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1 October 2016
|Chooks to Go to open in Malaysia, Indonesia|
[30 September 2016] Bounty Agro Ventures Inc (BAVI) is set to open its first outlet of its popular oven-roasted chicken brand Chooks to Go (CTG) in Penang, Malaysia, BAVI President Ronald Mascariñas told Asian Agribiz. The store, to be operated by Chooks to Go Malaysia Sdn Bhd, which BAVI established with a Malaysian partner, marks the beginning of CTG’s expansion outside the Philippines. He said the company’s commissary in Malaysia is already completed and the store is scheduled to open in November this year. BAVI is also putting up a CTG outlet in Indonesia, which the company targets to open in December this year. Both outlets will initially offer the flagship Chooks to Go flavour as well as a local variant that is suited to the local taste.
|CPF’s compartment systems awarded DLD certification|
[30 September 2016] Charoen Pokphand Foods' (CPF) compartment systems at its nine PS farms and one hatchery in Thailand’s Nakhon Ratchasima province, have been awarded the Department of Livestock Development's (DLD) certificates, guaranteeing the farms and the hatchery are free of avian influenza. The certificate confirms CPF's compliance with the guidelines of the World Organization for Animal Health (OIE). Siripong Aroonratana, Executive Vice President at CPF said the DLD certification confirms CPF’s prevention systems on avian influenza throughout its supply chain. CPF’s nine PS farms, raise some 1.2 million PS and CPF’s hatchery produces 1.7 million eggs a week. Meanwhile, CPF received DLD’s compartment system certificates for its broiler farms and duck farms in 2011. CPF aims to receive DLD’s compartment system certificates for its slaughter houses in 2018, Mr Siripong added.
|Indonesia lifts restriction on imports of secondary cuts, offal|
[30 September 2016] Indonesia has lifted a 21-month restriction on imported rump and chuck steak, in addition to edible offal — including liver, heart, feet and lungs — in a move towards reopening a market worth at least USD 42 million to Australian exporters. The lifting of the blanket restriction, which Acting Prime Minister Barnaby Joyce said will benefit farmers and meat processors, follows the resumption of talks earlier this year towards negotiating a free trade deal between Australia and Indonesia. Mr Joyce said the Indonesian decision will restore certainty to rural communities, noting that Australian producers shipped almost 20,000 tonnes of secondary beef cuts to Indonesia in 2014, representing a USD 42 million share of the total boxed beef trade with Indonesia of USD 327 million. Mr Joyce added that Indonesian demand for protein will continue to increase over the next three decades, with its population forecast to grow by almost 25% to 322 million by 2050.
|South Korea considers lifting ban on Thai frozen chicken|
[30 September 2016] South Korea’s Quarantine Inspection Agency (QIA) delegates visited and inspected 12 Thai chicken plants this week and will decide later this year whether to lift its 12-year ban on Thai frozen chicken, said Sorravis Thaneto, Deputy Director General of Thailand’s Department of Livestock Development (DLD). Frozen chicken exports were suspended in 2004 due to outbreaks of avian influenza in Thailand. The country exported 42,580 tonnes of frozen chicken to South Korea in 2002. Dr Sorravis said there are 53 plants, which aim to export frozen chicken to South Korea. QIA has inspected disease surveillance systems, hygiene systems and food safety systems at the plants. If South Korea gives the green light to Thailand, chicken producers will export its frozen chicken products to South Korea early next year, Dr Sorravis said, adding “we estimate that our export prices will be around USD 3200 per tonnes.”
|Indonesia setting up integrated fish cold storage in Natuna|
[30 September 2016] Indonesia’s Ministry of Fisheries & Marine Affairs is currently setting up an integrated cold storage facility in Natuna archipelago. The facility, which will have a capacity of 200 tonnes and cost around USD 856,000, is expected to start operation in early 2017. The facility will be equipped with an air blast freezer and a 10-tonne ice flake machine. Nilanto Perbowo, Director of Fish Products Competitiveness said once the project is finished, the ministry will expand the capacity to 3200 tonnes. “With the facility, we want to enhance our fish quality and production efficiency. In addition, we want to attract local and foreign investors to invest in fish processing facilities in Natuna archipelago,” said Mr Perbowo.
|Shortage of chicken in the Philippines possible during Christmas holidays|
[29 September 2016] The Philippines could be facing a shortage of chicken during the latter part of the year particularly during the Christmas holidays, Ronald Mascariñas, President of Bounty Agro Ventures Inc (BAVI), one of the Philippines leading poultry integrators, told Asian Agribiz. While there is currently an oversupply in Luzon, which has led to a drop in live prices, he said the same is not true in the Visayas and Mindanao, where prices have gone up due to tight supply. Industry monitoring indicates a possible shortage, he said, adding that it would be a good idea for the government to allow some imports later this year just to help stabilise prices.
|India’s egg processing industry needs a backup plan |
[29 September 2016] India exports roughly 15,000 tonnes of egg powder per year. Some 40% of the country’s exports go to Japan followed by Europe (30%), Russia and others. According to Viney Sharma, Consultant, the export market is seen to grow 5-7% per year. Despite this it could face challenges as almost all of the products are exported. “The industry is subject to international fluctuations. There is almost no domestic market to absorb the difference. The local market prefers shelled eggs as it is cheaper. India must create a local market and promote these products as processed eggs are safe and convenient,” he told Asian Agribiz at the recently-concluded IEC Global Leadership Conference in Kuala Lumpur.
|China imposes anti-dumping measures on US DDGs|
[29 September 2016] China has decided to impose anti-dumping measures on distiller's dried grains (DDGs) from the US by requiring importers to pay cash deposits on purchase, effective September 23, the Ministry of Commerce said in its preliminary ruling following an investigation launched early this year. Importers of the product must place deposits with China Customs at 33.8% of the import value, according to the ruling. Data from China’s Ministry of Agriculture shows that the nation imported 1.92 million tonnes of DDGs in the first seven months of 2016, down 46% from a year earlier.
|Indonesia is not serious about beef self-sufficiency|
[29 September 2016] Executive Director of the Institute for Development of Economics and Finance, Enny Sri Hartati said Indonesia’s government is not serious about achieving beef self-sufficiency. “The government should increase local beef production and decrease beef import volume,” she said. In 2015 the government was ambitious about this by targeting to import 50,000 heads of breeding cattle. The figure was then dramatically slashed to only 5000 heads, and until now this plan has not been realised. On the other hand, the government chose to flood the market with imported beef, not only with beef from Australia, but also with carabeef from India. The focus now is on protein self-sufficiency rather than beef self-sufficiency."
|Yeeda eyes beef markets in Southeast Asia|
[29 September 2016] Western Australia’s Yeeda Pastoral Company, which is mainly financed by Hong Kong based ADM Capital, has officially opened its Colourstone processing facility near Broome. The facility is capable of processing 37 heads of cattle per hour, or up to 70,000 heads per annum, on one shift. Chris Botsford, founding partner and joint CIO of ADM Capital, said demand for good quality beef in emerging markets is increasing. “Yeeda’s processing facility will produce halal certified beef that is in demand in various markets of Southeast Asia and the Middle East,” said Mr Botsford. Yeeda is a fully integrated beef production, processing and distribution business in far north Kimberley region, with 80,000 heads of cattle and capacity to increase its herd to 100,000 heads.
|Native chicken to be priority in animal protein self-sufficiency |
[29 September 2016] Indonesia is dependent on supply from foreign countries such as the US, Germany and France for commercial broiler and layer GGPS, GPS and PS. According to Nasrullah, Director of the Directorate General of Livestock & Animal Health of the Ministry of Agriculture, the time is right to focus on breeding native chicken. “It’s a long-term investment, but it’s important for the supply sustainability of chicken in the country,” he said. Mr Nasrullah revealed that the Ministry of Agriculture has included native chicken as one priority in the road map for animal protein self-sufficiency 2045. “We expect local companies to help produce and distribute quality native chicken breeds throughout the country,” he said.
|Mindanao pig producers have most potential for pork exports from Philippines|
[28 September 2016] Pig producers from Mindanao, particularly those in the Soccskargen region, have the most potential to export Philippine pork. “We have the most competitive, if not the cheapest, price throughout the Philippines,” Chester Warren Tan, President of the South Cotabato Swine Producers Association told Asian Agribiz. The region includes General Santos City and nearby towns, which collectively make up one of the biggest pig production areas in the country. Earlier, Philippine Agriculture Secretary Manny Piñol said the government will support the revival of plans to export pork, but Mr Tan said there is need to study what is the most effective negotiation strategy to take for exports to happen: government to government, private to private or private to government.
|Thailand’s Bangkok Ranch sets up new subsidiary and joint ventures|
[28 September 2016] Thailand’s Bangkok Ranch (BR) will set up a new subsidiary and two new joint ventures, aiming to expand its existing and new business. The company will soon establish its new wholly owned subsidiary, Crowned Eagle Company limited. Crowned Eagle, which has a registered capital of USD 288,882, will engage in retail, food and restaurant business. Moreover, BR will set up two new joint ventures, Kosovo Food Company limited and Heng Tai Company Limited. BR’s investment value in Kosovo Food will not exceed USD 168,781 and it will engage in food manufacturing.
|Sumber Unggas supplies black chicken to supermarkets in Jakarta|
[28 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeder's based in West Java, has started selling Cemani (black chicken) carcass to retailers in the Greater Jakarta. “We have supplied our Cemani carcasses to Carrefour and Lotte Mart. A 600-700g Cemani carcass retails at USD 7.65,” Naryanto, owner and Managing Director told Asian Agribiz. “Demand is growing. Currently we have around 3000 Cemani chicken PS in our breeding facility in Bogor regency. We plan to increase the PS numbers following the increasing carcass demand,” he said. Sumber Unggas has a 2000 bird/hour chicken processing plant to process its Cemani chicken.
|China extends anti-dumping duties on US chicken|
[28 September 2016] China has decided to maintain anti-dumping duties on imports of US white-feather broiler products for another five years, effective September 27, said the Ministry of Commerce. The duties are mostly set at 60.7%, with Pilgrim's Pride, Tyson Foods and Keystone Foods incurring 73.8%, 49.5% and 46.6%, respectively. Earlier, China decided to impose five more years of anti-subsidy duties on US chicken. Both the duties expired last September, and a new investigation by the commerce ministry found that “the domestic broiler industry could be jeopardised if the duties stopped”.
|Proper system should be in place to control poultry diseases|
[28 September 2016] Diseases such as avian influenza can only be controlled if the birds are culled. According to Ben Dellaert, Chairman, International Egg Commission (IEC), there must be a system to have disease registered as soon as possible or it will be difficult to stem the outbreak. “Most important here is a compensation system. Producers must report outbreaks but if they do not know how it will end financially for them they may be reluctant to report. So it is important for governments to have a decent compensation scheme. This is done differently in different countries,” he told Asian Agribiz at the recently concluded IEC Global Leadership Conference in Kuala Lumpur.
|Indonesia’s Modern International to relocate low-performing 7-Eleven outlets|
[28 September 2016] In order to achieve a total income of USD 92 million, Modern International, the operator of 7-Eleven in Indonesia, has decided to consolidate its business and relocate several low-performing outlets. “Our main target consumers are office workers. So we will relocate the low-performing outlets to more prospective locations,” said Neneng Srimulyati, PR Corporate Communication. In the second half of this year, Modern, which currently has 188 7-Eleven outlets, plans to open 12 new outlets. For this expansion, the company has allocated around USD 765,000.
|Putra Perkasa Genetika to launch hybrid duck|
[27 September 2016] After taking five years of selection and more than USD 153,000 in investment, Indonesia’s Putra Perkasa Genetika will soon launch its meat-type duck Gunsi 888. Gunsi 888 is the crossbreed of native Mojosari duck and Khaki Campbell duck. Ang Hendra, owner & Managing Director told Asian Agribiz that the hybrid duck takes only 35 days to reach 1.2-1.4 kg of harvest weight. Currently Putra Perkasa produces 550,000 DOD/month from its 60,000 PS farm in Gunung Sindur, Bogor. With the new hybrid duck, the company plans to increase its DOD production to 1 million/month in 2017, and then 2 million/month in 2018. For this target, Mr Hendra said the company has prepared 24 farming houses and eight incubators with a capacity of 70,000 eggs per incubator.
|Vissan imports breeders to improve productivity, traceability|
[27 September 2016] Viet Nam Meat Industries JSC (Vissan) has brought in 220 GGPs from the US which the company said will result in better productivity and lower cost, as well as allow traceability in Vissan’s closed production chain. Luu Ngoc Giao, Director of Vissan’s swine production farm, said that “importing breeders is an important part in our strategy of developing the productivity and quality of the breeding herd and completes the company's 3F (Feed-Farm-Food) traceability program.” The GGPs consist of Duroc, Landrace and Yorkshire breeds from Clayton Agri-Marketing and Vissan expects to start selling commercial pigs from these breeders in 10 months.
|Increase of 5-7% in Thai chicken meat production in 2017 |
[27 September 2016] Thai chicken meat production is forecast to increase by 5-7% in 2017 due to potential growth in export demand driven by the robust prices for live broilers and chicken meat and the anticipated increase in chick production capacity, according to the USDA's GAIN report. Also, reflecting trends in the tourism industry and an anticipated recovery in the Thai economy, domestic consumption of chicken meat should increase by 4-5% in 2017, as compared to 3% in 2016. This year, Thailand’s broiler industry successfully avoided the potential supply bottleneck which could have occurred after the Thai Government imposed an import ban on chicken genetics from the US in December 2014. Chicken meat production for 2016 is estimated to grow by 5% over the 2015 level.
|IEC to push for sustainable production at OIE working group on animal welfare|
[27 September 2016] There are regional differences with egg production and one global recommendation for animal welfare for the industry will not work. Ben Dellaert, Chairman, International Egg Commission (IEC), said the World Organisation for Animal Health’s advice on animal welfare of hens is due in 2019. Discussions start end of the year and the IEC is a participant in the working group. “In the US and Europe there is demand for cage-free products. In Latin America and Asia the demand is different. Here it is important to deliver affordable eggs sustainably. Market and science must be the driver of the recommendation,” he told Asian Agribiz at the recently-concluded IEC Global Leadership Conference in Kuala Lumpur.
|Australian beef, cattle exports face challenges from Indian carabeef|
[27 September 2016] Australian Meat Industry Council Chairman, Lachie Hart said the biggest challenge facing Australian beef and live cattle exports to Indonesia is the importation of cheap Indian buffalo meat. “It is something we are watching and we are concerned from a couple of fronts,” he said. “It is a cheap protein [the buffalo meat from India]. It is certainly going to compete directly with our secondary cuts and our offal items in that particular market. But I am concerned that we don't see Indian buffalo meat imports undermining the whole market in Indonesia,” Mr Hart explained. According to him, it is important for Indonesia to maintain some level of base pricing to ensure its own domestic production is viable and sustainable in the long-term.
|Japan, Korea interested to invest in India’s seafood industry|
[27 September 2016] Two major forces in the seafood sector, Japan and Korea, have expressed interest in investing in value addition of seafood products in India which have touched USD 4.5 billion annually in exports, according to Nirmala Sitaraman, Union Commerce Minister. “Japan and Korea can bring the technology and best practices from the world over and implement it here in a cost effective manner,” Ms Sitaraman said. At present Andhra Pradesh accounts for 45% of India’s total seafood exports. “We want to increase it to 60-70% in the next couple of years. We have already increased allocation for the seafood sector,” said N Chandrababu Naidu, Andhra Pradesh Chief Minister.
|Thailand’s Bangkok Ranch to expand its food business|
[26 September 2016] Thailand’s Bangkok Ranch (BR) aims to expand its food business in European markets, Joseph Suchaovanich, Managing Director of Asia and Asia Pacific at BR told Asian Agribiz. “BR foresee intense competition in the live ducks segment in Europe,” he said. Meanwhile, Chinese players have expanded their roasted duck business in European markets. BR recently bought a food processing plant in Pathum Thani province and the company is sourcing equipment for the new plant. “The combined investment will be around USD 20 million. In the near future, we will export more processed SKU of duck meat to Europe, Japan and other countries,” Mr Joseph said, adding that these new products will offer better profit margins and help reduce pressure from conventional products and markets.
|Sumber Unggas to produce 100k native chicken DOC a week|
[26 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeder based in West Java, early next year will start to construct five new native chicken PS houses with an investment of USD 191,000. Naryanto, owner and Managing Director told Asian Agribiz that the new semi-closed houses are targeted for operation at the end of 2017. “With the new houses, we will be able to produce 100,000 native chicken DOC per week,” said Mr Naryanto. Sumber Unggas produces different types of native chicken DOC including KUB, selected Sentul, KUB-Sentul crossbreed, Cemani (black chicken), Kedu and Pelung.
|Muyuan Foods to build 1m head pig farm in central China|
[26 September 2016] Chinese pig producer Muyuan Foods said it has signed an agreement with the city government of Laohekou in central China to build a pig farm that is able to produce 1 million heads a year. A 300,000 tonne feedmill will be added to the project that is estimated to cost over USD 172 million. Muyuan’s first-half live pig sales increased 35% year-on-year to 1.15 million heads, including 0.83 million finished pigs and 0.32 million piglets. The company targets to produce 2.8-3.5 million pigs this year.
|France to establish sustainable pork production chain in Mekong|
[26 September 2016] Paris has just inked a cooperative agreement between French enterprises and Vietnamese pork farmers to establish a safe pork production chain called ‘Le Porc du Mekong’. The agreement aims to produce safe, high quality pork products as well as establish a transparent, strictly controlled closed pork production system in Vietnam’s Mekong Delta. French companies that are participating include Neovia Vietnam to provide feed, Grimaud Group for breeders, and Le Boucher, who will take charge of processing and distributing finished products to the market. Already some 600 Vietnamese pork producers have expressed their wish to officially participate in the project.
|Indonesian government recommends import of 66,000t of beef|
[26 September 2016] Indonesia’s Ministry of Agriculture has given import recommendations to 14 importers to bring in 66,158.5 tonnes of beef to the country for the horeca and meat processing industries. Of this figure, allocations for secondary cuts and industrial meat are 21,991 tonnes and 21,765 tonnes, respectively, while the remainder is for premium cuts. Sri Mukartini, Director of Veterinary Public Health said: “We don't use quarter-based import system anymore. Beef import can be done throughout the year.” Of the 14 companies, Ms Mukartini said Agro Boga Utama (11,275.7 tonnes), followed by Indoguna Utama (9000 tonnes) and Bayu Jaya Lestari (7000 tonnes), received the largest import quota.
|Nampa members eye regional export markets|
[23 September 2016] Indonesian meat processors incorporated under the National Meat Processors Association (Nampa) are considering exports. Ishana Mahisa, Nampa Chairman told Asian Agribiz that they are exploring market potential in the Southeast Asian region. “Canning Indonesia Products, our member based in Bali, exports its canned meat products to Brunei and Vietnam. In the near future, San Miguel Pure Foods Indonesia will also export its products,” he revealed. Mr Mahisa said this is proof that the government has to support this industry. “We hope the government will allow imports of chicken MDM [mechanically deboned meat] to further develop this promising industry,” he added.
|China lifts 15-year ban on US, Canadian beef imports|
[23 September 2016] China has lifted a ban on imports of deboned and bone-in beef from US cattle below 30 months, effective September 22, said the Ministry of Agriculture (MOA) and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). The US beef imports are still subject to Chinese standards on traceability and quarantine, which will be released later, said the two ministries in a joint statement. Meanwhile, the AQSIQ and MOA said the nation also lifted a ban on Canadian bone-in beef from cattle below 30 months, effective September 19. Products from the US and Canada were banned by China from 2001 on concerns over the spread of mad cow disease.
|Thailand’s CPF sees growth potential in premium sausage |
[23 September 2016] Although the market value of premium sausage is small in Thailand, the segment has future growth potential, Thailand’s Charoen Pokphand Foods (CPF) told Asian Agribiz. “We believe that the premium sausage market will continue to grow. Sausage is easy to consume and the products are convenient and suitable for all ages,” it said. Moreover, the passion for food is growing in Thailand, opening more opportunities for premium sausage. CPF has launched its premium sausage under the Bucher brand. The brand targets urban consumers, who prefer original sausage recipes. The company said that its raw material, including pork and chicken meat, is free of growth promoters and beta-agonist. CPF has developed original German sausage recipes for the Bucher brand.
|Sumber Unggas receives breed acceptance certificate|
[23 September 2016] Sumber Unggas Indonesia, one of the largest native chicken breeders based in West Java, yesterday received the breed acceptance certificate (SKLB) from the West Java Animal Husbandry Agency for the production of selected Sentul chicken PS. “With the SKLB, our customers will be guaranteed that the Sentul chicken PS we produce follows good breeding practices,” Naryanto, owner and Managing Director told Asian Agribiz. Currently Sumber Unggas is able to produce 3000 selected Sentul chicken PS DOC per month. The price of Sentul chicken PS DOC is USD 2.3. “Half is sold to native chicken breeders under the Indonesian Native Chicken Breeders Association [Gapali] and the rest is for my internal needs,” said Mr Naryanto.
|Nepalese millers lower feed prices over input price drop|
[23 September 2016] The price of poultry feed in Nepal has contracted by as much as USD 0.02/kg. Price of a 50-kg bag of broiler feed has come down by USD 0.93, while a 50-kg bag of layer feed now costs USD 0.69 lower. Rabin Puri, General Secretary of Nepal Feed Industries Association, said the association decided to reduce the price of feed after the price of key inputs fell. “The price of soybean meal and corn has come down. It is expected to go down further,” he added. Over a dozen companies in the country are producing poultry feed. All of them have lowered their price following the decision of the association.
|Eggs offer a good daily dose of Vitamin D|
[22 September 2016] "Enhancing eggs with Vitamin D can help producers add to their margins as well as contribute to better health for consumers," Linda Christine Browning, Nutrition Consultant, University of Sydney, Australia told Asian Agribiz on the side-lines of the International Egg Council's Leadership Conference in Kuala Lumpur, Malaysia yesterday. "Vitamin D is good for strong bones and controls 85% of the calcium transfer across the intestines. Its importance to human health is profound and eggs are a valuable source of Vitamin D," she explained. Dr Browning will be addressing participants at Asian Agribiz's Layer Feed Quality Conference in Jakarta, Indonesia and Kuala Lumpur in October. More details and registration form are available here.
|Indonesia to increase corn planted area to meet feed industry demand|
[22 September 2016] Indonesia’s Ministry of Agriculture has firmly said that it will continue to suspend corn imports. To meet local demand, especially from the animal feed industry, the ministry has allocated USD 228 million to increase corn planted area in the country. The ministry targets to open 724,000 ha this year and 300,000 ha next year for corn planting. “We will support corn farmers with hybrid corn seed, fertilizer and pre and post-harvest equipment,” said Andi Amran Sulaiman, Agriculture Minister.
|CP Vice Chairman joins Yum China board|
[22 September 2016] Yum! Brands Inc has named nine new directors for the board of Yum China Holdings, including Chan Yiu-Cheong, Vice Chairman of Charoen Pokphand Group. Mr Chan, the former President and CEO of Walmart China, has also been an Executive Director and Vice Chairman of CP Lotus since April 2012. The new board will be led by Fred Hu, Chairman and Founder of investment firm Primavera Capital Group that will make a USD 410 million strategic investment in Yum China, concurrent with the completion of Yum China’s spinoff from Yum! Brands. The spinoff is expected to occur on October 31, with Yum China to commence trading on the New York Stock Exchange as an independent company on November 1.
|Malaysia to roll out corn planting project to slash feed ingredients import bill|
[22 September 2016] Malaysia currently imports 4 million tonnes of corn worth about USD 775 million a year. According to Agriculture and Agro-based Industry Minister Datuk Seri Ahmad Shabery Cheek the import of corn causes a high outflow of currency to foreign markets. “The trade deficit for Malaysia’s agro-food was USD 4.5 billion in 2015 and feed made up USD 1.4 billion of the cost, about 50% from corn alone,” he said. The minister hopes roll out a corn farming project nationwide within two years to reduce the country’s dependency on imported corn by at least 50%. “Corn is a crucial raw ingredient for feed, but we import nearly 100% of it,” he said.
|Itochu’s Canadian subsidiary to expand production for Japan market|
[22 September 2016] Itochu’s Canadian subsidiary HyLife Group Holding plans to boost its pork production with a USD 87.9 million investment as demand from Japan continues to grow. HyLife expects supply to increase by 15% in 2018. The company will develop products that match consumer tastes and are priced about 30% below Japanese pork. HyLife is a swine integrator that produces feed, operates swine farms and does processing. It exports roughly 40% of its production to Japan. Pork consumption rose 3% in fiscal 2015, Japan’s Agriculture Ministry reported. More than half of the meat was domestic, with the rest coming from the US, Canada and Denmark. Mexican pork is also making gains.
|Japfa and Cargill jv in cooked poultry products production|
[21 September 2016] PT So Good Food, the Indonesian subsidiary of Japfa Ltd, and PT Cargill Food Investment Indonesia have entered into a 40-60 joint venture to produce and supply fully-cooked poultry products in Indonesia. The strategic partnership will further boost PT So Good Food’s capabilities in consumer food processing technologies, product innovation and quality assurance by leveraging Cargill’s broad industry expertise. Both Japfa and Cargill will also work together to produce a new range of value-added consumer food products. Besides toll manufacturing for PT So Good Food, the joint venture company, PT Cahaya Gunung Foods, will supply high quality products to the institutional sector as well as convenience stores and petrol kiosks in Indonesia. It will also have the capability to export products to the region.
|BRF buys 70% stake in Malaysian meat processor |
[21 September 2016] Brazilian food conglomerate BRF has entered into an agreement with Malaysian agri-food company FFM Bhd to acquire 70% stake in its subsidiary FFM Further Processing for USD 16 million. This comes as the business embarks on a major effort to enhance its position in Southeast Asia. BRF said its investment in the company is “In line with BRF’s strategy… to strengthen its focus in Muslim markets”. The further processing company produces 250 tonnes of frozen sausages, chicken nuggets and burgers per month. These products are sold under the brand names Marina and Seri Murni.
|Vasep to sue US over unreasonable anti-dumping tariff on shrimp|
[21 September 2016] The Vietnam Association of Seafood Exporters and Producers (Vasep) said it plans to sue the US Department of Commerce over its final conclusion in the 10th administrative review (POR10) of anti-dumping duties on shrimp products imported from Vietnam. Vasep denies the charges and will ask for the tariff to be brought back to zero level. According to the Vietnam Competition Authority under the Ministry of Industry and Trade, POR10 was applied to frozen shrimp shipments imported into the US from February 1 2014 to January 31 2015. Voluntary respondents are subject to an anti-dumping duty rate of 4.78% while the tariff imposed on other Vietnamese firms or exporters remains at 25.76%.
|Indonesia’s Ag Ministry ties with millers to absorb local corn|
[21 September 2016] Indonesia’s Ministry of Agriculte has signed an MoU with the Indonesian Feed Millers Association (APPI) to absorb 8.62 million tonnes of local corn at a competitive price for the next 12 months. As many as 41 feed millers will buy the corn at the government’s fixed price of USD 0.24 per kg. The cooperation will be implemented in 29 provinces, in which each province will have one miller as the coordinator. Desianto Budi Utomo, APPI Secretary General said the association is ready to support the program, especially while the government is halting corn imports, forcing them to rely on local corn for the production of animal feed.
|SOPA promotes sbm exports to five Asian nations|
[21 September 2016] Encouraged by a good harvest of soybean this season, India’s Soybean Processors Association (SOPA) is sending a five-member delegation to Far-East and South-East Asian countries to promote export of soybean meal (sbm). The government has extended its support to SOPA in its promotion efforts. The delegation, led by Chairman Davish Jain, will be visiting Thailand, the Philippines, Vietnam, Indonesia and Japan this month. According to Dr Jain, the delegation will explore markets in these countries and meet buyers and trade bodies. India's exports declined in the last couple of years, due to disparity in prices. In view of the good crop prospects, SOPA sees the possibility of India re-entering these markets with competitive prices.
Innovation leads value-added seafood category to big gains
[19 September 2016]
The value-added seafood industry across Asia continues to grow, backed by lifestyle changes, a growing middle class and consumers who are health conscious. But Asian consumers are not looking for ordinary seafood products, they demand convenient, healthy and delicious products.
Seafood moving towards further processed products in Thailand
Thailand has seen many value-added seafood products that suit consumer lifestyle and are beneficial to health, being introduced said Anurat Khokasai, CEO of Thailand’s Prantalay Marketing. However, value-added products alone are not enough to win over consumers. Prantalay understands Thai consumer behaviour and has identified some major trends. “Consumers want convenient, healthy and delicious food, at a good price. The food industry will change and follow the trends,” said Mr Anurat. In order to stay competitive and satisfy consumers, Pratalay produces a range of frozen and chilled products, ready meals, seafood snacks, fish noodles, imitation crab and shrimp.
CP Prima develops its further processed seafood business
Indonesia’s largest shrimp producer and processor Central Proteina Prima (CP Prima) is bullish about seafood based ready-to-cook (RTC) and ready-to-eat (RTE) products in Indonesia. Sutanto Surjadjaja, Vice President Director, said this category is relatively new in Indonesia. However, “we believe this category, along with the economic growth and lifestyle changes, will continue to grow,” he said. Currently, CP Prima has two further processing plants in Lampung and East Java with installed capacities of 350 tonnes/month and 100-150 tonnes/month, respectively. “In total, our current installed capacity is around 500 tonnes/month, while the used capacity is half. And we are now looking for a location to set up a new plant,” Mr Surjadjaja said.
Adib to venture into further processed fish products
Indonesia’s Adib Global Food Supplies, a leading halal meat and seafood distributor and processor, plans to venture into further processing. “We have produced nuggets and balls from pangasius. It’s still on trials, but we will produce for commercial sales soon. For that, we will install a fish ball machine,” said Ardi Wijaya, Adib Vice President, adding that the company will also produce fish paste or surimi in the near future. Adib will focus on further processed products as the profit margin is good. Within the next five years, production of its further processed products should be bigger than the fillet production said Mr Wijaya. Meanwhile, every day Adib’s fish processing facility in Karawang, West Java processes 6 tonnes of pangasius and produces around 2.5-3 tonnes of pangasius fillet.
Consumption of aquatic products in China is set to grow
Zhanjiang-based prawn and tilapia integrator Guolian Aquatic Products Co is China’s largest exporter of prawns to the US, accounting for about 40% of the total. It is the only seafood company in China that can export shrimp to the US at no tariff. Nevertheless, the company has been expanding its presence in the domestic market since 2014 by introducing premium seafood worldwide for local consumers. “China has a population of nearly 1.4 billion, and people here have a special liking for delicacies,” Guolian said in a statement. “With the rise of their income level, more and more Chinese demand nutritios, and the consumption of aquatic products is set to grow,” it said. Guolian also added that product R&D is crucial for the seafood sector and seafood suppliers need innovations in nutrition and preservation to lead the consumption trend.
Gadre Marine bullish on India’s value-added seafood market
India’s Gadre Marine, a seafood processing and packaging unit, aims to double its revenue this year. “We have finished at USD 82 million,” said Arjun Gadre, second generation of the family business. Hence, the company targets sales of its value-added seafood products in local markets to reach 500 tonnes this year, from 250 tonnes last year. For exports the company last year exported 34,000 tonnes of fish and produced about 14,000 tonnes of value added products made from shrimp, squid, cuttlefish and other fin-fish. Meanwhile, Mr Gadre said the taste and habits of the consumers in India are changing. Especially in seafood, now the customers are accepting the frozen fish due to its good quality and availability throughout the year. Also the young generation prefer ready-to-cook and ready-to-eat seafood due to its cooking convenience.
Thailand’s CP Foods expands to India
Thailand’s Charoen Pokphand Foods (CP Foods) has started a processing plant in India, with plan to install machinery for producing cooked shrimp for the US market, said an executive of the company. In March, the company started production in a plant in Visakhapatnam, Andhra Pradesh. At the moment, CP Foods is looking to ramp up to 6000 tonnes of finished product volume. The focus is on commodity products at the moment, but CP Foods will gradually introduce cooked products and then other value-added items in the future, the executive said. CP Foods has leased a plant, he said. “We will put in a cooked line, later this year or early next year.” Meanwhile, the company has expanded production from its own farms in India to 1500 tonnes, he said.
Thai Union eyes India market
Thai Union Group (TU) is expanding to India, driven by the impact of EMS in Thailand. “We don’t want to rely on only one source. If disease comes, we want to minimise the risk, manage the risk. For Thai Union and also our customers,” said Rittirong Boonmechote, TU President for Global Shrimp Business. TU has a joint venture in India. Test production will start in June in Avanti Foods, the Indian joint venture plant with Avanti Feeds. Mr Rittirong said he wants the plant to be able to produce a full range of products, including value-added. “We can provide more variety of sources all of the same quality, with everything managed by our people,” he said. The plant will house raw, cooked and value-added production lines with raw material production capacity of over 25,000 tonnes a year, Mr Rittirong said.
Milkfish products in the Philippines
When it comes to further processing, the product that gets the most attention in the Philippines is the milkfish, locally known as bangus. It is now available in a variety of cuts and RTC and even RTE preparations in supermarkets. The most common processed milkfish products on the market today are boneless bangus. For most processors, domestic market where margins are better, is priority. Although popular among Filipinos, many overseas markets are still unfamiliar with the milkfish. Thus, export volume is relatively small. One big processor that is present in the export market for milkfish is Fisher Farms Inc (FFI). It exports about 60% of its products. About 30% goes to the horeca industry and only 10% is served in the retail market. FFI has been introducing and promoting value-added milkfish products in supermarkets and groceries.
Challenges in the Philippines’s value-added seafood industry
Although the seafood potential is huge, there are challenges to value addition in the Philippines. In the Philippines one challenge is that most local consumers still prefer their fish fresh. The FAO notes that about 70% of the fish is either consumed fresh or chilled. Philippine processors, meanwhile, are increasingly turning to mechanisation and better technology to reduce cost and ensure consistent quality. However, the next challenge is consistent supply, especially for processors of seasonal products like shrimp, tuna, cuttlefish and crabs. Chingling Tanco, Managing Director of Mida Trade Ventures International Inc and Mida Food Distributors Inc, said many local processors in the Philippines are unable to achieve economies of scale because supply of raw material can run short in the local market.
Growing RTE market in Malaysia
Malaysian medium-sized company Seiko Foods, a processor of halal value-added seafood products, has adopted a new strategy for the local market. The company produces ready meals packed in aluminium trays. The containers act as both baking trays to cook the frozen meal as well as a plate to eat the meal. This has given the company the breakthrough it needed to advance into the RTE market. The company has introduced Yellow Tumeric Sauce, Spicy Thai Sauce, Sambal Tumis Sauce and Ginger and Garlic Sauce, all using fillets of the white tilapia. According to Alan Lim, Seiko Foods CEO, the products were developed for the China market. The company is hoping to get funds to be able to export its products.
Malaysia’s Figo Foods expands capacity of seafood products
Malaysian company Figo Foods, a subsidiary of QL Resources, is the largest surimi fish paste maker in Asia. “Besides adding value, we want to give our customers convenience,” said Lee Teck Wee, Figo Foods Executive Director. The company produces various value-added products including cuttlefish balls, fish balls, prawn balls, and samosa. By June 2017 Figo Foods hopes to fully operate out of a new processing plant with a capacity to produce 40 tonnes/day of seafood products and is expandable to 60 tonnes/day. Its existing plant, can produce up to 12 tonnes of seafood per day. One of many reasons for the new plant is parent company QL Resources’ decision to enter the convenience store business with Japanese franchise FamilyMart. When FamilyMart opens it outlets, Figo Foods hopes to be ready with its range of premium RTE products.
|Cargill Indonesia building new feedmill in East Java|
[16 September 2016] Cargill Indonesia is currently setting up a new feedmill in Pasuruan, East Java with an installed capacity of 100,000 tonnes/year. This facility is expected to start operations in early 2017. Arief Susanto, Director told a local media that the construction is already around 70-80%. “Once the feedmill is ready for operation, we will use the capacity gradually. In the first phase, we will use around 30-40% of the installed capacity,” Mr Susanto said. With the addition of the new feedmill, Cargill Indonesia’s total feed production capacity increased to 400,000 tonnes/year. In the country the company already has six feedmills located in North Sumatera, Banten, West Java, Central Java, East Java and South Sulawesi.
|Vietnam to focus on native chicken development|
[16 September 2016] Vietnam’s Department of Livestock Production said the price of commercial broiler will continue to decline and has urged local enterprises to focus on stocking coloured feather chicken, or native chicken. It justified this call by saying that coloured chicken better suits local consumer preferences and requires low investment. Besides it uses local feed which is easily available and cheap compared to commercial feed. Coloured chicken is also said to be better priced in the local market. White chicken growers in Vietnam and especially in the southern poultry production hub of Dong Nai and Binh Duong provinces, are facing losses due to heavy dependence on input elements such as breeding stock, feed, veterinary drugs and low breeding technology as well as high production cost.
|GGL develops grassroots cattle breeding program|
[16 September 2016] Indonesia’ Gunung Sewu Group’s subsidiary Great Giant Livestock (GGL) is helping to support Indonesian cattle farmers to increase their herds. Concerned about the sustainability of the beef industry, GGL has a grassroots breeding program underway targeting small farms. Dayu Ariasintawati, Director said GGL is introducing stock with stronger genetics to improve local herds. “That’s part of the teaching and how to do the breeding to avoid negative selection,” she said. Ms Ariasintawati further explained that the company wants to work with farmers to define any opportunity to develop the business model. “Hopefully with this operation, with careful calculations, we can have a model that’s beneficial for both parties,” she added.
|Korea, Japan top buyers of US beef|
[16 September 2016] Asian markets outside China, notably South Korea and Japan, were the biggest buyers of US beef in July, said trade data from the US Meat Export Federation. Beef exports to Japan increased by 12% compared to a year ago while beef shipped to South Korea rose by 37%. Both countries also increased imports of US beef offal in July. January to July imports of US offal are up 6% from last year’s figure with the US exporting a total of 185,722 tonnes of beef by-products worth USD 4921 million. “We are pleased to see demand for US beef variety meats increasing in other markets,” said Philip Seng, USMEF President and CEO.
|Russia looks to flood Asia with soy, wheat and fish|
[16 September 2016] In five years the Russian Far East hopes to export food products to Asian countries. The devaluation of the rouble, the cost of labour and energy in Russia has decreased significantly making agricultural products up to 15% cheaper than in China, said Vitaly Sheremet, KPMG Partner in Russia and China. The most promising markets for the Russian Far East are China, South Korea and Japan, he added in an article. According to the Russian Ministry of Agriculture, Russia faces a huge trade deficit with Asian countries in agricultural products. Exports from Russia total just 29% of the overall trade between Russia and Asian countries.
|Shuanghui to sell chilled pork products on JD.com|
[15 September 2016] China’s top pork processor Shuanghui Group said it has signed an agreement with JD.com to sell its chilled pork products via the Chinese e-commerce giant, which has about 180 million active users. The products put up for online sales include pork slices, dices and minces, and will be expanded to prepared items, soup dishes and snacks. Shuanghui introduced China’s first chilled pork processing line in 2000, and now the company has 18 chilled pork complexes across the country and is able to deliver its products to almost all provinces within a day with cold chain. “There is great potential for chilled pork consumption in China, as warm meat still dominates the market, while chilled products account for only 20%,” Shuanghui said.
|Bayer and Monsanto to merge|
[15 September 2016] Bayer and Monsanto yesterday announced that they signed a definitive merger agreement under which Bayer will acquire Monsanto for USD 128 per share in an all-cash transaction. Monsanto's Board of Directors, Bayer's Board of Management and Bayer's Supervisory Board have unanimously approved the agreement. This transaction brings together two different, but highly complementary businesses. The combined business will benefit from Monsanto's leadership in Seeds & Traits and Climate Corporation platform along with Bayer's broad Crop Protection product line.
|Indonesia to issue permits to import 700,000 cattle next year|
[15 September 2016] Indonesia’s government said it will issue permits to import 700,000 cattle for slaughter in 2017 as well as to ship in additional buffalo meat from India, as it looks to control climbing food prices. “This is being done to push down prices that are still high, and to prepare for demand during the Muslim fasting month in 2017,” said the Economic Ministry in a statement. Indonesia ships in virtually all its cattle from Australia - a trade that was worth nearly USD 600 million in the last financial year. The government late last year estimated that the country will import around 700,000 heads of cattle in 2016.
Regional dairy update
[15 September 2016]
Vinamilk eyes second milk company in the US
Vietnam Dairy Products JSC, or Vinamilk, Southeast Asia’s biggest milk is seeking to buy a second company in the US as part of its global merger and acquisition strategy. Chief Executive Officer Mai Kieu Lien in an interview with Bloomberg said the deal is expected to close as early as next year. She declined to give the name of the target or the value of the deal. Vinamilk already has a stake in California-based Driftwood Dairy. Vinamilk targets annual revenue of USD 3 billion by end 2017.
China’s Fortune Ng Fung to spin off dairy business
Chinese beef producer Fortune Ng Fung Food Co said it is planning to put its dairy branch up for sale, so as to focus on its core business. The dairy farm, opened in 2004, is able to house up to 6000 cows. It now has a stock of 3493 heads, producing about 12,000 tonnes of milk a year and is a key raw milk supplier to China’s top dairy producer Yili. The assets are valued at USD 24 million. Meanwhile, Fortune Ng Fung is expanding its beef business with overseas acquisitions. It recently announced plans to buy two more Australian cattle farms, adding to its Woodlands farm that owns a stock of 9309 Angus and Wagyu cattle.
Visakha Dairy expands business reach
India’s Sri Vijaya Visakha Milk Producers Company Ltd, popularly known as Visakha Dairy, continues to expand its market share beyond Visakhapatnam city of Andhra Pradesh state. Chairman Adari Tulasi Rao said the company has already expanded its business in Odisha, West Bengal, Chattisgarh and Madhya Pradesh. Visakha Dairy enjoys an estimated 10% market share in UHT milk after Amul. It achieved a turnover of USD 164 million in 2015-16 by focusing on product diversification. Its milk procurement has increased to over 700,000 litres per day. In addition, the company has expanded its aseptic packing station to produce 300,000 litres/day of UHT milk.
Imported dairy cows boost Pakistan’s dairy sector
Pakistan has seen investments worth USD 360 million on imported dairy cows and farming technologies over the last decade, raising its milk production to 1 million litres per day. Imran Saeed Khan, Regional Business Development Manager at the Australian Trade and Investment Commission said that local dairy farms are currently earning USD 667,000 on milk sales, with farm price of milk hitting USD 0.57 per litre. “In contrast to indigenous cattle that produces much less milk, high yielding exotic dairy cattle of Holstein-Friesian and Jersey breeds and their crosses produce about 2-3 times more milk,” Mr Khan said. Official figures showed that the country imported 5205 exotic dairy cows in the July-March period of 2015/16. This added approximately 39,000 tonnes of milk per annum in the commercial milk system.
|Thaifoods Group expects better H2 due to rising pork and chicken prices |
[14 September 2016] Thailand’s Thaifoods Group (TFG) expects good earnings in the second half of this year due to rising chicken and pork prices, efinanceThai reported. Pork prices is currently at USD 2/kg, compared to USD 1.66/kg last year. TFG expects broiler prices to be around USD 1.29/kg in H2 and next year, up from USD 1-1.03 /kg in 2015. Cherdsak Kukiattinun, Chief Operating Officer of TFG said income will also be driven by rising chicken and pork demand in Thailand and overseas markets. Mr Cherdsak said TFG’s revenue will grow 10-20% in 2017, up from an estimated revenue of USD 573.88 million this year. Moreover, the company will supply its products to 30 restaurants in Thailand, up from 10 currently. And TFG will increase its chicken sausage production capability to 30 tonnes a day, from 15 tonnes currently.
|China starts Arbor Acres GP imports from New Zealand|
[14 September 2016] Jiangsu Jinghai Poultry Industry Group in east China recently imported 17,472 sets of Arbor Acres GP, making it the first Chinese import of the broiler breed from New Zealand, according to the official website of Nantong City where Jinghai is based. The occasional avian influenza outbreaks worldwide has led China to import broiler GP only from New Zealand and Spain, while international breeders are said to be expanding their capacities in the two countries to tap the Chinese market. Nevertheless, China’s first-half introduction of broiler GP was less than 110,000 sets, compared with 720,000 sets last year and the 1.54 million sets at its peak in 2013.
|KKR to boost exposure to Asia|
[14 September 2016] US private equity firm KKR & Co has started talks with investors for a third Asia fund, targeting a record USD 7 billion with a formal launch expected by year-end, people familiar with the plans said. The investors are looking to boost their exposure to fast-growing Asian countries such as China, India and Indonesia due to their massive populations of increasingly affluent consumers and because they are churning out businesses with the potential to become global corporations. In China, KKR has made investments in China Modern Dairy Holdings, pork producer COFCO Meat, chicken meat company Fujian Sunner Development Co. Meanwhile in Indonesia, KKR this year invested in agro-food integrator Japfa Comfeed Indonesia.
|Godrej Tyson to grow its market share in breakfast, snacking segments|
[14 September 2016] Godrej Tyson Foods, a 49:51 joint venture between India’s Godrej Agrovet and US’ Tyson Inc, is looking at a larger share of the breakfast and ready-to-cook frozen snacks categories. Its breakfast offerings include cold cuts (pre-cooked/cured meat – mostly sausages) and a variety of snacking options (both non-veg and veg) through its ‘Yummiez’ brand. According to Arabind Das, Godrej Tyson COO, the target is to double the market share. The company enjoys a market share of approximately 12%. “We plan to grow the category at 25-27% against the industry growth of 16-19%,” he said. The frozen processed food market in India is pegged at USD 120 million.
|South Koreans eat more processed meat products|
[14 September 2016] A diet that includes a growing amount of animal protein and time pressure that favours quick-serve food is fuelling sales of processed meat products in South Korea. The Ministry of Agriculture, Food and Rural Affairs and the Korean Agro-Fisheries & Food Trade Corp said the market for canned meat products, including ham and sausage, rose 12.4% in two years, to reach almost USD 1.11 billion in 2015. Sales grew 6.6% to USD 320.6 million in the first quarter of this year alone, compared with the same quarter last year. This is a 21.9% increase from the same period two years ago. Ham ranked number one among processed meats, accounting for 58% of the sales.
|Vietnam exploits potential of value added duck egg exports|
[13 September 2016] Omega-3 enriched duck eggs, salted duck eggs, and century duck eggs are added value duck egg products that present good export potential for Vietnam, which has the world’s second largest duck and duck egg production. The country produces 70 million ducks and 3.6 billion duck eggs per year. Data from the General Department of Vietnam Customs shows that Vietnam is among the top ten century-egg producers in the world. "Vietnam’s value added duck eggs has good export potential. We sell salted eggs and century eggs to the Chinese community in Brunei. We also export 20 containers monthly to Singapore and we are targeting other Asian markets like Malaysia and the Phillipines," Dam Van Hoat, General Director to Vietfarm Trading and Manufacturing Co Ltd, said in a statement.
|CV Mandaria sets up fish processing plant with UK as target market|
[13 September 2016] Indonesia’s CV Mandaria based in Tolitoli regency, Southeast Sulawesi, said the company has partnered with an investor from UK to set up a fish processing plant in the regency. Muhammad Pensi, Director said the project started in August this year. “Once the project is completed, we will purchase catch fish, especially tuna, from fishermen in the region then process it. Meanwhile, the investor will help with exports to and distribution in the UK,” said Mr Pensi.
|Thailand’s CPF joins Dow Jones Sustainability Index for second year |
[13 September 2016] Thailand’s Charoen Pokphand Foods (CPF) has made it into Dow Jones' Sustainability Indices (DJSI) in emerging markets category for the second consecutive years. CPF was among 33 companies in the food category. CPF was selected based on an assessment of the company’s economic, social and environment contributions. Mr Adirek Sripratak, President and CEO of CPF, said CPF has taken a step forward on the issues of sustainable development, which spans across its supply chain. CPF has put sustainability at the core of its business, Mr Adirek said, adding the company’s social responsibility has focused on three pillars including food security, self-sufficient society and balance of nature. DJSI is the first global index to track the leading sustainability-driven companies worldwide.
|Rising consumption in Vietnam bodes well for EU producers|
[13 September 2016] With Vietnam’s poultry consumption expected to increase 37% by 2021 and local production seen to rise by only 27%, EU producers sees a lot of potential for its poultry exports to the country. Experts at a workshop titled ‘High quality, QAFP (Quality Assurance for Food Products) certified poultry meat from the EU’ held in Ho Chi Minh last month said that in 2013, Vietnam’s poultry imports from the EU was only USD 8.24 million, but this soared 113% the following year. By 2021, Vietnam’s poultry imports is forecast to go up 49%.
|India allocates over USD150m to increase livestock, fishery production|
[13 September 2016] India has earmarked over USD 150 million to fund different projects under various programs run by the union government to increase livestock and fishery production in the country while providing livelihood opportunities to farmers. The Central government has released USD 19.5 million to nine states for implementation of various poultry and livestock development programs, and USD 24 million has been released for vaccination under the Livestock Health and Disease Control program. The government has released USD 2.6 million to support programs under the National Program for Bovine Breeding and the Cattle Mission. For approved projects under the National Program for Dairy Development, the government has released USD 36 million to 17 states. The programs are intended to double farmers’ incomes.
Indian buffalo meat imports to stabilise beef price in Indonesia
[12 September 2016]
The import of Indian buffalo meat is intended to help stabilise beef prices that have climbed as a result of beef and cattle import restrictions. Bulog is selling buffalo meat for USD 5 per kg to consumers. Beef prices are still at around USD 9-10 per kg. “Buffalo meat imports provide a meat alternative that’s cheaper, healthy and halal,” said Djarot Kusumayakti, Bulog CEO. ARIEF FACHRUDIN sheds light on the issues surrounding Indonesia's beef trade.
Indonesia imports extra buffalo meat from India
Indonesia’s State Logistics Agency (Bulog) has reached an initial agreement to import an extra 70,000 tonnes of buffalo meat from India this year, as it seeks to balance the effects of food import controls aimed at improving self-sufficiency. Wahyu, Bulog Procurement Director said the deal would bring Indonesia’s total buffalo meat imports to 80,000 tonnes in 2016. The first shipment of 720 tonnes recently arrived and will be sold in traditional markets in Greater Jakarta, while the remainder of the first 10,000-tonne order will be imported by the end of September.
Buffalo meat as an alternative
Bulog has introduced buffalo meat as an alternative to daily meat consumption. It recently staged a media event where it gave hundreds of its employees and reporters the opportunity to taste various dishes made from Indian buffalo meat. Djarot Kusumayakti, Bulog CEO admitted that buffalo meat is less popular compared to beef. However, “it’s only USD 5 per kg, much cheaper than the price of beef at USD 9,” said Mr Kusumayakti. “Buffalo meat is nutritious. It contains 69% zinc and 10% protein, and is low in cholesterol.” Previously, Enggartiasto Lukita, Trade Minister, assured that buffalo meat imports from India will continue despite initial concerns that the public will reject the product.
Indian buffalo meat may affect local cattle farmers
The Indonesian government's policy to import buffalo meat from India in large amounts may affect the price of local live cattle. Indian buffalo meat will be sold at USD 5 per kg in the local markets, which is far cheaper than the price of local beef of around USD 9-10 per kg. Teguh Boediyana, Chairman of the Indonesian Cattle & Buffalo Farmers Association (PPSKI), is worried that the policy will not motivate local farmers to raise beef cattle. “Since the government has failed several times to achieve beef self-sufficiency, in the last 3-4 years the price of live cattle and beef in the market has reached a new balance. As a consequence, farmers have to buy feeder cattle at higher prices. Now with the existence of cheap Indian buffalo meat, who will be responsible for the farmers’ losses?” Mr Boediyana asked.
Nampa welcomes Indian buffalo meat
Players in the meat processing industry welcomed the government’s move to import Indian buffalo meat. Haniwar Syarief, Executive Director of the National Meat Processors Association (Nampa) told Asian Agribiz: “Indian buffalo meat will make us more competitive in end-product price as it is cheaper than Australian beef.” Ishana Mahisa, Nampa Chairman told Asian Agribiz that the entry of Indian buffalo meat will help meat processors in the midst of the increasing price of boneless chicken. “Meat processors will switch to Indian buffalo meat as it’s relatively cheap and offers good taste and texture to processed meat products such as sausages,” Mr Mahisa said. However, Nampa hopes the buffalo meat is only allocated for the meat processing industry, not for end-consumers since it will negatively affect local cattle farmers.
List of Indian buffalo meat exporters to Indonesia
Based on several investigations, the Indonesian government has finally allowed 10 Indian buffalo meat processors & exporters to export frozen deboned and deglanded buffalo meat to Indonesia. Asian Agribiz received names of the suppliers from Indonesia’s Ministry of Agriculture, they are: Al Kabeer Export Pvt Ltd (Telangana), Amroon Food Pvt Ltd (Uttar Pradesh), Fair Export Pvt Ltd (Uttar Pradesh), Frigerio Conserva Allana Pvt Ltd (Telangana), Frigerio Conserva Allana Pvt Ltd (Uttar Pradesh), Frigorifico Allana Pvt Ltd (Maharashtra), HMA Agro Industries Ltd (Uttar Pradesh), Indagro Foods Pvt Ltd (Uttar Pradesh), Mirha Export Pvt Ltd (Punjab) and MK Overseas Pvt Ltd (Punjab).
|Indonesian broiler farmers demand market segmentation, protection|
[9 September 2016] Hundreds of commercial broiler farmers from different associations from West Java, Indonesia visited the Ministry of Agriculture on Wednesday to convey their needs. Hidayat Noor, a spokeperson of the Bandung Farmers Communication Forum told Asian Agribiz that so far this year they are struggling to survive in the business. "We asked the government to immediately set the floor price of live birds at USD 1.5 per kg,” Mr Noor said. During the discussion, the farmers asked the government to limit integrators’ interests to a maximum at 30%, as well as prohibit integrators to sell live birds at traditional/wet markets. “We need policies on market segmentation and protection for small-medium scale broiler farmers to beat unfair competition,” Mr Noor added.
|China’s Xuanwei to expand ham further processing|
[9 September 2016] Xuanwei city in southwest China’s Yunnan province said it targets to extend half of its 60,000 tonnes of traditional hams into further processed products by 2020. Last year, the city produced 50,000 tonnes of hams valued at USD 300 million. Of this, 10,000 tonnes went into processed products like cooked ham, ham slices and mooncakes. “We will add value to the industry with more further processing, and the market is expected to grow to USD 750 million in 2020,” Fan Meigang, Director of Xuanwei Ham Administration Office, told Asian Agribiz. Xuanwei Ham is one the top three traditional ham categories in China, with a national market share of about 30%, according to the China Meat Association.
|Thailand raises demand for US feed ingredients |
[9 September 2016] The Thai Feed Mill Association’s forecast of feed demand remains unchanged at 18.6 million metric tonnes in 2016, up approximately 4% from 2015, according to the USDA's GAIN report. Feed industries rely more on imported feed ingredients which currently account for approximately 60% of total feed demand due to insufficient locally produced feed grains and co-products. Thailand’s import demand for US feed ingredients is expected to trend upwards, particularly for soybean and soybean meal, and distiller’s dry grain with soluble (DDGS). Meanwhile, Thailand’s wheat imports in marketing year 2015/16 was higher than expected, particularly for feed wheat due to the shortage of domestic supply of broken rice and corn for swine and poultry feed rations.
|Indonesia to shift fish processing development to eastern regions|
[9 September 2016] Indonesia’s Chamber of Commerce and Industry (Kadin) supports the Ministry of Fisheries and Marine Affairs’ plan to develop fish processing units in eastern Indonesia. “Kadin strongly supports the plan since the supply of fish from the region is abundant. This move will make costs of transportation and logistics more viable,” said Andi Rukman Karumpa, Kadin Deputy Chairman for Eastern Indonesia. So far, many fish processing plants are built in Java because most of the fishing vessels come from western Indonesia. However, Susi Pudjiastuti, Minister of Fisheries and Marine Affairs, wants the development of fish processing centres to be shifted to outside Java such as Kalimantan, Sulawesi and Papua. Based on the ministry data, there are 718 fish processing plants in the country, of which over 60% are located in Java.
|India’s soybean meal exports contract 66%|
[9 September 2016] The Soybean Processors Association of India has said that the export of soybean meal and its other value-added products during August 2016 was just 10,615 tonnes compared to 31,157 tonnes in August last year, registering a fall of 66%. The country’s soymeal exports in 2015-16 fiscal year ended March 31 dropped 74% from a year ago to 387,297 tonnes. Sri Lanka, Indonesia, Japan and Taiwan were key buyers of Indian soymeal in the year. Soybean prices in India jumped due to lower production, making local soymeal expensive compared to supplies from South America, said dealers.
|Vietnam, World Bank to commercialise PED vaccine|
[9 September 2016] Vietnam and the World Bank are cooperating to boost the production and commercialisation of PED vaccines in the country, with a 34-month project titled ‘Developing the technology of producing PED vaccine for farmed swine.’ The project will cost USD 3.4 million, to be jointly funded by the World Bank (40%) and a group of Vietnamese producers led by Duc Hahn Marphavet Veterinary Medicine JSD, and is expected to enhance Vietnam’s capacity to produce vaccines, especially PED, and reduce its reliance on imported vaccines.
|Biotech Farms to prioritise pork exports|
[8 September 2016] Biotech Farms, one of the farms accredited by the Singapore Agri-Food & Veterinary Authority to export pork to Singapore, welcomes the news that the government is again pursuing pork exports to the city state. The company owns one of the country’s most modern farms, and supplies pork primarily to its sister company, KCC Malls Supermarkets. Dr Harold Eslabon, who is in charge of Biotech’s day to day operations, told Asian Agribiz that exports “will be our top priority because our slaughterhouse project and expansion in our swine operations are designed for the export market.”
|Indonesia to impose tax on raw fish exports|
[8 September 2016] Indonesia’s Ministry of Fisheries and Marine Affairs in the near future plans to impose a tax on raw fish exports. This is aimed at developing the domestic fish processing industry and to increase processed fish exports. Nilanto Prabowo, General Director of Fish Products Competitiveness, said of the total fish exports from the country, 50% is processed fish. “We want to raise this figure,” he said. Based on the Statistic Central Agency data, during the first half of this year Indonesia exported 94,397 tonnes of fish products to the US and 54,384 tonnes to Japan, up 15.56% and 7.04% respectively over the previous year.
|Wens pig farming segment’s H1 profit exceeds 40%|
[8 September 2016] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said its pig farming segment’s gross profit margin stood at 40.28% in the first half of 2016, compared with 9.69% a year earlier. The company’s H1 pig sales rose 14.61% to 8.05 million heads, driving the segment’s revenue up 71.61% at USD 2.77 billion. Wens set up 18 new pig complexes during the period, with farms under construction, to have a combined capacity of 2.2 million pigs, in addition to an over 9-million-head contracted capacity in northeast and southwest China. The company also saw its H1 yellow broiler sales up 10.33% at 364 million birds, though the segment’s gross profit margin fell to 12.26% from 15.18%.
|Indonesia opens its market for Mexican beef, cattle|
[8 September 2016] The Indonesian government has approved imports of beef, feeder cattle and breeding cattle from Mexico. Juan Permata Adoe, Vice Chairman for Food Processing and Livestock Industry of the Indonesian Chamber of Commerce & Industry, said players in the beef industry have responded positively. “We also expect the government to open the market to Brazilian beef and cattle,” Mr Adoe said. “Ultimately, it’s about price. Exporters from Mexico and Brazil can offer better prices than Australia.” From January to August imports reached 402,163 heads of feeder cattle, or 67% of the total import quota allowed by the government.
|Sasso, Hendrix Genetics to ally on coloured broiler breeding|
[8 September 2016] France-based Sasso, a specialist in coloured broiler breeding and genetics company Hendrix Genetics have signed a Memorandum of Understanding to connect the breeding activities of Sasso with the worldwide network and R&D centre of Hendrix Genetics. The move is seen to intensify Sasso’s breeding program and product development as well as give the company a stronger financial base for its asset renewal program and international expansion. Under the transaction, Sasso will strengthen its equity structure with new shares to Hendrix Genetics. The deal is expected to be completed before the end of the year.
|Maeil considering bid for McDonald’s operations in South Korea|
[8 September 2016] South Korea’s Maeil Dairy Industry Co Ltd is considering a bid for McDonald Corp’s South Korean operations, said a Maeil spokesman. He said Maeil, South Korea’s second largest dairy company, has not yet decided whether to proceed with an offer. He declined to comment on any potential acquisition partners. CJ Corp and NHN Entertainment Corp were among South Korean companies that have previously shown interest in the fast food giant’s business in the country. Investment banking sources said the sale could fetch around USD 268-448 million.
|New chicken processing plants on the cards for Indonesia|
[7 September 2016] Indonesia’s chicken processing industry will see new plants in operations within the next 2-3 years. Rudy Hudin, Country Manager Indonesia of Marel, told Asian Agribiz that China’s New Hope Group plans to set up a 6000 bird/hour processing plant in the country. A newcomer Konspol Group from Poland, plans to set up a 12,000 bird/hour chicken processing plant in Sukabumi, West Java, which will be followed by the construction of a further processing plant. Bounty Segar Indonesia, the jv between the Philippines’ Bounty Fresh and Indonesia’s Triputra Group, will build a 6000 bird/hour chicken processing plant and a 2 tonne/hour further processing plant. Meanwhile, the jv company of Indonesia’s Indofood and Malaysia’s CAB Cakaran will also set up a 6000 bird/hour chicken processing plant and a 2 tonne/hour further processing plant which will produce sausages and nuggets.
|Myanmar workers sue Thailand’s Betagro over labour abuse|
[7 September 2016] Myanmar migrant workers recently filed a lawsuit against Thailand’s Betagro alleging forced labour on a chicken farm in Lopburi province. The 14 workers are demanding USD 1.3 million in compensation for being overworked and underpaid on a Thai chicken farm, AFP reported. Meanwhile Betagro, which has cut ties with the supplier farm, said that the Department of Labour Protection and Welfare in Lopburi province and National Human Rights Commission of Thailand have already investigated this case and found that the employer was not involved in human trafficking, slave labour, forced labour and human rights violations. Betagro also said this presents an opportunity to improve labour standards in the industry.
|Poultec saves costs with 100 ft wide broiler houses|
[7 September 2016] Malaysian broiler company Poultec Enterprise Sdn Bhd installed the country’s first 100 ft wide poultry house. Tan Soon Nam, MD, said by going this wide the company managed to lower its building costs by 20-25%. The other advantage is space. “Now we don’t need a large piece of land to house 55,000 birds. When we reduce land space we reduce labour cost. Now we only need two staff for this number of birds compared to six before,” he told Asian Agribiz. “The 100 ft house is divided into five areas. Each area holds 11,000 birds. We have this division so that they will be well spread out, and to avoid a stampede.”
|Philippines revives plans to export pork to Singapore|
[7 September 2016] After meeting with pig producers in Mindanao, Philippine Agriculture Secretary Emmanuel Piñol said the government will revive plans to export pork to Singapore. The country was supposed to ship pork to the city state from Mindanao in 2008, but the shipment was halted after the Ebola Reston virus was detected in some samples from pigs in Luzon. The country however remains among the Singapore Agri-Food & Veterinary Authority’s list of approved pork exporters. Mr Piñol is also continuing efforts to begin pork exports to Japan under the Japan-Philippines Economic Partnership Agreement.
|New Hope Liuhe sees positive growth in feed sales|
[7 September 2016] China’s top feed miller New Hope Liuhe Co said its first-half feed sales volume rose 3.73% to more than 6.90 million tonnes, the first positive growth in a couple of years. Revenue from the segment, however, fell 9.50% to USD 2.73 billion, due to lower selling price of its feed products reflecting lower raw material costs. Gross profits were down 13.40% at USD 171.30 million, and the company attributed this to its earlier stock of high-cost raw materials. “We used up the raw material stocks in the first half of 2016, and better performance is expected for our feed business in the second half,” New Hope said.
|Bangladesh farmers need capital to revive their business|
[7 September 2016] Poultry farms in Bogra, Bangladesh were forced to close due to lack of capital and government subsidies. Local sources said about 250,000 people became unemployed directly and indirectly due to this. According to the Bogra District Poultry Owners Association, there were over 5200 poultry farms and 60 hatcheries in the district in 2014. Currently, over 550,000 people are involved in the industry. Nurul Ameen, General Secretary of the association said 40% of the poultry farms were destroyed in a storm in April 2015. Even though the government has instructed banks to provide loans on easy terms, farmers are being denied this or offered loans at 12-17% interest, Mr Ameen said.
|Thailand softens fee hike plan for poultry industry|
[6 September 2016] Thailand’s new Animal Slaughter and Sale of Meats Control Acts will see a slaughter fee hike of only USD 0.0058 per unit of poultry, much lower than the earlier fee of USD 0.114. Nine poultry associations expressed concern over the earlier high fees saying it will encourage illegal slaughtering, negatively affect consumers and reduce the industry’s export competitiveness. “The poultry associations have accepted the new plan,” Dr Sorravis Thaneto, Deputy Director General of Thailand’s Department of Livestock Development (DLD) told Asian Agribiz. The existing Act has a slaughter fee of USD 0.0028 per unit of poultry, but that has been waived for many years. The new law aims to improve food safety and punish below standard slaughterhouses.
|Indonesia to remove bottlenecks for India’s carabeef|
[6 September 2016] Indonesia recently reassured India that it will work to remove the bottlenecks in its market for Indian carabeef imports. This was discussed at a meeting in India between India’s Agriculture Minister Radha Mohan Singh and a 15-member Indonesian delegation led by Ahmed Mujhani. In March this year, Indonesia’s President Joko Widodo signed a decree allowing zone-based meat imports from India after its audit team confirmed the country has excellent mechanism for meat processing and quarantine control. In September 2015, the audit team from Indonesia inspected abattoirs and research institutions in India and found more than 50 bovine processing plants which are above international standards.
|Halal beef producer Yisai’s H1 revenue up 23%|
[6 September 2016] Henan Yisai Beef (Stock) Co, a halal beef producer based in central China, said its first-half operating revenue rose 22.71% year-on-year to USD 75 million. Gross profit margin fell to 15.30% from 19.07% a year earlier. Yisai sells chilled/frozen beef, processed beef products, as well as cattle feeds, and the company attributed the growth to its market expansion into all provincial capital cities in China. Yisai is building a 200,000-cattle complex in north China’s Inner Mongolia.
|Poland sees higher meat exports to Vietnam|
[6 September 2016] Poland has seen higher meat exports to Vietnam in the past few years and expects the trend to continue once the EU-Vietnam free trade agreement (EVFTA) is endorsed. According to the Department General of Customs, Vietnam’s import of Polish pork increased sevenfold between 2012 and 2014, reaching 836 tonnes valued at USD 788,000. Vietnam is Poland’s largest trade partner in Southeast Asia. In addition to pork, Poland also exports poultry and beef to Vietnam.
|Poultry can help end hunger, malnutrition in Bangladesh|
[6 September 2016] The poultry industry has the potential to help Bangladesh achieve the United Nations’ Sustainable Development Goals (SDGs) of eliminating malnutrition and ensuring better health for its citizens. “Hunger and malnutrition pose major barriers to our development. In meeting the demands for protein, the poultry industry is playing a pivotal role,” said Sirajul Hoque, General Secretary of World’s Poultry Science Association–Bangladesh Branch. “By 2021, our per capita chicken consumption is expected to increase to 8.42kg, and we can achieve SDGs in the field of ending hunger and removing malnutrition,” he added. According to Bangladesh Poultry Industry Coordination Committee, 45% of animal protein in the country comes from the poultry industry.
|Japfa to sell off more CGE stocks|
[6 September 2016] Singapore-based Japfa Ltd is likely to sell more shares in Ceylon Grain Elevators PLC (CGE), Sri Lanka’s local media reported. The fourth largest shareholder in the poultry firm, Japfa Ltd held about 6.48% in the company in June this year. “But they sold some 1.27% in March this year,” one analyst said. He said around 1.5 million shares may be on offer in the coming months. Analysts say that growing purchasing power will augur well for CGE and expect reduced cost of production and improved margins on the back of importing and stocking of cheaper corn from new found low cost destinations.
|Shandong publishes standards for humane broiler slaughtering|
[5 September 2016] The Shandong province in east China said it has published standards for broiler slaughtering designed to be more humane, the first of its kind in the country. The standards, effective August 29, were developed by a team led by the Qingdao Agricultural University, with local companies including Nine Alliance, New Hope Liuhe and CP China also participating. “The protocols are non-compulsory, referring to similar EU standards- particularly those in UK- and practices by leading broiler processors in Shandong,” Sun Jingxin, who was in charge of the program, told Asian Agribiz. “Actually some processors like Nine Alliance have already met the standards in their premium products for export,” Professor Sun added. Shandong is a major region for poultry production in China and its chicken exports account for more than 40% of the nation’s total.
|AP Nutripharma offers cordyceps as AGP substitute|
[5 September 2016] Singapore-based AP Nutripharma is cultivating cordyceps to create OrganicPro, additives that inhibit the growth of bacteria. Recent tests have shown that cordyceps “can operate like antibiotics and promote good animal performance,” Dr Xu told Asian Agribiz. The company produces four tonnes of OrganicPro for sale in India, Israel and New Zealand. “We have not gone all out in sales. In this business producers are more accepting of products from the west so it is not easy for us to penetrate this market,” said Dr Xu. But the industry is changing. Dr Xu said consumers are driving the push for safe food, and alternatives to AGP is in demand.
|Japfa Indonesia optimistic of 15% net sales growth|
[5 September 2016] Indonesia’s agri-food company Japfa Comfeed Indonesia recorded a positive performance during the first half this year. Its H1 net sales reached around USD 1 billion, an 11.29% increase from the previous year, while net profit reached USD 72.59 million, a turnaround from last year when it recorded a net loss of USD 20.49 million. The company said the positive performance was driven by stable supply and demand of DOC and broilers in Q2, as well as the Ramadhan festival which boosted consumption. “The appreciation of rupiah and the weakening prices of feed raw materials gave a boost to us,” said Putut Djagiri, Senior Vice President, Deputy Head of Corporate Finance. Japfa is projects a 10-15% net sales growth this year from last year’s USD 1.88 billion.
|Bangladesh to examine pros and cons of FDI in poultry industry|
[5 September 2016] The government of Bangladesh is considering controls over foreign investors in the country’s fast growing poultry industry after local players said they are concerned about being overtaken by overseas giants. Narayan Chandra Chanda, Minister of Fisheries and Livestock said the ministry “couldn’t assess yet whether foreign investments in the poultry sector will be helpful or hurt farmers. However, an expert committee will be formed soon to examine the issue. Local industry players noted that while only seven foreign poultry companies are operating in the country – five of them from India – they control around 35-40% of the market. Other major players include Charoen Pokphand from Thailand and New Hope from China.
|Rising poultry consumption in Vietnam bodes well for EU producers|
[5 September 2016] With Vietnam’s poultry consumption expected to increase 37% by 2021 and local production seen to rise by only 27%, EU producers see potential for poultry exports to the country. Experts at a workshop titled ‘High quality, QAFP (Quality Assurance for Food Products) certified poultry meat from the EU’ held in Ho Chi Minh last month said that between 2013 and 2014, Vietnam’s poultry imports from the EU grew more than 113%. Mariusz Boguswewski, Economic Counsellor at the Polish Embassy in Vietnam said the EU is currently running a series of trade promotion activities to promote EU’s QAFP certified poultry meat to the Vietnam market.
|India registers nine new livestock breeds|
[5 September 2016] Nine new breeds of livestock have been registered by India’s Karnal-based National Bureau of Animal Genetic Resources, taking the total number of indigenous breeds to 160. The newly identified and registered breeds include Badri cattle (in Uttarakhand), Teressa goat (in Nicobar Island), Kodi Adu goat (in Tamil Nadu), Chevaadu sheep (in Tamil Nadu), Kendrapada sheep (in Odisha), Tenyi Vo pig (in Nagaland), Nicobari pig (in Nicobar Island), Doom pig (in Assam) and Kaunayen chicken (in Manipur). Trilochan Mohapatra, Director General of Indian Council of Agricultural Research, said registration of various unique populations as breeds will help in inventorisation, improvement, conservation and sustainable utilisation of animal genetic resources of the country.
|Feeding layers for longer productive life|
[2 September 2016] In a bid to increase efficiencies, egg producers are on the lookout for ways to produce birds with longer laying cycles. Marcus Kenny, a nutritionist from Hy-Line International with extensive experience in the poultry industry, will speak at the 2016 Layer Feed Quality Conference to discuss nutritional recommendations to prepare pullets for a long productive life, as well as talk about feeding for longer laying cycles without sacrificing egg shell quality. Mr Marcus is just one of several experts who will present actionable take home messages to help producers improve their profitability, productivity and sustainability. Organised by Asian Agribiz, the conference will be held in Jakarta, Indonesia on October 17-18 and in Kuala Lumpur on Oct 20-21. Click here for further information and registration.
|Slight tightening of egg supply in the Philippines|
[2 September 2016] The price of eggs in the Philippines has inched up a bit due to a slight tightening in supply. An industry official, who did not want to be identified, told Asian Agribiz that this is likely due to birds not being able to hit ideal efficiencies due to a variety of factors, including sporadic cases of Newcastle Disease, a change in weather patterns that has led to some respiratory problems, as well as possible toxins in feed raw materials. He added however, that there is no cause for alarm as the industry is addressing the issue and supply is gradually normalizing.
|Poultec achieves good results with wider houses|
[2 September 2016] Broiler company Poultec Enterprise Sdn Bhd is likely the farm with the widest house, measuring 100 ft, in Malaysia allowing for 55,000 birds per house. The company stocked its first 100 ft-wide house last July. Tan Soon Nam, MD, told Asian Agribiz that the company was bracing itself for uneven or poor wind speed and ventilation but did not face these problems. “We are seeing more uniformity here. We are also happy with the differences in weight between male and female, it is not too great at about 300g.” The first three batches recorded a mortality of 2-3%. The birds reached 2.4 kg in 37-38 days, and FCR stood at 1.45.
|CP Indonesia to tap markets in second-tier cities|
[2 September 2016] Indonesia’s largest poultry integrator Charoen Pokphand (CP) Indonesia plans to strengthen its presence in second-tier cities to tap new growth potential. Tjiu Thomas Effendy, President Director, said the company will focus on markets outside of large cities to boost consumption. “Consumption of chicken in regional areas may still be relatively low compared to larger cities, but the economy is now more spread out rather than centred on cities, so we feel that the potential is there. People outside of large cities need good quality protein too,” Mr Effendy said.
|US pork exports to the Philippines up 6% in the first half|
[2 September 2016] US pork exports to the Philippines neared 16,000 tonnes in the first six months this year, up 6% year-on-year, data from the US Meat Export Federation showed. The higher volume also resulted in higher earnings for US pork at almost USD 37 million, 23% more than the previous year. The Philippines, which imports a significant volume of pork as raw material for further processing, is one of the key markets for US pork in Southeast Asia. In June alone, exports to the country rose 54% in volume to 3454 tonnes and soared 125% in value to USD 10.3 million compared to the same month in 2015
|China’s Wellhope H1 slaughtering business revenue doubles|
[2 September 2016] China’s leading feedmiller Liaoning Wellhope Agri-Tech Joint Stock Co said it generated revenue of USD 128 million from its slaughtering business in the first half of 2016, up about 97% from a year earlier. However, the segment’s gross profit margin fell to 1.55% from 1.58% during the period. The company’s overall revenue, which also covers feed product sales and feed ingredient trade, rose 18% to USD 755 million. Overall gross profit margin stood at 10.46%. Wellhope, in which Royal De Heus of the Netherlands holds a 9.63% stake, has ventured into integrated broiler business. It is also expanding pig farming by investing in a breeder and commercial farm in north China’s Hebei province.
|China’s Jinzi Ham's H1 e-commerce sales slows down|
[1 September 2016] China’s top ham producer Jinzi Ham Co said its e-commerce sales of the product totalled USD 3.10 million in the first half of 2016, up from USD 2.95 million last year, when it saw a 94% year-on-year growth from the channel. The company’s traditional ham sales stood at 612.52 tonnes, down from 800.66 tonnes a year earlier, while sales of its premium Bama Ham, a duplicate of Italy’s Parma, fell to 95.19 tonnes from 181.30 tonnes. Jinzi’s first-half revenue was down 20% at USD 13.60 million, and the company attributed the fall to “a changing market environment.”
|US beef exports to Indonesia up more than 400%|
[1 September 2016] Indonesia recently revised its restrictive import policies, which will now allow for imports of all beef muscle cuts and a range of beef variety meat items including livers, hearts, lungs, tails, tongues and feet. Joel Haggard, Senior Vice President for the Asia Pacific of the US Meat Export Federation, said Indonesia’s large population and expanding economy make it a significantly promising market for US beef exports. US beef exports to Indonesia rose more than 400% year-on-year in the first half of 2016, reaching 3271 tonnes, and more than doubled in value to just under USD 15 million. Mr Haggard is hopeful that more US processing plants will soon become eligible to serve Indonesia, a move that could further enhance US beef’s presence in the market.
|HCMC to oversee high tech-guaranteed pork with CCTV|
[1 September 2016] Ho Chi Minh City in Vietnam will install surveillance cameras and increase inspections at kiosks selling pork as food safety becomes a national issue. This is part of a pilot project using smartphone apps and ID bands mounted to pigs to monitor pork quality. The project, to start in November, is an attempt to keep traders from blending in pork of unknown origin to sell with clean pork, said Nguyen Ngoc Hoa, Vice Director of the city's Department of Industry and Trade. The project will kick off at 12 slaughterhouses, two wholesale bazaars, several inner-city bazaars and supermarket chains, namely Co.opmart, Satra, Vissan, An Ha and Sagrifoods.
|KFC appoints new franchisee in Thailand|
[1 September 2016] Yum Restaurants International (Thailand), the franchiser of KFC in Thailand, has appointed its new franchisee, Restaurant Development Company Ltd (RDCL), the Nation reported. Under the agreement, RDCL will acquire 130 existing KFC restaurants in Bangkok and Southern province of Thailand and will open 100 KFC restaurants by 2020. Waewkanee Assoratgoon, General Manager of Yum Restaurants International (Thailand) said that the deal will underpin its growth strategy to 800 stores in Thailand by 2020. KFC expects to have 585 stores by end-2016, with 217 operated by Central Restaurants Group, 238 by Yum and 130 by RDCL.
|US, India continue negotiations over WTO poultry dispute|
[1 September 2016] Trade officials from the US and India are working to conclude an agreement that could mean India would not have to pay an annual penalty for failing to comply with a WTO ruling, an Indian official said. If an agreement is reached, a compliance panel will be established and will determine how much compensation – if any – India would have to pay the US. The two countries are trying to settle a dispute over poultry imports from the US that started when India banned the import of frozen chicken legs from the US to stop the spread of avian influenza. A WTO panel confirmed that India’s ban was more trade restrictive than necessary, and unfairly discriminated against US imports.
|Giant Russian agro firm to export pork to Vietnam|
[1 September 2016] Rusagro Group, one of the largest vertically integrated enterprises in Russia, plans to export pork to Vietnam beginning next year. “Shipments are expected to start next year,” said Maxin Basov, General Director of Rusagro. Russia’s largest meat processor ABH Miratorg has also been licenced to supply poultry, pork and beef to Vietnam, according to the Vietnam Enterprise newspaper. “With a population of about 90 million people, Vietnam is an opportunity for us to export a variety of chilled and refrigerated meat products, especially pork and offal,” said Viktor Linnik, Miratorg’s Chairman.
|Expert to talk on pullet and hen nutrition at Layer Feed Quality Conference|
[31 August 2016] Dr Doug Korver, Professor of Poultry Nutrition from the University of Alberta in Canada will keynote this year’s Layer Feed Quality Conference with two presentations: one on pullet nutrition as a key to success in layer farming, and the other on hen nutrition for longer laying cycles. The conference, organised by Asian Agribiz, will be held in Jakarta, Indonesia on October 17-18 and in Kuala Lumpur on Oct 20-21. With its theme ‘Science, trial data, application’, the conference will address key issues with actionable take home messages to help producers improve their profitability, productivity and sustainability. More details and registration here.
|Tangrenshen to buy controlling stake in Inve’s former China unit|
[31 August 2016] Chinese feedmiller and pig integrator Tangrenshen Group said it has signed a framework agreement to buy a 51% stake in Shenzhen PremierInve Biotechnology Co, a former China unit of Belgian feed company Inve, for USD 24.43 million. PremierInve, which is now wholly owned by its Chairman Li Zhi, has an annual pig feed capacity of 150,000 tonnes. Tangrenshen’s feed sales rose 20% to 1.6 million tonnes in the first half of 2016, and it eyes full-year feed sales of 3.6 million tonnes. The company is also planning to invest total USD 1.35 billion in pig farming over the next 10 years, targeting to produce six million pigs a year by 2025.
|CP Indonesia eyes 15% sales growth|
[31 August 2016] Indonesia’s largest poultry integrator, Charoen Pokphand (CP) Indonesia, is eyeing a 15% growth in overall sales this year to USD 2.58 billion this year. The company still primarily relies on the sale of poultry feed and DOCs, which contributed 59% and 29%, respectively, to its revenues in Q1 2016. Net profits are projected to increase by 18% to around USD 162 million, thanks in part to an expected strengthening of the rupiah. CP Indonesia has no plans to set up new plants this year, as it wants to focus on improving the efficiency of existing operations. The company is looking to use 60% of its USD 82 million capital expenditure this year for maintenance, such as upgrading processing plants. As of June, it has invested roughly USD 30 million of the earmarked capex.
|Japan may reopen its market to US lamb|
[31 August 2016] Japanese regulators are considering reopening its market to US lamb exports, which are currently banned due to concerns with scrapie. Peter Orwick, Executive Director of the American Sheep Industry Association said after Taiwan reopened its market to US lamb, there is also a good chance Japan will lift its ban. “There are always more market opportunities for the highest end product but it’s taken close to 15 years to get Japan to agree to possibly lift their ban,” he added. He noted that the Japanese market opening is not dependent on the Trans Pacific Partnership agreement, however, if that is approved it would help lower tariffs.
|KFC Sri Lanka wins YUM! Outstanding Performer 2015 |
[31 August 2016] YUM! Brands recently recognised KFC Sri Lanka as the Outstanding Performer for 2015 within the Indian Subcontinent for its exceptional sales growth. KFC Sri Lanka has 27 restaurants island wide serving 10 million meals yearly. Local franchisee Cargill Ceylon PLC has successfully infused local tastes with the international brand. Localised dishes such as the KFC Chicken Buriyani, KFC Spice Rice and KFC Chicken Charger are now served next to the signature KFC meals that are available the world over. “KFC owes its success to food that is freshly prepared in-store,” Ranil Irugalbandara, General Manager of Restaurants sector said.
|Broiler prices in India fall due to Shrawan festival|
[31 August 2016] After staying high for two months, prices of broiler chicken in India declined sharply due to falling consumer demand in the month of Shrawan, during which most people prefer to consume only vegetarian food. Data compiled by Papaak.com showed broiler chicken prices in Vizag dropped 25% in the past month to trade currently at USD 1.01/kg. Similarly, broiler chicken in Bihar is sold at USD 0.91/kg now, a 20.8% drop from a month ago. Chicken farmers’ margins have squeezed dramatically between falling finished products’ prices and rising raw material costs. As a consequence, most medium and small-size farmers have reduced their production capacity which would reduce availability during the ensuing peak demand season after Diwali.
|CP launches largest layer farm in east China|
[30 August 2016] CP China said it has completed the introduction of 270,000 Hy-Line Brown commercial chicks to its Cixi complex in Zhejiang province, making it the largest layer farm in east China. It is also the company’s second largest layer farm in the country, following one in Beijing with a stock of three million layers. The Cixi farm, costing about USD 34 million, is expected to run at full capacity by August 2017, when it could produce 190 million eggs a year. “We target to serve the demands on premium branded eggs in the Yangtze River Delta region, which includes major cities of Shanghai, Hangzhou and Ningbo,” said CP China.
|US DDGS exports to Southeast Asia up more than 50%|
[30 August 2016] US DDGS exports to Southeast Asia has grown more than 50% to 1.7 million tonnes as of end-August, the US Grains Council said on its website. Vietnam, Thailand and Indonesia posted the biggest rise at 76%, 42%, and 29%, respectively. The agency said that at the current rate, exports to Southeast Asia has exceeded those to Mexico. Meanwhile South Korea’s US DDGS imports also grew by 39%.
|Fast Food to open 11 KFC outlets in H2|
[30 August 2016] Fast Food Indonesia, the operator of KFC in Indonesia, said it plans to open 30 new resto-style outlets this year. According to Justinus Juwono, Financial Director, in the first half the company opened 19 outlets, with the remaining 11 outlets targeted to open in the second half. “If the target is achieved, we will have 570 outlets in the country,” he said. In addition, Fast Food also plans to open six new KFC Box outlets. On its financial performance, Mr Juwono said its net profit surged by 55.75% to USD 3.25 million in the first half, driven by its strategies on efficiency.
|Thailand’s CPF commits to international labour standards|
[30 August 2016] Thailand’s Charoen Pokphand Foods (CPF) said it has committed to comply with international labour standards and will encourage stakeholders to comply with good labour practice guidelines. The country’s broiler sector earns some USD 2.6 billion in export earnings annually, however, labour welfare has become a burning issue, with good labour practices, fair and equitable treatment now being central to discussions. Prasit Boonduangprasert, Executive Vice President of CPF said in addition to quality, product integrity and prices, international customers also want assurance from producers that farm labourers are not subject to abuse “including child and illegal labour as well as human trafficking.” Moreover, they also expect environment-friendly products.
|Tilapia to become Vietnam’s key export item|
[30 August 2016] Vietnam’s Ministry of Agriculture and Rural Development plans to promote tilapia into a key export. By 2020, the country’s total tilapia production is estimated to reach 300,000 tonnes, of which some 50-60% would be eligible for exports with expected turnover of about USD 130-150 million. “In 5-7 years, tilapia will become Vietnam seafood’s key export item and partly replace pangasius,” said Prof Le Thanh Hung of Nong Lam University. The Vietnam Association of Seafood Exporters and Producers confirmed that the country’s tilapia exports have grown rapidly in the last three years. Vietnam is exporting frozen fillet and whole tilapia to more than 60 markets, with America, China and Taiwan being the leading destinations.
|QL Resources net profit up marginally due to seafood sector|
[30 August 2016] QL Resources, a Malaysian agro-food company, said that net profit rose 3% year-on-year to USD 2.58 million for the first quarter ended June. It also reported a 2.2% increase in revenue to USD 165.54 million in the corresponding quarter, it noted in the filing to the Bursa Malaysia. Revenue from its marine product segment rose 16% while its other divisions saw a drop in sales due to raw material production and delivery issues. QL Resources’ three main businesses are marine product manufacturing, palm oil production and integrated livestock farming. Each contribute 32.18%, 13.33% and 54.47% respectively to the company.
|Sumber Unggas to produce marinated native chicken products|
[29 August 2016] Indonesia’s native chicken producer Sumber Unggas plans to produce marinated products in the near future. Naryanto, owner, told Asian Agribiz that so far the firm, which has a 2000 birds/hour processing plant, only produces fresh chilled native chicken carcase retailed to supermarkets, hotels and caterers. “There are many potentials in the processing sector that I haven’t tapped, one of them is marinated products. We see a good market potential in marinated products. Therefore, we want to venture into this market in the near future. To support this project, we also plan to set up retail outlets that only sell different types of processed native chicken products,” he explained. He added that around USD 7500 will be allocated to buy a marinating machine.
|Seafood firms fret over wage hike plan|
[29 August 2016] Labour-intensive seafood processing companies have expressed concern over a possible region-based minimum wages hike by an average 7.3% next year. The Vietnam Association of Seafood Exporters and Producers (Vasep) has urged the Government to suspend plans from the National Wage Council, which passed the 2017 minimum wage raise plan. Vasep also proposed that wage adjustments be made every two or three years, instead of annually, and insurance payments for workers also be reviewed. The group said high labour costs will undermine their competitiveness in the global markets.
|Taiwan DDGS use on the rise|
[29 August 2016] While inclusion rate is still low, the use of DDGS in Taiwan is on the rise, said Clover Chang, Office Director of the US Grains Council (USGC) in Taiwan, adding that the agency is “trying to encourage producers to increase that percentage to create better quality feed.” Last week, the USGC sponsored the visit of a group Taiwanese grain buyers to the US to learn more about the “production, application, grading and quality standards for US DDGS.” The group also visited a poultry farm to learn more about egg processing and feedmill operation, as well as gained grain storage and overall plant maintenance information to help improve their own plant processes.
|Odisha state to increase its seafood export|
[29 August 2016] India’s Odisha state government has set an ambitious target to export seafood worth USD 447 million during the current fiscal. “Odisha has witnessed increase in seafood exports from 14,161 tonnes in 2007-08 to 35,630 tonnes in 2015-16,” said Bishnupada Sethi, the Fisheries and Animal Resources Development Secretary. Mr Sethi added that the state had exported seafood worth USD 714 million in the last three years and the products have a great demand in Southeast Asia, the US, Europe and Japan. “We have produced 13,137 tonnes of fish, crab, prawn and squid from Chilika lake alone,” he said. To further support the seafood industry, the state government has decided to create necessary infrastructure like air cargo handling at Biju Patnaik International Airport. The state government is partnering Airports Authority of India for the cold storage which is likely to be completed this year itself, said Mr Sethi.
|Calls for creation of Department of Fisheries|
[29 August 2016] Philippine Department of Agriculture (DA) Secretary Emmanuel Piñol called on lawmakers to prioritise the passage of bills that will create a Department of Fisheries and Aquatic Resources to ensure the protection of Philippine waters, marine resources and the rights of local fishermen. There are currently six bills pending in Congress toward this goal. Although the DA currently has the Bureau of Fisheries and Aquatic Resources, many industry players feel that a centralised agency focused on fisheries and marine resources will be better able to address their needs.
|Thai authorities, broiler association agree to improve labour practices|
[26 August 2016] Thailand’s Department of Labour Protection and Welfare, Thailand’s Department of Livestock Development and Thai Broiler Processing Exporters Association signed a memorandum of understanding (MoU) last week to improve labour practices and resolve labour abuse issues in the poultry industry. Pannee Sriyudhasak, Director General of the Department of Labour Protection and Welfare said that Thai government and the poultry industry will support and encourage players in the industry, ensuring that their hiring practices comply with the law. The three parties have jointly developed good labour practices guidelines for poultry farm and hatchery in Thailand. The main principle of the guidelines is the poultry industry will not use child labour and forced labour. Moreover, the industry will not be involved with human trafficking.
|Sumber Unggas to double its native DOC production in 2017|
[26 August 2016] Indonesia’s native chicken company Sumber Unggas has said that it targets to double its native DOC production to 60,000 chicks per week in 2017. Naryanto, owner, told Asian Agribiz that to achieve the target he has invested in new houses to increase the number of its native chicken PS. Sumber Unggas currently has 15,000 birds of native chicken PS which consists of Kedu, KUB, Pelung and Cemani breeds. Of its current 30,000 native DOC/week production, 50% is sold to free market – mostly in West Java -- while the remainder is raised at its own facilities which then to sell as both live and dressed birds.
|China to levy five more years of anti-subsidy duties on US chicken|
[26 August 2016] China’s Ministry of Commerce said the nation will maintain anti-subsidy duties on imports of US white-feather broiler products for another five years, effective August 30. The duties were mostly set at 4.1%, with Tyson Foods suffering 4.2% and Keystone Foods 4.0%. The previous five-year duties expired last September, and a new investigation by the commerce ministry found that “the domestic broiler industry could be harmed if the duties stopped”.
|Jollibee opens new outlet in Hanoi|
[26 August 2016] Jollibee Vietnam Co Ltd has recently opened its fifth outlet in Hanoi, raising its total number of outlets in Vietnam to 81. According to Tran Ngoc Hoai Thuong, Public Relations Manager, in such a competitive market the maintenance and development of a fast food brand requires a mission that is attached to customers. Jollibee Vietnam revealed plans early this year to open 20 outlets in Vietnam each year. Jollibee has fewer restaurants than its fast food rivals in Vietnam, including Lotteria, which has more than 200 outlets, and KFC, with more than 140.
|Corn quality variation demonstrates benefits of NIR|
[26 August 2016] Variation in corn quality could be adding significant costs to poultry and swine producers. Data collected from feedmills around the world, from January to May this year, showed that the apparent metabolisable energy content in corn can vary by more than 400 kcal/kg. Dr Sophie Parker-Norman, AB Vista Global Technical Manager said in a typical corn-based broiler diet, this equates to a potential variation in the finished feed of 270 kcal/kg. She said the data demonstrates the need for sample analysis, and encourages the use of rapid technologies such as near infrared (NIR) spectroscopy where diet formulations can be adjusted for corn variability.
|New Hope to build two pig complexes in Vietnam|
[25 August 2016] China’s New Hope Liuhe Co said it will build seven more pig complexes by 2018, including two located in south and north Vietnam. Total investments are projected at USD 407 million, and the seven complexes will have a combined annual capacity of 2.30 million pigs. Constructions will start from September. In early July, the company announced plans to build 11 new pig complexes in China with a combined annual capacity of 4.91 million heads. New Hope targets to produce 10 million pigs a year by 2020.
|Bee Cheng Hiang to open outlet in Ginza|
[25 August 2016] Singapore bak kwa producer Bee Cheng Hiang will open an outlet in Ginza, Japan, late September. According to Group General Manager, Daniel Wong, the company has had to adhere to Japan’s food safety laws, which are stringent when it comes to the source of meat used as well as the manufacturing process. This is especially so because Singapore does not have sources of meat, and has to import them, Mr Wong told Channel News Asia. Its trade agency IE Singapore’s Group Director, Lee Yee Fung, said import regulations are often challenging because food safety is on the top of every regulators’ mind.
REGIONAL DAIRY UPDATE
[25 August 2016]
SFS to revolutionise small dairy farms in Vietnam
Israeli-Dutch company Smart Feed Solutions (SFS) will work with small household dairy farms in Vietnam to increase milk yield and the overall quality of local dairy farms. “More than 60% of the industry is made up of small household farmers holding around four and 70 cows,” said Ronen Zexer, SFS Co-founder. With its feed plant in Long An completed the company is ready to begin selling its total mixed ration and services to counter issues such as data management, fertility, somatic cell counts and general husbandry needs. “We believe that one year down the road, farmers will see a big change in their business,” he said added that productivity could improve by 40-50%.
China’s dairy products import up 26%
China’s imports of dairy products jumped 26% in the 12 months ended June 30, reported the NZHerald. China led growth among dairy importers, with strong gains for whole milk powder, fluid and fresh dairy and infant formula. Imports into Asia ex-China gained 3%. Global dairy exports also remain strong. New Zealand dairy exports rose 7% in the June 30 year. Australian exports were up 8% in the 12 months ended May 31. EU exports climbed 12% in the year to April 30, while US exports fell 8% in the year ended May 31. The US “continues to see increased domestic demand and less competitive export prices”, Fonterra said.
Vinamilk works towards global presence
Investment in foreign countries will be one of Vietnam Dairy Product Joint Stock Company’s primary strategies in the coming year, said Mai Lieu Lien, CEO. In June, the company, better known as Vinamilk, introduced made-in-Vietnam products to the US. This feat was successfully accomplished through its Californian subsidiary, Driftwood Dairy. Vinamilk purchased 70% of the struggling US dairy factory in 2013. After two years, Driftwood began to generate profit, prompting Vinamilk to buy 100% of Driftwood’s shares end last year. In addition to the US, Vinamilk’s products are now present in 40 countries and territories in the world, generating around USD 250-270 million in revenue every year.
Vinamilk buys US-based Driftwood Dairy
Vietnam Dairy Products Corp, or Vinamilk, bought Driftwood Dairy Inc, one of California’s largest processors of milk and dairy products. The deal that was reportedly worth USD 70 million but sources said the price to be closer to USD 30 million. Driftwood Dairy was owned by private equity firm Marwit Capital. The dairy company is known as the largest supplier of milk and juice to K-12 school districts in Southern California. “And I believe one of the most significant transactions to date involving the acquisition of a US business by a leading company based in Vietnam,” Chris Britt, Marwit’s Managing partner, said.
FrieslandCampina Vietnam exports dairy products to Hong Kong
FrieslandCampina Vietnam shipped its first consignment of sterilised milk to Hong Kong early July. The consignment included five types of sterilised milk under the Dutch Lady brand name, which were processed and packed in Binh Duong plant. This is the initial success of FrieslandCampina Vietnam to infiltrate Hong Kong, which is a stable and demanding market with strict requirements on product quality. The company plans to export around 1 million milk cartons to Hong Kong annually, which helps consume another 335 tonnes of fresh milk from farmers and generate more jobs for local people. It also opens an opportunity to export other dairy products to other Asian countries.
|2016 Layer Feed Quality Conferences to provide latest regionally-relevant research, practical information|
[24 August 2016] The 2016 Asian Agribiz Layer Feed Quality Conference focuses on providing the latest regionally-relevant research and practical information from leading regional and international speakers from academia and industry. With the theme ‘Science, trial data, application’ the conference will address key issues with carefully selected papers for the Asian layer industry, with actionable take home messages to help producers improve their profitability, productivity and sustainability. The conference considers three major themes:
• Tackling pullet nutrition
• Extending the laying cycle
• Winning with home-mixing
The conference will be held in two locations: Jakarta, Indonesia (October 17-18) and Kuala Lumpur, Malaysia (October 20-21). Click here for the program and registration form.
|Shuanghui H1 pig slaughtering flat at 6.21m heads|
[24 August 2016] China’s top pig processor Henan Shuanghui Investment & Development Co said it slaughtered 6.21 million hogs in the first six months of 2016, up 0.09% from a year earlier. Chilled, frozen and processed pork sales rose 11.16% to total 1.44 million tonnes during the period, driving the company’s operating revenue up 25.41% at USD 3.85 billion. Its net profit increased 8.51% to USD 324.37 million. “We achieved a good first-half operating result by overcoming the difficulties of rising hog prices and emerging alternatives to pork products,” Shuanghui said.
|Nitrate improves food safety of meat products|
[24 August 2016] Despite periodic controversy regarding human health concerns from nitrate consumption, Andrew L Milkowski, Adjunct Professor of Meat and Muscle Biology Laboratory at the University of Wisconsin-Madison, the US said that a building base of scientific evidence about nitrate and nitrite continues to affirm the general safety of nitrate and nitrite in human health. “Moreover, nitrate improves food safety of meat products. It is an anti-botulinum. So it protects meat products from allowing the growth of clostridium botulinum,” he said during the recent 62nd International Congress of Meat Science and Technology in Thailand. Prof Milkowski explained that for every kilo of meat, it has one botulinum spore in the meat. And botulinum spore can grow if the temperature is right and it will produce botulism toxin. “A microgram of botulism toxin will kill many people. So nitrate is important for that purpose,” he said.
|Philippine pork production up in Q2|
[24 August 2016] Philippine pig production stood at 549,320 tonnes in Q2 2016, up 7.4% from the same period last year, the Philippine Statistics Authority (PSA) said in its latest Performance of Philippine Agriculture Report. This brings up the sector’s output to 1,076,530 tonnes for the first six months this year, nearly 6.6% higher than the reference period in 2015. According to the PSA, election-related spending helped boost demand for pork and other meat products that led to higher slaughter volume during the period. The higher production volume offset the decline in average farm prices to boost the sector’s Q2 gross production value to around USD 1.1 billion, up 2.6% from the previous year.
|BASF launches new phytase in Pakistan|
[24 August 2016] BASF has launched Natuphos E, a new phytase for animal nutrition, in Pakistan. With unprecedented enzyme stability, Natuphos E helps poultry utilise phosphorous and key nutrients more efficiently, bringing a wide range of benefits to the animal feed industry and local farmers. “As the first company to market a phytase for feed more than 25 years ago, BASF is once again proud to be setting a new standard in feed phytase technology,” said Faisal Akhtar, Managing Director, BASF Chemicals & Polymers Pakistan (Pvt) Ltd. “The industry’s feed output currently stands at 6.5 million tonnes a year and is expected to double by the year 2020. Natuphos E will ensure more efficient and sustainable output for the feed industry.”
|Betagro gears toward high value-added products|
[23 August 2016] From a research standpoint, Betagro is gearing its focus toward high value-added products, Rutjawate Taharnklaew, Betagro Vice President for Research and Development Center told Asian Agribiz. For example, Betagro has extracted lysozyme from egg albumen and one local cosmetic company has contacted the company. “We are now in talks for a deal. They want to buy our raw material (lysozyme) and use it in their product ingredients,” he said, adding that Betagro is seeing business opportunities to use lysozyme in different industries. Lysozyme is an important component of egg white with antibacterial properties. Moreover, Betagro is working with the Faculty of Medicine of Khon Kaen University. The company has produced chicken soup (chicken peptide) and the product is being tested on human. “We will focus on hospitals and we view it as a social business,” he added.
|DaChan Food processed chicken sales up 28% in H1|
[23 August 2016] China’s DaChan Food (Asia) Ltd said its domestic sales volume of processed chicken achieved a growth of approximately 28% in the first half of 2016, thanks to “the implementation of effective marketing strategies”. The segment’s export sales to Japan remained unchanged, but the gross profit in export soared 65.9% with an adjustment of export product structure and depreciation of RMB. “We will highlight our position as a food supplier this year, while cutting down the farming business,” Li Jinghui, Senior Vice President told Asian Agribiz. DaChan’s overall revenue, including sales of chilled/frozen chicken, feed and processed food, fell 16.9% to USD 566.30 million in the first half, while its net profit was at USD 1.15 million, compared with loss of USD 6.67 million a year earlier.
|Philippine chicken output down slightly in H1|
[23 August 2016] Philippine chicken production fell slightly by 0.16% in the first half of this year, reaching 817,820 tonnes compared to 819,110 tonnes in the same period in 2015, latest data from the Philippine Statistics Authority (PSA) showed. Despite the lower output, the industry’s gross value still grew 8.8% to top USD 1.6 billion compared to last year. The PSA attributed the growth to higher farm price, which averaged USD 2/kg in the first half of this year, up near 9% from 2015.
|Vietnam foodstuff distribution market to grow at 9.8%|
[23 August 2016] The Vietnam food distribution market – covering full service, restaurants, as well as fast food chains, and the supermarket, hypermarket, convenience stores and the traditional market distribution formats – is expected to grow at a CAGR of 9.8% over 2016-2021. The recent Research and Markets report covers the meat and poultry, grains and seeds, dairy and seafood, among others. The market is driven by rising consumption of processed food and the upsurge in modern grocery retail sector. Other factors propelling growth are surging production coupled with growing imports of a variety of food products, and strong demand from various end users such as hotels and businesses.
|Most Chinese consumers want pork with better animal welfare|
[23 August 2016] About 72% of Chinese consumers would like to pay premium prices of 5-10% for pork with better animal welfare, and another 3% are willing to pay extra of up to 25%, according to a survey made by the World Animal Protection and the Chinese Veterinary Medical Association (CVMA). The survey, covering 2070 respondents in the Chinese metropolises of Beijing, Shanghai, Guangzhou and Shenzhen, also found that 77% of the consumers would change retailers to pursue animal welfare pork. The CVMA said it is drafting animal welfare standards for broilers, layers, pigs, and beef and dairy cattle. Pork accounts for 64% in China’s meat consumption.
Onsite at Asian Agribiz' 2016 Broiler Feed Quality Conference in Bangkok, Thailand
[22 August 2016] Reports by RACHAEL PHILIP and PAYUNGSAK WIRIYABUNDITKUL
Older birds may need supplementary enzymes more than chicks
The adage that young chicks require exogenous enzymes to boost poor digestive function may not be entirely correct, said Dr Aaron Cowieson, Principal Scientist, DSM Nutritional Products, Scotland. While young chicks have a limited capacity to produce endogenous enzymes, their intestinal track accounts for a more substantial proportion of their body mass compared to grower/finisher broiler. Findings suggest that intestinal mass and enzyme activity may be more limiting in birds from day 35 onwards. “Thus it may be more appropriate for supplementary enzymes such as lipase, amylase and protease in heavy broilers where the intestine and pancreatic tissue are increasingly diminished in proportion to their metabolic weight,” he said.
Larger grain particle size promotes better nutrient absorption
A slower gut passage rate can make for better nutrient absorption and influence feed consumption ratio in broiler. Grains such as corn and wheat should be ground coarser to stimulate a more normal gizzard development and function, said Alex Chang, Poultry Nutritionist, Global Technical Operations, Aviagen, Australia. “Small grain particles give a larger surface area and this may give rise to rapid feed passage in the gut. Larger particles size, meanwhile, results in longer feed retention time in the gut. This helps release the starch entrapped in cereal grain cells and encourage more beneficial bacterial fermentation in the caeca,” he said. Mr Chang said the target for particle size should be 800-1000 microns.said.
Mycotoxin risk assessment should look at effects, interaction of toxins
Field tests have shown that mycotoxin multi-contamination is found frequently. Risk assessment of mycotoxin in animal production should account for the effects of individual toxins as well as the effects of their interactions as even at levels considered safe by the European Union, mycotoxins can compromise nutrient absorption, permeability, immunity and microbiota balance resulting in lower productivity and poor animal health, said Marisabel Caballero, Product Manager, EW Nutrition, Germany. “The use of an adsorbent, which combines anti-mycotoxin and anti-bacterial toxin properties is an alternative that adds value against these challenges,” she said.
Creatine can help birds utilise energy deposition more efficiently
The requirement for creatine is proportionally greater in modern fast growing broilers. The semi-essential nutrient can be endogenously synthesised by the animals but this can only provide about 70% of creatine requirement. The remainder must be provided as a dietary source. “Adding creatine can save energy in broiler diets,” said Dr Yumin Bao, Regional Technical Sales Manager, Nutrition and Care, Evonik (SEA) Pte Ltd. “Dietary energy is the largest contributor of any nutrient to total feed cost, so the function of creatine in energy metabolism may help fast-growing birds to more efficiently utilise energy deposition,” he explained.
Early nutrition strategies for peak performance in broilers
Nutrition during the starter phase of broiler chickens is not only useful for development of digestive function, but also for long-term productivity, said Dr Paul Iji, Professor of Animal Science, University of New England, Australia. Although the focus of early nutrition has usually been on provision of energy, chicks would benefit from a more balanced nutrient profile, particular amino acids. Meanwhile, spray-dried plasma protein (SDPP) contains diversity of functional proteins and biologically active compound. “Inclusion of SDPP in the starter diet has positive effects on broiler performance,” Dr Iji said, adding that SDPP could be included at between 5 and 20 g/kg of starter diets, depending on the diet cost and rate of return. Moreover, SDPP could support body growth and health of broiler chickens under high-pathogen conditions.
Benefits of methionine beyond performance
Modern broiler strains reach market weight so fast that their early rearing days are more critical than before, said Dr Yves Mercier, Research Manager Amino Acids at Adisseo. During the first 10 days of life, chicks build their important physiological functions with support of adequate nutrition. Although the recent research has revised methionine requirements of the chicks, the most important aspect of early methionine supply appears to bring benefits beyond preparation for further growth. “Methionine, cysteine and further sulfur compounds are critical to support immunity, antioxidant systems and protein’s accretion,” Dr Mercier said, adding that the requirements of sulfur amino acids (SAA) during the early stage cannot be judged simply based on achieving growth performance.
Feeding breeder improves chick quality, offspring performance
Alex Chang, Poultry Nutritionist, Global Technical Operations at Aviagen said that broiler breeder nutrition affects not only breeder performance, but also chick quality and offspring performance. Undersupply of nutrients into and through lay has a very significant impact on breeder production and progeny performance. “Protein, energy, fatty acid source, vitamins and minerals, pigments and certain additives can play an important role on chick quality and offspring performance,” Mr Chang said, adding that the impact of breeder nutrition on progeny performance in the field is likely to be greater under conditions of poor breeder flock uniformity, low vitamin and trace mineral contents or certain kinds of stress in the broiler shed. “In short, broiler performance can be economically improved by optimising breeder nutrition,” he said.
|CP Pokphand kicks off food business in China|
[19 August 2016] Hong Kong-listed CP Pokphand Co said it commenced a trial production in its food processing plant in Qingdao, east China, in the first half of 2016, following a partial commercial production in its Qinhuangdao plant late last year. Lv Pan, Vice Chairman of Agro-industry & Food Business at CP China, told a conference earlier that the two plants were designed to produce Chinese dim sums like baozi, jiaozi and shaomai, with a combined capacity of 200,000 tonnes a year. “As the food business is still at a start-up stage, our feed business continued to represent nearly the entirety of our China’s agri-food business revenue, which stood at USD 1.34 billion in H1, or 55.5% of the total,” said CP Pokphand. The remainder came from its Vietnam’s agri-food business.
|Sierad records USD94m of net sales in H1|
[19 August 2016] Indonesia’s poultry integrator Sierad Produce has said that it recorded an 18.27% increase in net sales to USD 94 million in the first half of this year. With this satisfying performance, the company targets to book USD 244 million in net sales with a net profit of USD 3.2 million this year. On expansion side, Sierad has allocated a capital expenditure of USD 35.7 million for building 12 commercial broiler farms and maintenance of machines and equipment.
|Disposal of smuggled pork halted temporarily|
[19 August 2016] The disposal of at least 800 tonnes of smuggled pork has been temporarily stopped by the Philippine Bureau of Customs (BoC). In the last week of July, the BoC recommended the condemnation of at least 800 tonnes of imported pork meat contained in 32 40-foot container vans. However, in a letter to BoC Commissioner Nicanor Faeldon, Samahang Industriya ng Agrikultura (Sinag) Chairman Rosendo So aired the industry’s concern that the place and the company are worrying given that the company tasked to dispose of the meat “might be the same company that has been investigated by the [Philippine] Senate” for involvement in onion smuggling, while the husband of the Mayor of Palayan City, where the rendering of the condemn meat was supposed to happen, has also been implicated in a Senate investigation on rice smuggling.
|Korean-Vietnam sausage deal delayed|
[19 August 2016] Daesang Corp, a South Korean food-making conglomerate, has yet to complete its purchase of an almost full stake in Vietnamese sausage producer Duc Viet Food Joint Stock Company, which was expected to be finalised by August 5. International and local media had reported that Daesang was set to acquire 99.99% of Duc Viet Food for USD 32 million to make inroads into Vietnam’s meat processing market with its high growth potential. “Daesang has not finished all necessary documents for the acquisition. The deal is unlikely to happen this month,” a source familiar with the matter said.
|Animal vaccines market to reach USD7.7b by 2021|
[19 August 2016] The global veterinary vaccines market is poised to reach USD 7.7 billion by 2021 from USD 5.8 billion in 2016, growing at a CAGR of 5.8% during the period, said a MarketsandMarkets report. Europe holds the largest share of the market this year, but the report expects Asia to register the highest growth during the forecast period. In Asia, market growth will be concentrated in China, India, Thailand and South Korea. While increase in livestock population and repeated breakouts of livestock diseases, initiatives by government agencies and animal associations are driving the market, the rising costs of storage and maintenance of vaccines could hinder its growth.
|Huaying starts cooked chicken exports to Japan, South Korea|
[18 August 2016] China’s top duck integrator Henan Huaying Agricultural Development Co said it has completed its first shipment of cooked chicken products to Japan and South Korea, paving the way for broader exports of the products. The company slaughtered 6.13 million broilers in the first half of 2016, in addition to 17.12 million ducks. Meanwhile, its output of cooked products, including duck blood, was at 5346 tonnes, more than half of which were for exports. Huaying’s first-half revenue rose 14% to USD 159 million, while net profit jumped 224% to over USD 10 million amid a significant decline of operating expenses.
|CAB Cakaran on track to achieve target revenue|
[18 August 2016] Malaysia’s CAB Cakaran Corp Bhd is on track to achieve USD 250 million in revenue this fiscal year ending Sept 20, 2016. Christopher Chuah, Group Managing Director said the group achieved a revenue of USD 130 million for the six months of the 2016 fiscal year ended March 31. “Our Singapore subsidiary Tong Huat Poultry Processing has benefited from the growth in demand and is expected to generate about 10% of group revenue for the 2016 fiscal year. Our company in Johor, CAB Cakaran Sultan Sdn Bhd, which started operations late last year, has also contributed recently. It serves the Johor and the Singapore markets,” Mr Chuah told a local daily.
|URC Agro-Industrial Group post slower growth|
[18 August 2016] The Philippines’ Universal Robina Corporation’s (URC) Agro-Industrial Group, which includes its farms and feeds businesses, saw its revenues grow by 2.6% to USD 146.9 million for the first nine months of fiscal year 2016, which began in October 2015. The farms business, which includes the company’s hog and layer businesses, saw a 14.1% decline in revenues as both sales volume and average selling price of hogs fell. This was offset by a strong performance of the feeds business which rose 23.4% on the back of higher sales volume of hog feeds, dog food and game fowl feeds.
Onsite at the 62nd International Congress of Meat Science & Technology (ICoMST) 2016, Bangkok – Thailand
[18 August 2016] Reports by PAYUNGSAK WIRIYABUNDITKUL and ARIEF FACHRUDIN
Muscle profiling to improve the value of retail meat cuts
The Korean meat industry is showing trends towards marketing individual muscle cuts to improve the value of retail meat cuts, according to Seon-Tea Joo from South Korea’s Department of Applied Life Science Muscle Biology and Meat Science Lab, Gyeongsang National University. Prof Joo said muscle profiling will produce a value added meat cuts. To do that, up-to-date profiles for individual meat cuts is essential to enable accurate evaluation of nutritive and quality cuts. Prof Joo explained content of protein, fat, vitamins and minerals can vary substantially by individual muscle or muscle groups. “Thus data on these nutrients for all primal or sub-primal cuts are needed to inform the benefit of beef consumption,” he said. According to a research paper, muscle profiling research led to the development of new beef cuts from the shoulder, with increasing the value of market cattle by USD 50-70 per head.
Halal and animal welfare in meat production
Mustafa Farouk, Senior Scientist at AgResearch Ltd in New Zealand said that Islam and secular practices advocate zero-tolerance for any form of animal abuse in the meat supply chain from farm to slaughter. Despite the general harmony in the global Islamic and secular views regarding what constitutes good animal welfare, some proponents are bogged down by specific issues, such as differing opinions on the use of pre-slaughter stunning. Therefore, animal welfare is still being abused during industrial and cottage halal and non-halal meat production, he said. To reduce animal welfare abuse, Dr Farouk said that some measures should be carried out including educating halal consumers about animal welfare practices, post-employment training of staff for empathy and installation of CCTV in work places. “Consumers should use their purchasing power to eliminate bad actors from halal meat production chain,” he added.
Research on meat by-products utilisation continues
The efficient use of meat by-products is important to reduce the environmental damage and as an economical source capable to cover processing and disposal costs, said Fidel Toldra, Research Professor at the Institute of Agrochemistry and Food Technology in Spain. He sees that the use of edible meat by-products as a food or as ingredients in foods is expanding and research continues for new applications. Moreover, there are many applications of non-edible meat by-products in chemicals, pharmaceuticals, feed and pet food, fertilizers and energy. And giving added-value to by-products is essential. “The identification of peptides with relevant bioactivity in meat by-products is possible through the development of novel approaches using peptidomics and modern bioinformatic tools,” Dr Toldra added.
Onsite at the 62nd International Congress of Meat Science & Technology (ICoMST) 2016, Bangkok – Thailand
[17 August 2016] Reports by PAYUNGSAK WIRIYABUNDITKUL and ARIEF FACHRUDIN
Meat trends in global markets
According to David Hughes, Professor at the Imperial College in London, UK, global meat demand continues to grow, triggered by the increase of population. Of the growth, poultry and pork are showing the strongest growth. “Emerging countries dominate growth markets, with China overwhelmingly number one. However, developed country markets are static or declining,” said Prof Hughes. On consumer side, he observed that there are trends converging for more knowledge about the the livestock animals are grown, by whom, the environmental impact and engaging stories. For meat producers and processors, the trends will affect their profit margin. “Their profit margin is now not in the commodity nouns, but in the adjectives such as free-from, free-range, grass-fed, organic, omega-3 rich and etc,” said Prof Hughes.
Meat world is changing
Gordon Butland, Director of G&S Agriconsultants started his presentation by saying: “Our meat world is changing.” According to him, during 40 years, the industry grew based on population increase and growth in GDP that has strong correlation with consumption of animal proteins. However, from 2006, two significant things happened namely crops/ethanol and economic challenges. During the period of 2014-15 for instance, there were food scandal in China, serious avian influenza issues in the US and EU, exchange rates, collapse in oil prices, slow down in Chinese economy and Russian ban on imports from the US and EU. Due to these macro events, giant companies did geographical acquisitions and/or diversification. “JBS is now in every meat protein on nearly every continent. BRF cut out middle men. CP did large acquisition in Russia and greenfield projects in Africa. Shuanghui acquired Smithfield. And Cargill is into the Philippines and Indonesia,” Mr Butland mentioned.
A lesson from US family farms cooperative
Diana Endicott from US’ Kansas-based food cooperative Good Natured Family Farms got the opportunity to share their success story in bringing high quality meat and meat products from sustainable family farms to consumers. Ms Endicott said the key success factors of their cooperative rely on their partnership with the local supermarkets and economies of scale they created. “With the local retailers, we build the same passion. We also provide training for their meat managers, or even the owners, to see and learn first hand how we produce and process our meats,” she said, adding that the training is aimed to built trust and transparency. On marketing campaign, the cooperative uses ‘Buy Fresh Buy Local’ campaign where its retail partners put banners of stories of the family farms.
Luxury of wagyu beef
Wagyu beef has been a popular premium beef in the world. According to Michiyo Motoyama from the National Agriculture and Food Research Organization of Japan, the price of wagyu beef is so expensive (USD 70/kg for A5 grade with beef marbling standard no 12) because of its production and meat quality. “The animals regularly have massage. Sometimes beer is given to them. And their feed contains no antibiotic growth promoters – they are fed with hay, barley and soybean meal,” Ms Motoyama said. Meanwhile, to ensure quality of the meat, strict quality control is applied including breed certification, traceability and accurate meat (marbling) grading systems. The population of wagyu cattle in Japan is around 1.7 million heads, while per capita consumption of the meat is only 1kg.
Development of ethnic Chinese cured meat products
Ethnic Chinese cured meat products have entered the industrial scale. Qun Sun, Professor at Sichuan University, China mentioned that Jinhua ham is produced around 2-3 million pieces per year, while Xuanwei ham Rugao ham are around 4 million pieces and 0.3 million pieces, respectively. Dr Sun said in future Chinese cured meat products will go to the direction of healthier, nutritious and convenient products. “There are researches on quality improvement such as the composition of meat flavour and fermentation, and on safety enhancement such as nitrite alternatives and natural preservatives. In addition, innovative and green processing technology is also available,” she explained. However, there are challenges including raw material shortage and marketing difficulty, she added.
TRF develops native chicken breeds
Although Thailand is the 4th largest broiler exporter in the world, the country heavily relies on imported breed for the broiler production. With this in mind, the Thailand Research Fund (TRF) took the initiative to develop, as well as to conserve, Thai native chickens as alternative breeds for farmers in the country. “We started the project in 2002 by selecting four native chicken breeds. In 2008 we successfully selected the breeds and started to disseminate it to farmers for commercial farming. Starting from 2011, many farmers, even big companies, are interested to raise the breeds,” said Chancharat Reodecha, TRF Deputy Director for Research Utilization. “Now we are actively assisting the farmers to improve their knowledge on production, processing, food safety and market of the breeds.” Dr Reodecha added that total investment for the project has reached around USD 7 million.
|China Meat Association sees potential pork imports from Australia|
[16 August 2016] There is great potential for China and Australia to cooperate in pig farming and facility investment, thus facilitating future exports of Australian pork to China, said the China Meat Association (CMA). A delegation led by Li Shuilong, CMA Executive President, visited Australian pork producer Rivalea and processor Don KRC recently, making it the first business tour to the Australian pork industry by its Chinese counterparts. “Though the pork production in Australia is very small compared to China, it could offer demanding Chinese consumers with premium pork products,” the CMA said. China’s pork imports rose 138% to 762,359 tonnes in the first half of 2016, mostly from Europe.
|Indonesia’s cattle importers pushed to be breeders by regulation|
[16 August 2016] Indonesia’s government plans to require live cattle importers to start building breeding farms in order to get import licenses, said Enggartiasto Lukita, Trade Minister. He said the government requires a ‘compensation’ from cattle importers to give them an import quota. “The compensation is they have to be breeders, then we will give them import quota.” Mr Lukita explained that importers will have to present a five-year plan to build a breeding farm to the government as a precondition for import licenses. The ministry will issue a regulation soon for this plan.
|Thailand’s CPF Q2 net profit rises 35%|
[16 August 2016] Thailand’s Charoen Pokphand Foods (CPF) has posted a net profit of USD 115.50 million in Q2, up 35% from the same period of last year, backed by improvement of its livestock business both in Thailand and overseas, especially in Vietnam as well as the recovery of its shrimp business in Thailand. CPF’s sales revenue increased from USD 2.98 billion in Q2 2015 to USD 3.36 billion in Q2 2016, helped by higher sales from Thailand and its international operations. CPF’s revenue from its Thailand operations in Q2 grew 12% year-over-year, while revenue from its international operations in Q2 increased 13% year-over-year. Meanwhile, according to Thai brokerage SCB Securities, CPF expects its shrimp unit to return to net profit margin in 2017, the best performance since the early mortality syndrome (EMS) hit in 2012.
|JFC sales in China down 5.7%|
[16 August 2016] Despite a strong showing at home and most of its overseas markets, the Philippines’ Jollibee Food Corporation (JFC) admitted to a decrease in sales in China. Ernesto Tanmantiong, CEO explained that sales in China fell 5.7% “due to competitive pressure on Yonghe King, our largest brand there.” However, he noted that JFC’s two other China brands, Hong Zhuang Yuan and San Ping Wang, continue to perform strongly. The company’s 424 stores in the country are divided into 321 Yonghe King outlets, 59 San Ping Wang stores and 40 Hong Zhuang Yuan branches. It also owns the four Dunkin’ Donuts stores in China. Mr Tanmantiong added that JFC expects a strong recovery of its Yonghe King business in the months ahead with the launch of new products.
|Indonesia’s West Java develops Sentul chicken|
[16 August 2016] Indonesia’s West Java province is currently active to support the development of Sentul chicken, an indigenous meat-type chicken from the province. Dody Firman Nugraha, Head of the Livestock Agency of the province said GP of the chicken has been being developed in the Livestock Research Agency in Ciawi, Bogor (Balitnak Ciawi). Meanwhile, the PS have been being raised by some local companies to produce commercial Sentul DOC for farmer groups. Mr Nugraha claimed that the taste of Sentul chicken meat is more delicious than the taste of broiler meat. In addition, the price is also high – around 30% higher than the price of broiler meat. In other occasion, Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association told Asian Agribiz that Balitnak Ciawi has recently released selected Sentul chicken and has given pre-licences to AKI/Dedi Farm in Sukabumi and Sumber Unggas Farm in Bogor to multiply the breed. “The performance of Sentul chicken is much better than other native chickens. The bird is able to reach 1kg of harvest weight in 60 days with feed conversion of 2.6,” said Mr Zulkarnain.
|India’s buffalo meat export estimated to reach USD6b|
[15 August 2016] India’s ICRA has estimated that India’s export of buffalo meat over the next five years would reach close to USD 6 billion at a CAGR of 8%. “In the long term, ICRA expects buffalo meat exports to continue to report healthy growth, driven by improving infrastructure, a sizeable buffalo population the relatively lower price of Indian buffalo meat, and steady demand in the international market,” said Sabyasachi Majumdar, Senior VP of the credit rating and research institution. Indian buffalo meat exports have grown at a CAGR of 29% from USD 528 million in 2007-08 to USD 4 billion in 2015-16, accounting for approximately 20% of the world’s total buffalo meat exports (in volume terms) and becoming the largest volume exporter of buffalo meat, overtaking Brazil and Australia, ICRA said.
|Japfa delivers best quarterly profits in Q2|
[15 August 2016] Singapore-based leading agri-food company Japfa Ltd has announced its best quarterly results since 2013, as Core PATMI without foreign exchange for the 2nd quarter of this year grew by 194.4% to USD 51.9 million compared to the same period of last year. During the quarter, the group’s three core pillars – Japfa Comfeed Indonesia, Animal Protein Other and Dairy – together delivered a significant improvement in operating margin. As a result, operating profit increased by 144.5% to USD 107.8 million in the period. Tan Yong Nang, CEO said: “We have delivered our best quarterly profits in Q2 2016, backed by a better operating environment and our ability to consistently improve operational efficiency across all our core animal protein segments. Looking at our quarterly performance on a rolling basis, our strategic focus on diversification into new proteins and geographies has clearly supported the group through the ever-changing macro environment and local market fluctuations, and placed us on a stable footing to maintain a long-term growth momentum.”
|Indonesia’s Ag Ministry all out to lower beef prices|
[15 August 2016] It seems that Indonesia’s Ministry of Agriculture has been all out to push the price of beef down to USD 6/kg as requested by President Joko Widodo. After opening the beef import door as wide as possible to the private sector and allowing the import of ready-to-slaughter cattle, the recent effort was the ministry removed meat importers’ obligation to absorb local beef as much as 3% of their total import quotas. According to Andi Amran Sulaiman, Minister of Agriculture, the effort was aimed to encourage meat importers to maximally import beef to the country. In addition, “this policy will reduce the slaughter of local productive cows,” Mr Sulaiman added. Commenting on the policy, Rochadi Tawaf, Secretary General of the Indonesian Cattle & Buffalo Farmers Association (PPSKI) said: “Now, it is impossible for meat importers to buy local beef as the price is higher than the price of imported beef. They will flood the market with imported beef.”
|Godaco produces first items from Ben Tre cooking plant|
[15 August 2016] Vietnamese seafood processor Godaco Seafood has commissioned and begun production at its new valued-added product plant in Ben Tre, according to Jonathan Wilson, Executive Director. The first products to come off the lines in its opening days are hoped to be the first of many; not just pangasius, but other species too. “We are starting with pangasius, but we are able to do breaded shrimp and Nobashi stretched shrimp too,” said Mr Wilson as reported by Undercurrent News. “I can say that we are aiming to be processing several species in the plant by the end of the year.” Currently three frying lines are installed in addition to the tempura line, able to handle part- or fully-cooked breaded items, with further space to process shrimp, salmon or Alaska pollock. The new plant is designed with flexibility in mind, and depending on product mix, should be able to produce 15,000-20,000 tonnes of cooked products a year.
|Ultrajaya enjoys increasing milk products demand|
[15 August 2016] Indonesia’s Ultrajaya Milk Industry & Trading Company aims to grow its net profit by 33.8% this year to USD 53.2 million after netting USD 40 million in profits last year thanks to increased demand for its famous milk brand Ultra Milk. To achieve the net profit target, Ultrajaya has to up sales by 10-15% this year to around USD 368-384 million. The company relies solely on its existing products as it has yet to make any plans to launch new products this year. “Maybe next year we will launch new products,” said Eddi Kurniadi, Corporate Secretary. Ultrajaya has a dairy farm located in Pengalengan, West Java that raises around 3500 cows. The other dairy farm of the company is located in Sumatera where it plans to raise 12,000 cows.
WEB SPECIAL: Thailand takes steps to lift food safety at all levels
[12 August 2016]
Food safety is increasingly important in Thailand’s farm to fork livestock industry as consumers place a priority food hygiene and standards. The country will soon have a new law aimed at improving standards and punishing below standard slaughterhouses.
New law aims to boost food safety in Thailand
The new Animal Slaughter and Sale of Meats Control Acts said that all slaughterhouses in Thailand must employ either veterinarians or personnel who have attended the Department of Livestock Development’s (DLD) courses. Without them slaughterhouses will be forced to close down, Dr Sorravis Thaneto, DLD’s Deputy Director General told Asian Agribiz. The DLD will look out for animal diseases and residues of drugs such as including beta-agonist and antibiotics. Also, all slaughterhouses must clearly declare animal traceability under the new law. Dr Sorravis said the new law will be implemented at the end of this year.
Livestock OK program ups standards across value chain
Thailand’s DLD has improved food safety standards at modern trade and wet markets across the country, establishing consumer confidence in food safety, via its Livestock OK initiative. Dr Sorravis Thaneto, Deputy Director General of DLD said food safety is becoming more important in Thailand as consumers and trading partners are vigilant over food hygiene and standards. Under the initiative, retail outlets developed total traceability from farm, slaughterhouses to retail outlets with no residue in livestock products. More than 2500 retail outlets are part of the program. The DLD expects the number to reach 3000 outlets by year end. Dr Sorravis said “we emphasize quality over quantity”.
People and raw material play a key role in CPF’s food safety plan
“Our food safety standards start with our employee,” Sukhawat Dansermsuk, Chief Operating Officer of Food Business at Thailand’s Charoen Pokphand Foods (CPF) told Asian Agribiz. CPF has consistently trained its employees on food safety, he said. Raw material for CPF’s food business unit comes from CP Group, guaranteeing traceability. Throughout the value chain machines are used. Suppliers of spices and sauces receive regular visits from CPF employees checking on the quality of the products. “To ensure food safety, we need to focus on people, raw material and production process,” Mr Sukhawat said, adding that food safety is top priority for both consumers and CPF.
Betagro says drug-free chicken production achievable, but gives no time frame
Vasit Taepaisitphongse, President of Betagro Group told Asian Agribiz that the firm has gradually reduced the use of antibiotics for chickens. Betagro has put a process in place to deal with the use of antibiotics, making sure that it abides by the law. Moreover, the Group always observes withdrawal periods. “Betagro’s roadmap is to gear us towards drug-free chicken production. But we are discussing this issue internally and we haven’t set the time frame for reaching the goal,” he said, adding that drug-free chicken production is achievable. “We have a lot to prove and it is not a short story,” Mr Vasit explained. Meanwhile, Betagro raises vegetarian-fed chickens for exports.
|Indonesia to grow shrimp market share in China |
[12 August 2016] According to Johan Suryadarma, Vice President of the Indonesian Fishery Products Processing and Marketing Association (AP5I), Indonesia must take the opportunity to export frozen shrimp to China as demand from this country continues to grow. “China values shrimp supply from Indonesia. They recently helped 11 Indonesian shrimp packers to participate at a seafood shows there,” he said. However, “it’s not easy to compete in the Chinese shrimp market since Ecuador, Vietnam and Thailand are also vying to increase their exports,” he added. Based on AP5I data, there are 436 Indonesian fishery companies that have secured export permits to China.
|Egg prices in India hit record levels|
[12 August 2016] Egg prices in India reached record levels recently, with retail prices in some areas hitting USD 0.07 last month. Data on the wholesale prices of eggs showed that in the major consuming centres, prices in the first seven months of 2016 were 13-17% higher than last year’s levels. Egg prices cool off in the summer months of March to May, and begin to soar again from August or September, usually hitting highs in December and January. This year, prices remain elevated even in the summer months. India’s egg output has grown to 78.5 billion eggs in 2015 from 46.2 billion eggs in 2005.
|Thailand’s GFPT Q2 net profit surges 90%|
[12 August 2016] Thailand’s GFPT has reported a net profit of USD 10.95 million in Q2, up 90.53% from the same period of last year, backed by lower feed cost and higher profit from its joint venture companies. GFPT’s revenue declined 3.24% year-on-year to USD 112.19 million in Q2 due to falling revenue from its feed segment. GFPT’s revenue from chicken processing segment increased 3.48% in Q2. GFPT said that Brexit has limited impact to the firm since chicken export sales to UK contributed only 5% of its total revenue. Furthermore, most export sales are quoted by USD currency and all transaction are hedged by using forward contracts.
|McDonald's to sell Beijing JV stake to Hong Kong unit |
[12 August 2016] McDonald’s Corp is selling its 50% stake in McDonald’s Beijing to its wholly-owned Hong Kong unit for USD 263 million, said Sanyuan Foods, the other 50% shareholder in the joint venture. State-owned Sanyuan, a Beijing-based dairy producer, also said it has given up the priority to bid the 50% stake, as the fast food operations by McDonald’s Beijing are not in line with its main business. McDonald’s is struggling to attract bidders in the sale of its China and Hong Kong franchise, and the short list is reportedly to include Sanyuan Foods.
|Figo Foods’ new plant to boost production to 40 tonnes/day|
[11 August 2016] Malaysia’s Figo Foods Sdn Bhd, subsidiary of QL Resources Bhd, hopes to fully operate out of its new processing plant by next June. The plant will increase its value-added seafood production from 12 to 40 tonnes/day, expandable to 60 tonnes/day. Lee Teck Wee, Executive Director, told Asian Agribiz the seafood sector has the potential to grow. Another reason for the expansion is QL Resources’ decision to enter the convenience store business after its tie up with Japanese franchise FamilyMart. Figo Foods hopes to supply its range of premium RTE products for the stores.
|Feed millers await Bulog’s response over corn imports for H2|
[11 August 2016] The Indonesian Feed Producers Association has informed the State Logistics Agency, the only importer allowed by the government, to import corn as the country will need some 1.5 million tonnes of corn for the second half of the year. “Until now there is no response from the agency,” Sudirman FX, Chairman, said. Last year the government scrapped permits for private corn importers, causing producers to switch to wheat. This in turn caused imports of wheat to rise. This year the government is controlling wheat imports hoping feed millers will absorb local corn. But local corn is hard to secure, confirming the invalidity of local corn production data.
|Shandong Yisheng to lease breeder farms for northern expansion|
[11 August 2016] China’s top broiler breeder Shandong Yisheng said it plans to lease six breeder farms and a hatchery in Tangshan in northern Hebei province for 10 years, effective January 2017. Total rent will be USD 9.7 million, or 1.4 times the investment needed to upgrade the facilities by their owner. “The move will expand our production capacity and market share, and improve the geographical layout of our poultry farming,” Yisheng said. The company currently owns 21 broiler GP farms, seven layer GP farms, 16 broiler PS farms and four hatcheries, mostly in eastern Shandong province where it is headquartered.
|Thaifoods Group posts strong earnings in Q2|
[11 August 2016] Thailand’s Thaifoods Group (TFG) has recorded a net profit of USD 19.29 million in Q2, compared to a loss of USD 12.90 million in Q2 2015. TFG attributes its results to an increase in revenues from its poultry and swine businesses. TFG’s poultry revenue in Q2 was USD 88.63 million, up 20.15% from the same period last year. TFG’s sales volume of chicken was 78,755.10 tonnes in Q2 2016, up from 66,562.47 tonnes in Q2 2015, backed by an increase in capacity for exports and local markets. Meanwhile, its swine business posted USD 30.24 million in revenue in Q2, up 43.85% from Q2 2015. TFG’s sales volume of swine grew from 13,192.55 tonnes in Q2 2015 to 16,603.40 tonnes in Q2 2016 due mainly to increased capacity.
|San Miguel Pure Foods posts 37% profit hike in H1|
[11 August 2016] San Miguel Pure Foods Company Inc rode on the back of its Agro-Industrial division to post a USD 53.6 million net income in the first six months this year. Higher poultry volumes and favourable selling prices of chicken and feeds helped push the combines sales revenues of its Agro-Industrial business, which also include fresh meats to USD 796.2 million, up 8% over the last year. Meanwhile its Branded Value-Added business, which include processed meats, registered sales revenues of USD 259.7 million, also up 8% year-on-year.
|FAO Indonesia launches mobile app for layer farmers|
[11 August 2016] The Food and Agriculture Organisation (FAO) has recently launched the Petelur.id app in Indonesia. According to James McGrane, Team Leader of FAO Ectad Indonesia, the Android-based mobile application was developed for small and medium-scale layer farmers in the country. “This app can help layer farmers to record egg production, feed consumption, bird depletion, as well as analyse hen day production, feed conversion, mortality trends and other parameters. They can control all these parameters anytime and anywhere,” Mr McGrane explained, adding that the app was developed together with the Indonesian Poultry Vets Association and Intelijen Dynamics.
|InVivo to help improve pig genetic quality in Indonesia|
[10 August 2016] Pig genetics in Indonesia still lags behind that of other countries in the region. To upgrade the quality of genetics in the country InVivo Indonesia, France-based feed producer, this year plans to import GP from nucleus farming facility Choice Genetics, in the US. Choice Genetics is a subsidiary of France-based Groupe Grimaud focusing on swine genetics. A Harris Priyadi, National Sales Manager Livestock, InVivo Indonesia, told Asian Agribiz, the GPs will be raised at the company’s local partner’s farm in Solo, Central Java. “Our part is to import the GP and supply quality feed to the local partner who will raise the stock and produce commercial piglets for sale,” he said.
|Vietnam pig industry on an upswing|
[10 August 2016] Vietnam’s pig industry will see robust growth in the next two years as new entrants to the industry kick off their pig breeding operations this year. In a statement, Hoang Thanh Van, Directory of the Department of Animal Husbandry, said the country’s meat sector has seen many big companies venturing into the livestock market including Hoa Phat Group and Hung Vuong Group, respectively the country’s largest steel producer and largest pangasius producer. In just the first eight months this year, both companies combined to import more than 2170 GGP pigs into the country, with the target to produce both breeding pigs and commercial hogs for the local market.
|Broiler prices in Indonesia fall below production costs|
[10 August 2016] Independent small and medium-scale farmers are facing a tough time as the price of live broilers in Indonesia fell to USD 1.13 per kg last week. The average production cost is USD 1.40. Hartono, Supervisory Board Chairman, Indonesian Poultry Farmers Association, said there is excess supply of live broilers. “Big companies and integrators compete with each other to sell their live broilers, pushing the prices down,” he said. In the past independent farmers controlled around 70-80% of live broiler market but now they only hold 18-20%. “Big investments in this sector are not followed by balanced investments in processing plants and cold storage facilities,” he said.
|China’s 2016 SPEM transaction exceeds USD 1.5 billion|
[10 August 2016] The 2016 transaction on China’s state pig exchange market (SPEM) has exceeded USD 1.50 billion as of early August, said the government of Rongchang District in the southwest municipality of Chongqing where the bourse is based. The online trade included 4.30 million finished pigs valued at USD 1.37 billion and 1.46 million piglets at USD 0.13 billion. Founded in 2013, the Rongchang exchange said it has attracted traders from 29 provinces out of all the 31 mainland provinces in China, with daily transaction of up to USD 15 million
|India’s meat exports touch USD568m|
[10 August 2016] India exported meat and meat products was worth USD 568 million during April-May of the current fiscal year. The country’s main export destinations included Vietnam, Egypt, Malaysia, Saudi Arabia and Iraq. India mainly exports processed meat and meat of buffalo, sheep and goat. In quantity terms, the overseas shipments stood at 192,748 tonnes in the first two months of the fiscal year, said Nirmala Sitharaman, India’s Commerce and Industry Minister.
|Jollibee net income up 11.3% in Q2|
[10 August 2016] Jollibee Food Corporation (JFC) reported a net income of USD 34.8 million in the second quarter this year, up 11.3% year-on-year, while system wide sales rose 15.1% from a year ago. The growth is fueled by strong sales in the domestic market, which accounts for at least 80% of its global sales. Sales in Southeast Asia also grew by 37%, led by Singapore with 56% and Vietnam with 49%. However, sales in China is down 5.7% due to competitive pressure on Yonghe King, its biggest brand in that market. For the first half this year, JFC’s net income topped USD 65.33 million up 13.4% year-on-year.
|Thailand’s DLD enforces good labour practices on chicken plants |
[9 August 2016] All export-led chicken processing plants in Thailand must adopt good labour practices (GLP) in the next 2-3 months, Dr Sorravis Thaneto, Deputy Director General of Thailand’s Department of Livestock Development (DLD) told Asian Agribiz. The move comes after Betagro’s ex-contract farmer in Lopburi province allegedly abused its Myanmar migrant workers and seized their passports. Betagro Group has suspended business ties with that chicken farm. Dr Sorravis said the DLD will also enforce GLP on chicken farms. If the DLD discovers any farm abuses its labour, “we will withdraw its good agricultural practices licence and the farm will not be able export its products”.
|KRR acquires 10% of Japfa Comfeed Indonesia|
[9 August 2016] Japfa Ltd has confirmed that KKR Jade Investments Pte Lte acquired 10.44% of its Indonesian subsidiary PT Japfa Comfeed Indonesia Tbk on August 4. KKR Jade picked up some 441 million shares of Japfa Comfeed. The Indonesian agri-food producer also issued an additional 750 million new shares in its capital to KRR Jade. This leaves Japfa Ltd with 51% stake in its Indonesian subsidiary. KKR Jade Investments is a fund managed by Kohlberg Kravis Roberts & Co. KKR has been investing in and providing financial solutions to companies in Indonesia since 2013. It is an investor in Tiga Pilar Sejahtera Food, a leading food businesses.
|India’s seafood industry records lower exports |
[9 August 2016] Weighed down by various factors, seafood exports from India witnessed a dip in both quantity and value in 2015-16 compared to the previous fiscal year, said India’s Marine Products Export Development Authority (Mpeda). Seafood exports in 2015-16 stood at 945,892 tonnes worth USD 4.7 billion as against the record 1 million tonnes exported in the previous year for USD 5.5 billion. Frozen shrimp continued to be the major export item in the last fiscal, followed by frozen fish. A Jayathilak, Mpeda Chairman said the depreciation of the euro, weaker economic condition in China, and the devaluation of the yen contributed to the decline in exports.
|Danish pork producers see good opportunities in China|
[9 August 2016] Rising consumer demand amid a drop in pork production in China bodes well for Danish pork producers, with Denmark nearly doubling its pork exports to China in the first six months this year compared to the same period last year. A report by GlobalMeatNews (http://www.globalmeatnews.com/Livestock/Denmark-benefits-booming-business-with-China), citing data from the Danish Agriculture and Food Council (DAFC), said Denmark accounted for 83,009 tonnes (11%) of China’s total fresh and frozen pork exports of in H1, up 153% from last year. A DAFC spokesperson said Denmark is “confident we can double the export in value and volume” this year.
|Bangladesh traders seek to import Indian buffaloes|
[9 August 2016] Some traders in Bangladesh are eager to import buffaloes from neighbouring India, with the aim of setting up cattle farms. The traders have taken the initiative with a view to exporting buffalo meat to Russia and other countries. They also want to sell the meat in the local markets, said industry insiders. Shihab Enterprise has applied to the Ministry of Commerce to import 10,000 buffaloes from India, an official said. Bangladesh has estimated that there are 1 million buffaloes in the country, with Noakhali district being one of the major buffalo farming areas.
|Biotis to sets up new vaccine plant in West Java|
[8 August 2016] Indonesia’s Biotis Prima Agrisindo, a joint-venture between two Chinese companies announced a USD 100 million investment in a veterinary vaccine factory in Bogor, West Java. The plant is expected to be completed in Q3 this year and will have a total production capacity of 8 billion ampoules per year. Biotis was co-founded by drugs giant Pharmally International Holding Co Ltd with a 69% stake and China’s state-owned enterprise Harbin Weike Biotechnology Development Company with a 10% share. According to Huang Wen Lai, Biotis Chairman, Biotis will focus on producing competitively-priced avian influenza and Newcastle disease vaccines for the Southeast Asia market, particularly Indonesia, in its first phase.
|Seiko Foods ventures downstream with premium ready-to-eat products|
[8 August 2016] Malaysian seafood processor Seiko Foods is producing value-added premium products to counter shortage of raw material such as surimi and high production costs. It produces ready meals, such as Yellow Tumeric Sauce, Spicy Thai Sauce, Sambal Tumis Sauce, and Ginger and Garlic Sauce, all with white tilapia fillets, packed in aluminium trays just like the ones used on airlines. The containers act as both baking trays to cook the frozen meal as well as a plate off which to eat it, giving the company the breakthrough it needed to advance into the market. “Thailand appears to be spearheading the sector worldwide, we feel it is time Malaysia makes her mark in this sector too,” Alan Lim, CEO, told Asian Agribiz.
|New DA chief seeks to reverse transfer of meat inspection functions|
[8 August 2016] Philippine Agriculture Secretary Emmanuel Piñol is seeking the reversal of the circular that transferred the meat inspection functions of the National Meat Inspection Service (NMIS ) to the Health Department’s Food and Drug Administration (FDA). He said meat processors are at a disadvantage under the current regulations and added that the FDA officers do not have the expertise of NMIS officers. The Philippine Association of Meat Processors had earlier called on the new administration to overturn the circular that was signed by former Agriculture Secretary Proceso Alcala and former Health Secretary Janette Garin, noting that it would only duplicate functions and add to the already bureaucratic process of securing permits.
|Shandong Minhe starts operations at upgraded hatchery|
[8 August 2016] Chinese white broiler integrator Shandong Minhe Animal Husbandry Co said it had completed upgrading works and started operations at its second hatchery, now equipped with incubators from Belgium’s Petersime. The new hatchery has an annual capacity of 120 million chicks. Each incubator can house up to 129,000 eggs. “The modern equipment is expected to improve the quality and safety of our products,” Minhe said. The company owns a parent stock of 3.3 million sets and is able to hatch more than 300 million chicks a year with three hatcheries. It produces 20 million broilers a year, and has an annual output of 60,000 tonnes of processed chicken products.
|South Sulawesi grows as feed hub in eastern Indonesia|
[9 August 2016] South Sulawesi has emerged as a feed hub in eastern Indonesia. There are six feed millers in the province, namely Charoen Pokphand Indonesia, Japfa Comfeed Indonesia, Malindo Feedmill, Cargill Indonesia, Patriot Agung Sejati and Sinar Terang Madani bringing in total installed capacity of 1.25 million tonnes per year. Roughly half of the capacity is used, said Syahrir Akil, Chairman, Indonesian Feed Producers Association (APPI) for Sulawesi and Kalimantan. “Annually the millers need 300,000-350,000 tonnes of corn, while layer farmers in the province need around 75,000 tonnes [of corn]. All the corn needs are met by local supplies,” Mr Akil told Asian Agribiz.
|Indian state Odisha to open 53 fresh chicken outlets|
[8 August 2016] The eastern Indian state of Odisha will open 53 fresh chicken outlets in different districts and urban locations to facilitate hygienically-processed poultry meat and egg. Bishnupada Sethi, Secretary of the Fisheries and Animal Resources Department, said this will boost the development of the sector and keep in check roadside slaughtering of birds. “The decision to open more chicken fresh outlets was made after encouraging outcomes from three chicken fresh outlets opened in the city. The outlets will provide marketing support to broiler and layer farmers,” Mr Sethi said adding that the annual turnover of each of these outlets is around USD 150,000.
|Contaminated pork delivered to retailers in Hong Kong|
[8 August 2016] At least 40 slaughtered pigs contaminated with illegal drugs were sent to 27 retailers across Hong Kong, said government authorities. It is unclear whether the pork has been sold or consumed, but a spokesman for the Centre for Food Safety said it does not pose a serious health hazard to residents, and that they have already notified all retailers to stop selling the products. Urine samples from 319 pigs from two farms in China were found to be contaminated with remnants of salbutamol and clenbuterol. Fork Ping-lam, Food and Environmental Hygiene Department, Assistant Director, said 40 pigs left the Sheung Shui slaughterhouse, and they have launched an investigation.
|Vietnam’s Lam Dong province to develop sustainable beef production|
[8 August 2016] Vietnam’s central highland province of Lam Dong has approved the proposal of a beef cattle project targeting a 100,000-cow herd by 2020. The USD 4.8 million project will be contributed by the province’s fund and farmers. Zebu, Droughtmaster, Red Angus, Blanc Blue Belgium are among the breeds selected for the project. Until 2020, it is estimated that Lam Dong’s beef production will reach 43,780 tonnes, valued at USD 22 million. Lam Dong’s Department of Agriculture and Rural Development said the province is keen on establishing a high quality sustainable meat production chain that connects farmers to feed suppliers and meat buyers.
|No Brexit impact on CP Prima’s export volume to UK|
[5 August 2016] Indonesia’s largest shrimp producer and processor Central Proteina Prima (CP Prima) is actively expanding its market share in the EU and UK markets. Sutanto Surjadjaja, Vice President Director, told Asian Agribiz that Brexit does not have an impact on its export volume to UK. “However, since the pound is weakening and we sell our products in US dollar, the profit margin of our buyers is decreasing. They lobbied us for competitive prices,” he said. On EU’s strict import stipulations, Mr Surjadjaja said UK’s standards are even stricter. “Supermarkets in UK are concerned about food safety and traceability of food products they import. So Brexit will not affect the standards on food safety and quality.”
|More efficiency with Avinew effervescent tablets|
[5 August 2016] Rhone Ma (M) Sdn Bhd launched Merial’s Avinew Neo, or New Effervescent Option, in Malaysia recently. “Effervescent tablets make storage, handling and administering of the drug easy,” Dr Karen Yip, Marketing and Technical Director, told Asian Agribiz. “The tablets dissolve in water. It is quick and less complicated to administer compared to the former Avinew, which came in glass vials and is administered as an eye drop, via drinking water and as a spray,” she said. “Avinew in the glass vials are live vaccines. Farmers must use up the vaccination within an hour or its efficacy lowers.” Rhone Ma plans to introduce more vaccines in the tablet form, including Bioral H120 and Gallivac IB 88.
|Fujian Sunner H1 chicken sales up 25%|
[5 August 2016] China’s Fujian Sunner Development Co said its slaughtered chicken sales grew 25% in volume in the first six months of the year, driving its first-half operating revenue to USD 592 million, or up 23% year-on-year. Net profit, however, was at USD 37 million, compared with a loss of USD 53 million a year earlier. According to Sunner, China’s first-half introduction of broiler GPs was less than 0.11 million sets, compared with 0.72 million sets last year and the 1.54 million peak in 2013. “The segment will see a long-term shortage in 2016-2017, meaning better days for producers over the next three years,” said the company.
|Australia expands skills courses on red meat, cattle in Indonesia |
[5 August 2016] Australia’s Minister for Trade, Tourism and Investment, Steven Ciobo, announced the expansion of the skills development program under the Indonesia-Australia Partnership on Food Security in the Red Meat and Cattle Sector. The courses under the program have been successful at strengthening the bonds between the countries in the red meat and cattle sector. “Last year 70 Indonesians were trained in the cattle sector in Australia through courses run by Australia Awards in Indonesia and the Northern Territory Cattlemen’s Association Pastoral Industry Student Program. This year, that number will rise to 86,” he said.
|Pakistan’s poultry industry suffers losses|
[5 August 2016] Pakistan’s poultry industry has suffered a loss of around USD 411 million in one year and this loss may mount further because the prices of chicken and eggs do not follow the increasing cost of production. According to Rai Mansab Ali Kharal, Chairman of the Pakistan Poultry Association North Zone, if the present situation prevails, half of the farms may be closed, affecting the population who depend on the availability of affordable protein. He said average broiler price remained at USD 1.10/kg last year while production cost climed to USD 1.30. Meanwhile, the average price of broiler DOC was USD 0.20 per chick against the cost of production of USD 0.30.
|South Korea gives Philippine chicken a go-ahead|
[4 August 2016] The South Korean government has given a go signal for Philippine poultry exports, the Philippine Department of Agriculture announced. The Korean Animal and Plant Quarantine Inspection Agency and the Ministry of Food and Safety has recommended the approval of Johanna’s Chicken Processing Center and LDP Farms to export chicken meat after the two companies passed the country’s sanitary standards and processing requirements. Two other companies were also inspected but were recommended to implement improvements before being inspected again.
|Cambodia launches framework for livestock law|
[4 August 2016] After eight years in the works, Cambodia’s Agriculture Ministry this week circulated the framework for the country’s first law regulating the quality of domestic and imported meat products and livestock. The law, signed into effect in January, will serve as the foundation for rules governing the import and export of livestock and meat, veterinary practices to ensure animal health, enforcement of sanitation standards at slaughterhouses and regulation of chemical alterations to meat products. Alexandre Huynh, a representative of the UN’s FAO, said the law guarantees the quality of products. “It opens doors to investments and allows local producers to compete with imports,” he said.
|Thailand’s CPF embraces good labour practices|
[4 August 2016] Thailand’s Charoen Pokphand Foods (CPF) is working with the Department of Labour Protection and Welfare, and the Department of Livestock Development to promote the welfare and quality of life of stakeholders in the broiler business. Mr Virachai Ratanabanchuen, COO, for the chicken business, said the firm is committed to taking its labour practices to the next level, on par with international standards. “Good labour practice (GLP) is applied throughout our value chain,” he said. The company is also applying its GLP to its contract farmers. CPF recently trained 40 broiler farm owners in Nakhon Ratchasima, and will soon organise training in other provinces across the country.
|Masan attributes strong H1 results to animal protein segment|
[4 August 2016] Masan Group’s H1 2016 net profit almost tripled to USD 46 million compared to figures from a year ago. The company’s total revenue in the first half of the year was more than USD 856 million, a year-on-year increase of 83.8%. The company said its animal protein segment was the main contributor to its performance in the first half of the year. This segment contributed nearly 60% of the group’s total revenue. Revenue from the sales of animal feed rose 13.8% from last year to more than USD 491 million. The company said it had developed new products and focussed on pig feed, which generated the highest profit margin for Masan among all animal feed products.
|Philippines to explore organic chicken exports|
[4 August 2016] The Philippines might explore raising organic chicken on a commercial scale for export to South Korea, Philippine Agriculture Secretary Emmanuel Piñol said following a meeting with South Korean Ambassador Kim Jae-shin. Mr Piñol clarified, however, that the plan is still a proposal and that there is no commitment yet. He said chicken can be raised using commercial facilities, but will be fed all-natural organic feeds that “will be formulated by an Islamic engineer, so the products comply with halal standards”.
|Japfa Comfeed Vietnam gets positive feedback for probiotic feed|
[3 August 2016] Japfa Comfeed Vietnam Ltd has received the thumbs up from farmers and the feed industry for its probiotic feed, which now accounts for 20% of the company’s total production capacity and stands as one of its bestselling products. The company is using probiotics developed by Biospring Corp, which produces probiotics from heat resistant spores of bacillus strains. Nguyen Duy Cuong, Japfa Comfeed Sales Manager said trials using the probiotic feed on 100,000 layers led to an increase in egg size and improved egg yolk colour. Meanwhile, studies on pigs showed better growth rate and improved immune system.
|CPF India sees strong potential for burger segment|
[3 August 2016] The burger category in India is promising. Sanjeev Pant, Senior Vice President, Food Business, CPF (India) told Asian Agribiz it has seen huge growth in India over the years. CPF India’s Five Star Chicken recently launched two new variants in India, the Haryali Chicken Cheese Burst Burger and Spicy Mix Veg Burger. “Some 60% of Five Star audience are aspirational youth who is always on a look out for new flavours,” said Mr Pant. Five Star is present in key metros like Bangalore, Chennai, Kochi and other cities. CPF India said it is looking for good response not only from the metros but also from tier 2 and tier 3 cities. CPF India is a subsidiary of Thailand’s Charoen Pokphand Foods.
|FDA takes jurisdiction over cooked processed meat|
[3 August 2016] The Philippine Food and Drug Administration (FDA) has taken jurisdiction over cooked and processed meat beginning July 25 this year. It was previously under the National Meat Inspection Service. With the transfer, the Bureau of Animal Industry will no longer be issuing shipping permits for cooked processed meat but it will continue to issue shipping permits for uncooked, processed meats like burger patties and local fares like tocino, tapa and longganisa. Meanwhile, the issuance of the licence to operate permits of meat establishments has also been transferred to the FDA.
|Malaysia to produce 801m DOCs, 768m broilers in 2016|
[3 August 2016] Malaysian farmers are expected to produce 800.90 million day-old chicks and 767.85 million broilers this year, said the Department of Veterinary Services’ annual report. Last year the country produced 792.94 million day-old chicks and 737.61 million broilers. The cost of production for broilers in 2015 ranged from USD 1.12 to USD 1.22 per kg live weight. The Department noted that the cost of production was higher compared to the year before as the price of broiler feed increase by 1.28% from 2014. Despite this, the department said the poultry industry is the most successful segment of the livestock sector and has the highest output value per worker in the agriculture sector.
|Vietnam’s feed demand to grow 10% annually|
[3 August 2016] Despite stiff competition Vietnam’s feed industry is still seen as a potential market. This explains Hoa Phat’s plan to build a new feedmill next year, said Tran Tuan Duong, Hoa Phat Group, CEO. Mr Duong said the country expects a 10% growth in feed demand per year. This means Vietnam will need 20 million tonnes of feed by 2018. Meanwhile, Nguyen Thi Thu Kim, Analyst at Saigon Securities Inc, said the feed industry has become much more attractive to investors in the last few years. “The development of larger scale meat production has driven the demand for commercial feed production as a replacement for homemade feed in the past.”
|Input price rise gives pressure to margins of India’s feed producers|
[2 August 2016] Margins in India’s feed industry is shrinking as prices of corn and soy rise significantly after years of droughts. Producers like Cargill, CP Foods, Godrej Agrovet and SKM Feeds are unable to pass on the additional costs to consumer. Besides the demand-supply gap prices were also up due to hoardings by traders, alleged industry insiders. “The price rise in the past four months has strained our profits to the extent of 20-25% per tonne of feed,” said Balram Yadav, Managing Director, Godrej Agrovet. “If earlier we were able to passed on the cost to consumers now we can’t due to increasing competition, and are forced to take a hit.”
|Muyuan Foods H1 net profit soars on rising pig prices|
[2 August 2016] Chinese pig producer Muyuan Foods Co said its first half net profit rose dramatically to USD 162 million from USD 7 million a year earlier. Operating revenue doubled at USD 344 million. The company attributed the growth to a significant rise in finished pig prices, which grew 51% to USD 2.90/kg averagely in H1 2016. Muyuan’s H1 live pig sales increased 35% to 1.15 million heads, including 0.83 million finished pigs and 0.32 million piglets. The company has targeted to produce 2.8-3.5 million pigs this year, and “the goal is expected to be achieved”, judging by the H1 results, it said.
|US requests WTO to impose annual fine of USD450m on India|
[2 August 2016] The US wants the World Trade Organisation (WTO) to impose a fine of USD 450 million annually on India for hurting US trade interests with its failure to comply with a WTO ruling. For about seven years India had restricted US agricultural products like poultry meat, eggs and live pigs, to avoid avian influenza . The prohibition was via India’s avian influenza measures maintained through the Indian Livestock Importation Act, 1898. The US argued that India’s policy towards American poultry imports were discriminatory and violated WTO rules.
|Hung Vuong closer to completing pork expansion plan|
[2 August 2016] Hung Vuong Corporation is closer to completing the final phase of its USD 90 million pork expansion program with the arrival of 750 breeders from DanBred International last week. Under its contract with DanBred, signed last year, Hung Vuong will import 4200 pigs, of which 1500 are great grandparents while the rest are grandparents and parent stock. Two more deliveries, in October and November, will complete the importation. The company hopes to launch the first batch of Hung Vuong brande parent stock, commercial pigs and pork early next year.
|Philippines’ Unahco registers new feed additive|
[2 August 2016] Unahco, one of the largest producers of feed and veterinary products in the Philippines, announced that it has registered OxC-beta Livestock as an imported feed additive that can be used in all species in the country. OxC-beta is a product owned and developed by Canada-based Avivagen that has immune-priming and inflammation-moderating properties, making it a safe and effective alternative to in-feed antibiotics for maintaining optimal health and growth of livestock. The product is expected to be commercially available in the country over the coming months.
|Vietnam meat demand to peak by 2023, causing feed production to grow|
[2 August 2016] Meat demand in Vietnam will peak to 33.9kg by 2023 causing a spill over effect in the feed industry. According to a survey by Grand View, Vietnam feed industry will value at USD 10.55 billion by 2022, which is 50% higher than the current USD 7 billion. “It is estimated that the growth of feed demand in Vietnam is 10% per year, which means Vietnam will need 20 million tonnes of feed by 2018,” said Tran Tuan Duong, CEO to Hoa Phat Group. “The industry has become more attractive to investors . Large scale meat producers has driven the demand for commercial feed production as a replacement for homemade feed in the past," said Nguyen Thi Thu Kim, analyst at Saigon Securities Inc.
|Hotels, restaurants buoy processed pork consumption in India|
[1 August 2016] Although the processed pork market in India is relatively small, it has been growing at a rapid pace thanks to growing demand from hotels and restaurants that serve foreigners and wealthier Indian consumers, a report by the US Department of Agriculture said. However, demand is being served primarily by imports as the country’s pork industry remains small, unorganised and inefficient. In 2015, the country imported 527 tonnes of pork products like bacon, ham, salami and sausages and cuts such as belly, chops, loin, tenderloin, neck, shoulder, spare rib. The figure is up 28% from the previous year, with EU countries among the leading suppliers.
|Thai seafood processor PFP to open halal plant in Malaysia|
[1 August 2016] PFP Group, a major Thai frozen seafood processor, hopes to open a halal food factory in Malaysia after it concludes negotiations with its local partner. The company plans to build a USD 4.31 - 5.75 million manufacturing and distribution facilities in Malaysia, to add to its two existing 97 tonnes per day food processing plants in Thailand. PFP told a Thai local daily it was exploring new Muslim markets especially Indonesia in line with the government’s policy to make Thailand one of the world’s top five halal food exporters in five years. PFP produces imitation crab sticks, snow crab, fish tofu, Thai fish cake, imitation crab claw and imitation shrimp.
|Indonesia’s Dua Putra to commission new seafood plant|
[1 August 2016] Indonesia’s seafood company Dua Putra Utama Makmur will commission its USD 23 million seafood processing plant in Pati, Central Java, mid-August, said Witiarso Utomo, President Director. Currently the company already has three seafood processing plants and a 4000-tonne cold storage facility, all in Pati. The fourth plant, to be equipped with a 21,000-tonne cold storage facility, will increase the company’s shrimp and fish processing capacities from 8 to 100 tonnes/day and 5 to 13 tonnes/day, respectively. “We significantly increase our shrimp processing capacity since demand from export markets is big,” said Mr Utomo.
|New Hope to build broiler breeder farm in Myanmar|
[1 August 2016] Chinese livestock integrator New Hope Liuhe Co said it has decided to build a broiler breeder farm in south Myanmar. The planned farm will have a parent stock of 170,000 sets, and is able to hatch 15 million chicks a year. The total investment for the project is about USD 10 million. “We aim to build an integrated value chain by adding a breeder farm to our profitable feed business,” New Hope said. The company has been operating a feedmill in Myanmar for more than two years, and its feed sales peaked at 5000 tonnes a month.
|Asia’s protein boom|
[1 August 2016] US-based Brookings Institution estimates the Asian middle class will reach 1.7 billion by the end of the decade and will double to 3 billion by 2030. Economists see a surge in demand for meat products. The proportion of protein in Chinese households’ diet has gone from less than 20% to almost 25%, according to an International Monetary Fund analysis. Yet the IMF said per capita consumption of beef and pork is still well below what would be expected at current income levels, and predicted it will rise as wages head higher. This type of growth in the next 15 years will see world production of beef and poultry increase by 5%, lamb and mutton by 17%, fish by 30% and pork by more than 40%.
|New cooking plant to take Godaco further|
[29 July 2016] Vietnam’s Go Dang Joint Stock Company, better known as Godaco, opened its first pangasius further processing plant, early July. The vertically-integrated frozen pangasius fillet producer has five production lines that produce marinated, breaded, tempura, karaage for the Japanese market and shrimp. “Value-added will be a growth pillar for the company. We are the first pangasius company to do it on a large scale,” Nguyen Van Dao, General Director and Founder of Godaco, told Asian Agribiz. Until recently the business was 95% frozen fillet and 5% value-added. Mr Dao said he plans to grow value-added to a “meaningful initiative”.
|Thailand’s GFPT expected to post solid Q2 earnings|
[29 July 2016] Thai brokerage SCB Securities expects Thailand’s GFPT to report a Q2 net profit of USD 9.77 million, up 71% from the same period last year, driven by wider gross margin and higher equity income. GFPT’s Q2 earnings will also be backed by lower feed costs, better product mix (higher margin exports) and better equity income from both GFN and McKey. GFN is a joint venture between Japan’s Nichirei Foods Inc and GFPT, while McKey is a joint venture between Keystone Foods Inc and GFPT. However, GFPT’s sales is expected to slide 2% in Q2, hurt by a weaker feed unit that outstripped the improved farm and food units. For GFPT’s feed unit, sales volume continued to drop year-on-year as the firm faced greater competition from fully integrated players, especially in the shrimp feed business.
|McDonald’s to sell Malaysia, Singapore franchises|
[29 July 2016] McDonald’s Corp is planning to sell its 20-year franchise rights in Malaysia and Singapore to local franchise partners as it pursues an international turnaround plan put in place after CEO Steve Easterbrook took over last year. It said it was negotiating with suitable candidates for the Malaysia and Singapore markets but did not provide any details. It is revamping its ownership models throughout Asia, including plans to sell operations in China, Hong Kong and South Korea. In March the company said it aims to have 95% of its restaurants in the region under local ownership.
|Minerva eyes stronger presence in Asia |
[29 July 2016] Brazil’s beef processing giant Minerva has made its first investment in Australia, in a Brisbane-based non-packer exporter and trading company, IMTP Pty Ltd. The company is almost totally export focussed, servicing a wide range of international customers across Asia, North America and Russia. According to Minerva, IMPT will change its name to Minerva Foods Asia Pty Ltd, a likely indication where the main export focus for the company will be henceforth. “We see it as a strong opportunity for the Australian export business to grow,” Michael Connolly, Director, IMTP, said.
Onsite at Indo Livestock 2016 with ARIEF FACHRUDIN
[29 July 2016]
The 11th edition of Indo Livestock Expo & Forum opened on July 27 at the Jakarta Convention Centre in Jakarta, Indonesia.The show has 580 exhibitors from 38 countries promoting their products and technologies to make the production of livestock and the processing of meat, egg and dairy more efficient and sustainable. According to the organiser Napindo Media Ashatama, they expect to welcome 15,000 trade visitors and delegates during the three days.
Challenges abound for poultry industry
Indonesia’s poultry industry is still facing a tough situation, according to Don P Utoyo, President of the Indonesian Poultry Society Federation (FMPI). Problems like alleged broiler cartel, corn supply and control on wheat imports, as well as slowing economy and low purchasing power are hampering growth of the industry. “To address this, we needcooperation between the government, private sector, researchers, press and public,” Mr Utoyo told Asian Agribiz. Desianto Budi Utomo, Secretary General of the Indonesian Feed Producers Association (APPI), concurred, and said the industry is expected to grow at 8%. However, “the potential of Indonesia’s poultry industry is still good. In 2020, it’s predicted that the number of middle class will grow by 174%. This will drive consumption of poultry meat and eggs.”
Feed industry needs corn & wheat supply continuity
Supply continuity of energy sources like corn and wheat is still the main issue of the animal feed industry in Indonesia, according to Desianto Budi Utomo, Secretary General of the Indonesian Feed Producers Association (APPI). In the first half, corn imports reached around 800,000 tonnes. “For the second half, we have proposed to Bulog [the State Logistics Agency] to import 1.5 million tonnes of corn since local corn production during the period will not be sufficient to meet the feed industry's needs,” Dr Utomo told Asian Agribiz. However, he continued: “if the government loosens its control on feed wheat import and then allow us to import the commodity again, we will need less than 1.5 million tonnes of corn for the second half.” As of now, wheat imports has touched 2 million tonnes.
Cold chain logistics of meat in Indonesia expected to grow 6%
The growth of cold chain logistics in the meat sector in Indonesia is not significant, according to Hasanuddin Yasni, Executive Director of the Indonesian Cold Chain Association (ARPI). Mr Yasni told Asian Agribiz that cold storage investment in the meat sector is still dominated by chicken producers such as Charoen Pokphand and Japfa since they supply their products to QSR chains that grow throughout the country. “This year I believe the growth of cold chain logistics in the meat sector is only about 6% as the poultry industry is still having some problems. However, next year the growth can be 10% since many foreign investors from Japan, Thailand, China and India plan to invest,” he said. Based on ARPI data, total installed capacity of cold storage for chicken and beef is 1.3 million tonnes and 450,000 tonnes, respectively.
|Thailand’s Prantalay to launch frozen and chilled imitation shrimp |
[28 July 2016] Anurat Khokasai, Chief Executive Officer of Thailand’s Prantalay Marketing, told Asian Agribiz that the firm will launch frozen and chilled imitation shrimp under the Prantalay brand in the next two months. “Imitation shrimp is relatively new in Thailand and there are no competitors. This is a business opportunity for us,” he said, adding that imitation shrimp can be cooked in various ways. Prantalay invested around USD 857,000 for the machine and it will produce 20 tonnes of imitation shrimp a month in the first phase. Prantalay’s imitation shrimp will be produced from fish.
|DBE Gurney to open 1000 fried chicken kiosks by mid-2017|
[28 July 2016] Malaysia’s DBE Gurney Resources Bhd hopes to open 1000 HARUMi fried chicken kiosk in the next 12 months. Group Managing Director Datuk Alex Ding said it plans to offer franchise opportunities to entrepreneurs who are keen to start a business. The group’s subsidiary DBE Poultry Sdn Bhd signed a joint venture with Distinct Legacy Sdn Bhd and private investor Tengku Faizwa Tengku Razif to establish an entrepreneur development program that involves the setting up of HARUMi outlets. The company currently has more than 100 kiosks across the country. He said it is on track to achieve its target of 500 kiosks by year end.
|China targets 8mt annual beef output by 2020|
[28 July 2016] China has set a goal to produce 8 million tonnes of beef a year by 2020, up from 7mt in 2015, said the Ministry of Agriculture. In a guideline to promote the herbivorous animal sectors, the ministry said China should tap imports “to fill the domestic gap of meat supply, and to meet consumer demand”. Chinese companies will also be encouraged to invest in overseas forage farms and beef processing plants, the guideline said. China imported 295,721 tonnes of beef valued at USD 1.3 billion in the first half of 2016, up 61% and 48%, respectively, from a year earlier, according to China Customs.
Highlights in Asian Poultry Magazine, August 2016
[28 July 2016]
Native chicken demand grows in Indonesia
Indonesia’s native chicken business continues to grow alongside the rise in middle-high income consumers. ARIEF FACHRUDIN learns that there is a big gap between demand and supply. Opportunities for investment in breeding, commercial farming and processing abound.
CPF India tweaks business model for local market
CPF India has been operating it food business in India for three and a half years, following in the footsteps of its parent company, Thailand’s Charoen Pokphand Foods (CPF). It studied CPF’s Five Star Chicken business model and brought the business to India, writes PAYUNGSAK WIRIYABUNDTKUL.
China’s white broiler segment tipped for better days
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 losses since 2012 and upstream breeders have had to limit the introduction of overseas GP, reports ALLEN SHU from a white-feather broiler conference in Shenyang, China.
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.
DL-Methionine – nutritionally the mirror image of L-Methionine – Part 2
Pradeep Krishnan, Ariane Helmbrecht, Behnam Saremi and Girish Channarayapatna review recent metabolomics and tissue amino acid profiling evidence on the comparison of nutritional value of DL-Methionine (Met) and L-Met.
Effect on lignocellulose fibre types on broiler production
Jeffrey Morton and Arthur KroismayR present a trial that shows the benefit of using a lignocellulose fibre product that contains a mixture of fermentable and non-fermentable fibres.
|China H1 pork imports up 138% at 762,359 tonnes|
[27 July 2016] China’s pork imports totalled 762,359 tonnes valued at USD 1.45 billion in the first half of 2016, up 138% and 153%, respectively, from a year earlier, said China Customs. In June alone, the volume of pork imports more than tripled to 194,165 tonnes. Earlier, the nation announced a first-half pork output of 24.73 million tonnes, down 3.9% year-on-year. “More food companies started importing pork or studying the issue, which has shaken the domestic high prices,” said Chinese consultancy Bric Data.
|Godaco’s new pangasius cooked plant replicates Thai GFS’ high standards|
[27 July 2016] Pangasius producer Godaco’s first further processing plant, which opened early July, replicates Thailand’s top cooked chicken exporter Golden Food Siam’s (GFS) systems and high standards, David Ireland, Senior Partner, Navis Capital Partners, told Asian Agribiz. Godaco was acquired by Navis in 2013. Navis, meanwhile, sold off GFS to BRF SA in February. “Since acquiring Godaco, we have grown its farming capability, built a second processing plant and recently completed a modern cooking plant,” he said. The plant is certified to ISO 9001:2008, HACCP, BRC, halal and Global GAP. It is eyeing three regions, namely Europe, Asia Pacific and the Americas for export.
|Malaysia’s Kean Chuan brings in Berkshire GP|
[27 July 2016] Malaysia’s Kean Chuan Enterprise has received three heads of Berkshire grandparent stock from the US. “They are not under any stress from local weather conditions because of the closed housing. I hope that by 2018 I will be able to produce Berkshire pork for the local market. It will make up a small part of my range of products,” farm owner Wong Soon Ping told Asian Agribiz. Mr Wong, who is looking to produce premium chilled pork, as well as DHA-enriched products, believes that niche products can help him face the consolidation that is happening in the local market, and stay afloat when regional trade agreements come into effect.
|Foresun, partner to buy out Uruguayan beef plant Lorsinal|
[27 July 2016] Chinese beef supplier Foresun Group said it is partnering with LatAm Value Partners Ltd (LAVP) to acquire Lorsinal S.A., a beef processing plant in Uruguay, for USD 33.3 million. Foresun and LAVP will take a 50% stake each of Lorsinal that has a daily cattle slaughtering capacity of 500 heads. The plant has gained export permits to most markets including China, Hong Kong, South Korea, EU and the US, and generated more than 80% of its revenue from exports, of which 45% went to China, according to Foresun. Before the bid, Foresun already owned two beef plants each in Australia and Uruguay. In April, it agreed to buy three beef slaughterhouses in Argentina from Mafrig.
|Millhouse exports grass fed beef to Singapore and eyes Taiwan, Indonesia|
[27 July 2016] Australia’s Millhouse Pastoral is exporting beef from grass fed cattle directly into high end Singapore restaurants, with plans to expand into Indonesia and possibly Taiwan, later this year. Frank Pereira, Owner and Director, said at the moment a tonne of beef is airfreighted weekly Singapore. Mr Pereira expects that to grow significantly by the end of the year. He said he is in the process of signing an MoU with Taiwanese buyers, while the Indonesian connection is also promising. Mr Pereira added that one of the biggest challenges is sourcing appropriate stock, to sell into the Asian markets. “The prices of cattle at the moment are ridiculously high, and that’s our biggest issue,” he said. Part of Millhouse’s cattle diet, now supplementing pasture, are two 350kg tubs of beer mash a week. In addition, the cattle are fed seaweed meal.
|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.”