose from 4 to 12%. “Even in the normal situation, we had difficulty exporting shrimp to the EU due to the increased tariffs,” Mr Suraphol added.
Asian Agribiz wishes its Muslim readers EID MUBARAK
We will be back with more news on Thursday together with a web special on Brexit and
its impact on animal protein in Asia.
|Betagro suspends ties with chicken farm over labour abuse allegations|
[05 July 2016] Thailand’s Betagro Group has suspended business ties with a chicken farm in Lop Buri that allegedly enforced tough working conditions on Myanmar migrant workers and paid them low wages. Rungroj Tuntivechapikul, Vice President for Corporate Human Resources Office of Betagro said in a statement that the company is undertaking fact-finding investigations. "The Betagro Group has stopped doing business with the farm until there is a resolution to the labour dispute.” Moreover, Betagro said that it will cooperate with the Thai Broiler Processing Exporters Association and the Department of Labour Protection and Welfare and will jointly set the labour standards for the poultry industry.
|China eyes 70% self-sufficiency of breeders by 2025|
[05 July 2016] China’s Ministry of Agriculture said it has set a national goal of 70% self-sufficiency of major livestock breeders by 2025. In a guideline to promote livestock breeding, the ministry said the pig breeds will give priority to Duroc, Landrace and Yorkshire, while developing Chinese pig breeds with native breeding. Simmental, Angus and the native Qinchuan, Yanbian breeds could be a majority in China’s cattle industry, the ministry said. For the chicken segment, it will focus on developing synthetic lines and new breeds of yellow-feather broiler, while supporting native breeding of white-feather chicken that is dominated by imported breeders currently.
|Indonesia controls feed wheat imports|
[05 July 2016] Indonesia is controlling wheat imports to encourage feedmillers to use domestic corn supply, said Nasrullah, Director of Animal Feed at the Agriculture Ministry. Indonesia’s wheat imports have jumped after corn imports were capped this year. Mr Nasrullah said the government has not banned feed wheat imports, but is regulating and controlling imports to protect farmers and domestic production. How long the policy will remain in place will depend on domestic corn stocks. The decision to curtail feed wheat import permits is delaying up to 450,000 tonnes of wheat imports, said Desianto Budi Utomo, Secretary General of the Indonesian Feed Producers Association. “There are currently about 250,000 tonnes of wheat shipments being held at ports in Indonesia. The government says it will be released in stages,” Mr Utomo said, adding that the fate of a further 200,000 tonnes of feed wheat shipments currently sailing to Indonesia remains unclear.
|Indian poultry industry wants PEC to allow duty free corn imports|
[05 July 2016] Poor rains in June saw the price of corn in India rise and the poultry industry hopes the prices will stabilise with the central government suggesting it might allow imports of 500,000 tonnes of corn under the tariff rate quota (TRQ). The poultry and starch industry has approached Indian state-run trading company PEC again to allow duty free corn imports under TRQ. PEC floated a tender to import 500,000 tonnes of corn last year, and imported 250,000 tonnes. Trade sources said that the government has asked PEC to seek a fresh quota of 500,000 tonnes of corn for 2016-17.
Ceva Swine Reproduction Symposium 2016, Phuket Thailand
Onsite report by CRAIGE ALLAN
[05 July 2016]
About 100 pig veterinarians, consultants and farm managers from throughout Asia attended Ceva Animal Health’s swine reproductive symposium to hear updates on modern swine reproduction from leading speakers.
Optimal sow management for optimal sow performance
Dr Nicoline Soede, Wageningen University, the Netherlands, discussed reproductive problems in second parity sows, which often have a lower litter size, farrowing rate and a decreased uniformity in litter size than first parity sows. Although this problem is manifested in the second parity, it is a result of a negative energy balance in the first parity and can adversely affect the sow’s lifetime performance, resulting in earlier culling. To improve second parity performance she advised stimulating gilt development at insemination (recommended bodyweight 150kg at 250 days) and feed intake during lactation, including by keeping the farrowing house temperature below 20oC, step-up feeding and ensuring sufficient water intake. Dr Soede suggested to limit sow bodyweight losses to less than 12-13% during lactation.
Reproductive management of boars to optimise sperm production and reproductive performance
Dr Padet Tummaruk, Chulalongkorn University, Thailand commented that in Asia pig genetics are mainly from Europe and we use similar feeds, therefore producing 30 piglets per sow per year is possible with the correct farm management. He noted that in solving reproductive issues we usually focus on the sow, but overlook the effects of a heat stress on the reproductive performance of boars. The comfort zone for pigs is similar to humans and that high ambient temperatures reduce sperm concentration and semen volume. This adverse effect lasts for 2-5 weeks after heat stress, however, there is considerable variation between boars. He also advised not to collect semen more often than 4-7 days, as higher frequency can reduce semen quality.
Enhancing sow productivity
Farm management is about optimising utilisation of the pig farm. The first limiting factor for how many pigs you are able to sell is usually the utilisation of farrowing pens. Dr Nicolas Guerra, Ceva Animal Health, France explained the using an 18-day treatment regime with Altresyn will bring your gilts into heat within 5-7 days of completion, thus facilitating having gilts available exactly at the time and quantities needed for effective batch management. This will lead to better utilisation of farm resources, and significant savings in the costs of rearing gilts.
Improving reproductive performance efficiency - introduction and replacement
Dr John Carr, Carr’s Consulting, Australia using figures from the audience calculated that the loss of profit of an empty batch farrowing place in Thailand was around USD 900, assuming 12 pigs weaned per sow at 105kg slaughter weight. However when fixed costs were included, which most people overlook, this figure increased to around USD 1400. Gilt pool management is all about filling farrowing place. He stressed that gilts are the fuel that runs the farm. Start your gilt pool management at 60kg. This gives them time to acclimatise to the farm with respiratory, enteric and reproductive feedback. You need to remember that pigs from gilts take about one week longer to reach slaughter weight compared to sows, and the pre-weaning mortality is about three times that of a sow, said Dr Carr.
|Putra Perkasa to increase its native DOC production|
[04 July 2016] Indonesia’s Putra Perkasa Farm, one of the largest native chicken breeders based in West Java, plans to increase its monthly DOC production from 200,000 chicks to 450,000 chicks this year. In total, it currently has 20 made-in-China incubators installed at two hatcheries in Bogor and Blitar. Owner Ang Hendra told Asian Agribiz that it has its own GP as it has been running selection of male and female lines since 2009. For PS, it has a stock of 35,000 birds of different breeds namely Kampung Unggul Balitnak (KUB), Bangkok and Pelung. Around 80% of its DOC production is sold to markets in Java, while the rest is sold outside Java. Previously the firm had commercial farms, but Mr Hendra said: “Now we want to focus only on breeding.”
|Mexico suspends Indonesia’s shrimp exports|
[04 July 2016] Mexico has suspended shrimp imports from Indonesia following the discovery of infectious myonecrosis virus (IMNV), a dangerous disease according to OIE, infecting Indonesia’s vannamei shrimp. Indonesia’s Trade Ministry is now monitoring the progress of this case. Karyanto Suprih, Director General of Foreign Trade said the ministry will coordinate with the Ministry of Fisheries & Marine Affairs, exporters and associations to fill out a questionnaire from Mexico, as well as anticipate visits from the Mexican authorities. “The results will determine the lifting of the ban,” he said. In 2015 the export value of Indonesia’s shrimp products to Mexico was USD 254,000.
|Adisseo launches a new probiotic|
[04 July 2016] Adisseo has launched Alterion, a new probiotic solution for broilers, in Thailand and the Philippines. Developed by Adisseo and Novozymes, Alterion has a dual mode of action to optimise both broiler health and performance by reducing pathogenic bacteria, increasing beneficial commensal bacteria and improving barrier function, nutrient absorption and immune response. At the launch in Manila yesterday, Dr Pierre-Andre Geraert, Director – Innovation Marketing of Adisseo France showed results of various trials that showed how Alterion improves FCR and bodyweight of broilers. “Alterion performs consistently in many different setups and locations with different diets, birds and conditions,” he said, adding that the product is compatible with other additives.
|Cargill to commission Punjab dairy feed plant in September|
[04 July 2016] Cargill India is likely to inaugurate its feed plant at Bathinda, Punjab, in September. The greenfield project, built with an investment of USD 10 million, will be able to produce around 120,000 tonnes of feed annually and cater to the growing demand for quality feed for dairy farmers of Punjab and neighbouring states. This will be its first feed plant in Punjab. It will encourage dairy farmers across the state and neighbouring states like Rajasthan by making quality dairy feeds available. This initiative will also equip local farmers with the latest knowhow and help in implementing a reliable supply chain for dairy processing.
|Malaysia’s Balung feedmill to spur livestock development|
[04 July 2016] The construction of the palm oil-based Balung Animal Feed Mill in Tawau, Sabah, east Malaysia, could spur the development of the livestock industry in the state, as well as reduce its reliance on imported meat. “Better livestock production could reduce the import of meat and reduce the outflow of currency,” Chief Minister Datuk Seri Musa Aman said, after officiating the mill. He said Sawit Kinabalu Group, the operator of the feedmill, will raise beef cattle in feedlots. “Sawit Kinabalu now has about 10,000 cattle to produce beef. This is expected to increase to 20,000 by 2018."
|Feed hygiene and Salmonella – comprehensive, integrated and multiple hurdle approach|
[1 July 2016] Dr Rick Carter, Technical Services Manager, Kemin Agrifoods will be one of the speakers at Asian Agribiz Broiler Feed Quality Conference in Bangkok, Thailand on August 18-19. He will provide expert insights for controlling Salmonella at all levels along the feed-to-food chain: raw materials, finished feed, feed mill equipment, and at the farm level. He will also present some of the latest techniques and practices in Europe and Australia. More details: www.asian-agribiz.com/pdf/BroFeedQC16_web.pdf
|Greenfields Indonesia in expansion mode|
[1 July 2016] PT Greenfields Indonesia, the dairy division of Singapore-listed Japfa Ltd, is currently setting up its second dairy cattle farm and a new milk processing plant in Blitar, East Java with investments of USD 38 million and USD 15 million, respectively. Darmanto Setyawan, Head of Milk Processing said the farm will have a capacity of 10,000 heads of dairy cattle, while the milk plant will be able to process 240,000 litres of milk per day. The company targets the milk plant to start operations this year. Meanwhile, “the farm will be operational in the next two years since we have to import the dairy cattle first,” said Mr Setyawan. With the addition of the new milk plant, the company targets the production of its milk products this year to increase to 40,000 tonnes. The company produces different ranges of milk products including fresh milk, pasteurised milk, UHT milk and cheese. Greenfields currently operates an 8000-head dairy cattle farm and a 120,000-litre/day milk processing plant in Malang, East Java.
|AI virus detected in Macau’s Iao Hon market|
[1 July 2016] Sales in Macau of live poultry have been halted after a test sample recently showed avian influenza (AI) virus was detected in a local market, the China’s Special Administrative Region government announced. To protect public safety and minimise the risk of the virus spreading, the government has culled more than 9000 birds at the wholesale market in Macau. The action was conducted shortly after an environmental sample from a live poultry stall at the Iao Hon Market tested positive for the virus - an H7 subtype. Measures taken included suspending until further notice imports from the farm on the Mainland suspected of being linked on this occasion to the virus plus a thorough cleaning and sterilisation of Macau’s wholesale market for poultry, and of all stalls in local wet markets offering live poultry for sale.
|Black tiger shrimp prices rising due to lower supply|
[1 July 2016] The offer price for farmed black tiger shrimp in India has been inching up due to decreasing supply across Asia. Production has been shifted to intensively-farmed products such as vannamei shrimp, which has a higher production efficiency. Moreover, strong demand for black tiger in China and the US has pushed up prices. The local offer price at the beginning of June in Kolkata for black tiger was around USD 12.3-12.5/kg, for size 16-20 shrimp. When the harvesting began from April, prices have slowly been rising. According to a Japanese trading company source, the supply of intensively-farmed Indian black tiger is likely to fall to about 10,000-22,000 tonnes. As supply is low, local producers “are in no hurry to sell”, said the source. Production of black tiger is also said to be down in Indonesia and Vietnam.
|Indonesian govt prepares more frozen beef and cattle ahead of Ied Fitr|
[1 July 2016] Indonesia’s Minister of Agriculture Amran Sulaiman said the government has arranged 8110 tonnes of additional frozen beef and 1000 heads of cattle to meet consumers’ needs in Greater Jakarta during Ied Fitr festival. Mr Sulaiman added that together with 10 beef importers, the ministry is set to expand the current 3800 distribution points for cheap beef to areas across Indonesia. “With the measures, we are optimistic to slash beef prices to below USD 6/kg.” Ten beef importers involved in beef market operations include Agro Boga Utama, Indoguna Top, Aesthetics Tata Tiara, Bumi Maestro Ayu, Suri Nusantara Jaya, Anzindo National Gratia, Berkat Mandiri Prima, Bina Mentari Tunggal, Tita Jaya Beef and Artha Graha Peduli with a total of 6460 tonnes of beef and 1000 heads of cattle.
|China’s Nine-Alliance exports chicken to Hong Kong from Guangxi facility|
[30 June 2016] Qingdao Nine-Alliance Group, a leading poultry processor and exporter based in east China’s Shandong province, said its Qinzhou unit shipped 27 tonnes of frozen chicken breast valued at USD 41,900 to Hong Kong in June, making it the first frozen poultry export from the southern Guangxi region. “More shipments to Hong Kong and Cambodia are under preparation,” the company said, adding that the Guangxi facility has also got export checks from the Malaysian authorities. Nine-Alliance launched the USD 300 million Qinzhou complex in May 2015 as the company shifted investment focus to south China. Earlier last year, it set up two poultry farming and processing joint ventures in Guangdong province.
|Philippines opens market for processed pork from Italy|
[30 June 2016] The Philippine Department of Agriculture (DA) has awarded a system accreditation to the government of Italy that allows Italian meat processors to export processed pork meat to the Philippines. The accreditation was awarded after DA officials inspected and audited representative meat establishments from Italy and were found to comply with Philippine quarantine and meat-inspection systems procedures. The accreditation is valid for three years.
|Indian food market to benefit from FDI overhaul|
[30 June 2016] India’s decision to overhaul its foreign direct investments (FDI) rules for food products manufactured in India would help home-grown players in the food processing and e-commerce sectors gain access to foreign funds, said industry experts. “I think it will help both foreign and Indian companies doing e-marketing to access foreign funds and help in promoting food products manufactured in India. I expect some specialised e-market platforms dealing only in agri- and food products might also come up with FDI,” said Gokul Patnaik, Global AgriSystem Private Limited. Biju Kurien, member of the advisory board at L Capital and former CEO at Reliance Retail, said foreign retailers would find it attractive to invest in Indian food retail.
|Indonesia’s seafood products gain ground in China|
[30 June 2016] Indonesian seafood products recorded transactions worth USD 3.7 million at the 3rd China International Aquatic Products Exposition (CIAPE) in Zhanjiang, China in June, according to Dandy Iswara, Trade Attache at the Indonesian Embassy in Beijing. “Frozen vannamei shrimp, squid, skipjack and tuna are in demand among the Chinese importers and distributors,” he said. According to data from the Chinese Customs Office, exports of seafood products from Indonesia to the country reached USD 112.3 million in April, an increase of 46.5% from the same period of last year. Indonesia’s seafood exports to China include shrimps, squids, lobsters and fish – of these, squid is the most exported product with a value of USD 37.6 million.
|Indian poultry farmers concern about feed ingredient prices|
[30 June 2016] Egg prices in India jumped as poultry farmers reared fewer birds after incurring losses in the past two years. However, poultry farmers are worried that this may only be a flash in the pan as prices of eggs would revert again in July but the feed ingredients will remain higher till the arrival of next crop, which is only after October-November. Dinesh Bhosale, Vice President of Poultry Federation of India said: “Maize is the major ingredient in poultry feed and constitutes 50-60% of all the inputs so an increase from an average USD 0.20/kg in April to USD 0.25 in June has put the poultry sector in stress. The delay in monsoon by almost three weeks has added speculation in the commodity prices and any further delay may splurge price pushing up costs of farmers.”
|Impact of feed enzymes & probiotics on broiler’s gut health|
[29 June 2016] At Asian Agribiz Broiler Feed Quality Conference in Bangkok, Thailand on August 18-19, Dr Milan Hruby, Global Applications Senior Manager, DuPont Industrial Biosciences, Danisco Animal Nutrition USA will discuss that probiotics and enzyme technologies have shown complementary effects on nutrient digestibility and growth performance in broilers, which seem to be more evident in conditions of enteric disease challenge. Those effects may be explained by the direct effects of probiotics on intestinal health, which can create the correct environment for enzymes to increase the absorption of nutrients. Additionally, there is evidence of complementarity between probiotics and carbohydrase and protease enzymes on the digestion of fibre, which could imply both an increase of the digestion and absorption of energy yielding nutrients from the diet and possibly release prebiotic oligosaccharides. More details: www.asian-agribiz.com/pdf/BroFeedQC16_web.pdf
|CP China non-feed business to exceed 50% in 2016|
[29 June 2016] Xie Yi, Senior Vice Chairman of Agro-industry & Food Business at CP China, said the group’s non-feed business is expected to surpass its feed operations in terms of revenue this year. In 2015, the group generated revenue of about USD 7.56 billion, with non-feed business accounting for 40-50%. “We now invest most in downstream farming and food businesses and several big such projects are under construction,” Mr Xie said. According to him, CP China has also ventured into rice and corn planting, as it is seeking to provide more ready-to-eat products besides of meat, in line with its vision to become a world kitchen.
|Abrupt herd expansion in China could lead to low quality pigs|
[29 June 2016] In the rush to meet increasing demand from China, many pig farmers in Vietnam are expanding their herds, but not all is good news. Data from the Ministry of Agriculture and Rural Development showed that the country’s pig production in the first half of this year was up 25-30% from a year ago, fueled by higher purchases by China. However, Tran Hong Ha, Director of Alpha Livestock JSC said farms are expanding too quickly and spontaneously, without much regards for quality and efficiency, and this could backfire when the Chinese pig traders stop buying the animals which are not preferred by the local market.
|Fresh chilled meat demand drives online meat sales in India|
[29 June 2016] According to India’s online meat-selling firm Licious, the demand for fresh chilled meat and the lack of quality options in the traditional ‘seller-centric market’ largely drive the online meat selling market in India. Increase in protein intake, preference of fresh chilled meat over frozen, and the lack of hygiene in the traditional meat markets have given rise to this form of business, which has better supply chain management and technological intervention than the offline options. Started last August by Abhay Hanjura and Vivek Gupta, Bengaluru-based Licious offers five broad product categories namely fresh chicken, lamb, seafood, marinades and cold-cuts. It generates 15,000 orders per month with an average order value of USD 9 and intends to increase the orders to 100,000 by October this year.
|Indonesia’s import-oriented policies on beef may harm local farmers|
[29 June 2016] Indonesia’s State Logistics Agency (Bulog) said beef prices in the country are unlikely to be reduced by import-oriented policies which in turn harm local cattle farmers rather than helping consumers. “If you force the local beef price to USD 6/kg, you will sacrifice the local cattle farmers, we don’t want this happens,” said Djarot Kusumayakti, Bulog President Director during a meeting with the House of Representatives. Currently, the price of beef is set without specifying the source or the type of beef with the government wanting only to reduce the beef price to USD 6/kg through imports while local beef costs at least USD 6.7/kg.
|China’s Yongda Food starts chicken exports to Mongolia|
[28 June 2016] Chinese poultry integrator Hennan Yongda Food Group said it has started chicken exports to Mongolia, with the first shipment of 20 tonnes arriving at Ulaanbaatar on June 21. Yongda, which has a slaughtering capacity of about 150 million birds a year, won in March the export permit for an annual quota of 6000 tonnes. Last year, the company exported more than 17,000 tonnes of chicken products to 13 countries including South Africa, Japan and South Korea. “Exporting to Mongolia is an important step for our global strategy. It may pave the way for our market expansion to Central Asia and Europe,” Chairman Feng Yongshan said.
|GFN: global poultry oversupply hurts chicken export prices|
[28 June 2016] Global poultry oversupply is currently outweighing demand, sending chicken export prices lower, said Jessada Sirimongkolkasem, President of GFPT Nichirei (Thailand) Company Limited (GFN), as quoted by Prachachat. Mr Jessada said GFN’s chicken export prices are falling 5-10% due to oversupply problems. Meanwhile, GFN expects its sales growth of 3-4% this year, he said. The company posted sales of USD 226.61 million last year, 65% of its sales came from export. At the moment, GFN has a production capacity of 90,000 tonnes a year – 40,000 tonnes for export markets and the rest for domestic markets. GFN is a JV between Japan’s Nichirei Foods Inc and Thailand’s GFPT.
|CP Vietnam continues efforts against banned substances|
[28 June 2016] CP Vietnam Corp (CPV) has turned over the second batch of rapid test kits for banned substances like salbutamol and clenbuterol to Vietnam’s Ministry of Agriculture and Rural Development (MARD), bringing to 14,000 the total kits it has donated so far. The test kits are part of CPV’s efforts to cooperate with MARD to help the country develop a safe and efficient livestock industry, said Vu Anh Tuan, CPV Deputy General Director. CPV is the first company in Vietnam to terminate contracts with pig farms using the prohibited substances.
|Cargill Indonesia to launch feeds for goat|
[28 June 2016] Cargill Feed and Nutrition Indonesia plans to launch feeds for goat next year. “We will launch ‘Big Goat’ feed for fattening and ‘Lacto Goat’ feed for dairy goat,” Insanto Endro Bawono, Swine & Ruminant Business Development Manager told Asian Agribiz. “We received many requests from goat farmers in Central and East Java. We only target to sell hundreds of tonnes per month for the feeds since it’s a niche market. However, we see that the market continues to grow,” said Mr Bawono. Based on the Ministry of Agriculture data, goat population in the country reached 18.8 million heads in 2015, an increase from 18.6 million heads in 2014.
|India’s AP government to invest USD85m to promote poultry industry|
[28 June 2016] With an eye on becoming the biggest egg and poultry meat producing state in India, the Andhra Pradesh (AP) government has announced the Poultry Development Policy and also has planned an investment of around USD 85 million over a period of the next four years in the state. The investment will lead to additional revenue generation of USD 997 million in the next four years. As part of its efforts to promote the poultry industry, the state government is planning to support establishment of egg collection centres, egg processing units and chicken processing units in public-private partnership mode in cities such as Chittoor, Vijayawada and Visakhapatnam.
|Malindo to set up sixth feedmill in Lampung|
[27 June 2016] Malindo Feedmill, one of the largest poultry integrators in Indonesia, plans to set up its sixth poultry feedmill in Lampung province this year. For this project, Rudy Hartono Husin, Finance Director told Asian Agribiz that the company will allocate around USD 15-22 million. The new feedmill will have an installed capacity of 150,000 tonnes per year and is targeted for operational in the second half of 2017, said Rewin Hanrahan, Director. “With the addition of the 6th feedmill, our total installed feed production capacity will be around 1.8 million tonnes per year,” Mr Hanrahan told Asian Agribiz. Currently Malindo operates five feedmills located in Cakung, East Jakarta; Cikande, Banten; Gresik, East Java; Grobogan, Central Java; and Makassar, South Sulawesi. These feedmills have a combined installed capacity of 1.65 million tonnes per year.
|Hog prices pick up in the Philippines|
[27 June 2016] Farm prices of hogs have picked up as demand for pork has begun rising with the start of the new school year, although supply has not kept pace, Philippine Pork Producers Federation (Propork) President Edwin Chen told Asian Agribiz. Mr Chen also said that the hot summer season that resulted from the El Niño adversely affected pig growth, but added that “since the start of the rainy season, we saw the steady increase in the growth rate of fatteners.” However, producers are also keeping tabs on the coming La Niña phenomenon, which could bring in heavier rains and flooding. Until that time, however, Mr Chen said live prices of hogs are “projected to increase weekly.”
|First shipment of India’s carabeef to arrive in Jakarta in July|
[27 June 2016] Indonesia will import 10,000 tonnes of carabeef (buffalo meat) from India for the first time in an attempt to reduce soaring beef prices and to wean the country off its dependency on Australian meat imports. The government, which has imported beef from Australia and New Zealand for years, has been scrambling to curb persistently high beef prices. “Currently, we are in the final stages of the selection process. We expect the carabeef from India to arrive in Tanjung Priok Port in North Jakarta from July 20 to July 25,” said Wahyu, Procurement Director of State Logistics Agency (Bulog), which has been tasked with managing the importation. Bulog is currently selecting 10 slaughterhouses located in foot and mouth disease free zones in India, based on recommendations by the Agriculture Ministry. The selection process includes disease-free verification.
|Suprieya Foods moves to semi-automated poultry processing|
[27 June 2016] India is one of the fastest growing markets for industrial poultry processing. Suprieya Foods based in Coimbatore, Tamil Nadu state used to deliver live broilers to the wet market, but the company has now taken a big step by integrating the entire slaughter process in its activities and by automating primary processing operations with Marel’s Stork equipment and knowledge. Its completely new processing plant has an hourly capacity of 4000 broilers and uses an overhead conveyor to transport broilers through the whole process. “It is a real challenge to enter the processing business as a newcomer like we did. There are a lot more to it than just installing machines,” said CV Subramaniam, Managing Director of Suprieya Foods.
|Chitwan is Nepal’s poultry industry centre|
[27 June 2016] Nepal’s poultry industry, which is centred in Chitwan district, has an annual turnover of USD 310 million, according to the Central Bureau of Statistics (CBS). A survey conducted in 2014-15 shows that Chitwan is the largest producer of poultry products in the country with an annual turnover of USD 94 million. Chitwan produces USD 18 million worth of chickens and USD 54 million worth of eggs. Badri Karki, CBS Director said since 2003, a large number of people have become engaged in commercial poultry farming, especially in Chitwan. There are 1365 broiler and 502 layer farms in Chitwan. These farms rear 9.98 million chickens and produce 12,091 tonnes of meat annually. The industry directly employs 6868 people in Chitwan.
|Predicting broiler performance through NIR|
[24 June 2016] Dr Usama Aftab, Regional Technical Director of AB Vista Feed Ingredients will introduce an NIR-enabled model which can rapidly predict the energy content of corn and other feedstuffs on a routine basis, and is highly correlated with broiler performance, at Asian Agribiz Broiler Feed Quality Conference in Bangkok, Thailand on August 18-19. Dietary energy is the major cost in broiler diets, however, measuring the energy content of corn, the main source of energy, by conventional laboratory methods is time-consuming and not routinely done. More details www.asian-agribiz.com/pdf/BroFeedQC16_web.pdf
|Thailand’s pork exports to reach 17kt|
[24 June 2016] Thailand’s pork exports are expected to reach 17,000 tonnes this year, up from 16,558 tonnes last year, Boonpeng Santiwattanatam, President of Thai Swine Producers and Processors for Exporting Association told Asian Agribiz. Cooked pork exports will increase to 15,500 tonnes this year, while raw pork exports will grow to 1500 tonnes, he said. In value, Thailand pork exports will be USD 94.16 million this year, up from USD 91.72 million last year. Japan has been Thailand’s largest pork export destination – with a total of 14,734 tonnes of cooked pork exported to the East Asian country last year. “We are negotiating with the Singapore government. We aim to export more pork products to Singapore,” Mr Boonpeng said. Meanwhile, around 95% of pork produced in Thailand is consumed domestically.
|China’s pork imports in 2016 seen at 1.2mt|
[24 June 2016] China’s pork imports (excluding pork offal) are expected to hit 1.2 million tonnes this year, up from 0.78 million in 2015, as more pork processors are turning to cheaper raw meat overseas, said Chinese agricultural consulting firm Bric Data. “Processors are under cost pressure since the local hog prices have been growing, while the prices of processed products maintain stable,” the consultancy said. Data from China Customs show that in the first five months of 2016, the nation’s pork imports totaled 0.57 million tonnes, up 120% from a year earlier. In May alone, the imports soared 202% year-on-year to 0.16 million tonnes. Bric Data said the June imports are likely to climb further to a record 0.18 million tonnes.
|Feed industry’s demand increases Indonesia’s wheat imports |
[24 June 2016] Indonesia’s wheat imports could climb 35% to a record 10 million tonnes this year to replace corn for use as animal feed amid limited domestic supply, according to an industry group. “Wheat imports are increasing because of the animal feed industry. They can’t import corn,” said Franciscus Welirang, Chairman of the Indonesian Flour Producers Association (Aptindo). “Around 80% of the wheat that Indonesia will import this year will be used to produce flour, and the remainder will be used by feedmills,” he added. In the first quarter of this year Indonesia imported 2.9 million tonnes of wheat, about 500,000 tonnes of which went to feedmills, Mr Welirang said. Indonesia imports wheat from Australia, the US and Canada.
|Rhone Ma intends to offer 42 million shares for IPO|
[24 June 2016] Malaysia’s Rhone Ma Holdings Bhd, supplier of animal health solution and food ingredients, intends to offer 42.12 million shares of USD 0.12 each for its initial public offer on Bursa Malaysia. In terms of capex, Rhone Ma intends to build a GMP-compliant plant. The total estimated cost of construction including cost of furnishing and fitting is about USD 3.22 million. “We are currently in the designing stage and construction is expected to commence in Q2 of 2017, subject to obtaining approval from the relevant authorities. The construction of the plant is estimated to be completed within 18 months from the commencement date of the construction,” the company said.
|Foreigners can now own 100% stake in food retail in India|
[24 June 2016] India announced fresh liberalisation of FDI rules by opening food retail to higher overseas flows. An article in Business Standard said this will make it easier for retail outlets to set up food manufacturing and food-only retail bases in India. “Companies like Walmart and Tesco may look to embrace this new policy through a special purpose legal entity for trading in specific product category,” said Amarjeet Singh, partner–tax, KPMG in India. Until now, there were restrictions on multi-brand retailing, though 51% in single brand retail and 100% FDI in the cash-and-carry or wholesale business were permitted.
|Wheat is first substitution choice for Indonesian millers over limited corn supply |
[23 June 2016] In the first quarter of this year Indonesia imported 2.9 million tonnes of wheat, about 500,000 tonnes of which went to feedmills, according to the Indonesian Flour Producers Association (Aptindo). Desianto Budi Utomo, Secretary General of the Indonesian Feed Producers Association (APPI) told Asian Agribiz that wheat is the first option to substitute the use of corn when its supply cannot meet demand from feed millers. Previously APPI members use corn of around 50-55% in their poultry feed formulations. However, with the limited supply of corn, the use is reduced to 35%. “The remainder 15-20% is substituted with wheat. We do this to prevent a drastic change in our feed formulations,” said Mr Utomo. As the consequence of using wheat, feed millers have to invest in enzymes to better utilise the cereal grain, which means an additional cost for the feed millers.
|Cargill Vietnam targets 1.7 mt of feed by 2017 |
[23 June 2016] Cargill’s feed and nutrition business in Vietnam hopes to produce about 1.7 million tonnes of feed in total production capacity by end next year. Its 12th feedmill in the country, located at Binh Duong, is expected to be completed in the second half of 2017. “The USD 30 million facility will have a total capacity of 260,000 tonnes per year,” Jorge Becerra, Country Representative and Managing Director told Asian Agribiz. In May Cargill opened its 11th feedmill in Nghe An, Vietnam. The USD 8.5 million plant has one production line for livestock feed and a total capacity of 66,000 tonnes per year. It has the ability to produce a full portfolio of products for all phases for pig and poultry production.
|China declares Shandong Peninsula as first bird flu free zone|
[23 June 2016] China’s Ministry of Agriculture said the Shandong Peninsula in east China has been accepted by the ministry as a highly pathogenic avian influenza (HPAI) free zone, the first of its kind in the country. The Peninsula, which is comprised of cities of Qingdao, Yantai, Weihai and Weifang, was also declared as a foot-and-mouth disease free zone. The free zone is home to major Chinese poultry exporters whose shipments account for more than 40% of the country’s total, according to the local government.
|Vemag sees business opportunities in meatball in Asia|
[23 June 2016] Allan Tibble, International Sales Manager of Vemag told Asian Agribiz during ProPak Asia 2016 in Bangkok, Thailand that convenience food is growing in Asia and demand is getting stronger. “At the moment, we see business development and opportunities in the meatball market here in Asia,” he said. According to Mr Tibble, the equipment that customers are now using is old and slow and not very accurate. “Our machine has a very high output and deliver consistent shape and weight control,” he said. Vemag’s Ball Control 236 is a machine for the manufacture of convenience products such as meatballs, fish balls and other products. “For this type of machine, I see strong demand in Thailand and Indonesia,” he added.
|First shipment of Australian cattle arrives in Cambodia|
[23 June 2016] Cambodia received its first shipment of 2766 heads of cattle from Australia last week. Phnom Penh and Canberra finalised health protocols two years ago, reported Cambodia Daily. The cattle was transported to SLN Meat Supplies facilities within three hours, said Hor Sim Leang, SLN Managing Director. The cattle, each weighing 370-600 kg, and costing up to USD 1900, are expected to fetch USD 10-20 per kg once slaughtered, about 40% cheaper than imported frozen beef, he said. Following the initial shipment, a second delivery of nearly 2000 cattle mid-July will mark the beginning of up to four deliveries per month, he added.
|Phytogenics market to be worth USD770m by 2021|
[23 June 2016] The global feed phytogenics market is projected to reach USD 769.5 million by 2021, growing at a CAGR of 7.1% from 2016 to 2021. One of the main reasons for its growth is its role as a substitute to antibiotic growth promoters, said new report from Market and Markets. The poultry segment accounted for the largest share of the global market in 2015. Significant growth for feed phytogenics is observed in the Asia Pacific region. Emerging countries in the region with increasing number of livestock and efficient management of feed operating cost are factors pushing the demand for nutritive feed and sustainable animal nutrition products.
|Early nutrition strategies for peak performance in broiler chickens|
[22 June 2016] The production cycle of broilers has been reduced to such an extent that the starter phase represents more than a quarter of the cycle, poor feeding at this time can have a significant negative impact on the final weight of birds. Dr Paul Iji, Professor of Animal Science, University of New England, Australia will present two papers at the Asian Agribiz Broiler Feed Quality Conference, on August 18-19, in Bangkok, Thailand. These will consider using otherwise cost-prohibitive feed additives - spray dried plasma and processed vegetable protein that may improve health and performance during the first week. More details www.asian-agribiz.com/pdf/BroFeedQC16_web.pdf
|Ningbo Tech-bank to set up 14 subsidiaries for pig farming|
[22 June 2016] Ningbo Tech-bank Co, an aqua feed and vaccine producer as well as pork integrator based in east China, said it is setting up 14 subsidiaries to expand its pig farming operations nationwide. The subsidiaries will be located in eastern provinces of Jiangsu, Anhui and Shandong, northern provinces of Shanxi and Hebei, and Guangxi in the south. In January, Tech-bank said it targets to produce 30 million pigs by 2025, up from 0.28 million pigs in 2015 and a goal of 1 million heads this year. The company is seeking to raise USD 225 million via a private placement to fund the expansion plan.
|Thai livestock associations insist feed ingredients imports are necessary|
[22 June 2016] The Thailand Federation of Livestock and Aquaculture, which consists of 11 associations, said corn-based distillers dried grains with solubles (corn DDGS) and wheat imports are necessary because there is not enough local output to address growing demand for feed. The National Farmers Council recently asked the Commerce Ministry to strictly control the import of corn DDGS and wheat, saying the import negatively affects local raw material prices such as corn and cassava, as well as hurts local farmers. However, Pornsil Patchrintanakul, President of Thai Feed Mills Association said that corn production in Thailand is around 4.5-4.6 million tonnes a year but the livestock industry needs around 7.8-7.9 million tonnes of corn a year. “Demand of raw materials for feed grew at an average rate of 7.2% during the past 10 years, but the growth of local raw materials such as corn is not keeping pace with growing demand,” he said.
|Australia suspends cattle trade to three abattoirs in Vietnam|
[22 June 2016] The Australian government has suspended trade to three abattoirs in Vietnam after footage emerged of workers killing what appear to be Australian cows with sledgehammers. Australia exports live cattle to Vietnam – its second-biggest customer – on the condition that cattle are transported to approved abattoirs. The New Daily said the footage suggests some Australian cattle are instead being transported to brutal, unapproved slaughterhouses. The Vietnamese workers who were secretly filmed reportedly told Animals Australia the cattle were from Australia, and notches on their ears reportedly matched Australian animals.
|No EMS outbreak in India|
[22 June 2016] Scientists from India confirmed there was no outbreak of acute hepatopancreatic necrosis, also known as early mortality syndrome (EMS), in the country. At a recently-held workshop organised by the ICAR-Central Institute of Brackishwater Aquaculture (Ciba) aimed at creating awareness among shrimp farmers on the disease, scientists explained that the disease spreads because of poor quality water used in farming. India exports seafood worth USD 4.4 billion, of which 70% are shrimp. In 2009 where China first reported the outbreak of the disease, panic spread among Indian shrimp farmers as the species had just been introduced in the country. “Until now, India is free of the pathogen that causes the disease,” said KK Vijayan, Ciba Director.
|Unitherm to open innovation centre in Bangkok|
[22 June 2016] Barry Hansell, Sales Director of Asia Pacific at Unitherm Asia told Asian Agribiz at ProPak Asia 2016 in Bangkok, Thailand that Asia is an extremely large growth potential for Unitherm due to rising middle class and growing demand for high quality foods. “We are opening an innovation centre in Bangkok, Thailand in the middle of July and it will provide sales and service backup to our local agents,” Mr Hansell said. The centre will contain its full range of equipment. “Bangkok was selected because we consider it as the most central position within the region,” he added. Unitherm is a US-based company that supplies ranges of thermal processing systems including oven and chilling, pasteurizing and smoking processors to the food industry.
|Daesang takes over Duc Viet Food to expand its market to SE Asia|
[21 June 2016] Daesang Corporation, a leading food producer in South Korea, is taking over a Vietnamese meat processing company to target the refrigerated ham market in Southeast Asia. The company recently announced that it signed an agreement with Duc Viet Food Joint Stock Company, a processed meat producer in Vietnam, to acquire its shares for USD 31.97 million. It will secure 13 million shares, or 99.99%, of Duc Viet Food by August. With the latest contract, Daesang plans to expand its market to Southeast Asia, including Thailand, Cambodia and Indonesia, based on the Vietnamese market. In the long term, the company will strengthen the competitiveness in processing meat through Duc Viet Food and target the domestic refrigerated ham market in earnest.
|CP Indonesia welcomes Salim Group|
[21 June 2016] Salim Group’s decision to enter the poultry business in Indonesia in a bid to expand has yet to deter poultry giant Charoen Pokphand Indonesia, which holds a 34% market share. CP Indonesia voiced optimism that its parent company, Charoen Pokphand Group, will support the company, especially in term of technology. “We have not prepared any special strategy to anticipate their entrance into the market. We welcome newcomers in the competition,” said Tjiu Thomas Effendy, President Director of CP Indonesia. In December last year, Salim Group purchased a controlling stake in Malaysia-based poultry company CAB Cakaran, and together will form a joint venture in Indonesia this year. This opens the door for Salim, as the big player in the food industry, to enter, especially as Salim owns 35.8% of Fast Food Indonesia, the licensee for KFC in Indonesia.
|China’s Foresun to set up Spain unit for beef business M&A|
[21 June 2016] Chinese beef supplier Foresun Group said it is building a platform for mergers & acquisitions (M&A) of overseas beef operations, by setting up a wholly-owned unit in Spain. The unit will have a registered capital of USD 6 million. In April, Foresun agreed to buy three beef slaughterhouses and a livestock confinement unit in Argentina from Brazilian meatpacker Mafrig Global Foods SA for USD 75 million. Foresun, headquartered in Qiqihar in north-eastern Heilongjiang province, is seeking a backdoor listing via Shenzhen-listed motorbike manufacturer Sundiro Holding.
|Seydelmann says Asia is a growing market|
[21 June 2016] Steffen Kromer, Sales Manager of Seydelmann told Asian Agribiz at ProPak Asia 2016 in Bangkok that the company is active in Asia and it has a wide range of machines, including cutters, mixers, grinders, emulsifiers and other production lines. “We have a lot of projects in Asia, such as for sausage, nugget and pet food productions. Seydelmann can deliver machines for smaller capacities, mid-size and big customers,” Mr Kromer said, adding that the big customers want complete production lines and everything is fully automatic. More companies will go for automation, to save labour costs. “Asia is a growing market for us,” he added.
|Pioneerindo targets 15% business growth|
[21 June 2016] Indonesia’s Pioneerindo Gourmet International, the operator of California Fried Chicken (CFC), targets its business to grow by 15% this year with sales of USD 35 million. Teh Kian Kun, Director said the QSR chain is optimistic the target is achievable since in Q1 it recorded a 21.7% sales growth to USD 6.7 million compared with the same period of last year, driven by the increasing sales of its ‘Paket Hemat’ menu. Mr Kun noted that the price of raw material (chicken meat) increased 10% in Q1. “However, our sales also increased,” he said.
|Fujian Sunner imports broiler GP from Spain|
[20 June 2016] Fujian Sunner Development Co said it imported 31,450 sets of broiler GP from Spain in June, the first introduction by China’s largest broiler integrator in half a year after the nation banned US and French breeders last year. “We had 10 GP farms with a combined stock of 216,000 sets at the end of 2015, and the breeds were Ross and Cobb from the US,” Chen Zhihong, Deputy Director of Media Office told Asian Agribiz. China imported only 24,200 sets of broiler GP from New Zealand in Q1 due to the ban, compared with an annual introduction of 1.54 million sets at the peak in 2013.
|New shrimp feed plant inaugurated in Andhra Pradesh |
[21 June 2016] Prathipati Pulla Rao, Agriculture Minister of India’s Andhra Pradesh recently inaugurated a shrimp feed plant for BMR Industries at Damavaram village, Andhra Pradesh. The feed plant was set up at a cost of USD 19 million. Mr Rao said the feed plant will be very much helpful to meet the growing requirements of aquaculture in the region. “There are about 39,000 aqua farmers who have been actively involved in the sector making large contributions to its growth,” he said.
|San Miguel on USD1.1b expansion|
[20 June 2016] The Philippines’ San Miguel Pure Foods Co Inc (SMPFCI) is expected to finish a USD 1.1 billion expansion that will boost its feed milling, food business and flour business units over the next five years. A report by the Philippine Daily Inquirer said the company is adding seven feed plants, each with a capacity of 500 million tonnes, although San Miguel Corp President Ramon Ang said that even with this increased capacity, SMPFCI would still only capture about 37% of the market. The company is also expanding capacity for its processed meats products, its poultry dressing plant, and its ready-to-eat chicken and pork businesses, as well as its poultry and piggery operations.
|Fast Food Indonesia to open 30 new KFC outlets|
[20 June 2016] Fast Food Indonesia, the operator of the QSR chain Kentucky Fried Chicken (KFC) in Indonesia, has said that this year it only plans to open 30 new regular outlets since it will focus more on KFC Box (outlet with a free standing & take-away concept). Justinus Juwono, Director said the company will open five more KFC Boxes this year. “KFC Box only costs a third of the investment for a regular outlet of USD 336,000”, he said. As of now, Fast Food has opened eight KFC Boxes in Greater Jakarta. The company has had successful trials with the KFC Box concept since last year.
|Inotec sees strong demand for its complete processing lines|
[20 June 2016] Inotec is a Germany-based company that manufactures a complete range of processing equipment, emulsifiers and sausage separators. “We installed one of the biggest lines for chicken sausage in Thailand last year and we see the move in Thailand for more and more complete processing lines,” Adrien Dessert, Managing Director of Inotec told Asian Agribiz. Inotec has at least 3-4 projects of complete sausage processing lines in Thailand and it has also similar projects in Indonesia and Philippines, he said. “We offer unique processing lines concept based on vacuum emulsifier because we are the global leader in vacuum emulsifier,” Mr Dessert said, adding that its machine also performs specific mixing actions, where companies can produce cheese hot dogs.
|Bisi International to increase corn seed sales|
[20 June 2016] Indonesia’s Bisi International, a crop seeds producing company owned by Thailand’s Jiaravanon family who controls the majority stake of Charoen Pokphand Indonesia, this year targets its corn seed (Bisi-18 variety) sales to increase 77% to 100,000 tonnes over last year, motivated by Indonesia’s corn self-sufficiency program. Jemmy Eka Putra, President Director said to reach the target the company will extend it partnership with corn farmers from 19,100ha last year to 30,000ha this year. “We will also try to integrate corn farming with palm plantation,” he said. Of its Q1 2016 financial performance, corn seed sales was USD 8 million.
|India learns from UK to develop its pork industry|
[20 June 2016] India’s senior Punjabi government officials have visited UK pork factories to develop production methods, with India braced for a surge in meat demand. The delegation visited pig breeding firms, a feedmill, an abattoir and the headquarters of UK levy board AHDB Pork, driven by India’s aims to boost its booming pork sector. The Indian team were interested in pig genetics, breeding techniques, animal welfare and the economics underpinning the UK pork sector. “They [India] are seeking our pig genetics and management systems as they want to improve productivity, welfare and product quality,” said Jonathan Eckley, AHDB Pork Senior Export Manager as quoted by Globalmeatnews.
|Can feeding the broiler breeder improve chick quality and offspring performance?|
[17 June 2016] Studies on the direct effects of breeder nutrition on subsequent chick quality and offspring performance are limited. Alex Chang, Aviagen, Poultry Nutritionist, Global Technical Operations will review the nutritional factors in broiler breeders that may improve chick quality and progeny performance at the Asian Agribiz 2016 Broiler Feed Quality Conference in Bangkok this August . Recent research has suggested that the feeding of low crude protein and medium to high energy breeder diets in both rearing and laying period will not only have a positive impact on egg production, egg size, breeder fertility, hatchability and embryonic livability, but also on offspring performance. More information is available here.
|Guangdong Wens to expand pig farming in southwest China|
[17 June 2016] Guangdong Wens Foodstuff Group is expanding pig farming aggressively in the mountainous Yunnan province, one of the two southwest regions identified by China’s Ministry of Agriculture as a potential area for pork production. Wens has signed a framework agreement with the Qujing municipal government in Yunnan to build eight pig complexes, targeting a combined annual output of 5 million heads. A 2 million-tonne feedmill as well as administrative and living quarters will also be built to support the contract farming. In April, Wens signed an agreement to start a 3 million-head pig farming project in Honghe, Yunnan.
|Imported feed raw materials in Indonesia charged 10% VAT|
[17 June 2016] Indonesia’s Ministry of Finance recently raised the value added tax (VAT) of imported feed raw materials including corn, wheat and soybean meal to 10%. Sudirman FX, Chairman of the Indonesian Feed Producers Association (APPI), said feed millers will include the tax in their production cost. As a result, the price of feed, for instance broiler feed, will increase from USD 0.48 to USD 0.51 per kg. “This price increase will then increase the price of chicken and eggs,” said Mr Sudirman. He added that the association hopes the Ministry of Agriculture can discuss with the Ministry of Finance to remove the tax.
Onsite at ProPak Asia 2016, Bangkok, Thailand
Reports by ARIEF FACHRUDIN and PAYUNGSAK WIRIYABUNDITKUL
[17 June 2016]
Amidst slowing economy, producers eye Asian-made machines
The meat processing industry in Thailand had grown steadily in the past years, according to Aisoon Sirichainakhon, Managing Director of Erawan Union, a distributor of meat processing equipment. However, due to the slowing economy, limited local market volume and limited export market, the industry tends to be saturated, Mr Aisoon told Asian Agribiz. The slowing economy, he said, also impacts investment for automation in the industry. “Not so much investment this year, but the interest to reduce labour is high. So some companies are eyeing Asian-made machines from Thailand, China and Japan.”
Trends in automation and ready meals in Thailand
Automation is set to become a common thing in Thailand since labour is getting more expensive and hard to find, according to Somsuda Sriwattananont, Sales Manager of Forefront Foodtech, a distributor of meat processing equipment. Ms Somsuda told Asian Agribiz that neighbouring countries like Myanmar and Cambodia now are opening up their markets for investments, “so they need their people to work in their countries.” On ready meals, Ms Somsuda sees more companies venturing into the ready meals sector. “CP Food, with its 7-Eleven stores, is leading this sector, but companies like S&P and Bangkok Ranch also eyeing potential,” she said.
Frey sees more projects in Myanmar and Cambodia
Germany-based filling technology specialist Frey Maschinenbau is happy with their sales in Thailand and Vietnam. Now the company is looking for potential markets in Myanmar and Cambodia. Heinrich Frey, Managing Director of Frey told Asian Agribiz that the first filling machine in Myanmar was from Frey and the machine has been working for 10 years now. Frey has also sold machines in Cambodia. “The markets there are still on small-scale sausage production. However, with more tourists, this market will grow,” said Mr Frey. He revealed that Frey's client in Cambodia plans for a big project for sausage production in response to the growing population, income, and western style sausages.
Siam Food focuses on small-medium scale customers
Although the Thai economy is slowing, Siam Food Consultant, a distributor of primary and secondary meat processing equipment, still has many projects. Thanchanok Sirisap, Managing Director told Asian Agribiz: “It’s because we focus on the small-medium scale players who produce for the local market.” Ms Thanchanok said the small-medium scale players are growing and they are increasing their production capacity, as well as their market reach to neighbouring countries like Cambodia and Laos. “We have a customer who sells frozen marinated pork and beef slices to Cambodia, Laos and Vietnam. The buyers are from the restaurant industry,” she said.
Automation and food safety key issues in food industry in Asia
“What’s important now for the food industry in Asia are food safety, automation and reproducibility,” Uwe Kessler, Sales Director of Handtmann told Asian Agribiz. Handtmann specialises in portioning, forming, linking and hanging equipment for the meat industry. Mr Kessler said that it will be more difficult for companies to get skilled labour and machines will take over some human jobs. “So what they need is automation, which always having the same product with the same quality and the same material and no human error,” he said. In Thailand, Mr Kessler also expects more automation because labour is becoming expensive and hard to find.
Lima sees big opportunities in Thailand
Roger America, International Sales Director of Lima, a France-based producer of meat-bone separators, deboners and desinewers, told Asian Agribiz that when it comes to further processing and special products, Thailand is the most developed country in this field in Asia. After cutting up the chicken, there is meat with sinew or some bone particles and Lima’s deboning and desinewing machines enable the production of high quality meat ideally textured for further processing. Mr America said companies in Thailand have big enough production and volume and it’s profitable for them to invest in the machine to upgrade output.
|InVivo NSA Philippines to launch global brands |
[16 June 2016] After acquiring Popular Feedmill Corp, InVivo NSA Philippines plans to introduce its global brands to the Philippine market. Mathieu Guillaume, Senior Director Business, told Asian Agribiz they are targeting to launch the Evialis brand, which will cater to commercial hog, broiler and layer producers by the end of the year. Noting too that Popular is involved in the country’s backyard livestock sector, he said InVivo will “continue to provide support to this segment” and help these farmers to improve efficiencies and productivity.
|Pioneerindo to open 40 new CFC outlets|
[16 June 2016] Indonesia’s Pioneerindo Gourmet International, the operator of California Fried Chicken (CFC), plans to set up 40 new outlets this year, consisting of 25 restaurants and 15 semi-satellite outlets. Teh Kian Kun, Director said these will be in Greater Jakarta, Central Java, Bali, Kalimantan and Sulawesi. The restaurant and a semi-satellite outlet will need investments of USD 75,000 and USD 19,000, respectively. Mr Kun said the company has also allocated USD 280,000 to renovate its 15 existing outlets. As of now, Pioneerindo has 49 CFC outlets throughout Indonesia.
|Thaifoods Group to supply chicken meat to Thai Airways|
[16 June 2016] Thailand’s Thaifoods Group (TFG) will supply chicken meat to the catering department of Thai Airways International from July 1, 2016 – June 30, 2017, efinanceThai reported. “We are pushing deeper into the domestic market,” Cherdsak Kukiattinun, Chief Operating Officer of TFG said, adding that TFG’s chicken meat will be served on Thai Airways and other international airlines. Meanwhile, with relatively high pork prices in Thailand, TFG will increase its pig raising capacity to 55,000 pigs a month, from 45,000 currently.
|Slow sales at chicken outlet causes drop in Berjaya Food earnings |
[16 June 2016] Malaysia’s Berjaya Food Bhd, which holds the worldwide franchise for Kenny Rogers Roasters franchise, reported its lowest quarterly earnings in three years in the fourth financial quarter ended April 30, 2016. Its bottom line figure dropped to USD 905,276 compared with USD 1.57 million in last year’s corresponding quarter, despite revenue growing by 7.9% to USD 34.01 million. The company attributed the drop to lower contributions from the roast chicken label’s operations in Malaysia. It said consumers were cautious following the introduction of the goods and service tax last year.
|Controversy over Indonesia’s beef import quota|
[16 June 2016] Indonesia’s Evita Manunggal received approval from the Ministry of Trade to import 9000 tonnes of frozen beef to support the government’s target of bringing the price of beef down to USD 6/kg. However, Evita is in a bind as it has not got a recommendation from the Ministry of Agriculture. Thomas Sembiring, Chairman of the Indonesian Meat Importers Association (Aspidi) said Evita is a new player and not an Aspidi member. “The appointment raised questions as a criteria is that the importer should have its own cold storage facility and reefer trucks,” he said.
|Broiler Feed Quality Conference Keynote Address - Toward optimal enteric health in broilers|
[15 June 2016] The conference keynote address 'Toward optimal enteric health in broilers' will be presented by Dr Aaron Cowieson, Principal Scientist, DSM Nutritional Products, Scotland and Adjunct Professor, Poultry Nutrition, University of Sydney Australia on 18 August at the Amari Watergate Hotel in Bangkok . He will discuss the impact of exogenous enzymes on gut health, and their role in digestive health, physiological health, microbiological health and immunological health. Dr Cowieson considers that as AGP removal becomes more commonplace, the role of feed enzymes in gut health will increase. For more info click here.
|Indonesia’s Serena to produce sausages |
[15 June 2016] Indonesia’s meat processor Serena Harsa Utama which specialises in meatball production has said that it plans to venture into sausage production this year. Imam Basuki, Director told Asian Agribiz that it has bought a bowl cutter from K+G Wetter, a Handtmann’s vacuum filler and a smoke house system. “All the equipment cost around USD 113,000,” Mr Basuki said. “The equipment is now being installed and we target to start commercial production in the second half of this year,” he added. Once the sausage production proceeds well, the company also plans to produce nuggets, but this will be a separate project.
|China’s Xilinguole area to introduce 100,000 Angus, Simmental cattle breeders|
[15 June 2016] The Xilinguole League in Inner Mongolia, a major pastoral area in north China, said it is planning to introduce 100,000 heads of Angus and Simmental cattle breeders in 2016-2018, in an effort to expand its cattle stock to more than 3 million heads by 2020, from 1.39 million in 2015. In a guideline to promote the cattle industry, the local government said it will also cut the stock of sheep, which stood at 13.86 million heads last year.
|Nepal poultry farms rake in USD 314 million in annual turnover|
[15 June 2016] Commercially run poultry farms in Nepal recorded an annual turnover of USD 314.29 million, equivalent to 1.5% of the country’s economy, stated a HimalayanTimes article quoting a survey commissioned by the Central Bureau of Statistics. The sector’s gross value addition stands at USD 63.75 million a year. Poultry owners spent USD 250.54 million a year on feed, vaccine, day-old chicks and salary for employees, among others, against total earnings of USD 314.29 million. “Seventy six per cent of the farms are in profit and 80% of the farm owners are considering expanding their business,” noted the survey.
|Native chicken feed sees potential in Indonesia|
[15 June 2016] According to Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association, there is no special complete feed for native chicken. So big scale farmers and breeders of native chicken use broiler complete feed. “I hope there feed companies consider producing native chicken feed. The market potential is good since the number of native chicken farmers and breeders continues to increase,” Mr Zulkarnain told Asian Agribiz. Without calculating the supply of live birds from backyard farmers, the current production of native chicken from intensive farming in Indonesia is around 90 million birds, according to Mr Zulkarnain. If the average feed conversion is 2.5, the potential market of native chicken feed is around 225,000 tonnes/year.
|Thailand's CFR to increase online meat sales|
[14 June 2016] Sopaphan Juyjaroen, Vice President of Perishable at Thailand's Central Food Retail (CFR) told Asian Agribiz that people are buying more meat products online and CFR is seeing online business opportunities. CFR is now selling meat products in packs on its website (Tops Shop Online) such as minced pork, but it hasn't sold meat by weight online yet. Ms Sopaphan said CFR is looking for a mechanism to handle the price by weight issue. CFR plans to sell meat by the kilo on its website in the third quarter of this year. It also plans to add more product variety to its meat by weight sales.
|Cargill Indonesia will launch new dairy cattle feeds|
[14 June 2016] Cargill Feed and Nutrition Indonesia plans to launch new dairy cattle feeds in the second half of this year. Insanto Endro Bawono, Swine & Ruminant Business Development Manager told Asian Agribiz that so far the company has been producing three feeds namely Lactoplus for lactating cows, Calf Starter for weaned calves and Lactomix Mitra, a basemix specially made for milk cooperatives. “To complete our offering for different phases of a dairy cattle life, we will launch three new feeds namely feeds for calf growers, heifers and cows in dry period,” said Mr Bawono. According to him, special feed for cows in dry period is important as they are vulnerable to negative energy balance, so good and balanced nutrition should be assured.
|Yisai Beef in China plans for 200,000-cattle complex in Inner Mongolia|
[14 June 2016] Henan Yisai Beef (Stock) Co., a halal beef producer based in central China, will invest total USD 463 million to build a cattle complex in Kailu County, Inner Mongolia. According to the local government, the complex will include a 200,000-cattle slaughterhouse and a 100,000-tonne feedmill. Construction of both is scheduled to start in July and with operations due to commence a year later. Another 20,000-tonne further processing plant is expected be launched within five years when the slaughterhouse is running at full capacity.
|India embraces decade of dairy|
[14 June 2016] India is embracing a 'decade of dairy' and the government has embarked on efforts to raise the current milk production that is estimated at 140 mmt/year and to 180mmt by 2021. "The government is trying hard to drive change in this sector and is providing both the training and tools to small farmers, but the uptake is slow because of resistance to change. This group that numbers in the millions, makes up the bulk of the suppliers," Consultant Dr P G Phalke told Asian Agribiz. However, he feels that change has to be driven by the private sector, and sees companies like Amul, Mother Dairy and Nestle empowering co-ops and medium sized farmers. This he says will be the turning point for the industry.
|Imports will lower beef price in Indonesia|
[14 June 2016] With a target to reduce the price of beef in the market to USD 6/kg, Indonesia’s government has passed on the import quota to some state-owned enterprises. Rini Soemarmo, Minister of State-Owned Enterprises mentioned that Bulog, Berdikari and PD Dharma Jaya have got beef import quotas of 10,000 tonnes, 5000 tonnes and 500 tonnes, respectively. Beyond these figures, the government through Bulog also plans to import carabeef from India. Djarot Kusumayakti, Bulog President Director said imports from India will benefit end consumers since the price of carabeef is cheaper than imported beef from Australia. “Besides India, we also have options to import from Spain and New Zealand,” said Mr Kusumayakti.
|Singapore bakkwa producer to roll out new marketing strategy|
[13 June 2016] Singapore-based barbecued meat (bakkwa) producer Bee Cheang Hiang hopes to roll out a creative marketing strategy to promote brand awareness especially among the young, who prefer convenient, on-the-go snacks. Simon Teo, Chairman, told Asian Agribiz that for a product to have lasting appeal it must move out of the traditional perception of bakkwa. “Firstly there has to be brand awareness. The young can access our history from the Internet, they can read the comments section, and see that bakkwa makes a nice gift,” he said. “By mid-2017 the company hopes to roll out a creative marketing move that will see a loyalty program, connection with customers via facebook, an app as well as retail trucks with barbeque pits that can go out to the customers.”
|Indonesia’s native chicken business to grow 10%|
[13 June 2016] Indonesia’s native chicken business this year is expected to grow at 10% since many farmers in Central and East Java will increase their production capacities, according to Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association (Himpuli). Mr Zulkarnain told Asian Agribiz that native chicken business in the country had grown at a rate of 10-12% since 2013. Last year, production was recorded at 270 million birds or equivalent to 270,000 tonnes of carcass. With this figure, the market value was around USD 1 billion. He revealed that Himpuli targets native chicken meat to contribute 25% to animal protein consumption in the country in 2019. This means the production will be around 1 billion birds with a market value of USD 3.7 billion.
|Hong Kong resumes live poultry trade|
[13 June 2016] Live poultry trade resumed in Hong Kong last Thursday after being suspended the week before after a faecal sample taken from a Tuen Mun retail market tested positive for H7N9 virus. Hong Kong's Secretary for Food and Health Ko Wing-man said 3360 samples taken from all local poultry farms as well as the 270 samples from Cheung Sha Wan wholesale poultry market tested negative for H7N9 bird flu virus, a BusinessStandard report stated.
Lifestyle changes transform cured meat sector
[13 June 2016]
Like manufacturers of other processed meat products, cured meat producers in Asia are eager to stay updated with current market trends. Changing lifestyles across Asia has pushed for innovation in almost all aspects of the sector. The Asian Agribiz team delves into the shifting trends in the region.
Cutting back on salt
There are calls for the use of less salt, and safer and natural preservatives in the processing of cured meat products in Asia. Some producers in the Philippines are now turning away from chemical curing salts, claiming that their products are free of preservatives such as nitrites and nitrates. Marlene Santos, who last year began manufacturing tocinos and tapas from her home, said she decided to use only natural ingredients and preservatives. “I use sea salt, when possible, or iodised salt,” she said. As such her tocinos do not have the red tinge due to nitrates and nitrites that is typical of the mass market counterparts. She also uses only natural flavourings and spices.
Amazing Ham from Jinzi
Although more traditional hams are sold in smaller cuts, it is still not convenient for young and busy white collar workers in China to slice and cook them. According to the Jinzi Ham Co survey, about 37% of the respondents expect ham products to be applied in a variety of dishes without much cutting. In response to this Jinzi launched the Amazing Ham last July. The product is selected from the top portion of a ham – a 3kg ham can only produce 200g of Amazing Ham. These are sold at USD 10 each. According to Jinzi, the manually-sliced ham has a lean meat rate of more than 85% after the removal of excess fat and skin. The ham is good for steaming, frying, stewing and boiling. It can even be enjoyed within seconds when used for shabu shabu.
Thailand’s CFR now offers dry-aged beef
Last October Thailand’s Central Food Retail (CFR) launched its in-house produced dry-aged beef, aiming to add value to its processed meat range. CFR selects local premium beef from KU Kamphaeng Saen Campus Beef Producer Cooperative Ltd (KU Beef). Malinee Suwattanachot, General Manager of Perishable Meat and Seafood, said the farm raises young cows and the cows are not fed with pineapple, so the meat texture is soft. To make the product, fresh beef is marinated with salt and then is moved to a temperature-controlled dry-aging equipment for at least 21 days. CFR also sells dry-aged T-bones and prime-ribs at Central Chidlom’s Central Food Hall. Both products are priced at USD 44.78/kg.
Better quality raw materials
Health reasons and changing lifestyles have propelled changes in the sector, and producers in the region have responded by using better quality raw materials. Singapore’s leading barbecued meat (bakkwa) producer Bee Cheng Hiang, for instance, imports 95% of its raw material from Europe for its Malaysian market. Only a small percentage of raw material is sourced locally. Its floss products, for instance, require fresh meat, which has not been frozen. This comes from selected local suppliers. Bee Cheng Hiang is also particular on the breed of pigs it uses. “We favour breeds that have more fat. We also pick the first generation of pigs. We like black pigs because of the marbling but it is expensive,” said Simon Teo, Chairman.
Chance for chicken
With the price of beef at around USD 7.50/kg and limitations placed on importing high quality raw materials such as whole muscle meat, the price of cured beef products like smoked beef and beef salami in Indonesia has skyrocketed. “Price is the main reason why the sale of cured beef products is stagnant or perhaps even decreasing,” said Ishana Mahisa, Chairman of the Indonesian Meat Processors Association (Nampa). But this is an opportunity for cured chicken products. The price of chicken is much lower than beef. Also chicken is the meat of choice in terms of consumption and production. CP Food Indonesia, experts in producing chicken and processing chicken-based food products, developed smoked chicken breast and gave consumers in modern markets more options. Global Foods International also produces smoked broiler and native chicken meat.
Read the full report in Asian Meat Magazine, July/August 2016
|2016 Broiler Feed Quality Conference addresses four key topics|
[10 June 2016] Attracting more than 300 delegates from throughout Asia and beyond, the annual Asian Agribiz Broiler Feed Quality Conference is one of Asia's leading conferences and scientific forums for poultry and feed industry professionals to update their knowledge and network with industry peers. With the theme ‘Science, trial data and applications’ the conference will feature a strong technical program with leading regional and international speakers addressing four key topics;
• Effect of nutrition on gut health
• Understanding chick nutrition
• Maximising macro/micro minerals
• Harnessing feed technology
Registration form here.
|Chicken prices in Thailand likely to rise in H2 due to falling supply|
[10 June 2016] Broiler prices in Thailand are likely to rise in the second half of this year due to a decline in supply, Somboon Watcharapongphan, Secretary of Broiler Association told Asian Agribiz. In early 2015, the US reported the presence of avian influenza and Thailand has banned GP imports from the US. “Hence, we will see lower supply of PS in the second half of this year, which means supply of broiler will decline in that period,” Mr Somboon said. Moreover, the surge in pork prices will encourage people to consume more chicken meat, driving chicken prices higher. Pork prices recently rose due to the drought in Thailand.
|Indonesian government encourages salted duck eggs producer to widen export market|
[10 June 2016] The government is ready to support Indonesia’s UD Surya Abadi based in Karawang, West Java in increasing its salted duck egg exports. Muladno, Director General of Livestock & Animal Health of the Ministry of Agriculture said he is ready to reduce bureaucratic obstacles and to coordinate with the Ministry of Trade. Rully Lesmana, owner of the firm told Asian Agribiz that it is the first livestock firm in Indonesia that is authorised by the Agri-Food & Veterinary Authority of Singapore to export salted duck eggs to the island state. “At the moment we produce around 40,000 raw salted duck eggs per day. These are sold to traditional markets and the horeca industry, as well as for export to Singapore, Hong Kong and Japan,” Mr Lesmana said.
|Two more Jollibee stores open in Singapore|
[10 June 2016] Jollibee opened two new stores in Singapore bringing to four the number of outlets the popular Philippine fast food chain has in the city. The stores are at Square 2 Novena and at Changi City Point. A Jollibee official told Asian Agribiz that while the first two stores were located at Lucky Plaza, a mall popular to the Filipino population in Singapore, the new locations allow the company to reach a more diverse clientele. Three new menu items especially geared to suit Singaporean taste were introduced in the new stores: Spicy Chickenjoy, Crispy Chicken Burger and Chicken Tenders.
|Royal De Heus cuts stake in China's Wellhope to 9.63%|
[10 June 2016] Liaoning Wellhope Agri-Tech Joint Stock Co. said its second largest shareholder Royal De Heus of the Netherlands has cut its stake to 9.63% from 12.83% previously. De Heus sold 26.67 million Wellhope shares at USD 61.17 million, and it’s expected to allocate the capital to fund its business expansion in west Europe, where the Dutch company recently purchased a feed miller and a poultry processor. Wellhope is more than 50% controlled by its Chairman Jin Weidong.
|KKR takes 10.44% stake in Japfa Comfeed Indonesia|
[09 June 2016] Leading agri-food company, Japfa Ltd yesterday announced that global investment firm KKR will invest approximately USD 81.2 million for a 10.44% interest in the Group’s major subsidiary, PT Japfa Comfeed Indonesia Tbk. KKR will take up a 6.57% stake in PT Japfa Tbk via a private placement and acquire another 3.87% stake from Japfa, which will continue to hold a 51.00% stake in PT Japfa Tbk. Tan Yong Nang, CEO of Japfa said : "We believe PT Japfa Tbk will benefit from KKR's deep knowledge and experience in the agriculture and food sectors."
|China’s Ningxia region to build beef complex with Argentina's Grupo Insud|
[09 June 2016] China’s Ningxia Hui Autonomous Region said it will partner with Argentine conglomerate Grupo Insud to build an Angus cattle complex in the western province where many of the country's Muslim Hui ethnic minority live. The complex will include a 30,000-head Angus breeder farm to serve about 10,000 contract farmers. It will also build a 50,000-head feedlot of its own and a 100,000-head processing plant for halal beef. Construction of the complex is expected to finish in 3-5 years.
|Agro Investama eyes sheep exports to Singapore|
[09 June 2016] Indonesia’s Agro Investama is keen on developing its sheep breeding business. At the moment it has 350 breeding stock (pure Garut breed) which is targeted to produce 78 feeder sheep per month. Once this project is successful, owner Yudi Guntara Noor told Asian Agribiz that the company will increase its breeding capacity then venture into sheep commercial farming. “The commercial farming is aimed for export. Three years ago, I received an order for 5000 sheep for qurban from Singapore. But since I collected the sheep from different farmers, the Agri-Food & Veterinary Authority of Singapore turned down the order due to concerns on quality and traceability,” Mr Noor explained.
|Texas Chicken to open first outlet in Laos |
[09 June 2016] Texas Chicken recently finalised a deal that will increase the brand’s exposure in Laos. The deal, which will see seven restaurants over the next few years, will make Texas Chicken the largest, most visible quick-service fried chicken restaurant in the country. The first restaurant location is expected to begin end July-August, said Jean-Boris Roux, Hospitality Division Director of RMA Group of Laos, the franchisee for this endeavour. “With its strategic location near Thailand and Vietnam, where we currently operate 13 restaurants, Laos is a logical next step in our development in Asia,” said Tony Moralejo, Senior Vice President and Chief Development Officer at Texas Chicken/Church’s Chicken.
|South Korea imported 30,000 tonnes of shrimp from Vietnam in 2015|
[09 June 2016] Vietnam is exporting more shrimp to South Korea. According to Choi Dug-Boo, Director, Korean Fishery Trade Association (KFTA), South Korea imports shrimp from Thailand, Indonesia and Vietnam. Vietnam’s shrimp products makes up almost half of the total volume and value of imports. He was speaking at the Busan International Seafood and Fisheries Expo 2016 press meeting held by KFTA and the Vietnam Association of Seafood Exporters and Producers. Last year Korea imported about 140,000 tonnes of seafood products worth USD 600 million. Of these 70,000 tonnes were shrimp, reaching USD 240 million. Vietnam being the biggest supplier at 30,000 tonnes.
|Malaysia's CAB Cakaran buys Farm’s Best processing unit|
[08 June 2016] Malaysia’s CAB Cakaran Corporation Bhd and three other parties are buying the entire stake in Farm’s Best Bhd’s poultry processing unit, Farm’s Best Food Industries Sdn Bhd, for USD 2.30 million. Farm’s Best said it had terminated the earlier USD 59.03 million deal to sell the processing plant, Sinmah Breeders Sdn Bhd and Sinmah Livestocks Sdn Bhd to CAB Cakaran. CAB Cakaran together with its 51%-owned subsidiary Tong Huat Poultry Processing Factory Pte Ltd, Plant Wealth Holdings Ltd and Brighton Property Pte Ltd entered into a conditional share sale agreement with Farm’s Best last Friday. Together with Tong Huat, the processing plant will effectively become a 53.04%-owned subsidiary of CAB Cakaran.
|Hong Kong culls poultry in wake of H5N1 confirmation|
[08 June 2016] All poultry at Hong Kong's Cheung Sha Wan wholesale market was to be culled yesterday according to Secretary for Food and Health Ko Wing-man. The ShanghaiDaily reported that the health chief made the announcement after a special meeting following a fecal sample taken from a Tuen Mun retail market tested positive for H7N9 avian flu virus. Live poultry trade has been suspended in Hong Kong. Mr Ko said there are 4,500 live poultry at the Cheung Sha Wan wholesale market, the only poultry wholesale market in Hong Kong. The government will inspect and take samples from the remaining 20 local chicken farms, he said, hoping that the results could come out before the Dragon Boat Festive, when chickens are in high demand in Hong Kong.
|Bee Cheang Hiang to open bakkwa pie outlet in Malaysia|
[08 June 2016] Current market trends are seeing processed meat producers push the boundaries of innovation to come up with new offerings for their customers. Singapore bakkwa manufacturer Bee Cheang Hiang is creating a bakkwa pie. “It is a Chinese pastry pie with bakkwa filling. This will be sold by our company, Chun Qiu Tang, that produces dim sum. By October we plan to open our first outlet in Kuala Lumpur. The branding will be Chun Qiu Tang by Bee Cheang Hiang. If some months later we find this is a good concept we may duplicate it all over the region,” Simon Teo, Chairman, told Asian Agribiz.
|Pacific West Foods promotes fish consumption at event|
[08 June 2016] Pacific West Foods (M) Sdn Bhd, the producer of Pacific West ready-to-cook seafood, has launched the Fish Fry Day campaign in Malaysia to encourage Malaysians to make fish their main protein. The campaign will run through the months of June to July 2016. As part of the campaign the company has published a collection of recipes by local and foreign celebrity chefs who have developed their own recipes using fish as the main ingredient. “Aside from introducing our wonderful line up of fish and seafood products the campaign’s main objective is to create awareness among Malaysians of the benefits of a fish diet,” Saw Lip Teik, Director, said at the launch recently.
|Pakistan milk processors decry new import duties|
[08 June 2016] Pakistan’s decision, in the budget for 2016/17, to impose a 25% regulatory duty on the import of powdered milk and whey powder, has angered milk processors. Total duties, including 20% customs duty, now stands at 45%. Chief Operating Officer Haroon Lodhi at Haleeb Foods said the steps announced in the federal budget will lead to an increase in the cost of inputs for processors. Mr Lodhi termed the withdrawal of zero rating status as a step to marginalise the dairy processing industry. “This will be a killer as it will increase the cost by at least 10%,” he said. Small farmers, meanwhile, felt the move will directly benefit local farmers.
|China’s Truein launches cured ham products|
[07 June 2016] Truein Agro-Pastoral Group, a pork integrator based in central China’s Henan province, said it has launched high-end cured hams branded ‘Dexury’. “The products are for pre-sale now as they have to be fermented for a year,” Hou Jie, Deputy General Manager for Marketing told Asian Agribiz. In September 2015, Truein started operations of a ham factory equipped with processing lines from Travaglini S.p.A. of Italy, and the factory can produce 150,000 hams a year.
|Berkah Citra Agro to open meat shops in other regions in Indonesia|
[07 June 2016] Indonesia’s Berkah Citra Agro has said that its pilot project with a meat shop selling fresh chilled and frozen beef in Bandung, West Java shows a promising future. The company plans to take this concept to other regions. Owner Yudi Guntara Noor told Asian Agribiz: “The key strength of our Agro Meatshop is the supply. We have our own beef cattle feedlot in West Java so that we can sell beef at cheaper prices. At the same time, we guarantee the quality and traceability of our beef.” Every day the company slaughters 3-4 cows for its meat shop. However, Mr Noor said: “We only take the hindquarters since it is the fast moving parts. The forequarters or the slow moving parts, are sold to meat processing companies.”
|Philippine milk output up 3%|
[07 June 2016] Philippine milk output reached 20.38 million litres in 2015, up 3% from 19.73 million litres the previous year, data from the National Dairy Administration (NDA) showed. Since 2010, milk output has been slowly but steadily rising as farm productivity improved. According to the NDA, a growing number of players are investing in the industry. One local player however, told Asian Agribiz that production is still negligible in relation to the country’s total milk requirement, adding that one of the biggest challenges local dairy farmers face today is getting the right feed to help the animals reach their genetic potential.
|Thaifoods Group to produce 500,000 chicks a day by end 2016|
[07 June 2016] Thailand’s Thaifoods Group (TFG) plans to produce 500,000 chicks a day by the end of this year, up from 360,000 chicks a day currently, Cherdsak Kukiattinun, Chief Operating Officer of TFG said, efinanceThai reported. TFG has managed to control chicken production costs effectively and the firm has decided to increase production, he said, adding that it plans to supply chicken meat to airlines, modern trade and food service networks. TFG has also increased its production capacity at its chicken slaughter house in Prachinburi province, aiming to boost exports to Japan and Europe. The firm is confident of achieving USD 566.83 million revenue this year, Mr Cherdsak added.
|Agro Investama invests in sheep breeding stock|
[07 June 2016] Sheep meat demand in Indonesia for religious festivals and also for the horeca industry continues to increase. However, the supply cannot meet growing demand. This situation led West Java based Agro Investama to invest in 350 breeding sheep at its farming facilities in Garut. “There are many sheep feedlotters, but the main problem is not enough supply of feeder sheep,” Deiwan Rahwanandi, R&D Director, told Asian Agribiz. “With the breeding stock, each month we plan to produce 78 feeder sheep -- aged four months with an average weight of 16-20kg -- for the market. Each feeder sheep will be priced at around USD 90.”
|GFPT joint venture to build new further processing plant|
[06 June 2016] McKey Food Services (Thailand) Limited, a joint venture between Thailand’s GFPT and Keystone Foods Inc, said recently that it will build a new further processing factory at Amphur Thungkwang in Chonburi Province. The new factory will produce and supply processed chicken products to leading quick service restaurants in both domestic and international markets. McKey’s new further processing factory will have a capacity of 25,000 tonnes per year, with an investment of USD 42.11 million. The factory is expected to be completed and ready to produce for export markets by the end of 2017. McKey Thailand directly serves key markets in Europe and the Asia-Pacific region. Currently, McKey has a total capacity of processed chicken products of 25,000 tonnes per year.
|Vinamilk is the most favoured FMCG in Vietnam |
[07 June 2016] Vietnam’s leading dairy products company Vinamilk is currently the most favoured fast moving consumer goods (FMCG) brand in the country, according to a Kantar World Panel’s study announced early June. Vinamilk is ranked in three categories including FMCG, beverage and food. In Asia, three leading dairy companies made the list including Thailand’s Dutch Mill (Thai Lan), China’s Yili and Vietnam’s Vinamilk, which is targeting to be one of the 50 biggest dairy companies in the world with turnover of USD 3 billion. Kantar Worldpanel is the global expert in shoppers’ behaviour.
|Fauji Group launches new halal meat processing plant|
[06 June 2016] Pakistan’s Fauji Group, through its subsidiary Fauji Meat Ltd, has launched the country’s biggest halal abattoir, meat processing and exporting unit near Port Qasim, Karachi. The facility, which cost around USD 75 million, has been fully operational since April. It has a daily production capacity of 100 tonnes of meats (85 tonnes of beef and 15 tonnes of mutton) in both frozen and chilled categories for worldwide export. Rehan Munawar, the facility’s Chief Coordinating Officer said at present the company is exporting all its processed meats. “The facility is exporting 7-10 tonnes per day to Kuwait,” he said, adding that the facility will be running at full capacity by mid-2017. The company is now in the process of securing approval for exporting processed meat to other countries including Saudi Arabia, Iran, Malaysia, Egypt and the UAE.
|QL Resources net profit down 20% on El Nino conditions|
[06 June 2016] Malaysia's QL Resources said its Q4 net profit fell 20% year -on-year, dragged down by lower prices of eggs and palm oil that offset gains in fish products exports. Net profit for the three months ended March 31 totalled USD 9.3 million compared with USD 11.53 million a year earlier, the company said. Quarterly revenue however climbed 16% year-on-year to USD 186.34 million from USD 161.11 million. The company said searing heat lowered productivity of its livestock, although the warmer temperature boosted fish catch.
Vietnam’s HCMC to centralise animal slaughterhouses
[06 June 2016] In order to make Vietnam’s Ho Chi Minh City (HCMC) a better city for living, as well as to ensure food safety and traceability, HCMC Department of Agriculture and Rural Development plans to modernise and centralise animal slaughterhouses in the city by the end of 2017. All unlicensed and manual slaughterhouses in the city, small and medium scale, will be closed. Existing pig slaughterhouses in the city will be replaced by six modern slaughterhouses with a combined capacity of 10,000-15,000 pigs/day, located in Hoc Mon and Cu Chi districts. For poultry, two modern slaughterhouses with a combined capacity of 250,000-300,000 birds/day have been prepared in Cu Chi district. Meanwhile for cattle, two companies namely Delta JSC and Vietnam Meat Industries JSC (Vissan) will support the program.
|Southeast Asia provides market for Australian chicken meat|
[06 June 2016] Australian chicken meat producers should look to Asia for market expansion, according to a report by Rabobank. But with higher cost of production, they may have to focus on lower-value cuts to Asia for a greater overall return for each bird. “With an ever-increasing market of protein consumers in Southeast Asia, they need to be viewed as potential opportunities for production growth,” the report said. “Indonesia, Thailand, Vietnam, the Philippines and Malaysia area expected to increase chicken consumption by 15% in the next five years.”
|New Hope launches new chicken complex in north China|
[03 June 2016] China's New Hope Liuhe Co has launched a broiler complex in Laoting in northern Hebei province. According to the local government, the complex includes a 240,000-tonne feedmill, an abattoir with daily processing capacity of 120,000 birds, as well as 10-15 commercial farms to produce 20 million broilers a year. A further processing plant is also in the pipeline. Total investment is expected to be around USD 200 million.
|Anugerah Cipta starts value added eggs campaign|
[03 June 2016] Indonesia’s Anugerah Cipta, a poultry consultancy firm has recently started promoting antibiotic, Salmonella and E coli-free chicken eggs in Banten province. Ani Juwita, Director told Asian Agribiz that the mission is to educate consumers on good quality and safe eggs. The eggs are sold at USD 1.65 per pack of 10 eggs for promotion, while the regular price is USD 1.88. The eggs are produced at the company’s partner farms in Sukabumi and Bogor that apply an ecosystem balance concept developed by the company, and only use probiotics – no antibiotics, no disinfectant, but vaccines are still administered for disease protection.
|Thailand ready to join TPP|
[03 June 2016] Thailand is ready to join the US-led Trans Pacific Partnership (TPP) as soon as the pact is open for new membership, Deputy Prime Minister Somkid Jatusripitak said recently during a visit to Tokyo. Thailand will conduct a public hearing to gather opinion from all stakeholders before signing the agreement. Thailand is also ready to join the Regional Comprehensive Economic Partnership (RCEP), Mr Somkid added. “The livestock industry plans to protest if Thailand joins the TPP,” said Wawat Pongwiwatchai, Chairman of Ratchaburi Livestock Cooperative Limited. If Thailand joins the TPP, Mr Wawat said it will push livestock producers, and corn, cassava and soybean farmers into bankruptcy. US livestock products including ractopamine-fed pork and unwanted pork parts will flood the Thai market and negatively affect farmers. According to the Thai law, ractopamine is prohibited for use in animal feed.
|Cambodia lifts ban on snakehead farming|
[03 June 2016] Cambodia’s Fisheries Administration said the government has removed a 12-year ban on farm-raised snakehead fish. The ban was imposed to stop farmers from catching small fish during the breeding season to be used as feed for the farm-raised snakehead fish. Snakehead fish will now be fed with processed fish food, which is a combination of small salt water fish and animal carcass. Hav Viseth, Deputy Director General of the Fisheries Administration, said it will provide technical assistance to farmers and teach them cost-effective means of farming. He said the ban on harvesting small fish during the breeding season would remain in place.
|Indonesia to import frozen cattle semen from Spain|
[03 June 2016] Indonesia’s Ministry of Agriculture recently signed an MoU with the Embassy of Spain in Indonesia on imports of frozen beef cattle semen from the European country. Andi Amran Sulaiman, Indonesia’s Minister of Agriculture said in the next two months the country will start importing frozen semen from Spain. “We will import in a big volume since it’s estimated that we have a standing breeding cow population of around 4 million heads,” he said. With the average success rate of artificial insemination at 90%, Mr Sulaiman believes the initiative will give more value and profits for farmers.
|Orient Fresh Deli secures food safety certs|
[02 June 2016] Malaysian producer of pork hams, bacon and sausages Orient Fresh Deli Sdn Bhd last week secured the HACCP, ISO 22000:2005 Food Safety Management System and Good Manufacturing Practice certifications. The company produces 1200-1500 kg of products daily for sale at its own retail outlet called Mr Bacon and at four concession outlets with retailer Aeon Co (M) Sdn Bhd. “The certifications will help us expand our business and export our products to Sabah and Sarawak. We are also looking at opportunities in the Philippines and Indonesia,” Robert Kok, Managing Director, told Asian Agribiz.
|Thailand to establish food innovation hub|
[02 June 2016] Thailand’s Ministry of Science and Technology last week signed a memorandum of understanding with 13 food companies, 12 universities and 10 government agencies, to establish the Food Innopolis. Located at Thailand Science Park in Pathum Thani province, it will be a food innovation hub, focusing on research, development and innovation. The food cluster will provide spaces for a variety of businesses including central lab, a one stop service centre and other facilities. Dr Pichet Durongkaveroj, Minister of Science and Technology said that Food Innopolis will focus on high value added food products such as premium seafood and aquaculture, food additives and ingredients. It will also support innovation in packaging, design, information technology, food safety, traceability, testing and certification.
|Potential in Indonesia’s native chicken business |
[02 June 2016] Indonesia’s native chicken business grew 10% in the last five years, offering good future potential for expansion to existing players, according to Bambang Krista, Chairman of the Indonesian Local Chicken Breeders Association (Gapali). He said at times, demand exceeds supply. In addition, the price of live birds is relatively stable at around USD 2.3/kg. The biggest market for native chicken is still in Greater Jakarta. In the breeding sector, supply and demand of native DOC is balanced. Combined with non Gapali members, national native DOC (broiler & layer types) production is around 2 million per month, Mr Krista told Asian Agribiz.
|Guangdong Wens eyes one tenth of China’s pig market|
[02 June 2016] Guangdong Wens Foodstuff Group in China said it targets an average 10% growth of in pig production, and eventually hopes to gain one tenth of China’s pig farming market, or an output of 50 million pigs a year, according to a roadshow memo obtained by Asian Agribiz. The company is seeking to raise USD 176 million through a private placement to fund its pig farm expansion in northeast China. Wens, already the largest livestock producer in China, produced 15.35 million pigs, 744 million chickens and 18.74 million ducks last year.
|Tamil Nadu implements measures to prevent bird flu spread|
[02 June 2016] As part of the precautionary measures to prevent the spread of avian flu from India’s Karnataka, the Tamil Nadu government has suspended transportation of poultry items including chicken and eggs until the disease is brought under control in Karnataka. All district collectors have been instructed to monitor this. In all, 38 check-posts have been functioning round the clock in 10 districts bordering the neighbouring states. As many as 1200 rapid response teams have been kept ready across Tamil Nadu to take measures to curb the flu.
|Omega-3 eggs to become new norm in Indonesia|
[02 June 2016] Omega-3 eggs are set to be a new norm in Indonesia since consumers are offered many choices at reasonable prices. The price is a bit higher than regular eggs, and consumers get clean eggs packed in proper packaging with added value in egg content. Pioneered by Sumber Inti Harapan Group led by Yoseph Setiabudi since 1990s, now many new players have joined the market. Although the competition is building up it is indirectly educating consumers. QL Group Indonesia this year targets to supply its QL Omega eggs to 4000 Indomaret stores. Last year it supplied around 1.5 million QL Omega eggs to 1500 Indomaret stores in Greater Jakarta and West Java each month.
|Citra Lestari grows native chicken carcass production|
[01 June 2016] Indonesia’s Citra Lestari Food, the food division of native chicken breeder Citra Lestari Farm, plans to escalate its native chicken carcass production by 2000 carcasses per day this year. Currently it processes some 1500 carcasses per day, owner Bambang Krista told Asian Agribiz. Its latest product is Burangkeng native chicken, a marinated and ready-to-cook whole carcass product. All the products are sold to end consumers directly as well as via agents. Plans are afoot to market the Burangkeng native chicken to neighbouring countries such as Singapore, Malaysia and Brunei.
|Betagro restructures it business units into two|
[01 June 2016] Betagro Group in Thailand has consolidated its six business units into two major units, agro business and food business, said Narongchai Srisantisaeng, Executive Vice-President and Chief Operating Officer of food business at Betagro. The company' previous six business units were food, swine, poultry, regional, feedmill and animal health. The Group has invested in enterprise resource planning software, which will help increase operational efficiency and competitiveness, he added. Meanwhile, Betagro is setting up a food innovation centre at the company's head office in Bangkok. This will be opened by the end of this year and will develop new products and packaging.
|Lay Hong looks for JV partner for China market|
[01 June 2016] Malaysian poultry producer Lay Hong Bhd is looking for a joint venture partner in China to manufacture and sell halal food products there in its bid to expand into the overseas market, reported The Star. Executive Chairman Yap Hoong Chai on a recent trip to China said he was keen to explore opportunities in the Chinese market after attending a business-matching extravaganza organised by the Bank of China. “We wish to find a partner in China to produce halal food products, just like what we have done with our Japanese partner recently,” said Mr Yap referring to Lay Hong’s JV with Japan-based NH Foods Ltd to, among others, make and sell processed meat-based foods.
|The Wagyu House plans expansion beyond Jakarta|
[01 June 2016] The Wagyu House, an online meat shop based in Jakarta, plans to expand its market to other big cities in Indonesia. Jessica Andrylie, owner told Asian Agribiz that it will soon launch a website to attract more customers. Founded in May 2015, its marketing & promotions is via social media and messaging apps. The Wagyu House offers only 21 portioned cuts of wagyu beef which are imported from Australia and Japan. Of the products, Ms Andrylie said round steak is the bestselling product, followed by tenderloin. “A cut of wagyu beef at supermarkets is more than USD 14.7, and it’s calculated per 100g. While a cut of my wagyu beef is only USD 5.1-5.8,” she said.
|Chen Chunhua leaves as Co-Chairwoman of New Hope|
[01 June 2016] New Hope Liuhe Co. of China has announced that its Co-Chairwoman and CEO, Chen Chunhua has stepped down after a three-year term and will return to her education post. Liu Chang, daughter of New Hope founder Liu Yonghao, will remain the Chairwoman. With the contributions from Ms Chen, a well-known professor in business management, New Hope said it “has successfully expanded business to livestock farming and food processing from feed only amid a domestic overcapacity in the feed industry”, while the company posted an annual net profit growth of over 16% in 2013-2015.
|India will require 32mt of feed corn by 2025|
[01 June 2016] By 2025, India will require 50 million tonnes of corn for domestic consumption, of which 32 million tonnes will be for feed. Agriculture Minister Radha Mohan Singh said doubling India’s corn production will be an opportunity “and it can be achieved.” Mr Singh said in order to explore maximum uses of the crop, the corn-based industry needs to be promoted in a big way and special incentives need to be given for the cultivation of corn. In spite of the drought last year, corn production stood at 24.17 million tonnes in 2014-15, Mr Singh said adding this signifies the resilience of corn cultivation against climatic variability. About 64% of the total corn production is used for poultry feed.
Special focus on feedmill construction in Asian Feed Magazine, June/July 2016
[31 May 2016]
The 2016 Feedmill Construction Report in the latest edition of Asian Feed Magazine, reveals that the region is building more feed processing plants to support growing demand for meat. “The recent economic slowdown in Asia did not stymie animal protein consumption. Instead meat consumption has continued to grow moving feed producers to pursue expansion plans,” the report reveals. The Construction Report tracks the annual development of feedmills in Asia.
Feed companies pursue expansion plans
In China despite the number of feed companies decreasing from 10,000 to 6000, production is on the rise, with some companies moving into livestock farming and food processing. In India Amit Saraogi, Chairman, Compound Livestock Feed Manufacturers Association, said the industry is expected to grow to 40 million tonnes by 2020. In 2014/15, compound feed production hit 28 million tonnes. “The growth of compound feed will keep pace with livestock GDP,” he said.
More fully-automated plants being built across the region
Across Asia feedmills are starting to look like efficient control centres. “Feed producers in the region are looking at efficiency and technology to ensure consistent quality, safety and lower costs. They are also concerned with traceability,” Kevin M Roepke, Regional Director, US Grains Council, told Asian Agribiz. He said another factor pushing for full automation is the cost and availability of labour. “Labour determines where a plant is built, how it is built and equipped,” he said.
India supports aqua sector with more feedmills
Early mortality syndrome was a major setback to the Thai shrimp industry but it opened doors for Indian farmers. India’s introduction of the Pacific white shrimp in 2009 and the cut back of black tiger on its farms, also proved to be a good move. With seafood production growing at a rate of 4% per year since 2012, its aqua feed demand is expected to touch 7 million tonnes by 2017-2018, according to Yes Bank at a Global Grain and Feed event. At least one shrimp company is taking on backward integration. Major shrimp exporter Devi Seafoods is building at 50,000 tonne per year shrimp feed plant.
Despite weak currency Indonesia sees room for growth
Indonesia’s feed consumption will increase alongside meat consumption. The Indonesia Feed Producers Association, formerly known as GMPT, expects feed consumption to touch 17.3 million tonnes this year, up 7% from last year. “There is room for growth in the industry for both local and international players,” Sudirman FX, Chairman, told Asian Agribiz. However, he added that currency exchange rates and government policies could derail its performance. Last year feed consumption reached 16.1 million tonnes, lower than the projected 16.8 million tonnes. This year it sees slower growth as the livestock industry recovers.
Foreign feed firms push on with investments in the region
Foreign feed companies are continuing to invest in Asia. Archer Daniels Midland launched a premix plant in Nanjing and hopes to launch its first facility in southern China by Q4. Cargill unveiled its largest plant in South Korea last year and opened its 11th and 12th plant in Nghe An and Binh Dong, Vietnam, respectively. DLG and partner Puai Feed will build a pig feedmill in China. Evonik has started work on its second facility in Singapore. Nutreco is converting its compound facility in China into a premix plant, and Royal De Heus is into its seventh feedmill in Vietnam, and is working on its first plant in Myanmar.
Asian firms continue expanding beyond their borders
Asian producers are strengthening their regional presence. QL Group Indonesia, via QL Agrofood, launched its first feedmill in Indonesia. The USD 17 million investment in Bekasi, West Java, has an installed capacity of 20,000 tonnes per month. This year Betagro will complete its feedmill in Cambodia. CJ Cheiljedang is eyeing a poultry and swine feedmill in Vietnam, while CJ Feed Indonesia targets two facilities in Indonesia. Japfa Comfeed is extending its presence in India with two new feedmills. Taiwanese aqua feed producer Grobest Feed is investing USD 15 million in a fish and livestock feedmill in the Philippines.
|Cargill opens USD8.5m animal nutrition plant in Vietnam|
[31 May 2016] Cargill officially inaugurated a USD 8.5 million animal nutrition plant in Nghe An province, Vietnam on May 28. This brings Cargill’s total number of animal feed mills in Vietnam to 11. The new facility will provide animal feed for livestock and will have a total capacity of 66,000 metric tonnes per year. It will incorporate Cargill’s uncompromising approach to feed safety, ingredient quality and product integrity. “Vietnam is one of our best performing markets in our animal nutrition business globally. Our success in Vietnam is an invigorating story of how we are able to grow our business in a country, and at the same time contribute to the development of agricultural practices and improve the livelihoods of thousands of farmers,” said Sarena Lin, President of Cargill’s global feed and nutrition business.
|CPF's new plant to produce food for seniors and hospitals|
[31 May 2016] Thailand’s Charoen Pokphand Foods (CPF) will spend USD 19.59 million for a new facility in Ayutthaya province's Wang Noi district, Sukhawat Dansermsuk, Chief Operating Officer of Food Business at CPF said. Construction will begin in July this year and will produce sauces, seasoning, curry paste, vegetarian food and food for the elderly and hospitals. The new facility will be completed by mid-2017. CPF will produce ready to eat, liquid foods for the elderly and patients in hospitals, with a production capacity of 12 million packs a year. The company will sell its liquid food to hospitals and plans to sell the products in 7-Eleven convenience stores. “People are now living longer and the number of older people is increasing in Thailand,” Mr Sukhawat said.
|CP Indonesia records moderate growth in 2015|
[31 May 2016] Indonesia’s largest poultry integrator Charoen Pokphand Indonesia reported that it achieved moderate growth with sales of USD 2.2 billion, a 3.28% increase from 2014. Meanwhile, net income climbed 4.98% to USD 134 million. Poultry feed was the largest contributor (73%) to the total revenue, followed by DOC and processed food businesses. The company said the weak rupiah last year raised the price of imported feed raw materials. Besides, the weak market sentiment presented the company with limited opportunities. With the stabilisation of the rupiah, the company is confident of recording better performance this year.
|CPF to open third sausage factory by end 2016|
[30 May 2016] Thailand’s Charoen Pokphand Foods (CPF) plans to open a new USD 28 million sausage factory in Nakhon Ratchasima province by the end of this year, said Sukhawat Dansermsuk, Chief Operating Officer of Food Business at CPF. CPF’s third sausage factory will have a production capacity of 60 tonnes a day. The firm operates sausage plants in Bangkok's Nong Chok district and in Saraburi province with a combined capacity of 70,000-80,000 tonnes a year. With the new factory, CPF will have a total sausage production capacity of 100,000 tonnes a year. Mr Sukhawat said that CPF has a market share of 28-30% in the sausage segment in Thailand. The company also plans to export its sausage products to Asean markets in the future.
|Philippines endorses anti-agricultural smuggling law |
[30 May 2016] Philippine President Benigno Aquino III signed into law Republic Act 10845, known as the Anti-Agricultural Smuggling Act, which considers large scale agricultural smuggling as economic sabotage. Pushed by the Samahang Industriya ng Agrikultura (Sinag), a multi-sectoral group that included the country’s livestock and poultry raisers, the law is expected to give “smugglers and their cohorts in government second thoughts. The offense is nonbailable and carries harsher penalties,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz, adding that they hope the implementing rules and regulations to be drafted by the Bureau of Customs will truly make the law effective.
|More egg choices for health-conscious Thai consumers|
[30 May 2016] Premium eggs, such as omega-3 enriched eggs and free-range and organic eggs, are good choices for health-conscious consumers, Manoch Chootubtim, Chief Advisor of Thai Layer Farmers Association told Asian Agribiz. Health-conscious consumers are growing every year in Thailand. “If consumers know that premium eggs are as good as advertised, I think that more people will consume these types of eggs.” Mr Manoch sees business potential in premium eggs that retail at USD 0.23-0.28/egg. Meanwhile, the price of mixed size eggs in Thailand is currently at USD 0.08/egg. “Premium eggs offer good profit but raising layers are difficult for farmers,” he said, adding famers need to build their credibility about the value in these eggs.
|Indonesia’s cold storage industry needs more capacity|
[30 May 2016] The cold storage industry in Indonesia needs around USD 902 million to raise installed capacity to a sufficient level. Currently, the country has to cope with a deficit in terms of the availability of cold storage facilities. This is a challenge to preserving and transportation of (processed) seafood, meats, as well as fruits and vegetables. Hasanuddin Yasni, General Chairman of the Indonesian Cold Storage Association (ARPI), said the seafood industry requires some 14 million tonnes of cold storage capacity per year. However, currently only 7.5 million tonnes is available. The chicken meat industry requires about 5 million tonnes of cold storage facilities but only 1.5 million tonne capacity is available.
|Sundaily gains largest market share with value-added eggs|
[30 May 2016] China’s Sundaily Farm, a specialised egg producer based in southwest Sichuan province, said it has ranked top for the fourth consecutive year with the biggest share of fresh egg market in the country. Its products range from free-range organic eggs to multigrain-fed eggs, omega-3, as well as vegetarian diet-fed eggs said to have lower cholesterol. According to the company, its vegetarian eggs are produced by layers fed without animal fat, but supplemented by alfalfa, seaweed and flax seed that could help reduce over 30% of cholesterol in eggs. Founded in 2001, Sundaily has set up seven layer farms of its own with a total stock of more than 4.5 million birds, including some 800,000 sets of breeders developed by itself.
|Indonesia’s government urged to develop local cattle|
[30 May 2016] The Indonesian Cattle & Buffalo Farmers Association (PPSKI) has urged the government to give priority to developing local beef cattle rather than focusing on breeder cattle and frozen semen imports. Teguh Boediyana, PPSKI Chairman said local beef cattle like Bali and Ongole cattle also have good production performance. In addition, they have a strong adaptability to the environment in Indonesia. “We see that the government so far has no good programs in developing local beef cattle to support its beef self-sufficiency program,” said Mr Boediyana.
|China's Truein builds sales through partnership with fast food chain|
[27 May 2016] Chinese pork integrator Truein Agro-Pastoral Group said it will partner with Shaxian Delicacies, a local fast food chain with about 20,000 restaurants nationwide, for fresh and processed pork supply, new product development as well as e-commerce operations. “We have pork processing plants from the south to the north of China, and a new complex with annual capacity of 4 million pigs will soon be launched in northeastern Jilin province,” Hou Jie, Deputy General Manager for Marketing told Asian Agribiz.
|QSRs in Indonesia prepare for Ramadhan|
[27 May 2016] With the fasting month Ramadhandue to begin in early June, some QSR chains in Indonesia have prepared strategies to boost sales. McDonald’s Indonesia will launch a new menu said Sutji Lantyka, Communication Director of Rekso National Food, the operator of McDonald’s in Indonesia. “During Ramadhan our stores are always full, even more crowded than regular days.” Not poles apart, Fast Food Indonesia, the master franchisee of KFC in Indonesia will also launch special menus. During the month, Fast Food expects its sales to increase by 15-20%.
|Balance needed between automation and management |
[27 May 2016] Poultry producers cannot fully automate broiler production but they need skilled management to obtain good production results, said Niels Henrik Lundgaard, Product Manager of Farm Management at Skov A/S. “We need to find a right balance between management and the right tools - it’s the man machine interface,” he said, at a seminar organised by Skov in Bangkok this week. “It is about enhancing the human factor by using automation,” he added. The value of automation is to increase productivity and give early warnings on feed and water intake, daily weight gains and weight uniformity.
|Sustainability is main challenge for Indonesia’s tuna industry|
[27 May 2016] Indonesia has become one of the largest tuna producing countries in the world. It is estimated that Indonesia supplies about 1 million tonnes of the saltwater finfish per year or 16% of the world’s total tuna supply. As such, the tuna fishing industry has become a vital component of Indonesia’s fishing industry. However, according to Susi Pudjiastuti, Indonesia’s Minister of Fisheries & Marine Affairs, the main challenge in the industry is the conservation of tuna resources as only 66% of total tuna fishing takes into account the sustainability of tuna resources. The remainder is fished beyond ecologically safe limits.
China’s white broiler segment tipped for better days
[27 May 2016]
China’s white-feather broiler segment is seen to be the most advanced part within its animal protein sector, both for its large scale and high standards. However, the segment has been suffering from losses since 2012 and upstream breeders have had to limit the introduction of overseas GPs. At the recent annual conference hosted by the China Animal Agriculture Association (CAAA), in Shenyang, government officials, scientists and industry executives shared their views on the segment's future and initiatives to meet the challenge.
China association says current white-feather broiler GP stock ‘appropriate’
Gong Guifen, Vice Secretary General of the CAAA said it would be appropriate for the nation’s white-feather broiler segment to keep a laying GP stock of about 800,000 sets. The GP stock has fallen to 796,800 sets as of Q1 2016 after introduction fell 39% to 720,200 sets last year. Ms Gong said the 2015 introduction could ensure abundant supply of parent and commercial stocks this year, and the segment is expected to bottom out from a four-year downturn.
China Broiler Alliance sees 2016 GP introduction at about 500,000 sets
Li Jinghui, President of the China Broiler Alliance said the nation’s introduction of white-feather broiler GP stock is expected to reach about 500,000 sets in 2016, as international breeders are expanding their capacities in New Zealand and Spain, countries that are permitted to export GPs to China. China imported only 24,200 sets of broiler GP in Q1 2016 and this may cause a shortage of commercial stocks around early 2018, Mr Li said, adding that China may need another one million sets of GP in 2017 to fill the gap.
White chicken sees growing competition from yellow chicken
Zhang Fu, Deputy Director for animal monitoring and analysis at China’s Ministry of Agriculture, said the white-feather broiler segment is facing growing competition from the local yellow broilers as well as waterfowls. China produced 4.28 billion white broilers and 3.73 billion yellow chicken in 2015. Meat output was at 7.58 million tonnes and 3.64 million tonnes respectively. The nation also produced 6.94 million tonnes of duck meat and 1.51 million tonnes of goose last year.
China eyes 20% market share for locally-developed white broilers
China targets to develop two or three fast-growing white-feather broiler breeds of its own by 2025, with market share to exceed 20% of the segment, said Wen Jie, Chief Scientist for the National Broiler Industry Technology System. China introduced white broilers in 1980s, and now the segment is about half owned by Abor Acres Plus, followed by Ross 308 and Hubbard, according to Mr Wen.
CP China to expand further processing
Lv Pan, Vice Chairman of Agro-industry & Food Business at CP China, said the company targets to process 80% of its chicken into cooked or prepared products, up from a current 60% further-processing rate that already tops Chinese broiler integrators. He revealed that CP China recently launched two factories in Qingdao and Qinhuangdao to produce Chinese food like baozi, jiaozi and shaomai, with a combined capacity of 200,000 tonnes a year.
Fujian Sunner to sell processed products online via ‘weishang’
Fujian Sunner, the largest white-feather broiler integrator in China and supplier to KFC and McDonald’s, said it is enlisting ‘weishang’ (micro online business sellers) to promote its frozen processed chicken products on social media. The company has allocated 14 products in small packs such as grilled wings, popcorn and sausages for the online sale. “We will expand the channel after improving on logistics,” Brand Manager Lin Xiuying told Asian Agribiz.
|Cargill, Jollibee set up JV for processing plant|
[26 May 2016] Cargill Philippines and Jollibee Foods Corp (JFC) has formed a joint venture company, Cargill Joy Poultry Meats Production Inc, to build and operate a poultry processing plant in Batangas province. Cargill will own a 70% stake in the JV, with JFC owning 30%. JFC CEO Ernesto Tanmantiong said the plant “will provide JFC with dressed and marinated chicken to augment the chicken supply requirements” of the various JFC brands. The partnership is expected to generate some 1000 new jobs and develop opportunities for poultry farmers in Batangas and nearby provinces who will be contracted to grow chicken to meet the plant requirements.
|Citra Lestari to increase native DOC production|
[26 May 2016] Indonesia’s native chicken breeder Citra Lestari Farm this year plans to increase its DOC production by 300,000 DOC/month. “This is in response to growing demand in existing regions and new regions in the country,” Bambang Krista, owner told Asian Agribiz. At the moment the firm has 20,000 native broiler PS and 1000 native layer PS. Of the PS stocks, the firm produces 200,000 DOC/month, 80-90% is broiler DOC. The DOC is sold throughout the country under the Dinar brand. However, the main market is still in Java, since the highest demand for native chicken is still in big cities on the island.
|Thailand still has time to resolve IUU fishing |
[26 May 2016] On the issue of illegal, unreported and unregulated (IUU) fishing, Thai Deputy Prime Minister General Prawit Wongsuwan recently said that in the latest round of talks with the European Union (May 17-19, 2016), the EU did not reach any decision on the red card or yellow card. Hence, Thailand still has time to work on this and reaffirms its commitment to continue working to tackle the IUU problem. The ministry of foreign affairs said in a statement that the EU has exchanged knowledge and experience with the Thai government to deal with the IUU problem.
|Indonesia’s Ministry of Ag rejects MDM import proposal|
[26 May 2016] In a previous news item Asian Agribiz reported that Indonesia’s Minister of Industry Saleh Husin had proposed to allow imports of (chicken) mechanically deboned meat (MDM) of around 6000-6500 tonnes/year to support meat processors in the country to help them raise their competitiveness. In a new development, Indonesia’s Ministry of Agriculture has rejected the proposal due to halal considerations. Sri Mukartini, Director of Veterinary Public Health of the ministry said there are some requirements to import the product. “The chickens have to be slaughtered manually by halal certified slaughtermen in halal dedicated processing plants,” she said.
Asian Poultry Magazine, June/ July 2016 Highlights
[26 May 2016]
Cargill helps white chicken gain ground in China
The white broiler chicken market in China has suffered a number of blows in recent years. The situation is challenging, and producers suffered significant losses. But Christopher Langholz, leader of Cargill’s Global Poultry group, believes some basic virtues will help reverse the current trend. Mr Langholz, who previously headed Cargill’s animal protein unit in China from 2011 to 2015, told RICH HERZFELDER that ultimately, “Cargill is bullish on chicken in China.”
Maharlika raises opportunities with ducks in the Philippines
Presently, the duck meat industry in the Philippines is too small to make an impact on the country’s poultry sector. However, one company has taken the lead to develop and promote duck raising in the country, with eyes not only looking inward but outward to the global market, writes ISA Q TAN.
Citra Lestari Group grows its native chicken business
In order to respond to growing demand for its native DOC, Indonesia’s Citra Lestari Group, a leading native chicken breeder based in West Java, targets to raise its DOC production by 300,000 chicks/month this year. ARIEF FACHRUDIN also learns that the breeder plans to increase its processing capacity by 2000 carcasses/day.
Combined natural growth promotants – the new way in pathogen control
DR ATTILA KOVÁCS* presents how a natural growth promoter can successfully control harmful Gram-negative bacteria in poultry, without harming beneficial bacteria.
Part 1 DL-Methionine – nutritionally the mirror image of L-Methionine
PRADEEP KRISHNAN, ARIANE HELMBRECHT, BEHNAM SAREMI and GIRISH CHANNARAYAPATNA review biochemical and recent growth performance evidence comparing the nutritional value of DL-Methionine (Met) and L-Met.
Incorporating the immune system in feeding strategies Part 1 - effects of energy
JAN VAN EYS* focusses on the demand for energy of the immune system as a basis for enhancing effective nutritional intervention; be this at the immune systems “maintenance level” or during the instances of an increased demand for nutrients during specific challenges.
Insoluble fibre - an “essential nutrient” for layers
IKE NG and MANFRED PIETSCH* present that insoluble crude fibre concentrates benefit health and performance, and should be considered as an indispensable component in modern layer feeds.
|Asian producers caught short by soymeal rally|
[25 May 2016] Several poultry, pig and cattle producers in Asia will be forced to pay more for soymeal after an almost 40% surge in prices in less than a month. Crop-damaging rains in Argentina and a drop in potential US plantings began pushing prices higher from early April. Prices of soymeal jumped around 37% to USD 367.60 a short tonne in early May. The region consumes half the world’s soymeal production and contains seven of the top 10 global buyers.
|High chicken price in Sri Lanka due to soaring temperature|
[25 May 2016] Across Sri Lanka, small and medium scale chicken producers are struggling to keep their birds alive in the midst of high temperatures, reaching up to 40 degrees at mid-day, over the last two months. Many of the birds live in tightly packed houses, where the heat leads to dehydration. Rumi Jamaldean, a farmer in Kurunegala district with around 8000 birds, said he lost half of his flock. The losses have translated into hikes in chicken prices. In Colombo and its suburbs, a kilo of fresh chicken was selling for around USD 5.5 in early May. Two months earlier it was only USD 3.0.
|Russia interested to develop fishery centres in Indonesia|
[25 May 2016] Russia has shown interest to invest in the development of 15 integrated fisheries and marine centres in Indonesia. Susi Pudjiastuti, Indonesia’s Minister of Fisheries & Marine Affairs said that she hopes Russia will set up a fish processing centre in the eastern region so that the quality of fish and exports from Indonesia will improve in the future. “Foreign investors may not be allowed to fish, but they will be allowed to set up fish processing companies, which may be owned up to 100%,” she added.
|Vietnam set to import poultry breeders from China|
[25 May 2016] Vietnam’s Department of Animal Health has proposed importing poultry breeders from China. According to the Department of Animal Health, under the Ministry of Agriculture and Rural Development, officially importing Chinese chicken will allow Vietnam to better control diseases and epidemics. Under the program, the department must ensure poultry from China is safe for imports. Local farmers are unhappy as chicken prices have been falling over abundant supply. In Dong Nai recently prices fell to only USD 1. “The low prices indicate that there is a surplus locally so why should we import more from China?” the Director of a Dong Nai-based husbandry firm said.
|Pakistan sanctions use of GM corn seeds|
[25 May 2016] Pakistan will allow farmers to choose genetically enhanced corn seeds that will help them produce better crops. According to Croplife Pakistan Executive Director, Dr Muhammad Afzal, this landmark decision was taken after a rigorous process spanning seven years. The approval process involved monitoring of field trials and evaluation of risk assessments submissions by designated committees of the government as required by the country’s biosafety laws. “The government’s approval of insect protected and herbicide tolerant corn seeds will not only boost productivity, but will also encourage future local and international investment in Pakistan’s agricultural sector,” he claimed.
|Indonesia’s MOA sets strategies to increase corn production|
[25 May 2016] To increase local corn production, Indonesia’s Ministry of Agriculture (MOA) will accelerate the production of corn in West Sumatera, North Sumatera, Lampung, Banten, West Java, Central Java, East Java and West Kalimantan. In these areas, the ministry will provide free corn seeds for 1.5 million ha of land, as well as improve the post-harvest and distribution system to feed millers. With the program, Andi Amran Sulaiman, Minister of Agriculture believes local corn production will reach 24 million tonnes, over last year's 19.83 million tonnes. “We will be able to meet demand from feed millers,” he said.
|Tangrenshen to invest USD 1.38 billion in pig farming|
[24 May 2016] Tangrenshen Group, a leading feed miller and pig integrator in central China’s Hunan province, plans to invest USD 1.38 billion in pig farming over the next 10 years, targeting to produce six million pigs a year by 2025. The company said it will achieve the goal through new farms of its own, contract farming, as well as acquisition of existing farms. “Industry players are extending the value chain as China is pushing structural reform. There will be great opportunities for integrators as more back-yard farmers are exiting,” said Tangrenshen Founder and CEO Tao Yishan.
|Demand for natural pork grows in Thailand|
[24 May 2016] Sopaphan Juyjaroen, Vice President of Perishable at Thailand’s Central Food Retail told Asian Agribiz that demand for its natural pork, produced from free range and herb fed pigs, continues to grow in Thailand. Sales of natural pork at Central Food Hall and Tops Supermarket, grew 19% last year and surged 30% in Q1 this year, she said. “This was partly due to promotions and brand awareness,” Ms Sopaphan added. Central Food Retail has partnered with, Sampran Farm to produce natural pork and around 80 pigs are processed each day.
|Sumatera Budidaya Marine ships 14.9t of grouper to Hong Kong|
[24 May 2016] Indonesia’s Sumatera Budidaya Marine recently celebrated its first shipment of 14.9 tonnes of grouper worth USD 134,000 to Hong Kong. Sahrul, an official of the company said the mariculture fish is farmed in Belitung Island under the partnership model. “So far we have partnered with 100 farmers in the island. We support them with good fry and feed, technical assistance and market guarantee,” he said. Based on Indonesia’s Ministry of Fisheries & Marine Affairs data, the island last year produced 84 tonnes of grouper. Mr Sahrul revealed that the company plans to develop the partnership model in other regions in the country.
|India eyes new sbm markets|
[24 May 2016] As India’s soybean meal (sbm) exports in 2015-16 declined by 50% over the previous financial year, the industry has decided to explore new markets like Africa, Middle East and developing countries in Asia. India’s Solvent Extractors Association plans to participate in a trade fair in Tanzania in July 2016 and are also considering a techno-commercial delegation to East African countries to explore these markets. Over the last two years, India lost traditional markets. Iran shifted to other origins, Vietnam, Pakistan and Bangladesh switched from import of sbm to import of soybean, while Japan switched to GM sbm.
|Jollibee to build at least 200 stores this year|
[24 May 2016] Jollibee Food Corp (JFC) said it is planning to construct at least 200 new stores this year. The company has earmarked more than USD 200 million for its capital expenditures in 2016, more than twice what it spent last year. About USD 161 million will be used for new stores and the renovation of existing stores. The remainder will be used to fund the construction of three new commissaries in Luzon, expand its largest commissary in Laguna province, and set up two new distribution warehouses in North Luzon to support its rapidly growing business in the Philippines. By end-March, JFC, the largest food service network in the country, had a total of 3143 stores worldwide.
|Indonesia reports 148 bird flu cases up to April|
[24 May 2016] Indonesia’s Agriculture Ministry revealed that there were 148 cases of bird flu reported in the first four months of 2016, a sharp increase from the 123 reported throughout 2015. “Lack of public awareness has been cited for the continued circulation of the virus, especially among farmers who don’t implement biosecurity measures,” said I Ketut Diarmita, Director of Animal Health Services of Agriculture Ministry. Extreme weather changes has left poultry more vulnerable to the virus, he added.
|Organic pork gains ground in Vietnam|
[23 May 2016] Despite selling at higher prices, organic pork is gaining ground in Vietnam. Le Bich Ngoc, who manages an organic food store in Ho Chi Minh told Asian Agribiz that higher income and health conscious consumers are willing to pay up to three times as much for the product, priced between USD 10.70-11.50/kg. Bui Bich Lien, Director of Thuy Thien Nhu Farm Ltd, an integrated farm of Orfarm organic brand, said the higher price is justified because organic pigs cost more and take longer to produce.
|China forecasts stable pork production through 2020|
[23 May 2016] China will maintain stable pork production in the next five years, targeting an output of 57.6 million tonnes by 2020, compared with 56.71 million tonnes in 2014 and 50.71 million in 2010. In its five-year plan, the Ministry of Agriculture said it also targets to expand the proportion of large-scale pig farms, which are defined as with a stock of more than 500 heads, to 52% in 2020 from 42% in 2014. The plan also identified seven provinces (Hebei, Shandong, Henan, Chongqing, Guangxi, Sichuan and Hainan) as main pork production areas, with potential for production in the northeast provinces (Liaoning, Jilin, Heilongjiang and Inner Mongolia), and in Yunnan and Guizhou in the southwest.
|Sierad Produce targets for 3000t of feed|
[23 May 2016] Indonesia’s integrated poultry company Sierad Produce has targeted to produce 300,000 tonnes of feed this year, or around 25,000 tonnes/month. For this, Eko Putro Sandjojo, President Director said it will need around 12,000-15,000 tonnes of corn per month. Amid corn import limitations, Mr Sandjojo said it relies on the supply of local corn from Lampung and East Java. This has also pushed the company to use wheat as a substitute although its price is higher than corn. Mr Sandjojo hopes the government will re-evaluate its policy of limiting corn imports this year to only 1 million tonnes.
|Monsanto, Bayer apply for GM corn permits|
[23 May 2016] Monsanto Philippines Inc and Bayer CropScience have applied for permits to propagate and directly use genetically modified (GM) corn and corn seeds, said Merle Palacpac, head of the Bureau of Plant Industry’s National Plant Quarantine Services Division. The GM corn will be used for feed, food and processing. She said Monsanto has filed an application for propagation and four applications for direct use of GM corn, while Bayer applied for direct use or importation. The Philippines implemented new rules on the propagation, importation and use of GM products after the country’s Supreme Court struck down the previous order governing GM products.
Asian Agribiz regional dairy update
[23 May 2016]
Indian dairy firms to export to Russia
India has finally signed a protocol with Russia for export of dairy products to that country. Indian producers may start exports of hard cheese and the first consignment is expected to leave Indian ports by end June. After visiting more than 20 factories and milk procurement facilities in India, only two dairy farms- Parag Milk Foods and Schreiber Dynamix, conformed to Russian phytosanitary standards.
Vinamilk scraps foreign ownership cap
The board of Vietnamese dairy firm Vinamilk has decided to remove its 49% foreign ownership cap, paving the way for an expected flood of interest from overseas investors in a company valued at USD 7.85 billion. VinaCapital’s Chief Investment Officer Andy Ho said the move marks a huge milestone in the privatisation process. “Vinamilk is the country’s largest company by market capitalisation, is ranked as the most valuable brand in Vietnam and continually delivers strong results. This is the first significant state-owned enterprise to completely remove foreign ownership limits, and the start of significant momentum in foreign ownership expansion and privatisation,” he said. VinaCapital holds Vinamilk in two of its funds. In its Vietnam Opportunity Fund and Forum One-VCG Partners Vietnam Fund.
India’s Bamul to have new milk processing plant
With demand for milk increasing at a rate of 6-8% annually in India’s Bengaluru, the Bangalore Cooperative Milk Union (Bamul) is investing USD 64 million to set up a modern facility to process milk and to make other dairy products. The new facility will come up at Kanakapura which is about 60km from Bangalore, in about 18 months. “We will have one fully automated mega dairy where besides processing milk, we will also make products such as cottage cheese and other products,” said A Manju, Animal Husbandry Minister. Bamul sells 2.2 million litres under the Nandini brand in the city which is four-fifths of its market.
US dairy products see bright prospects in Vietnam under TPP
US Agriculture Secretary Tom Vilsack met with Vietnam’s Minister of Agriculture and Rural Development and Minister of Industry and Trade recently to discuss details of the Trans-Pacific Partnership (TPP) agreement. Under the TPP, all Vietnam’s tariffs on dairy products, currently as high as 20%, will be eliminated within five years. Tariffs on cheese, milk powder and whey will be removed immediately. “Joining TPP, Vietnam’s GDP may increase by 10%. As the economy grows and income increases, consumer demand is also more diversified and sophisticated. The farmers will have more opportunities to satisfy the customers and increase their production scale,” said Mr Vilsack.
|Indonesian government to intervene in broiler upstream sector|
[20 May 2016] In a recent coordination meeting on restructuring Indonesia’s broiler industry, the Minister of Coordinating Economics Darmin Nasution said the government should intervene in the upstream sector of the broiler industry. “We have to start preparing the policy for this,” he said. According to Mr Nasution, integrated companies control 95% of the broiler market. Indonesia’s State-Owned Enterprises Minister Rini Soemarmo added: “State-owned enterprises have to join the sector to offset the domination of the integrated companies.” The coordination meeting was a follow up to the alleged cartel in the industry reported by the Business Competition Watchdog Commission (KPPU).
|Malayan Flour Mills’ revenue declines on weak poultry sales|
[20 May 2016] Malayan Flour Mills Bhd recorded revenue of USD 571 million for the financial year 2015, almost similar to 2014. Profit for the year however, dropped to USD 10.90 million from USD 20.77 million due to lower margins in the poultry segment and higher loss on equity accounted to a joint venture. The poultry integration business recorded lower revenue mainly due to lower sales. Its operating profit of USD 7.37 million in 2015, was a decrease of 44% from the previous year. Despite this the group said it is still well-positioned to benefit from the synergies derived from an integrated poultry business and will expand to enhance future earnings.
|Thai Union Q1 consolidated sales up 9.3%|
[20 May 2016] Thailand’s Thai Union (TU) has posted consolidated sales of USD 871 million in Q1, up 9.3% from the same period last year, driven by its organic growth and the recent acquisition of a 51% stake in Germany’s Rügen Fisch. Moreover, TU said that its Middle East joint venture has begun to show positive results. TU signed a joint venture agreement with a subsidiary of Saudi Arabia's Savola Group last year to expand into the Middle East seafood market. However, TU’s net profit dropped 19% to USD 34.3 million in Q1 from a year ago, hurt by a significant decrease in foreign exchange gain. Thiraphong Chansiri, President and CEO said “TU is on track to achieve its full year target.”
|CJ Group to invest USD2.1b in Indonesia|
[20 May 2016] Indonesia and South Korea have signed several business agreements valued at USD 18 billion, according to Franky Sibarani, Head of the Indonesian Investment Coordinating Board. The business agreements also cover the animal feed sector, and for this CJ Group, South Korea’s leading animal feed & food producer, has shown interest to invest around USD 2.1 billion.
|Jollibee reports 17.7% rise in net income in Q1|
[20 May 2016] Jollibee Food Corp (JFC) reported a net income of USD 30.1 million for Q1, up 17.7% from the same period last year. In a filing with the Philippine Stock Exchange, the company said system wide sales jumped nearly 15% to USD 739.2 million in Q1 “driven by same store sales growth on a worldwide basis and store network growth of 6.8%.” Meanwhile, JFC’s overseas business posted a 10.5% growth in sales for the period, as its business units performed positively. Sales in the US grew 17.4%, in Southeast Asia and Middle East 32.2% and 1.9% in China.
|CP Indonesia to export DOC to Timor Leste|
[19 May 2016] Timor Leste has agreed to open its market for (broiler & layer) DOC from Indonesia. Charoen Pokphand (CP) Indonesia is now in talks with the government of Timor Leste for the export. Desianto Budi Utomo, Vice President of Government & Academic Liaison of CP Indonesia said the company is now discussing technical aspects and price with the Timor Leste counterparts. He added that the company has been exploring the potential market of DOC in the country since last year. CP Indonesia plans to export its DOC from its facility in East Nusa Tenggara.
|Bangkok Ranch's Q1 net profit contracts 48%|
[19 May 2016] Thailand's Bangkok Ranch (BR) has reported a net profit of USD 2.65 million in Q1, down 48% from the same period last year, hurt by lower sales revenue and rising expenses. The company’s sales revenue declined 7% year-on-year to USD 53.87 million in Q1 due to intense duck price competition. Although prices improved in Q1 the selling price was not up to last year’s level, BR said in a statement. Moreover, the consolidated selling and administrative expenses rose 12% year-on-year to USD 5.2 million in Q1 due mainly to an increase in sales and marketing expenses. BR expects the duck industry to improve in 2016 and price competition to ease.
|Malaysian government mulls labelling feed for antibiotics|
[19 May 2016] The Malaysian government is studying the need for livestock industry players to label the types of antibiotics in animal feed to avoid misuse. Veterinary Services Department Director, General Datuk Dr Kamarudin Md Isa said his department and industry players are now discussing implementation. He said the Animal Food Act 2009 permitted control on the use of antibiotics in livestock feed. “We can arrest and charge livestock farmers under our monitoring system, if the types of antibiotics used are prohibited,” he said. The move was due to anxiety among consumers on the use of antibiotics in livestock production. Dr Kamarudin said antibiotics are used to treat sick animals, prevent disease and encourage growth but they should be used responsibly.
Adjective added products gain ground in Asia
[19 May 2016]
According to David Hughes, Emeritus Professor of Food Marketing at Imperial College London, food integrity issues will be of major concerns. He sees this trend in Asia too. ‘Adjective added’ animal protein products will be in demand, such as antibiotics & hormone-free meat and selenium enriched milk. In this web special, the Asian Agribiz team looks at trends and markets for ‘adjective added’ animal protein products in Asian countries.
Bioceleng to supply antibiotic-free pigs for Ubud Food Festival
Indonesia’s Bioceleng Farm in Payangan village, Bali has been chosen as the supplier of antibiotic-free pigs for the Ubud Food Festival from May 27-29, 2016 in Bali. Romeo Alfonso, owner told Asian Agribiz that: “It’s a new milestone for my farm after an order from a five-star hotel in Jakarta early this year.” Mr Alfonso said he believes this achievement is because his farm stays true to its commitment to produce AGP-free pigs under a semi-free range model. Nick Kennedy, Chef from Amandari Hotel in Ubud who inspected the farm for the food festival , said the farm is clean, with free-roaming Hampshire pigs.
Sales of Kee Song’s Lacto Chicken up by 15%
Kee Song’s Lacto Chicken sales in Malaysia is up 15% this year compared to last year. The company said this is because it has successfully reached out to a number of customers in face-to-face encounters. “We produce zero antibiotics chicken,” said Wong Nai Hon, Assistant General Manager, Lucky Poultry (M) Sdn Bhd, the Sales and Marketing arm of Meng Kee Poultry that produces Kee Song chicken. “We use lactobacillus produced using our own technology to keep our birds healthy and our farm environment clean.”
Anugerah Cipta plans to produce probiotic chicken
Triggered by the success of its ecosystem balance concept and probiotic products for layers, Indonesia's Anugerah Cipta plans to produce probiotic chicken on a commercial scale. Ani Juwita, Director told Asian Agribiz that the company has done trials on carcass quality. “The results were promising since the carcass contained less water, so it is good for meat processors that produce chicken fillet,” she said. The chicken will will be raised without antibiotics - only probiotics and good farm management practices.
Huaying to launch selenium-enriched duck products
China’s leading duck processor Henan Huaying Agricultural Development Co said it is planning to build a complex in Fengcheng in east China’s Jiangxi province, to tap into the city’s rich resource of selenium. “We will take full advantage of the selenium resources in Fengcheng and launch Huaying-branded premium duck products in the future,” the company said. The complex will include a duck slaughterhouse with an annual capacity of 20 million birds, a 300,000-tonne feedmill to produce selenium-enriched feed, as well as a 20,000-tonne cooked products factory. Total costs of the complex is estimated at USD 71 million.
No standards yet in Indonesia for organic animal protein products
There are not standards yet for organic animal protein products in Indonesia, according to Christopher Emille Jayanata, Chairman of the Indonesian Organic Community (KOI). “So no one can claim his/her animal protein products are organic,” he told Asian Agribiz. “Following the standards applied in developed countries is also not easy since the US and EU apply different standards.” However, some important points of organic animal protein products are the products have to be free from inorganic materials, free from GMO and free from pesticide.
Grass-fed cattle farmers team up with meat, dairy processors
Some members of the Indonesian Organic Community (KOI) are beef and dairy cattle farmers in Jogjakarta and West Java. Christopher Emille Jayanata told Asian Agribiz that they do not use hormones, vitamins, AGP and concentrates for their cattle. “They only feed their cattle with special grass with high nutrition content.” To help the farmers market their products, KOI links them with othermembers that produce processed meat and dairy products. “Together they can reach a wider market,” he said.
Pronic to increase its probiotic chicken production
Probio Chicken is a leading brand of probiotic dressed bird in Indonesia produced by Pronic Indonesia. Atanasius Harpen Tulis, General Manager told Asian Agribiz that the company plans to increase its probiotic chicken by 30,000 carcasses per month to meet growing demand. Each carcass, weighing around 1kg, is sold at around USD 3.74, or 40% higher than the price of regular broiler. Probio Chicken is raised for 28 days with good farming practices and without the use of antibiotics and hormones. Instead the birds are fed with probiotics and organic substances supplied through feed and water.
|Thaifoods Group sees profit in Q1|
[18 May 2016] Thailand’s Thaifoods Group (TFG) recorded a net profit of USD 5.67 million in Q1, compared to a loss of USD 13.57 million last year, mainly to an increase in chicken and swine prices which rose to USD 1/kg and USD 1.74/kg respectively in Q1. The company’s sales revenue climbed 8.3% year-on-year to USD 124.67 million. TFG’s sales volume of swine increased from 17,164.6 tonnes (2015) to 18,517.9 tonnes in Q1 2016 due to additional capacity and productivity. Meanwhile, TFG’s sales volume of chicken decreased from 76,023.4 tonnes to 72,910.6 tonnes in Q1 2016. The company reduced its chicken meat production in Kanchanaburi province due to cost management reasons.
|Indonesia open to MDM imports|
[18 May 2016] Indonesia’s Minister of Industry Saleh Husin has proposed to allow imports of (chicken) mechanically deboned meat (MDM) to support meat processors in the country to help them raise their competitiveness. The country has been closed to imports of the product since 2013. On the other hand, the local supply of MDM is controlled by three big chicken producers. MDM is used mainly for the production of sausages. “In the local market, the price of MDM is around USD 1.35/kg. Meanwhile, the price of imported MDM from the Netherlands is only around USD 0.75/kg,” Mr Husin said. He proposed an allocation of MDM imports of 6000-6500 tonnes a year.
|El Niño pulls down corn production|
18 May 2016] Philippine corn production fell 19% to 1.92 million tonnes in Q1 this year from 2.37 million tonnes a year ago as the drought caused by the El Niño phenomenon forced some farmers to delay planting or to shift crops, the Philippine Statistics Authority (PSA) said in its quarterly agriculture performance report. The PSA also noted that some farmers left their field in fallow because of insufficient water supply. Meanwhile, in an earlier report, the PSA said that around 260,000 ha or 72.2% of the planting intentions for the April-June 2016 harvests have already been planted.
|Egg price in Namakkal hits all-time high|
[18 May 2016] Despite a considerable drop in production as well as consumption due to hot summer in India, the farm gate price of eggs in Namakkal has been steadily increasing reaching USD 0.06/unit last week. This was the highest price recorded in the history of the Namakkal poultry sector, sources said. Notwithstanding the impact of a bird flu outbreak in Karnataka, the National Egg Coordination Committee, Namakkal Zone, continued to raise price since the beginning of May. Sources indicated that current price hike was aimed at inflating the rate to get a competitive price when the tender for eggs supply for government schools in Tamil Nadu is finalised soon.
|KPPU pushes Berdikari to venture into broiler industry|
[18 May 2016] Following the allegedly broiler business cartel in the country, Indonesia’s Business Competition Watchdog Commission (KPPU) is edging state-owned integrated beef cattle company PT Berdikari to venture into the broiler industry. Syarkawi Rauf, KPPU Chairman said: “We expect Berdikari to venture into the upstream sector by producing PS, DOC and feed. The company is also expected to partner with independent farmers in broiler producing regions.” Mr Rauf believes this concept will strengthen independent farmers in the business. “We also want to push the big players to eye export markets.”
|Tamil Nadu bans poultry products from Kerala, Karnataka over bird flu|
[18 May 2016] Close on the heels of India’s Karnataka sounding a bird flu alert, the animal husbandry department of Tamil Nadu has banned all poultry products, including chicken, turkey, duck, duck manure and chicken feed, from Kerala and Karnataka. It also has taken steps to stop the flow of poultry products from these states through the Tamil Nadu boundary. At least 23,000 birds have died from bird flu in Karnataka last week.
|Pork prices rise in Thailand due to drought|
[17 May 2016] Surachai Sutthitham, President of the Swine Raisers Association of Thailand, told Asian Agribiz that pork prices have recently risen due to the drought in Thailand. Live pig prices are currently at USD 2.12/kg, compared to USD 1.81-1.87/kg early this year. “Pigs now grow more slowly as feed intake is low due to heat stress, he said, adding that they become weak and are more susceptible to diseases. Some farmers have found foot-and-mouth disease in pigs in the western region of Thailand. Hence, farmers see rising production costs.
|InVivo buys Philippine feed manufacturer|
[17 May 2016] InVivo NSA has acquired a key feed producer in the Philippines, Popular Feedmill Corp. This strengthens InVivo’s presence in Asia where it already holds strong positions in Vietnam, Indonesia, China, India, Cambodia, Myanmar and Thailand. Popular has two feed plants in the Philippines producing about 150,000 tonnes of animal feed annually. Hubert de Roquefeuil, CEO of InVivo NSA said: "This acquisition confirms our willingness to develop ourg markets in Southeast Asia. It will also allow us to diversify and strengthen our revenue sources to build an even more efficient and resilient corporate business model.”
|Indonesia releases permits for cattle imports|
[17 May 2016] Indonesia has released permits for cattle imports for the May to August 2016 period. The government has recommended the import of 250,000 heads. According to Dr Ross Ainsworth, Beef Central columnist, the release of official documentation was held up by bureaucratic problems, meaning exporters with ships ready to sail were once again forced to endure additional demurrage fees and cattle feeding charges that add further expense to the cost of landing cattle in Indonesia. “These additional costs are eventually passed onto the customer in one way or another,” he said.
|India’s buffalo meat exports down to USD4b|
[17 May 2016] India’s buffalo meat exports dropped to USD 4 billion in 2015-16 from USD 4.78 billion in 2014-15. From April 2015-February 2016, buffalo meat exports declined 15% to USD 3.74 billion, said Nirmala Sitharaman, India’s Commerce and Industry Minister. “There decline is attributed to restriction of imports through Vietnam by China, price competitiveness due to devaluation of Brazilian currency, and turmoil in importing markets such as Syria and Yemen,” Ms Sitharaman said. However, Adi Godrej, Chairman of India’s Godrej Group said the beef bans in certain states in the country are hurting the economy and affecting rural growth.
|Hong Kong bans poultry products from Karnataka’s Bidar|
[17 May 2016] Hong Kong’s Centre for Food Safety (CFS) recently announced that in view of a notification from the OIE about an outbreak of highly pathogenic H5N1 avian influenza in Bidar district, Karnataka state of India, it has banned the import of poultry meat and products including poultry eggs to protect public health in Hong Kong. A CFS spokesman said that Hong Kong did not import any poultry meat or poultry eggs from India last year and in the first three months of this year. “The CFS has contacted the Indian authorities over the issue and will closely monitor information issued by the OIE on avian influenza outbreaks in the country,” the spokesman said.
|Sawit Sumbermas starts palm-beef cattle integration|
[17 May 2016] Indonesia’s Sawit Sumbermas Sarana has started to integrate its palm plantation in Central Kalimantan with the farming of 5000 heads of beef cattle breeders under a semi-intensive system. Rimbun Situmorang, President Director said the beef cattle farming will see additional revenue for the company. The company has trialled the integration concept for two years and is convinced that this concept will be successful in the future. “We imported the breeders from Bali and Australia. We will fatten the offspring then sell them as finisher cattle,” Mr Situmorang said.
|DaChan Food expands branded business amid industry downturn|
[16 May 2016] China's DaChan Food (Asia) Ltd said its percentage of branded raw meat and cooked products climbed to 43% by end 2015 from 35% at the beginning of the year. This pushed up the company’s gross profit despite an industry downturn, as China’s white-feather chicken meat prices fell to a five-year low in 2015. Da Chan cut its slaughtering capacity by 40% last year to control operating loss, though its full-year loss expanded to USD 23.6 million from USD 16.7 million a year earlier. Turnover fell 22% to USD 1.37 billion. DaChan Food mainly sells chilled/frozen chicken and processed meat under the brand ‘Sister’s Kitchen', in addition to operating feedmills in China, Vietnam and Malaysia.
|Philippine corn prices up on El Niño|
[16 May 2016] Average farm price of local yellow corn in the Philippines is now at USD 0.32/kg from only USD 0.27/kg about two weeks ago. The rise in price has been blamed on the drought caused by the El Niño phenomenon, which continues to hit major corn production areas in the country, affecting yield and supply. According to the Philippine Statistics Authority, corn production in Q1 is likely to only reach only 2.1 million tonnes, 12.4% below the year ago figure, as both harvest area and yield are also seen to drop. The government estimates that corn farmers have already lost some USD 60 million from the dry spell.
|Thailand’s GFPT Q1 net profit rises 26%|
[16 May 2016] GFPT has reported a 26% gain in Q1 net profit to USD 7.76 million, helped by an increase in sales revenue. GFPT posted total revenue of USD 110.12 million in Q1, up 1.17% from a year ago, backed by a rise in chicken processing revenue. GFPT’s chicken processing sales rose 9.73% year-on-year to USD 46.15 million. Revenue from direct and indirect chicken exports increased by 16.02% and 12.25% respectively. Revenue from chicken processing segment contributed 41.91% to GFPT’s total sales. However, GFPT’s feed revenue declined 9.57% in Q1, hurt mainly by lower shrimp feed sales volume. The company said in a statement that farmers reduced shrimp production due to the drought in Thailand.
|Beijing releases 3m kg of pork reserve to stem price increase|
[16 May 2016] Chinese news agency Xinhua reported that Beijing has released 3.05 million kg of frozen pork from its reserves into the market in an effort to ease pork supply pressure and avoid a price surge. Since the Chinese New Year at the end of January, pork prices have been rising on tight supply. Raw pork prices surged by 50.6% month on month in April, according to the region’s municipal government. The move, which will last until July 4, will see 50,000 kg of pork sold for a small sum to 121 supermarkets daily. The government will subsidise up to USD 1.40/kg to encourage vendors to decrease prices. Slaughterhouses are also being encouraged to increase pork supply though subsidies.
|Thousands of pigs in India’s Mizoram die due to PRRS|
[16 May 2016] Around 2379 pigs in Champhai district of India’s Mizoram state bordering Myanmar in early May died due to porcine reproductive and respiratory syndrome (PRRS), according to the Champhai Pig Farmers Association. The association believes the pigs had been infected by the virus from pigs imported from Myanmar. K Zamlova, an official of the association said that there are more than 5000 pigs still surviving in the district. Dr Lalchungunga Pudaite, a veterinary officer in the district said some of the infected pigs have responded to antibiotics.
|East Nusa Tenggara continues to increase corn production|
[16 May 2016] A sustainable program facilitated by Indonesia’s Agriculture Ministry has helped local farmers in East Manggarai, East Nusa Tenggara province to enjoy a great harvest of hybrid corn they planted on 250ha of land. Robertus Ongo, Head of Food Resilience of Agriculture Agency in the province said the administration has named the province a ‘corn producing area’. Mr Ongo said corn production areas in the province have continued to increase. As of 2016, there is 81,000ha of corn farms in 23 regencies and municipalities across the province. “Amid a long dry spell caused by uncertain weather, farmers in all villages have continued to increase corn planting to support food resilience,” he said.
|Huaying to process selenium-enriched duck|
[13 May 2016] China’s leading duck processor Henan Huaying Agricultural Development Co said it plans to process selenium-enriched duck as it builds a USD 71 million production complex that includes a duck slaughterhouse, a feedmill and a further processing plant in Fengcheng in China’s Jiangxi province. Construction on the duck slaughterhouse, with an annual capacity of 20 million birds, is set to begin in July, and is expected to last two years. The 300,000-tonne capacity feedmill will be built from August 2018 to July 2019 with the following two years planned for the construction of the 20,000-tonne further processing plant.
|Thailand’s CPF Q1 net profit up 27%|
[13 May 2016] Charoen Pokphand Foods (CPF) has reported a 27% rise in Q1 net profit to USD 106.49 million, driven by the recovery of its shrimp business in Thailand, rising livestock prices and improved operations in Vietnam. The company’s consolidated revenue rose 10% to USD 2.99 billion in Q1, backed by a 12% gain in sales from overseas operation, which contributed 60% to its total sales. President and CEO Adirek Sripratak said that CPF, in partnership with Japan's Itochu Corp, is now distributing its processed chicken to Japanese convenience stores Family Mart and Circle K. He added that CPF aims to achieve a 10-15% revenue growth this year. Meanwhile, the company has set its 5-year investment budget at USD 1.41 billion, excluding mergers and acquisitions.
|Sundaily corners largest market share in China with healthy eggs|
[13 May 2016] Sundaily Farm, a speciality egg producer in southwest China's Sichuan province, said it has the biggest share in China’s fresh egg market for the fourth consecutive year. Founded in 2001, Sundaily owns seven layer farms with a total population of 4.5 million birds, including some 800,000 sets of breeders developed by the company. Its products range from free-range organic eggs to multigrain-fed eggs, Omega-3 eggs, as well as vegetarian diet-fed eggs said to have lower cholesterol.
|San Miguel Pure Foods income up 34% in Q1|
[13 May 2016] Philippines’ San Miguel Pure Foods Co Inc reported a net income of USD 25.8 million in the first quarter of this year up 34% year-on-year, while consolidated revenues went up 4% to USD 558.9 million. The company’s branded food business, which includes processed meats, posted a 5% increase in revenue due to better product mix, improved efficiencies and lower raw material prices.
|Global sales of processed food push CJ Cheiljedang's Q1 sales up |
[13 May 2016] South Korea’s CJ Cheiljedang Corp saw its earnings in Q1 up year-on-year as robust global sales in processed food compensated for poor demand at home. The company said its net profit jumped 37.1% year-on-year to USD 111.4 million while operating profit edged up 0.2% to USD 157 million. Sales gained 9.8% to USD 1.8 billion. The food maker shipped 50% more processed foods abroad while its overseas shipment of bioengineered food surged 72% from a year ago, sending the share of overseas sales against total sales to 39.3% in the first quarter. Flagship products, including ready-to-eat products under the brand Bibigo also fared well with sales up 10.6% to USD 993 million.
|Local company to supply PRRS vaccine in Vietnam|
[12 May 2016] Beginning this year, the Pharmaceutical and Veterinary Material JSC (Hanvet), the first and only local producer of PRRS vaccine in Vietnam, will supply the vaccines to the Department of Animal Health and farmers throughout the country. This means Vietnam will no longer be dependent on imported vaccines, Tran Van Khanh, Vice Director of Hanvet's Vaccine Factory told Asian Agribiz, adding that the company also aims to export its product throughout the Asean region. In October this year, Hanvet will inaugurate a new vaccine manufacturing plant. Nationally certified and equipped with the latest technology, the plant can supply 500 million doses of poultry vaccines and 100 million doses of swine and cattle vaccines per year.
|Egg prices in Thailand edge up on falling supply|
[12 May 2016] Thailand’s egg prices have risen slightly this year due to falling egg supply, Manoch Chootubtim, Chief Advisor of the Layer Farmers Association told Asian Agribiz. Prices of mixed sizes of eggs are currently at USD 0.079/egg, up from the 2015 average of USD 0.068. Because of this, many farmers have reduced production and some even stopped raising layers. “It is a market mechanism,” he explained, adding that “egg prices will likely climb to around USD 0.085/egg in the second half of this year.” However, he said that when cooler weather sets in, egg production and supply will rise again.
|Philippine fish processor to beef up operations|
[12 May 2016] Alliance Select foods International Inc, a Philippine-based processor and exporter of tuna and salmon products, will reallocate USD 2 million to beef up its operations in Southern Philippines. The fund is part of the money generated from a rights offer in 2015, and will be used to finance fish purchases and other materials for its facility in General Santos City. Originally, the money was to be invested in PT Van De Zee, an Indonesia-based fishing company owned by Alliance, but the former stopped operation this year after Indonesia’s Ministry of Fisheries revoked its fishing license.
|China Q1 pork, beef imports exceed 90%|
[12 May 2016] China’s imports of pork and beef rose more than 90% in Q1 2016, while mutton imports saw a slight decline, according to the Ministry of Agriculture. Pork imports totalled 286,000 tonnes during the period, up 90.3% from a year earlier, while imports of pork offal rose 48.8% to 287,000 tonnes. Beef imports also jumped 90.5% to 139,000 tonnes, but mutton imports fell 2.9% year-on-year at 64,000 tonnes, the ministry said. Top pork suppliers are Germany, Spain and the US, while beef suppliers were led by Brazil, Australia and Uruguay.
|DBE Gurney director raises stake to 13%|
[12 May 2016] The Managing Director of Malaysian poultry integrator DBE Gurney Resources Bhd, Datuk Alex Ding Seng Huat has raised his direct shareholding in the company to 13.08%, from 9.9% previously. DBE Gurney said Datuk Ding made an off-market acquisition of 25 million shares at four sen apiece. In a separate filing to the stock exchange, the company said its Executive Chairman Datuk Ding Chong Chow has ceased to be its substantial shareholder after an off-market disposal of 28.52 million shares. The disposal, which was transacted at four sen per share as well, has resulted in Datuk Chong Chow’s direct shareholding being reduced to a 2.05% stake.
|Novus to beef up US output of methionine|
[12 May 2016] Novus International, a unit of Japanese trading house Mitsui Chemicals Inc, will boost US production of methionine by building a new plant by 2020. The facility will open in either Texas or Louisiana, which both face the Gulf of Mexico. Novus currently has an annual capacity of 320,000 tonnes at its existing plant in Texas, but the new plant, which will cost USD 738 million, will increase this nearly 40% to 440,000 tonnes. Novus will also strengthen production of enzymes and minerals, and will update a Mexican plant to start producing minerals next year. The plan also calls for expanding its offerings of amino acids for swine, shrimp and salmon.
Onsite from IFFA 2016 in Frankfurt, Germany with CONNY PEREIRA
[11 May 2016]
Healthy offerings from Van Hees
With four key pillars presented at the show, Van Hees "Less is more" stood out as a trend that focuses on the reduction of ingredients in food, such as fat, sugar and salt as well as ingredients, such as glutamate, gluten, allergens or preservatives. Two products, Vantasia Atacama and Vantasia Panier stood out. In the former salts from the Atacama Desert which has inherently low sodium content but with the same flavour profile features strongly. According to Carsten Brinck, Head of Marketing, Vantasia Panier offers customers breaded meat specialties, with gluten-free breadcrumbs that are easy to use and the guarantee a constant quality in the end product.
GEA launches third generation of CookStar
Of the over 10 systems on GEA's stand, the CookStar was a winner with its ability to use steam, hot air, roasting, smoking and drying in any combination for spectacular industrial Cooking. Launched 25 years ago as the world’s first double-spiral industrial oven, GEA's CookStar has evolved into today’s three-phase cooking solution which includes a booster / turbo impingement zone between the main oven sections. This extra zone uses high velocity, vertically flowing air to roast, brown or dry the product’s surface. Other incremental improvements are in terms of performance, versatility, energy efficiency, food safety, cleaning and cost of ownership.
Middleby introduces high performance bacon slicer
Middleby Worldwide which has nine meat processing brands in its fold has been busy with single as well as turnkey installations in Asia. The company introduced its IBS 2000 Select Bacon Slicer at IFFA 2016. It is said to offer maximum slicing performance for retail and food service bacon applications and unprecedented throughput. Inbuilt vision technology maximises on-weights while minimising giveaway.
Multivac expects growth markets to shift
Apart from presenting innovative packaging solutions and labelling and inspection systems for hand producers and industrial-scale meat processors, Multivac projected its leadership in packaging with a 19% growth in turnover, over the previous year. Hans-Joachim Boekstegers and Guido Spix, Directors and CEO and CTO respectively of Multivac spoke of developmental plans and a new Logistics Centre currently under construction in Wolfertschwenden. Both directors expect growth markets will shift over the medium term from Europe and the USA to Asia, South America and Africa.
|Chinese pork buyers scramble for supply at SIAL Shanghai|
[11 May 2016] Chinese pork buyers mobbed export representatives from North America, South America and Europe at SIAL China in Shanghai, scrambling to assure access to pork supplies in a tightening market. A wall of Chinese traders surrounded export representatives as soon as the trade fair opened on May 5, with queues of anxious buyers extending down the hallways. Chinese pork prices have been rising steadily since February, with the wholesale price reaching a near record USD4.08/kg). Meanwhile, an EU assessment last week suggested European production will fall in the second half of the year, and the prospect of tighter international supplies drove traders to lock up future contracts in hopes of taking advantage of high domestic prices.
|Sausages are Vissan’s staple products|
[11 May 2016] In Vietnam, Vissan’s sausage making business accounted for about 60%, or roughly USD 24.4 million of the company’s total profits for the nine months of financial year 2015. In 2014 revenues, earned from sausages only accounted for 25.4% of Vissan’s total revenue. “For Vissan, sausages are a staple product contributing significantly to the profits of the company,” General Director Van Duc Muoi said. He added that Vissan is the leader in providing packaged sterilised sausages, holding 65% of the domestic sausages market. As of early March, the company’s products were already available in 223 supermarkets, 703 convenience stores, 59 showrooms and a wide range of distributors and agents. In addition, its sausages are also exported to Laos and Cambodia.
|CPF sees good prospects for 2016|
[11 May 2016] Thailand’s Charoen Pokphand Foods (CPF) sees a bright year ahead for its livestock and shrimp businesses. Citing Adirek Sripratak, President and CEO of CPF, Bangkokbiznews reported that the company expects a downward trend in livestock and aquaculture feed prices in the first half of this year. Meanwhile, with countries such as China, Vietnam and Thailand facing pork shortage, CPF also sees an upward trend in livestock prices. Mr Adirek also said the firm is eyeing more potential acquisitions overseas.
Onsite from IFFA 2016 in Frankfurt, Germany with ARIEF FACHRUDIN
[10 May 2016]
IFFA, the world’s leading trade fair for the meat industry, opened its doors to a record number of 1027 exhibitors, up 6% from 2013. They exhibitors, which include market leaders, represent some 50 countries and showcase innovative and creative solutions for the meat industry’s entire process chain: from slaughtering and processing to packaging and sales.
Marel promotes DeboFlex
Marel promoted DeboFlex, a new solution for deboning pork fore-ends and legs. “Current pork deboning technology is based primarily on pace lines where products are transported on a belt in a random, sometimes chaotic flow, and worked on by highly skilled staff,” said Dorthe Christensen, Marketing Manager for Red Meat. “DeboFlex uses an overhead conveyor fitted with special rotatable carriers for gripping fore-ends or legs, which transports them in a controlled flow past workstation. The deboning process is split into simpler individual tasks with a dedicated workstation for each task.” DeboFlex promises lower labour costs, higher yield, better quality and longer shelf life.
Handtmann launches new vacuum filler series
Handtmann launched its new VF 800 vacuum filler series for medium-scale and industrial producers. The series’ main features include state-of-the-art and future-proof technology and quality down to the last detail, said Uwe Keßler, Sales Director. “This series has a new hygienic design, coupled with practical advantages in terms of handling and ergonomics.” A new, flexible configuration of the performance rating and modularity of the series is based on adapting the systems in line with today’s production requirements: flexible and quick performance alignment minimises the time needed to respond to production conditions and parameters which have been changed at short notice.
Poly-clip shows off automatic double-clipper
Poly-clip System introduced FCA 80, its new automatic double clipper that fits the needs of the Asian market. According to Mario Blass, Application Technology and Service International, the FCA 80, made from stainless steel, closes all fibrous and collagen casings up to a calibre of 100mm and plastic casings up to 160mm. “The machine features easy clipping optimised to the essentials, highest productivity adjustable in three speed levels, functional controls, and ergonomic handling for reloading of casing without swinging out the clip head,” Mr Blass explained.
Fessmann showcases new F-loader
Fessmann added a new complete automatic loading system called the F-loader on its multifunctional continuous system TF4000 which combines the basic elements of meat production, including drying, smoking, cooking and cooling. Sales Director Hans Heppner said the F-loader is suitable for various types of casings and different sausage lengths, and has a fully automatic stick management. Other selling points include labour reduction, productivity improvement and operating costs reduction.
Kalle presents clean-label casings
Kalle showcased its first ever range of clean-label casings which were developed in response to changing consumer preferences. Olaf de Wit, Director of Global Business Development said these new value-added products can transfer smoke, colour and/or flavouring directly to the filling surface without the use of preservatives or artificial colouring. “They are also entirely allergen-free,” he added. The clean-label casings bring the same efficiency benefits to the sausage production process as the company’s existing value-added casings.
|Indonesia could import 600,000 heads of Australian cattle|
[10 May 2016] Speculation is rife that the Indonesian government will import of 250,000 heads of cattle for the next trimester. The government changed the import quota system this year to trimestral, rather than quarterly, announcements. Cameron Hall, Elders Manager of Livestock Exports said rumours about importation are now circulating, but declined to speculate on an actual number pending the official government announcement. However, Australian industry officials see potential export of 600,000 heads of cattle by end-2016.
|DA approves import of day-old chicks from Spain|
[10 May 2016] Spanish company Iberica de Tecnologia Avicola (Ibertec), a sister company of Germany’s Lohmann Tierzucht, can now export day-old chicks and hatching eggs to the Philippines. Agriculture Secretary Proceso Alcala issued an Administrative Order approving the company’s export after the Bureau of Animal Industry inspected Ibertec’s farm in Valladolid, Spain and found “no imminent risk...to the Philippines based on the current highly pathogenic avian influenza virus-free status of Spain.”
|Poultry processing equipment market to reach USD 3.83b|
[10 May 2016] The poultry processing equipment market is projected to reach USD 3.83 billion by 2020, at a CAGR of 4.7% from 2015 to 2020. According to MarketWatch, factors such as increased consumption of processed food, government support for the use of equipment in developing countries, demand for food safety, safety of workers, environment and sustainability, presence of small and medium enterprises in developing countries, rising raw material costs, and international trade rules continue to drive the market. Asia Pacific is seen to be the fastest growing market due to economic growth and the shift in consumer preference towards value-added food.
|Chicken prices in the Philippines up|
[09 May 2016] Farm prices of chicken in the Philippines, which dropped to an average of about USD 1.31/kg in the first week of April, rallied to average USD 1.95/kg by the end of the month. United Broiler Raisers Association President Elias Jose Inciong told Asian Agribiz that the rise in prices is likely the result of the run up to the national elections on May 9, as well as in anticipation of town feasts around the country, which peaks this month. Whether prices will hold after the elections and the festive season remains to be seen. “It may take 1-2 weeks before we see how prices will move after the elections,” Mr Inciong said.
|Japfa’s Q1 earnings touch USD23.4m|
[09 May 2016] Japfa’s earnings more than tripled to USD 23.4 million in the first quarter ended March 31, 2016, from USD 6.9 million a year ago. Revenue rose 6% to USD 717.7 million. The improved bottom line was driven by its 58.7% owned subsidiary, PT Japfa Comfeed Indonesia’s poultry business, which rebounded from a loss a year ago, the company said. The higher profitability was also due to the company’s dairy operations in China, which generated higher milk volumes and yields, despite lower raw milk prices. Japfa said it expects feed raw material costs to soften and raw milk prices in China to remain sluggish in the near term.
|Myanmar reports first bird flu outbreak for the year|
[09 May 2016] An outbreak of highly pathogenic avian influenza has been reported on a layer farm in Myanmar’s Sagaing Division, Monya Township. Nearly 500 birds were destroyed by an H5 serotype. The outbreak was attributed to a lack of biosecurity on the farm. The Irrawaddy reported that since the outbreak over 20,000 chickens in the area have been killed and poultry trading has been restricted. The same area was also apparently hit by avian flu in early 2015, but Myanmar has not suffered from any further outbreaks until now.
|India’s BAU unveils new chicken breed|
[09 May 2016] India’s Birsa Agricultural University (BAU) recently unveiled Jharsim, a new breed of chicken that is said to combine fast growth with adaptability to India’s environment and higher egg production than the normal desi hen. While the desi variety lays about 60 eggs in 54 weeks, each Jharsim hen will lay 110-130 eggs in 72 weeks. Jharsim is a crossbreed of desi and broiler varieties, further crossed with the imported Durham Red breed. “It was possible for BAU scientists to develop the new Jharsim breed only with help of continuous feedback from farmers across Jharkhand state,” said George John, BAU Vice Chancellor.
|Fast Food Indonesia’s revenue grows 6.32%|
[09 May 2016] The revenue of Fast Food Indonesia, the operator of KFC in the country, grew 6.32% to around USD 339 million in 2015 despite dismal economic growth in the country. However, its net profit fell 32% to around USD 8 million. During 2015 it opened 15 new stores, 20 new in-line stores, seven new stores inside shopping malls, one new food court store and four KFC boxes. This rather aggressive expansion strategy caused additional costs that impacted on net profit. Analysts expect that the company will be able to raise the average selling price by 2.4% in 2016 amid the improving macroeconomic context.
|Philippines market demand, weather calls for smaller birds|
[06 May 2016] Philippine poultry producers are harvesting smaller birds in response to market demand and to help mitigate the effects of the hot weather. “Many producers are harvesting at about 1.1kg for two reasons,” United Broiler Raisers Association President Elias Jose Inciong explained to Asian Agribiz. “First, the market segment that demands smaller birds, like those who produce lechon manok (roasted chicken), is growing, so raisers are filling their demand. Also, the high heat index is making stroke a real possibility if you grow your birds bigger.” He added that producers are now bracing for the third quarter, when weather conditions typically impact production negatively.
|PurelyFresh gives Singapore customers the butcher experience |
[06 May 2016] Singapore’s PurelyFresh online retailer, which entered the market in July 2014, supplies a large range of fresh produce from their butchers and fishmongers. To add value it also provides customisation services for customers who want their fish sliced, pork minced or chicken portioned to a certain size. “Our professional butchers can prepare the meat according to customers’ requirements,” Desmond Khoo, Founder and CEO, told Asian Agribiz. On its long-term growth plans Mr Khoo said: “PurelyFresh is planning to expand in Asia, with Hong Kong and Taiwan as our first few stops”.
|Shuanghui gains momentum with new products|
[06 May 2016] Henan Shuanghui Investment & Development Co, China’s largest pork company and an affiliate to Smithfield Foods of the US, said first-quarter sales of its packaged meat products rose nearly 8% year-on-year to 0.37 million tonnes, posting its first growth since Q2 2014. In Q1 2016, Shuanghui launched Smithfield-branded products manufactured at its American-style packaged meat factory in Zhengzhou. The company slaughtered 3.48 million hogs during the quarter, up 3% from a year earlier. Sale of fresh pork sales rose 19.7% to 0.34 million tonnes.
|Indonesia’ corn production to grow to 9.4mt|
[06 May 2016] Indonesian corn production is expected to increase to 9.4 million tonnes in 2015/16 compared to 9 million tonnes in 2014/15 due to corn planted area increasing at the expense of paddy plantings, according to a USDA GAIN report. Despite higher corn demand, current import restrictions will reduce corn imports to 3 million tonnes in 2015/16 compared to 3.38 million tonnes in 2014/15, the report said. The report also estimated that Indonesian wheat imports will increase by 1.6% to 7.6 million tonnes in 2015/16 compared to 2014/15.
|South Korea to inspect Irish meat plants|
[06 May 2016] A delegation from South Korea is expected to conduct a systems audit visit regarding Irish beef access to the country in May, said Ireland’s Minister for Agriculture, Simon Coveney. The minister was responding to a parliamentary question on new markets for Irish products. It is understood that the audit visit will be similar to that of the Chinese audit visit which took place earlier this year and that the food safety standards of meat plants will be examined. Currently, Ireland exports beef to the US, Japan, the Philippines, Canada, Singapore, Egypt, Iran and Oman.
|Lifting of meat ban to strengthen Indonesia-India ties|
[06 May 2016] Indonesia’s President’s recent revocation of a meat ban has directed attention once again to the vast potential of trade and investment that remains dormant between India and Indonesia. Allowing bovine meat to be imported from regions free of foot and mouth disease, regardless of a country’s status overall, comes as a big positive for countries like India, which has been eyeing the Indonesian market since 1999. With Ramadan also around the corner, many are hopeful that this will end price fluctuations.
|Vietnam firm develops high lean meat pig breed|
[05 May 2016] Lac Ve Breeding Pig Co Ltd, a subsidiary of Vietnam's Dabaco Group, has developed a new pig breed with good conformation, fast growth rate, good feed conversion ratio and most importantly, high lean meat percentage. Big-3, as the new breed is called, is a cross of “DLY (DuDa super-meat x Landrace-Yorkshire). DuDa is Dabaco's outstanding product, enhanced quality selected from Taiwanese Duroc breed,” said Le Thi Minh Thu, Director at Lac Ve. She added that Big-3’s lean meat percentage is about 62-65%. Beginning this month, the company will supply 5500-6000 Big-3 pigs to the market monthly.
|Indonesia’s beef consumption set to more than double|
[05 May 2016] Beef consumption in Indonesia is set to more than double as the middle class continues to grow and the government encourages people to eat more meat. Indonesian Ambassador to Australia, Nadjib Riphat Kesoema estimates there are 60 million middle class Indonesians with a growing appetite for protein. He said the number is expected to reach 150 million in 20 years. “Now the consumption of beef is about 2.3 kg/capita. The government is determined to double or triple it in 10-20 years’ time. With the cooperation of Australia, I believe it will happen,” he said.
|Jollibee takes full control of Mang Inasal|
[05 May 2016] Philippine fast food giant Jollibee Foods Corp (JFC) has taken full control of Mang Inasal, a local restaurant specialising in grilled chicken, after it acquired the remaining 30% stake in Mang Inasal Philippines Inc, for about USD 42.6 million. The company said there will be no changes in the business conduct and direction of Mang Inasal resulting from this acquisition except that the board of directors will now be composed completely of JFC representatives. As of end-March, there were 458 Mang Inasal branches in the country.
|Indonesia, Traceall Global cooperate to reduce IUU fishing|
[05 May 2016] Indonesia’s Ministry of Fisheries & Marine Affairs has signed an MoU to work with Glasgow-based Traceall Global to carry out a pilot project aimed at reducing IUU (illegal, unreported and unregulated) fishing in the country. They will work with the Indonesian government to develop an electronic fisheries management logbook moving all data capture to a 24-hour real time system. The new systems will be implemented on all Indonesian fishing vessels to support the tracking and traceability of their fishing catch. Susi Pudjiastuti, Minister of Fisheries & Marine Affairs said illegal fishing costs the Indonesian economy USD 20 billion each year.
|Burger King India to open 40 new outlets|
[05 May 2016] Burger King India plans to add 35-40 outlets this year across the country. “Burger King is a mass brand and the idea is to get into every city including tier 1, 2 and 3. The plan is to build a huge portfolio of restaurants in India. Our aim is to lead in India as a restaurant brand in QSR,” said CEO Rajeev Varman. “Last year, we entered about 13 cities, including Bangalore, Mumbai, Delhi, Hyderabad, Punjab and Pune. We are continuing to build at a similar pace like last year. The QSR opened 10 outlets in 2014, and added another 38 in 2015.
|Harim to export ginseng chicken to China|
[05 May 2016] South Korea’s poultry integrator Harim Co. plans to export samgyetang, a pre-cooked ginseng and chicken dish, to China within the first half of 2016. Harim has finished registering to export the product with the Chinese authorities. Once labelling and quarantine regulations are agreed upon, it is expected to ship out the product soon. Oh Jun-ho, Senior Vice President said the company plans to ship just USD 3 million worth of samgyetang in the first year to tap demand in China.
|Betagro confident of achieving USD 4 billion sales target by 2020|
[04 May 2016] Betagro Group is confident of achieving its USD 4 billion sales target by 2020, Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz. The firm posted a consolidated revenue of USD 2.74 billion in 2015. “We will invest about USD 86 million in new fixed assets such as farms and factories,” Mr Vasit said, adding that the Group plans to increase feed capacity in the Southern province as well as chicken production capacity in Lopburi province this year.
|Guangdong Wens to expand chilled yellow chicken processing|
[04 May 2016] China's Guangdong Wens Foodstuff Group said it will focus on processing chilled products for its poultry business this year. The producer of local yellow feather broilers has been supplying chilled chicken to Hong Kong. Its processing business generated revenue of USD 81 million in 2015, down 5.43% year-on-year, accounting for only 1.08% of the company’s total revenue, which saw a 24.57% rise last year. “The segment’s revenue decline is a normal fluctuation for an individual year. We will actively push the meat processing business forward,” Chairman Wen Pengcheng told Asian Agribiz.
|PurelyFresh takes on a new challenge|
[04 May 2016] Singapore’s PurelyFresh online retailer, which entered the market in July 2014, guarantees fresh meat and seafood products, and offers a 100% money back guarantee to unhappy customers. “Our Procurement Team does a great job in finding the freshest supply, but the pressure is on our Fulfilment Team to ensure it stays that way,” Desmond Khoo, Founder and CEO, told Asian Agribiz. “Our Fulfilment Team performs quality checks on all the items before delivery.” The company now wants to source healthy products for its customers. “We are looking at launching antibiotic-free fresh produce as well as expand our organic line,” he said.
|Indonesia limits corn imports to 1mt|
[04 May 2016] Indonesia will limit maximum corn imports for feedmills to 1 million tonnes this year as domestic supply is expected to cover demand, the Ministry of Agriculture said in a statement. Indonesia imported 2.5 million tonnes during January-October last year. The ministry estimated domestic corn production to reach 21.53 million tonnes, higher than last year’s 19.83 million tonnes. State procurement agency Bulog said in February that it would bring in 200,000 tonnes of corn in Q1.
|Taiwan protests against US pork imports|
[04 May 2016] Protestors, including the Chairman of Pingtung County Swine Association rallied against Taiwan allowing imports of US pork containing ractopamine. Pan Chang-cheng, a member of the Taiwan Solidarity Union (TSU) and a Pingtung county councillor, was joined by several dozen TSU members in the protest. Mr Pan said opening the market to ractopamine-laced US pork will not only affect the health of Taiwanese people, but will also pull down prices of Taiwanese pork by 50%, negatively affecting the livelihood of local swine producers.
Asia Pacific Aquaculture 2016
Onsite report by ARIEF FACHRUDIN
[04 May 2016]
Asia Pacific Aquaculture 2016, held in Surabaya, Indonesia from April 26-29, saw stakeholders in the region learn about the latest developments in aquaculture, come face-to-face with new technology and learn what is happening in Indonesia's growing aquaculture sector.
Aquaculture plays important role in feeding the world
With the need to feed a growing global population, aquaculture continues to play an important role as a source of animal protein. According to Rohana P Subasinghe, former Chief of Aquaculture Branch of the FAO Fisheries & Aquaculture Department, aquaculture is the fastest growing food sector and is the most sustainable animal protein. “In 2014, we captured 94 million fish and farmed 168 million fish. In the same period, 50% of the fish we ate came from aquaculture,” he explained. Asia is still the major farmed fish producer with China, India, Vietnam, Indonesia and Bangladesh being the top five producers in the world.
105mt more fish needed by 2030
Globally, fish consumption per capita is more than 19kg. According to Mr Subasinghe, fish consumption will continue to increase. “By 2030, we will consume more fish. We will need about 105 million tonnes more of fish by 2030. This is a challenge,” he said. “We need to improve and better manage marine captured fisheries, and have better & sustainable aquaculture production. We also need to adopt new technology and improve public-private partnerships.”
Shrimp production to increase by 2017
George Chamberlain, Global Aquaculture Alliance President and Integrated Aquaculture International Founder, said growth of shrimp production has slowed due to diseases. However, he said: “Production increases in all major farming nations are expected by 2017, especially in Indonesia.” He mentioned early mortality syndrome (EMS) and enterocytozoon hepatopenaei (EHP) as shrimp diseases with repeated outbreaks in many farming nations. To control EMS farmers in India use what is called ‘shrimp toilet’ to move out sediment. For EHP which is resistant to chlorination, Mr Chamberlain said SPF broodstock, quarantine, biosecurity, vet services and zoning are ways to manage the disease.
Indonesia is 2nd largest aquaculture producer
According to Albert GJ Tacon, independent aquaculture consultant, Indonesia is currently the world’s second largest aquaculture producer at 14.37 million tonnes, with total production valued at USD 10.56 billion. The sector growing at 21% annually. He mentioned that Indonesia is the world’s second largest producer for tilapia, catfish and shrimp with productions of 1.04 million tonnes, 1.10 million tonnes and 598,000 tonnes, respectively. Meanwhile for milkfish, Indonesia is the world’s top producer at 578,000 tonnes.
Indonesia should benefit from alternative feed ingredients
Although Indonesia is a big aquaculture producer, the sector relies on imported feed raw materials, with 50-80% being imported, said Dr Tacon. “As such locally produced feed is highly influenced by world commodity prices and currency exchange rates.” Dr Tacon said many alternative ingredients are available in Indonesia such as rice bran, copra meal and palm kernel meal. However, factors like low protein, high fibre and anti-nutrients limit its use in aqua feed formulation. To better use the ingredients, Dr Tacon recommends fermentation technology with probiotics, as well as enzymes.
Grobest Group to expand operations in Indonesia
Taiwan based aqua feed producer Grobest Group that has strong operations in different countries in Southeast Asia will focus on expansion in Indonesia. Aan Djamaloedin, Sales Manager of Grobest Indomakmur told Asian Agribiz that the company plans to set up its second aqua feed plant in East Java. The Indonesian subsidiary now runs an aqua feed plant in Tangerang, Banten province. The plant can produce 5000 tonnes of aqua feed a month. Mr Djamaloedin revealed that the company may set up internal shrimp ponds and cold storage.
CP Prima modifies existing plants
This year Indonesia’s largest aqua feed producer Central Proteinaprima (CP Prima) will modify its existing plants and add supporting systems. Willson Hendrata, Assistant Vice President for Aqua Feed Production told Asian Agribiz that this will increase CP Prima's production capacity. CP Prima has also adopted automation – from raw materials receiving to formulation – at all plants. “With automation, we only need one operator for one line,” Mr Hendrata said. CP Prima now has seven plants with eight towers (three for shrimp feed and five for fish feed), located in North Sumatera, Lampung, West Java and East Java.
Matahari Sakti targets 15% growth
Indonesia’s aqua feed producer Matahari Sakti targets 15% growth this year. Teddy Njoto, Director told Asian Agribiz that the company has launched a new feed for eel. In Indonesia eel farms can be found in Banyuwangi, Jogjakarta and West Java. The eels are processed into a product called unagi for export to Japan. Mr Njoto said of its total feed production, feeds for freshwater fish is still the main sales driver. He added that the company targets to put its new fish feed plant into operation in Q2 2017. Initially the plant will have a production capacity of 3000 tonnes of fish feed per month.
Evonik launches Aquavi Met-Met
Evonik took the opportunity to launch its Aquavi Met-Met, a new source of methionine specially developed for shrimp and other crustaceans, for the first time in Indonesia. Grant Xie, Regional Marketing Director – Animal Nutrition, told Asian Agribiz that Aquavi Met-Met is a dipeptide made up of two DL-methionine molecules. The dipeptide is far less water-soluble than the individual molecules and, for this reason, does not wash out of the feed as quickly.
CJ promotes fishmeal replacer
With the declining trend in catch fish, fishmeal supply is becoming a hot issue. At the show, CJ Cheiljedang promoted its Aquatide65, a fermented protein concentrate, which is said to be a cost efficient fishmeal replacer. Trial results in white leg shrimp showed that the product can replace 30% of fishmeal in feed. The product is now produced in South Korea but in the future may be produced in Vietnam.
|Huaying to ship cooked duck blood to Australia in May|
[03 May 2016] Henan Huaying Agricultural Development Co., a leading duck processor based in central China, said it has won an Australian permit to export cooked products, with the first shipment of duck blood scheduled to arrive in May. Huaying slaughtered 38.5 million ducks in 2015, and in January this year, it launched the pre-boiling duck blood product that is said to have a high content of protein for meal. “We have set up a subsidiary that specializes in duck blood processing, and hope to develop this ‘small’ product to a ‘big’ segment,” Chairman and CEO Cao Jiafu told Asian Agribiz.
|India’s Republic of Chicken up for sale|
[03 May 2016] India’s businessman and politician Kanwar Deep Singh has put his Republic of Chicken brand of retail outlets and the entire poultry farming chain from breeding to processing, up for sale. Mr Singh has decided to sell partly or fully the stake of his listed entity Alchemist Ltd. “In light of the changing economic scenario and due to the competitive environment the company intends to sell its shareholding in Alchemist Foods,” Alchemist told its shareholders. Republic of Chicken runs over 100 retail outlets in Delhi, Chandigarh, Punjab, Haryana, MP, West Bengal and Rajasthan serving raw, portioned and frozen processed items.
|Malindo's performance to rebound|
[03 May 2016] Indonesian poultry integrator Malindo Feedmill is expected to post a net profit this year after two straight years of losses. This optimistic projection is based on higher purchasing power of people in the country. Last year the company posted a net loss of USD 4.8 million, due to an increase in foreign exchange losses and higher interest expenses. Rudy Hartono Husin, Finance Director said the company has allocated USD 34 million for this year’s capital expenditure, which will be spent on expansion of its feed and broiler breeding businesses. The company plans to build a feedmill in South Sumatra.
|Antibiotics should remain a viable option says AAAP|
[03 May April 2016] Antibiotic use in poultry should be minimized through carefully planned and well-executed preventive practices, according to the American Association of Avian Pathologists (AAAP). The ‘AAAP White Paper on Poultry Welfare and Carful Antibiotic Use’ expressed concerns about the ‘growing trend’ for some food retailers and restaurants to only offer products from flocks raised with no antibiotics. “Farmers may be reluctant to allow treatment of flocks to maintain their ‘antibiotic free’ status,” the association said. “Veterinarians need the ability to make the proper treatment plans for animal health and animal welfare, including the use of antibiotics when warranted as part of their professional commitment and ethical obligation,” AAAP said.
|Prima Meat Packer’s operating profit climbs 11%|
[03 May 2016] Japan’s Prima Meat Packers’ group operating profit climbed 11% to USD 73 million for the year ended March 2016, falling short of the USD 91 million forecast due to inventory valuation losses on imported beef and sluggish demand for gift items. Its sales rose 6% to USD 3.3 billion, topping the guidance by USD 9.2 million, thanks to solid demand for Prima Meat’s flagship wiener brand and growing sales of prepared foods at convenience stores. Demand for ham and sausage sold as year-end gifts slumped after the WHO classified processed meat as a carcinogen in October last year.
|Vilsack touts benefits of trade with Vietnam |
[03 May 2016] Vietnam is one of the fastest growing markets for US food and agricultural products. Exports totalled USD 2.3 billion last year, making it the US’ 11th largest agricultural export market. US Agriculture Secretary Tom Vilsack on a trip to discuss details of the TPP deal with his counterparts in Vietnam touted the benefits of trade with the country. Once the TPP takes effect, the US is expected to cut 90% of the tax lines for goods from Vietnam. Vietnam will also reduce and eventually eliminate tariffs across a broad range of food and agricultural products, which will help put US exports on a level playing field.
|Betagro plans for feedmills in Laos, Myanmar|
[29 April 2016] Vasit Taepaisitphongse, President of Thailand's Betagro Group told Asian Agribiz that the company is planning to construct feedmills in Laos and Myanmar. “In Laos, we are concluding the project plan. In Myanmar, we are studying the feasibility and we need some time to collect information,” he said, adding that the plans should materialise in five years. “Our partners in the two countries want us to jointly develop the food chain and we are ready to invest,” Mr Vasit added. Meanwhile, Betagro Group’s total feed production capacity is around 3-4 million tonnes a year. The firm aims to raises this to 5 million tonnes a year.
|Fujian Sunner eyes 20,000 franchise outlets by 2020|
[29 April 2016] China’s Fujian Sunner Development Co. said it has opened 170 ‘Fresh Delicacy’ outlets so far, as part of a five-year plan to sell the company’s chilled chicken cuts via 20,000 franchised outlets by 2020. Financial Director Lin Qiqing said the program is already profitable as the price of chilled products are 25-50% higher than frozen chicken traditionally produced by the company. “We have an annual slaughter capacity of 500 million birds, and have no plan for any further investment at the moment,” Chairman and President Fu Guangming told Asian Agribiz during an online briefing.
|Price of Indian poultry products rebound|
[29 April 2016] After incurring losses for nearly nine months, India’s poultry sector has become viable thanks to a sharp turnaround in product prices. Chicken and egg prices have increased 25-30% over the past two months, mainly because of a supply crunch. Prices slumped steadily following an oversupply situation that started in July 2015. In February it hit a final low with benchmark broiler and eggs prices at USD 0.9/kg and USD 0.04/piece, respectively. “Unviable prices triggered a cut in production. Besides, mortality has risen to 8-9% with temperatures above 40 degrees. These two factors have supported a rebound in prices,” said Balram Yadav, Managing Director of Godrej Agrovet.
|Feedlot operators reject KPPU’s decision on beef cartel|
[29 April 2016] Following the fines of USD 8.1 million by Indonesia’s Business Competition Watchdog Commission (KPPU) on 32 cattle feedlot operators in the country who allegedly colluded on prices and supply, Nurmalita Malik, a lawyer representing Tanjung Unggul Mandiri (TUM), said feedlots did not fix prices. TUM was fined the most – around USD 1.6 million. Ms Malik said: “Witnesses and documents have shown that there is no cartel and we will challenge KPPU's decision.” The Indonesian arm of Elders said they will work closely with importers to understand and review the impact on its customer base in Indonesia. "The importers believe they have done nothing untoward,” said Cameron Hall, Elders Manager of Livestock Exports.
|Vietnam to stop using infeed antibiotics in livestock by 2018|
[29 April 2016] By end April, Vietnam’s Ministry of Agriculture and Rural Development (MARD) will sign an amended Circular on the use of antibiotics in animal husbandry, which lowers the level of antibiotics allowed in animal feed from 8 - 10ppm per tonne to 5ppm per tonne. "We studied some neighbouring countries and we think that Vietnam may have to stop using antibiotics in livestock by 2018," Hoang Thanh Van, Director of the Department of Livestock Production, MARD said. "We need to prohibit the use of antibiotics and enhance traceability," said Cao Duc Phat, Minister of Agriculture.
|Fujian Sunner says white chicken segment has bottomed out|
[28 April 2016] China's Fujian Sunner Development Co, the largest white feather broiler integrator in China, said the segment has bottomed out from a three-year downturn. “Last year was the turning point as it was the final stage to reduce overcapacity,” the company revealed in its annual report. China started limiting GP stock introduction in early 2014 with the establishment of the White Feather Broiler Alliance. The introduction fell more than 20% to 1.18 million sets during the first year, and plunged 40% to 720,000 sets in 2015. In the first quarter of 2016, China’s introduction of GP was less than 30,000 sets. “It is expected that China’s white chicken segment would take a favourable turn over the next three years due to short supply,” said Sunner.
|Hung Vuong enters livestock feed market with USD 35m feedmill|
[28 April 2016] Vietnam’s Hung Vuong Corporation broke ground recently for a USD 35 million livestock feedmill in the southern province of Long An. The 6.8ha facility is equipped with European technology that allows it to produce 500,000 tonnes of product per year, mainly for its pig farms. “With our new feedmill employing the latest technology, Hung Vuong is setting long-term goals to meet consumers’ demand for safe products and competitive pricing,” said Duong Ngoc Minh, General Director, Hung Vuong Corporation.
|KFC to introduce edible packaging in India|
[28 April 2016] Starting with its Rice Bowlz, US fried chicken chain plans to introduce edible packaging in India soon. Previously made of plastic, the bowls will now be made of tortilla. “This is an India-first innovation and may be adopted in KFC’s global markets,” said Rahul Shinde, Managing Director of KFC India. Mr Shinde said the company has invested heavily in its innovation team and the edible bowl was a result of it. Other items from India that have been adopted in KFC’s global markets are KFC Chizza and KFC Krushers. The QSR chain plans to foray into tier III cities in the near future to boost consumption, said Mr Shinde.
Asian Meat Magazine, May/June 2016 - Highlights
[28 April 2016]
Cooked Meat Sector Report
Asian producers give more attention to packaging
Ready to eat (RTE) products in Asia is where taste, convenience and technology meet to provide quick and hassle free meals. While great strides have been taken to ensure quality meals, the industry is also driving changes on the packaging front for more attractive, safer and cost effective products, RACHAEL PHILIP and the ASIAN AGRIBIZ team learn.
Kerchin stays abreast of market development
Inner Mongolia Kerchin Beef Industry Co is focused on Chinese consumers’ awareness of food safety. The company has installed state-of-the-art technologies to improve the quality, safety and traceability of its products, writes RICH HERZFELDER.
VPF completes value chain for integrated food business
Thailand’s VPF Group, an integrated pig farming operator, is working towards becoming a fully integrated food company. Apart from expanding its pig farms, VPF is working on growing operations at its primary processing and further processing plants, as well as embarking on retail and restaurant businesses, writes NITSARA THONGRUNG.
SBB creates a fad for grilled sausages
Together with its 1000 partners stationed throughout Indonesia, Sosis Bakar Bandung has made grilled sausages popular in the country. As its business continues to grow and production capacity swells, ARIEF FACHRUDIN learns that the company wants to set up a new plant in a new region.
Iffa 2016 to serve solutions for eating trends
Clean labelling gives expression to the demands made by consumers and the retail sector to have products that are as far as possible additive-free. Today careful eaters tend to define themselves more by what they will not eat. These consumers have given rise to a market of ‘free-from’ products, such as lactose-free or gluten-free foods.
|Thaifoods Group opens new chicken sausage factory|
[27 April 2016] Thailand’s Thaifoods Group (TFG) recently opened a chicken sausage factory with a production capacity of 30 tonnes a day in Prachinburi province, efinanceThai reported. Cherdsak Kukiattinun, Chief Operating Officer of TFG said that the firm invested around USD 10.8 million in the factory. The factory is expected to run at full capacity of 10,000 tonnes a year in 2018, Mr Cherdsak said, adding that the firm plans to increase its sales channels to include restaurants and hotels in the fourth quarter of this year and to include modern trade and convenient stores in 2017. TFG also plans to sell its chicken sausage products in Asean markets.
|China ports see pork imports surge in Q1|
[27 April 2016] Major Chinese ports saw a sharp rise in pork imports in the first quarter of 2016, as the local market is still suffering from a shortage and pork prices have remained high. The General Administration of Customs said its Tianjin port in north China imported 75,000 tonnes of pork in Q1, up 93.8% year-on-year. The average import price was flat at USD 1,695/tonne, less than half of the local prices. About 80% of the pork shipment to the Tianjin port during the quarter was from the EU.
|Andhra Pradesh’s egg exports challenged |
[27 April 2016] Layer farmers in India’s Andhra Pradesh will see a decline in egg sales to West Bengal, Bihar, Odisha and Assam, as the governments of these states are offering incentives to their local poultry industries to raise production. Nearly 45 million eggs are produced in Andhra Pradesh daily and 60% is exported to other states.
Asian Poultry Magazine, May 2016 - Highlights
[27 April 2016]
TCRS stays relevant with refreshed menus
In Malaysia chicken rice is standard daily fare that borders on being a delicacy. TCRS Restaurants Sdn Bhd has taken the meal and placed it in a quick service restaurant setting offering ambience, comfort and quality ingredients. Chief Executive Officer Wong Kah Lin tells RACHAEL PHILIP how the company has kept the menu fresh for customers over 16 years.
Branding gives Megha an edge in India
Mysore based Megha Farm has found that branding their eggs has given them an edge in the market. Managed by father-son duo, the company is poised to reach yet another milestone by completing three decades in 2017, writes SM ARUN.
Grimaud’s good productivity wins over Vietnam market
Dao Vu Ban, also known as ‘Ban - the duck king’, owns a 4ha Grimaud duck hatchery in Thinh Dan district in the northern province of Thai Nguyen, Vietnam. He has a flock of 8000 PS that produces 5600 eggs daily. With a hatching rate of 70%, Ban's farm can supply 4000 ducklings to farmers on a daily basis, writes HA THU.
Apayo suggests measures to stem low prices
If the supply of broiler DOC in Indonesia continues to exceed the demand, the resulting lower price of live birds will hamper industry growth in Indonesia’s Special Region of Yogyakarta, writes ARIEF FACHRUDIN.
Promoting eggshell quality with a prebiotic acidifier
Eggshell quality is an important determinant of the profitability of egg production and hatchability. EDI VIANELLO highlights the positive effects of supplementing hen’s diets with a prebiotic acidifier.
Pre-starter feeding for broiler chicks
To fully exploit the genetic potential of poultry, it is important to manage the first week of life successfully and to pay particular attention to feeding. Conditions at the start of broiler production can not only irreversibly affect the chicks' growth but also lower their resistance to pathogens. FRANÇOIS TILLY and ERIC FABRY discuss how the feeding of young chicks is a key factor in achieving good rearing performance.
A solid immune foundation is necessary for a strong ND protection
Infectious agents should be controlled as these diseases cause immune suppression and limit the proper functioning of the bursa, causing economic losses. DEXTER M. ABRIGO reports studies that demonstrates the efficacy of using a modern vectored vaccine, which aside from preventing occurrence of Marek's disease and IBD, also protects the bursa, strengthening the bird’s overall immune status, and enhances the effectiveness of ND vaccines.
Part 1 DL-Methionine – nutritionally the mirror image of L-Methionine
PRADEEP KRISHNAN, ARIANE HELMBRECHT, BEHNAM SAREMI and GIRISH CHANNARAYAPATNA review biochemical and recent growth performance evidence comparing the nutritional value of DL-Methionine (Met) and L-Met.
|EU maintains threat of sanctions on Thai seafood|
[26 April 2016] The European Union is maintaining the threat of a seafood import ban on Thailand due to its inadequate fisheries legal framework and poor monitoring, control and traceability systems. Meanwhile, Thailand has proposed an action plan to address illegal, unreported and unregulated (IUU) fishing. The European Commission said that it is currently evaluating the progress. “The dialogue is proving difficult and there remains serious concerns about the steps taken by Thailand to fight IUU fishing activities,” said the European Commission, adding this means that further action by the Commission cannot be ruled out. The European Commission said a meeting with the Thai authorities in May will be a new opportunity for Thailand to show its commitment.
|Indonesia’s KPPU fines 32 feedlotters over beef cartel|
[26 April 2016] Indonesia’s Business Competition Watchdog Commission (KPPU) has said that 32 cattle feedlotters in the country were guilty of price fixing and curbing the supply of beef in order to manipulate the market in Greater Jakarta. KPPU imposed fines worth USD 8.1 million on the feedlotters. Juan Permata Adoe, Deputy Chairman for Food Processing and Farm Business at the Indonesian Chamber of Commerce and Industry, deplored KPPU’s decision. “We are still working with the government to increase investment and jobs in the industry. But KPPU has taken an opposing position,” he said. Meanwhile, Muhammad Syarkawi, KPPU Chairman said cartel practices in this industry were rooted in the government’s policy to impose quotas rather than tariffs on beef imports. “The companies withhold or reschedule the sale of beef, resulting in an artificial shortage and rising prices, which hurt consumers,” he explained.
|Indian carabeef expected to flow into Indonesia by Ramadhan|
[26 April 2016] Carabeef or buffalo meat can help diversify exports from India and benefit the people of Indonesia, said Nengcha Lhouvum, Indian Ambassador to Indonesia at the ‘Roadshow on Indian Bovine Meat’ recently in Jakarta. Muladno, Director General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture meanwhile said: “An audit team went to India in September 2015 to inspect abattoirs and research institutions, which confirmed that India has excellent meat processing and quarantine control.” He added the Indonesian government is making efforts to open its market for Indian carabeef by the Ramadan period.
|Maharashtra’s poultry industry faces water scarcity|
[26 April 2016] As India’s Maharashtra continues to face the ravages of drought, the state’s poultry industry has started reporting almost 35% production losses. Ironically, this comes when for the first time in many months, the industry started reporting profits in broiler sales. Prasanna Pedgaonkar, Deputy General Manager of Venkateshwara Hatcheries said districts in Marathwada, Vidarbha, Ahmendnagar and many other areas were witnessing severe water crisis which has led to many poultry farmers temporarily closing their sheds. Maharashtra sees placements of around 35 million birds/month, of which around 5000 tonnes of chicken are supplied to Mumbai alone.
|Necrotic enteritis in broilers: Disease or syndrome?|
[26 April 2016] Out of literally hundreds of pathogenic strains of Clostridium perfringens, one single isolate is enough to trigger a necrotic enteritis (NE) outbreak in broilers, says Steve Davis, DVM, Colorado Quality Research.“We’re learning that in addition to dealing with the large number of pathogenic strains, multiple isolates — each with unique disease symptoms — can be found in the same poultry complex,” Davis told Poultry Health Today which is sponsored by Zoetis. “With the number of C. perfringens pathogenic strains we’re seeing coupled with additional disease pressure from Salmonella and coccidiosis, I think NE can now be classified as a syndrome.” More.