TOP STORIES . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24 September 2017
|14 presentations specific to layer feed sector|
[22 September 2017] 'Can gut health additives be used as alternatives for antibiotics? Limitations and opportunities'. This is the paper that will be presented by Dr Tim Goossens, Business Manager – Digestive Performance, Nutriad, Belgium. Dr Goossens is an R&D Engineer, providing technical support to sales teams and coordinating research projects with a focus on feed additives that support gut health. Dr Gossens' will be one of 14 presentations at Asian Agribiz's Southeast Asia Layer Feed Quality Conferences in Jakarta (16-17 October) and Ho Chi Minh City (19-20 October). For details and to register online visit SEA_LAYERfeedQC17 or contact Sutasinee Lake at email@example.com.
|Wens Fresh outlets expand to east China|
[22 September 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said it has opened a Wens Fresh outlet each in Suzhou and Hangzhou, both in east China. It is the first time for the outlet chain to expand outside of the southern Guangdong province where it is based. First launched in November 2015, there were about 100 Wens Fresh outlets in Guangdong by June. The company targets to have 200 stores by the end of this year. The outlets offer products like fresh pork, chicken, fish, milk, eggs and duck meat.
|Malaysia suspends three Australian beef and sheepmeat exporters|
[22 September 2017] Australia’s Department of Agriculture and Water Resources was made aware of this suspension through Malaysia’s Department of Veterinary Services (DVS) website last month. The suspensions are related to an audit conducted in May 2017. According to a department spokesperson, it is not uncommon in international trade for establishments to be suspended or lose listing due to non-compliances or changes in arrangements in overseas markets. The department is working directly with the affected Australian establishments and DVS to achieve an early resolution.
|Taiwan to purchase USD2.8b worth of US grains|
[22 September 2017] A trade team from Taiwan visited Iowa in the US recently and signed letters of intent to purchase USD 2.8 billion worth of US grains over the next two years. The deal includes corn, soybeans, wheat and corn DDGS. Mark Heckman, Director of the Iowa Corn Promotion Board (ICPB) signed the letter of intent between ICPB and the Taiwan Feed Industry Association, outlining the intention by the Taiwanese to purchase 5 million tonnes of corn and 0.5 million tonnes of DDGS between 2018 and 2019, at an estimated value of USD 1.05 billion. “Taiwan is an important buyer of US corn and co-products,” said Mr Heckman.
|Cambodia, UNIDO secure fisheries value chains |
[22 September 2017] The UN Industrial Development Organisation (UNIDO), together with Cambodia’s Ministry of Commerce recently launched a booklet titled Fostering Fisheries Value Chain Growth and Competitiveness, to mark the end of a three-year marine fishery project under the Cambodia Export Diversification Program. The project supported two fish processing factories in Kampot province, said Sin Kang, an officer with UNIDO’s export diversification and expansion program. “The two factories are now HACCP certified and are successfully linked with restaurants, supermarkets and retail chains, offering fish that is hygienic and safe for consumers,” he added.
|Betagro moves to group housing for its sows|
[21 September 2017] Thailand's Betagro will improve the welfare of pigs by gradually shifting to group sow housing. All its farms will transition to 100% group housing by 2027. Betagro said the move will ensure that animals are healthier, less stressed and be able to express their natural behaviour. They will also provide more robust piglets and healthier meat. Vanus Taepaisitphongse, Chief Executive Officer said, “we believe animals should have a good quality of life. And healthy pigs will enhance product quality and safety.” Meanwhile, World Animal Protection Thailand said Betagro has set a new standard for pig farming in Thailand.
|CAB Cakaran sets up poultry abattoir in Singapore|
[21 September 2017] Malaysia’s CAB Cakaran Corp Bhd is setting up a poultry slaughtering facility and services in Singapore. The company recently announced that its 51%-owned unit Tong Huat Poultry Processing Factory Pte Ltd has entered into an agreement with the other shareholders of Singapore Poultry Hub Pte Ltd, whose principal activity is slaughtering of poultry and cold storage. The company’s shareholders include Tong Huat Poultry, Kee Song Holdings Pte Ltd, Sinmah Holdings (S) Pte Ltd, Tysan Food Pte Ltd and Tan Chin Long. CAB Cakaran added that shareholders of the company may be required to provide funding of up to USD29.6 million for Singapore Poultry Hub’s operations.
|QR code sets new safety benchmark for poultry|
[21 September 2017] In Kerala, India, Venad Poultry Farmers Producer Company Limited which produces antibiotic free chicken and markets it through their franchised outlets has set a new safety standard. Consumers can scan the QR code on the legs of a live chicken and information like the type of feed, medicines given, and even the details of the farmer who reared the bird will be sent to your mobile phone. This unique project, branded as the ‘Venad signature Chicken’ is an initiative under Kerala Agricultural University, supported by the National Bank for Rural and Agricultural Development. “This assures traceability and safety for consumers,” said Dr K Chandraprasad, who heads the project.
|Aboitiz keen on SEA expansion |
[21 September 2017] Philippine conglomerate Aboitiz Equity Ventures Inc. plans to expand its animal feed business in Vietnam following a 70% percent acquisition of Europe Nutrition Joint Stock Co (Eurofeed) for USD 3.5 million. AEV Executive Vice President and Chief Operating Officer Sabin Aboitiz said the company is also planning to double the capacity of its feed business in Cambodia. He also disclosed the company’s recent incorporation of a trading office in Indonesia as part of its expansion within Southeast Asia.
|Japanese buyers need soybean with higher protein content|
[21 September 2017] Some of Japan’s largest importers and crushing industry representatives recently spent time in Iowa learning about the US soybean supply chain. “Every other year we bring this team to the US to show them and reaffirm with them the complete supply chain of US soybeans,” said Paul Burke, US Soybean Export Council North Asia Regional Director. “We want to reinforce with them the reliability of the supply system and the commitment from US farmers to supply the soybeans they need.” One of the needs Japanese buyers and crushers have conveyed is the protein content needs to be improved. New investments are being made by the soybean board to increase and improve protein.
|Five-year goal to ensure fair price for farmers|
[20 September 2017] The Philippine Department of Agriculture (DA) will outline a five-year development roadmap for the Philippine livestock and poultry sectors, said Agriculture Secretary Manny Piñol during a recent meeting with industry stakeholders. The roadmap will include DA’s commitment to help poultry farmers market their products to ensure fair farm gate price following complaints that live birds are still being sold at USD 0.40-0.60/kg while market price for dressed chicken has reached USD 2.35-2.55/kg.
|Ruili to import 300,000 cattle a year from Myanmar|
[20 September 2017] The slaughterhouse to be built in Ruili, a border city in China's Yunnan province, will source about 300,000 cattle a year from Myanmar, according to Hunan Dakang International Food & Agriculture Co, which is setting up a 51-49 joint venture with the local government to build and operate the slaughterhouse. It will also source 100,000 cattle from local farmers, while the company's planned own farm will contribute another 100,000 heads. Dakang is seeking a private placement to fund the project that is estimated to cost USD 654 million. The project is part of China’s efforts to regulate cross-border livestock trade and reduce smuggling.
|Online investment in beef cattle fattening|
[20 September 2017] Vestifarm, an Indonesian start-up, launched web investment in beef cattle fattening, early this year. Dharma Anjarrahman, CEO said in January, it offered 48 slots. Receiving good response, in March it offered 120 slots. The cattle will be fattened by partner farmers of Vestifarm for about four months. Investor and Vestifarm get 50% each from the profit, while the partner farmers get a fee of around USD 528 per head. “Investors must be ready to make and lose money. We cooperate with an insurance company for risk mitigation,” said Mr Anjarrahman. In May, Vestifarm also launched online investment in shrimp farming with 1200 slots of investment.
|Felcra ventures into corn cultivation |
[20 September 2017] Malaysia’s Federal Land Consolidation and Rehabilitation Authority (FELCRA Berhad) will implement a special corn crop project to feed livestock to reduce the country's dependence on imports now valued at about USD 680 million a year. According to Chief Executive Officer, Zulkarnain Md Eusope, five locations had been identified and the team has been experimenting with 30 corn varieties in the state of Perak to study the suitability of the soil. The project, which is expected to begin in the first quarter of next year, aims to reduce the country's dependence on imported livestock feed over the next five years.
|No monopoly in beef cattle feedlot business|
[20 September 2017] Indonesia’s Central Jakarta District Court recently upheld the decision of the Business Competition Supervisory Commission and sentenced 30 companies for initiating a beef cattle cartel, monopoly and production arrangements. Commenting on this, Rochadi Tawaf, Secretary General of the Indonesian Cattle & Buffalo Farmers Association, said beef cattle feedlot is an open business. "Since this business needs big capital, it’s impossible for small farmers to join,” he added. However, he suggested that large producers develop partnerships with small farmers, by providing capital for them to expand.
|Cargill acquires feedmill in Thailand|
[19 September 2017] Cargill’s animal feed and nutrition business is expanding in Thailand with the acquisition of a feedmill in Prachinburi province. The feedmill is a joint venture between Sri Thai Foods and Beverages and Thai-Denmark Swine Breeding. Once fully operational in May 2018, the plant will employ around 50 employees and produce 72,000 tonnes of feed per year for swine and poultry customers in the Eastern and North-eastern areas of Thailand. “This plant is aligned to Cargill’s animal nutrition business growth plans,” said Akkarit Boontawee, Managing Director of Cargill Feed and Nutrition South East Asia. Given the large land area (10 hectares), Cargill said it could expand the facility and add more local jobs as the market continues to grow.
|Malaysia should grow more corn for animal feed|
[19 September 2017] Agriculture and Agro-based Industry Minister Datuk Seri Ahmad Shabery Cheek said Malaysia currently imports about 3 million tonnes of corn from Argentina annually. He added the weakening of the ringgit would force the country to fork out more money to import animal feed and that would cause the price of chicken to go up. Although the country started corn production in Johor, Kedah and Terengganu last year, the 1000ha is insufficient to meet local demand. In order to become self-sufficient, Malaysia would need between 300,000 and 400,000 hectares.
|OIE identifies two reference labs for fish, shrimp diseases|
[19 September 2017] The World Organisation for Animal Health (OIE) is supporting Indonesia’s Ministry of Fisheries & Marine Affairs to increase capacity in fish & shrimp diseases detection. “Through its Twinning Program, OIE is facilitating developments at the fish health lab of BBPBAT Sukabumi as an OIE-reference lab for koi herpes virus (KHV) detection and at the fish health lab of BBPAP Situbondo for shrimp diseases detection,” said Slamet Soebjakto, Director General of Aquaculture. The National Research Institute of Aquaculture Fisheries Research Agency in Japan and the aquaculture lab of the University of Arizona in the US will act as parent labs. “Disease issues have been a trade barrier. Once the two Indonesian labs fulfill OIE requirements, they will also benefit exporting countries in Asia Pacific,” Mr Soebjakto explained.
|New technology to keep poultry farms fly-and-odor free |
[19 September 2017] A Filipino inventor from Davao city has created a way to ward off flies and odor in poultry and swine farms. Virgilio Sangutan, President of the Davao Inventors Association, said the odor terminator, is made of natural ingredients, and is sprayed on chicken dung where it can be set aside to be processed as fertilizer. He said it is important to keep flies away as these are the carrier of at least 65 serious diseases. According to him, flies excrete wherever they come to rest and thereby, mechanically transmit disease organism.
|Culinary developments to boost agro-food sector|
[19 September 2017] Malaysia’s Agriculture and Agro-Based Industry Ministry is looking at establishing a department that focuses on culinary developments and innovations to further boost the country’s agro-food industry. According to Minister Datuk Seri Ahmad Shabery Cheek, culinary is considered the future of the nation’s agro-food industry and having a specific department for culinary developments will help advance local chefs, food and its varieties. He added that the department will also focus on producing food with commercial value.
|Egg quality based on feed efficiency|
[18 September 2017] At Asian Agribiz's Southeast Asia Layer Feed Quality Conferences in Jakarta (16-17 October) and Ho Chi Minh City (19-20 October), Cormac O'Shea a lecturer in poultry science at the University of Sydney, Australia, will address the 'Assessment of egg quality over time of hens ranked as high or low feed efficiency.' Dr O'Shea has been working on oxidative stress in pigs and poultry, variation in feed efficiency of production animals, alternatives to mainstream ingredients in pig and poultry diets, and alternatives to in-feed antibiotics. For details and to register online visit SEA_LAYERfeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|Philippine senator wants higher budget for livestock, poultry sectors|
[18 September 2017] Senator Cynthia Villar is pushing for fair distribution of the proposed budget of the Department of Agriculture where she noted that only 3% was allocated for the livestock and poultry sectors which contribute 33% to the agriculture component of the country’s GDP. Ms Villar has urged Agriculture Secretary Manny Piñol to come up with a better budget for the livestock sector, particularly for the poultry trade which is currently reeling from the effects of bird flu. The proposed agriculture budget for 2018 is USD 1.17 billion. She said the additional budget would help farmers affected by the bird flu as well as the dairy cattle farmers to improve the industry.
|Bumiputra quota to break beef import monopoly|
[18 September 2017] Malaysia’s Agriculture and Agro-Based Industry Ministry will impose a minimum 30% quota for Bumiputra (Malays and other indigenous peoples) importers to break the beef import monopoly. Deputy Minister, Datuk Seri Tajuddin Abdul Rahman said the requirement would also be imposed on two abattoirs in India which had received approval to export beef to Malaysia, to ensure Bumiputra participation in this business. According to Tajuddin, the existence of a beef import cartel has resulted in a mere 10% Bumiputera participation. Malaysia imports USD 454 million worth of beef annually, mostly from India.
Regional dairy update
[18 September 2017]
Milk processors should absorb local milk
The dairy cattle population in Indonesia is contracting. Based on the Indonesian Milk Cooperatives Association (GKSI) data, dairy cattle population in 2016 was only 291,183 heads, a big drop from 438,745 heads in 2013. As a result, the National Dairy Board (DPN) noted that national milk production only meets 18% of total demand of 4.45 million tonnes per year. “The remainder is met by imports,” said Teguh Boediyana, Chairman of DPN. DPN wants milk processors in the country to absorb local milk and support dairy cattle farmers to increase both milk quantity and quality.
MOU will boost research in dairy and innovate livestock sectors
Malaysia’s Holstein Milk Company, via its subsidiary Farm Fresh, recently signed a Memorandum of Agreement with Universiti Putra Malaysia (UPM) and contributed USD 3.4 million to be used to develop and transfer technology on dairy farming, as well as the production of dairy and related products. The jv will establish an industry centre of excellence (UPM-FarmFresh ICoE) to boost the country’s dairy production aspirations and deliver improved farming sustainability through research. Holstein Milk Company also aims to provide a direct link between science and practice to enable the livestock sector in Malaysia to become more innovative and take advantage of new farming practices, technologies, and cutting-edge research.
NDDB launches milk fortification project
India’s National Dairy Development Board (NDDB) has launched a pilot milk fortification project in collaboration with the World Bank and Tata Trusts. “Vitamin A and D deficiencies are prevalent in India. Since milk is consumed widely, fortification with vitamin A and D is an excellent way of addressing dietary deficiencies,” said Dilip Rath, NDDB Chairman. Tata Trusts will provide fortificants (vitamins) free for the first six months and at 50% cost for the next six months to milk unions and producers participating in the pilot project. Meanwhile, NDDB will develop protocols for milk fortification, train participating parties, build human resources to provide support to these institutions for fortified milk production/associated quality control, and conduct dissemination workshops to share the outcome.
|Special presentations on enriched eggs @ Layer Feed QC|
[15 September 2017] Consumers and the enriched egg will be one of the topics presented at Asian Agribiz's Layer Feed Quality Conferences in Jakarta (16-17 October) and Ho Chi Minh City (19-20 October). This will be presented by Dr Vincent Guyonnet, an international consultant based in Canada. He will also speak on 'The value chain of the enriched egg and the advantages for the final consumer' and 'Prudent use of antibiotics by the layer sector: wishful thinking or reality?' For details and to register online visit SEA_LAYERfeedQC17 or contact Sutasinee Lake at email@example.com.
|China’s Huaying to double duck slaughtering capacity by 2020|
[15 September 2017] Chinese duck processor Henan Huaying said it eyes an annual slaughtering capacity of 400 million birds by 2020, or about 10% of China’s duck meat consumption. It currently has a slaughtering capacity of about 200 million birds, including over 100 million added in 2016 and this year with mergers and acquisitions. For 2017, its duck slaughtering is expected at about 80 million birds, and 30% will be processed into meat cuts for exports, with the remainder kept as carcases for the domestic market, according to its Board Secretary Du Daofeng. “Focusing on the duck value chain, our strategy is to promote an industry concentration with M&As,” said Mr Du.
|Indonesia sees decline in feeder cattle imports|
[15 September 2017] Indonesia’s feeder cattle imports this year is decreasing. According to Joni Liano, Chairman of the Indonesian Beef Cattle Businessmens' Association (Gapuspindo), members are reducing imports from Australia. “Firstly, the import ratio of 1:5, where for every five feeder cattle imported, importers must also import one breeder cow, is threatening our members. This policy is not effective since the importers are facing issues related to capital and technical aspects to raise the breeder cows,” he told Asian Agribiz. “Secondly, Indian carabeef imports is rendering stiff competition amid high Australian feeder cattle prices.” Finally, Mr Liano added that market segmentation between carabeef and beef as expected by the government did not happen. “Around 30% of beef sold in the market now are [illegally] mixed with carabeef,” he revealed.
|Sri Lanka's CIC Group invests in new agri technology|
[15 September 2017] Sri Lanka’s CIC Group is elevating the nation’s agriculture sector with investments amounting to over USD 13.1 million. CIC is the only ‘seed to shelf’ agriculture company in Sri Lanka that manages its own farm land, working directly with over 40,000 rural out-grower farmers and producing a variety of Agriculture & Livestock products. The project is an international joint venture that employs state-of-the-art greenhouse technology and foresees increasing the productivity of corn farming in Sri Lanka.
|Cambodia to host forum to boost cassava sector|
[15 September 2017] Cambodia will hold the Cassava Investment Forum in Pailin city in November to strengthen the development of value-added cassava products and promote the livelihood of cassava farmers, said a top provincial agriculture department official, the Khmer Times reported. “The forum is expected to expand export markets and will showcase cassava and cassava starch as competitive quality products,” said Say Sophat, director of the Pailin provincial agriculture department. The forum is expected to attract more than 500 participants from farmers to cassava exporters, animal feed producers, investors and government officials. “The forum will also match cassava farmers with exporters so that the farmers get better prices,” Mr Sophat said.
|Indonesia aims to be corn exporter by 2020|
[14 September 2017] Indonesia aims to be a corn exporting country by 2020. The ministry claimed that it has successfully increased local corn production and discharged the country from dependence on imported corn. Corn production in 2016 was said to be 23.5 million tonnes, while this year production is expected to reach 24.5 million tonnes. The national demand is estimated at 19 million tonnes, mainly from the feed milling industry. “We continue to optimise our assistance to this sector by distributing seeds and related facilities and infrastructure. We also encourage every district head to develop corn farming,” said Bambang, Director General of Plantation at the ministry.
|China's Tech-Bank to invest USD369m in sow farm expansion|
[14 September 2017] Chinese feedmiller and pig integrator Tech-Bank Food said it plans to invest USD 369 million in the expansion of sow farms over the next two years. Following the investment, its stock of sows will be expanded to 161,550 heads by the end of this year and 331,800 heads by 2018, up from about 125,000 heads currently. The company also expects its annual output of commercial pigs to hit 2.61 million heads in 2018 and 6.04 million heads in 2019. Tech-Bank produced 608,200 commercial pigs in the first eight months of 2017, up 85% from a year earlier.
|Philippines may become bird flu-free by end-2017|
[14 September 2017] Animal health officials in the Philippines said it might take several months or up to end-2017 to totally eliminate bird flu in the country. The Bureau of Animal Industry (BAI) said it would take at least 75 days to implement all the measures prescribed in the government’s manual for managing bird-flu outbreaks before affected areas in Pampanga and Nueva Ecija can be considered bird flu-free. Dr. Arlene Vytiaco, head of the animal disease control of BAI said there has been no new cases of bird flu due to cooperation of farmers and their strict compliance to regulations on trade and farming.
|Malindo records weak performance in H1|
[14 September 2017] Indonesia's Malindo Feedmill’s financial performance in the first half (H1) weakened. The Indonesian poultry integrator’s net profit fell 83.95% year-on-year to around USD 2 million due mainly to the increasing price of raw materials, especially corn, for feed production. In addition, according to Marlene Tanumihardja, analyst from Samuel Sekuritas, performance was also affected by the lower price of DOC and weak broiler demand. Dessy Lapagu, analyst from BNI Sekuritas, said there is still oversupply in broiler production. “The government has asked broiler breeders to cut production,” Ms Lapagu added.
|Singapore boosts food production through vertical fish farms|
[14 September 2017] Two Singaporean companies - Surbana Jurong and Apollo Aquaculture Group - have developed vertical fish farms as a means to boost food security. The urban farming model Floating Ponds, took four years of work and USD 1.48 million to develop. Tan Yok Joo, Deputy Director, architecture, at Surbana Jurong, said that Singapore faces a space crunch when it comes to traditional farming. According to a report by the Agri-Food & Veterinary Authority of Singapore, the nation consumed 86,352 tonnes of fish last year, of which 6,536 tonnes or 7.6% was generated by local farms. Projected population growth is set to further challenge the nation’s ability to meet its energy, water and food needs.
|NEERI reveals bad practices in India’s poultry farming|
[14 September 2017] A recent study of India’s National Environment Engineering Research Institute (NEERI) revealed inhuman practices on poultry farms across Haryana and its impact on the environment and human health. The institute, along with representatives of the Animal Welfare Board of India and the Haryana Pollution Control Board, carried out the study at three big poultry farms in Sonipat district, three in Karnal and one in Gurgaon, reported The Times of India. The institute has recommended that battery-cage system in layer farms should be replaced with cage-free housing in a phased manner. The study also found the unregulated use of antibiotics in poultry farms. In addition, it is also apparent that arsenic is fed to chickens to promote growth and weight gain with less feed. “The long-term exposure to arsenic above the recommended limit can cause cancer,” the study said.
|Questions answered at Layer Feed QC|
[13 September 2017] Chaired discussion forums and a networking session will ensure that participants at the Asian Agribiz Layer Feed Quality Conferences in Jakarta and Ho Chi Minh City this October, will have opportunities to ask expert speakers’ questions and get the answers that will help improve efficiencies. For details and to register online visit SEA_LAYERfeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|DMC changes its chicken business strategy|
[13 September 2017] Dinamika Megatama Citra (DMC), an Indonesian poultry integrator based in East Java, has switched from selling frozen carcases and portioned cuts to markets beyond Java to focusing on the local market. "The markets are growing and competition is intense. We have decided to grow our local market in East Java to minimise business risks,” Yunindra Andriyanto, Vice CEO told Asian Agribiz. The company will also diversify its offerings with customised products, and target the institutional and household markets in East Java. “By targeting the household market, we also want to educate consumers about ASUH (safe, healthy, whole and halal),” Mr Andriyanto said. DMC has a chicken processing plant with a capacity of 2000 birds per hour in Pasuruan, East Java which was built in 2011.
|Higher production cost raises egg price in Malaysia |
[13 September 2017] Federation of Livestock Farmers Associations of Malaysia’s President, Datuk Jeffrey Ng, said the recent increase in the price of eggs is unavoidable and somewhat expected, as farmers were coping with increased cost of production. He said some farms are backed into a corner as they struggle to buy feed and several smaller farms are even facing the possibility of closing their operation. However, he reminded farmers to not panic with the price increase and assured consumers there was no shortage of eggs.
South Asia Layer Feed Quality Conference Bangkok, Thailand
Extending laying cycle and winning with home mixing
[13 September 2017]
The second day of Asian Agribiz's South Asian’ Layer Feed Quality Conference in Bangkok, Thailand yesterday saw eight experts address topics on extending the laying cycle and winning with home-mixing.
Feeding for longer laying cycles without sacrificing egg shell quality
The feeding program should provide adequate nutrient intake in early lay, said Marcus Kenny, Nutritionist at Hy-Line International. To ensure optimal medullary bone development in early maturing birds, the prelay diet should contain 2.7-2.8% calcium and 0.48-0.52% available phosphorus, he said. “Failure to achieve correct intake at the onset of production will adversely impact shell quality and skeletal integrity for the life of a flock,” Mr Kenny said. For first layer diet, the feeding program should provide high energy, high amino acids, high calcium and phosphorus and vitamin premix. For the following phases, energy content should only decrease a little and later diets should be lower in protein to control egg weight.
Vitamin D enriched eggs can alleviate vitamin D deficiency in India
Eggs offer several health benefits because they are rich in essential nutrients, vitamins and minerals. Eggs also contain quality protein and healthy fats, said Linda Browning, Nutrition Consultant, University of Sydney. “Eggs are naturally rich in vitamin D and vitamin D deficiency is a major problem in India, Pakistan and Bangladesh,” she said, adding vitamin D deficiency has a far reaching detrimental effect on human health. Eggs may be the perfect solution to overcoming this chronic vitamin D deficiency in the region, Dr Browning added. By supplementing additional vitamin D3 and 25-hydroxycholecalciferol (25-OHD3) into a laying hens diet, vitamin D enriched eggs can be produced.
Using wheat and other ingredients to achieve good laying performance
Wheat is primarily a source of energy due to its high starch content and wheat is richer in protein than corn, said Alex Wu, Regional Technical Manager at Adisseo Asia Pacific. However, producers should be aware of the high soluble non-starch polysaccharides (NSP) in wheat. Soluble NSP increases intestinal viscosity, hence reduce the digestibility of starch, lipid and protein. Meanwhile, using whole wheat in layer diets brings many benefits including no grinding processing cost, a positive effect on gizzard weight and local availability but it is difficult to implement at commercial level, Dr Wu said. “When wheat and barley are used in laying hen diets, the supplementation of Adisseo’s Rovabio Advance (enzyme) improved FCR by 2.3%,” he added.
Managing Salmonella in layer feed requires comprehensive approach
A low level of participation in feedmill and feed hygiene is associated with higher Salmonella risks. Appropriate preventative measures and actions are required to control Salmonella in feed and in the feedmill environment, said Rick Carter, Pacific Technical Services Manager at Kemin Agrifoods Asia. The preventative program should create multiple hurdles for Salmonella, he said. Feedmillers should have a quality system in place (incorporating HACCP principles) and should have an approved feed ingredient supplier system. They also should have a Salmonella testing schedule on incoming ingredients. Sensitive and critical feeds such as unheated mash feeds and pullet rearing feed should be treated with an inhibitor, he said.
Encouraging response to inaugural South Asian’ Layer Feed QC
[12 September 2017]
Delegates to the Asian Agribiz's South Asian’ Layer Feed Quality Conference which opened in Bangkok, Thailand yesterday heard six speakers address topics on tackling pullet nutrition and extending the laying cycle.
Pullet nutrition – setting the stage for success
The high level of egg production and long laying cycle make proper management of laying pullets critical to the success of a laying operation, said Doug Korver, Professor of Poultry Nutrition, Department of Agricultural, Food and Nutritional Sciences, University of Alberta. “If we want to successfully maintain high quality egg production for a longer period, we need to start with the pullet,” Dr Korver said. Meanwhile, it is essential to ensure that the pullets are fed and managed to maximise structural bone formation before sexual maturation. In addition, producers should manage nutrient reserves, hen body weight and skeletal strength carefully to sustain productivity and shell quality.
Nutritional issues related to shell stability
Commercial layers and breeders will continue to produce more eggs in an extended period of lay and this creates a challenge to maintain good egg quality, said Ron Eek, Regional Area Manager, Lohmann Tierzucht. A balanced feeding program is essential for maintaining optimal egg shell stability especially in later lay, he said. Adding coarse limestone particles is essential for a continuous Calcium supply during the shell formation. Vitamin D3 is essential for optimal metabolism of Calcium. Meanwhile, a phase feeding program with different rations during the production period is crucial to safeguard performance including maintaining good egg shell quality and controlling egg size, he added.
Important factors to consider on maximizing saleable eggs per hen
Optimal nutrition during the pullet phase is the key to success, said Linda Browning, Nutrition Consultant, University of Sydney. Producers should maximize the structural bone of pullets by giving Calcium and vitamin D to them. “In old hens, it is too late to influence the bone potential,” she said. Keeping the hen in a positive Calcium balance is also important and producers can achieve this by practicing certain feeding strategies such as evening feeding and particle size. In addition, producers should keep the liver of birds in good health by using choline, betain, Vitamin E and B and selecting good quality oils. Dr Browning said the high doses of phytase performs the best for egg production and feed conversion.
Practical advice to prevent heat stress in layer birds by nutrition
Heat stress is common in all production systems in hot climate areas and prolonged periods of heat stress have negative effects on feed intake and production, said Ling Ling Chuah, Sales and Technical Manager, Lohmann Tierzucht. “Specially formulated feed with inclusion of fats and oils, vitamin C and E and sodium bicarbonate is beneficial to alleviate heat stress,” Dr Chuah said. Provision of cool drinking water during hot periods helps increase water intake and lower the body temperature. Feeding in the late afternoon or evening also helps to relieve heat load from digestion. Still, nutrition has to be combined with management and good housing for prevention of heat stress, she added.
|China’s Delisi to build 300,000-cattle processing plant|
[12 September 2017] Chinese pork processor Shandong Delisi Food Co said it plans to build a beef processing plant with an annual capacity of 300,000 cattle. Costing USD 41 million, the plant will be equipped with a cutting line from Marel, in addition to Italian slicers, German filling machines and Japanese packaging systems, according to the company. The beef plant is designed to produce 30,000 tonnes of chilled cuts, 30,000 tonnes of prepared items and 20,000 tonnes of cooked products a year with imported carcasses. Delisi had been seeking to acquire a 45% stake in Australia’s fourth largest beef processor Bindaree, but a majority interest of the latter was recently sold to another two Chinese investors. Delisi Board Secretary Wang Song told Asian Agribiz that they are still assessing the impact.
|Himpuli complains about egg mislabelling|
[12 September 2017] Indonesia’s Local Poultry Farmers Association (Himpuli) has lodged a complaint against the mislabelling of Braekel chicken eggs as native chicken eggs with a view to gain a better selling price. Ade Zulkarnain, Chairman of Himpuli, said many native chicken farmers are suffering losses. “They cannot compete as egg production of native chicken is lower than Braekel chicken,” he said. According to him, Braekel chicken, which is one of the older European chicken breeds, has been raised in Indonesia for the past 15 years. Distribution of the eggs is massive, to both traditional and modern markets. However, “many of the producers label their eggs as native chicken eggs,” said Mr Zulkarnain. Himpuli has reported this to the government and expects a resolution to the problem.
|Cambodia seeks halal aid from Malaysia|
[12 September 2017] Cambodia is seeking help from Malaysia for the halal food industry to diversify its exports and attract more tourists and investors from the Muslim world, Khmer Times reported. “We want to encourage halal training for Muslim people and to encourage Muslim investors to promote halal food production for export,” said Cambodia’s Prime Minister Hun Sen. Cambodia plans to finalise a draft sub-decree on halal food certification by the end of the year. Sos Mousine, a member of the halal products controlling committee of Cambodia, said recently that regulations were being finalised and would be sent to Malaysia for checking before they were implemented.
|State-owned Chinese investors acquire Cherry Valley Farms|
[11 September 2017] Malaysia-based private equity firm Navis Capital has sold its controlling interest in Cherry Valley Farms (CVF) to two state-owned Chinese investors, Beijing Capital Agribusiness Co (Sunlon) and Citic Agriculture Fund. Financial details of the deal were not disclosed. Founded in 1959 in UK, CVF operates two parallel primary selection programs in Lincolnshire, England and Shandong, China, and has four production bases in China, England and Germany. It claims an overall market share of more than 75% in the global duck primary breeding business. "We do not expect this change of ownership to have any material impact on business with our customers and partners," said Xinjian Yan, CVF Managing Director. Sunlon operates an integrated Pekin duck business via its unit Beijing Golden Star Duck Co.
|3-zone biosecurity reduces use of antibiotics, disinfectants|
[11 September 2017] The implementation 3-zone biosecurity helps protect poultry farms from diseases, improves productivity and reduces antibiotic and disinfectant use, according to the Food and Agriculture Organization (FAO), Emergency Centre for Transboundary Animal Diseases (ECTAD), Indonesia. Alfred Kompudu, National Technical Advisor – Commercial Poultry Program at FAO ECTAD told Asian Agribiz that it has been proven in Waringin Farm, in Semarang district of Central Java province. In 2015, veterinary service officers conducted on-farm training and provided technical assistance on 3-zone biosecurity implementation to owner of Waringin Farm, Bambang Sutrisno, and his farm operators. After one year the concept was seen to reduce the use of antibiotics by 42% and of disinfectants by 32%, realising a saving of up to 37% or around USD 773.
|CPF makes it to DJSI for third consecutive year|
[11 September 2017] Thailand's Charoen Pokphand Foods (CPF) has made it to Dow Jones Sustainability Indices (DJSI) Emerging Markets for the third consecutive year. CPF said the company's absolute score in 2017 and its scores in three dimensions (economic, environmental and social criteria) surpassed the 2016 levels. Significant improvement was witnessed in innovation management, supply chain management, water risk management, environmental information disclosure, and the disclosure of social activities. Wuthichai Sithipreedanant, Senior Vice President for CSR & Sustainability, said the selection reflects continuous improvement of CPF's sustainability drive under three key pillars namely, food security, self-sufficiency society and balance of nature.
|Aquaculture can feed the world|
[11 September 2017] Fish farming or aquaculture is now the fastest-growing food sector in the world, and is frequently cited as having the potential to address future global food security issues. A new study by University of California in the US showed that 15 billion tonnes of finfish could be grown globally per year, which is 100 times more than current world seafood consumption. Peter Kareiva, Director of the UCLA Institute of the Environment and Sustainability, said: “This study shows that farming fish in the ocean could play a huge role in feeding people without degrading our ocean or overfishing wild species.” Indonesia, for example, was found to have one of the highest production potential for fish and bivalves. Developing just 1% of Indonesia’s suitable ocean area could produce more than 24 million tonnes of fish per year.
|CJ CheilJedang underlines importance of packaging|
[11 September 2017] CJ CheilJedang of South Korea said packaging techniques play as big a role as recipe research or the kind of machinery used. With the rising number of single-person households in the country, the market for ready-to-eat products is growing steadily. Packaging has never mattered more. “Using a thermal-graphic camera, we observe if heat in a microwave oven is distributed evenly to the food inside a package,” said Cha Gyu-hwan, Manager of the company’s Packaging Centre. “We experiment with microwave ovens from diverse brands to minimise errors.” The packaging centre with 26 researchers was established in 1990 to develop instant food packages.
|Farm level advice at Layer Feed QC|
[08 September 2017] A team of practical hands-on speakers will offer farm-level advice at Asian Agribiz's 2017 Layer Feed Quality Conferences being held in Jakarta (16-17 October) and Ho Chi Minh City (19-20 October). The program will cover:
• Strategies to reduce or replace in-feed antibiotics
• Formulating to reduce feed costs
• Translating the latest research into practice
To help delegates avoid traffic congestion the conference will start late morning (11am) on the first day and finish mid-afternoon (3pm) on the second day. For details and to register online visit SEA_LAYERfeedQC17 or contact Sutasinee Lake at email@example.com.
|Berdikari, RNI to operate broiler breeding farm|
[08 September 2017] Two Indonesian state-owned companies, PT Berdikari and PT Rajawali Nusantara Indonesia (RNI) expect to start broiler breeding farm operations in Octobe. Eko Taufik Wibowo, President Director of Berdikari, said they are now waiting for the permit from the Ministry of Agriculture to import 35,000 broiler GP this month. Mr Wibowo said Berdikari, which is engaged in integrated beef cattle business, decided to venture into poultry because it wants to help the government to stabilise the prices of DOC and live bird. Mr Wibowo told local media that Berdikari and RNI have started setting up commercial broiler and layer farms in Cirebon and Subang.
|Lay Hong Q1 profit surges more than 10-Fold |
[08 September 2017] Malaysian egg and poultry producer, Lay Hong, reported that its net profit for the fiscal first quarter increased 10 folds, to USD 1.04 million against USD 95,000 from a year ago, due to higher sales and an increase in the price of its processed and frozen products. The company also indicated that its quarterly revenue was up 15.2% at USD 42 million against USD 365 million a year ago. "The Company is now reviewing its strategies and will capitalise on the strength of NH Foods to take the company to greater heights," said Lay Hong.
|CPF aims to reduce greenhouse gas emissions|
[08 September 2017] Charoen Pokphand Foods (CPF) said recently that, by 2020, it aims to reduce greenhouse gas emission per production unit by 5%, water use per production unit by 10%, and waste per production unit by 30% compared to the base year of 2015. Suchart Wiriya-apha, Senior Vice President for Safety Health Environment and Energy said CPF has operated its business in an environmentally friendly manner. It also launched 4Rs principle (Reduce, Reuse, Recycle, and Replenishment) throughout its processing lines. Its farms, feedmills and processing plants partially use renewable energy and have reduced the use of resource for packaging.
|USGC promotes sorghum as feed ingredient for fish|
[08 September 2017] The US Grains Council (USGC) and United Sorghum Checkoff Program (USCP) recently travelled to Vietnam and Thailand to demonstrate the potential of US sorghum as a feed ingredient for fish. USGC recently completed in-country feeding trials to test the viability of substituting sorghum or corn for cassava, with support from the USCP, for pangasius. The trials concluded both grains could replace cassava as a source of starch for pangasius. Results showed no difference between the sources of starch on growth performance, fillet colour or physical properties of feed pellet quality (density and floatability). Sorghum is also low in tannins and contains higher protein than cassava as well as more amino acids, particularly tryptophan and threonine, USGC said.
|Singapore commits to purchase 100,000 pigs annually from IPF|
[07 September 2017] Singapore will purchase at least 100,000 pigs annually from the Integrated Pig Farm (IPF) project in Jilin, China which is jointly owned by Charoen Pokphand (CP), and Singaporean companies, Ascendas-Singbridge and SATS. Yeo Chun Cheng, Executive Vice President, Sustainable Urban Development, Ascendas-Singbridge, told Asian Agribiz: “In the first phase, our aim is for successful food imports to Singapore, as a testament of food safety.”
|Cofco Meat to launch 10,000-tonne plant in early 2018|
[07 September 2017] China's Cofco Meat Holdings Ltd said it has kicked off construction of a meat processing plant with an annual capacity of 10,000 tonnes in Dongtai, Jiangsu province, and the plant is expected to be operational early next year. “The new plant will focus on further processing of imported beef to offer products like seasoned steaks and patties to food service clients,” it said. The company is trialling the new products at its Wuhan plant and will start retailing in the second half of 2017, in preparation for the operation of the Dongtai plant. In June, Cofco Meat became the first Chinese company to offer US beef products after a 13-year ban was lifted.
|QL Resources forecasts better revenue on higher egg prices|
[07 September 2017] Malaysia's QL Resources Bhd is expecting better results for its second half of the current financial year ending March 31, 2018 compared to the first half, based on the strong recovery of eggs prices. According to Group Managing Director, Chia Song Kun, on its integrated livestock farming, the increase in feed mill volume, related raw material trade, and egg prices should translate to a potentially higher revenue contribution in the period stated.
|Odisha plans for more seafood processing units|
[07 September 2017] India’s Odisha government has received proposals worth USD 73 million for setting up processing units at a Seafood Park in Deras, which will process 90,860 million tonnes of seafood per year. Sanjeev Chopra, Odisha Principal Secretary for Industries, said land has already been allotted to 20 firms. The seafood park is being developed by Odisha Industrial Infrastructure Development Corporation with an investment of USD 21 million, he said. Companies including Falcon Marine Exports, Magnum Seafoods, Utkal Exports and Vizag-based Coastal Corporation have already committed investments. Spread over 152 acres of land, the project will comprise 41 processing units.
|Wellard records loss on weak Asian demand |
[07 September 2017] Australia’s cattle exporter Wellard reported that its revenue for the 2016/17 financial year fell 13% due to reduced orders from customers in Indonesia and Vietnam, increased competition from cheaper frozen meat and lower-than-expected volumes from developing markets. Mauro Balzarini, Chief Executive, said the rise in prices had allowed frozen Indian buffalo meat to get a foothold in the Indonesia and this will have an ongoing impact on demand for Australian cattle. He added that the reduced demand for livestock from South East Asian markets also resulted in excess shipping capacity, which forced freight rates lower, thereby reducing shipping margins.
|Save USD75 by registering before 18 September|
[06 September 2017] Registrations are open for the Asian Agribiz Layer Feed Quality Conference 2017, which will be held in Jakarta (16-17 October) and Ho Chi Minh City (19-20 October). There will be English and Bahasa Indonesia slide shows in Jakarta, English and Vietnamese in Ho Chi Minh City. At the conference, Bahasa Indonesia summaries will be presented at the end of each paper in Jakarta and headset translation in HCM City. Save USD 75 by registering before 18 September. For details and to register online visit SEA_LAYERfeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|Cargill Animal Protein offers Chinese-style ready meals|
[06 September 2017] Cargill’s Animal Protein business in China said it is offering Chinese-style ready meals from an approved manufacturer. The meals, such as Kung Pao Chicken and Yu-Shiang Shredded Pork, are produced by Shucheng, Anhui province-based PFI Foods that is owned by Chen Shu Guan, a Singaporean who was former President of Jollibee Group’s Shucheng unit. Michael Miao, Corporate Communications Director for Cargill China, told Asian Agribiz that the new products target quick service restaurants in China. “We hope that consumers will find their delicacies at Cargill, and that all clients will find their ‘kitchen solutions’ here,” the company said in a statement.
|Japanese fish processors consider relocating from Thailand to Indonesia|
[06 September 2017] With Indonesia’s tough measures against illegal fishing, a number of Japanese fish-processing firms have expressed their commitment to relocate from Thailand to Indonesia, said Susi Pudjiastuti, Indonesia’s Minister of Fisheries and Marine Affairs. “One of the firms that has already confirmed this is Itochu,” she said. Another benefit of the relocation is that Japanese businesses may help Indonesia decrease tariff barriers set by the Japanese government. “Japan doesn’t impose tariffs on processed-fish from Thailand, but it imposes a 7% tariff on Indonesian products. Removing this tariffs would be positive for Japanese processors,” Mrs Pudjiastuti added.
|Pakistan’s soybean imports on an uptrend|
[06 September 2017] Pakistan's soybean imports is expected to reach a record 1.6 million tonnes during 2016-17, according to the USDA GAIN report. “Continued demand from the poultry feed sector is expected to push imports to a record,” the report said. “The creation of a tariff structure a few years ago that favours imports of soybeans over soymeal continues to change the import mix.” According to the report, exports of soybeans to Pakistan reached 835,000 tonnes in the first eight months of 2016-17 - 363,000 tonnes was sourced from the US. Imports in 2017-18 are expected to escalate to 2 million tonnes.
|Cattle slaughtered in Terengganu safe for consumption|
[06 September 2017] In Malaysia, the Terengganu State agriculture and agro-based industry, plantation industries and commodities committee chairman, Datuk Mohd Pehimi Yusof, announced that buffalo meat and beef in the state are safe for consumption. The state is now free of the Haemorrhagic Septicemia, a severe bacterial disease which infected cattle and buffaloes about four months ago. “The ongoing efforts by the Terengganu Veterinary Services Department (JPV) in vaccinating almost 10,000 livestock has managed to curb the spread of the disease,” he said.
|Indonesia develops offshore aquaculture|
[06 September 2017] Indonesia’s Ministry of Fisheries and Marine Affairs said three pilot sites of offshore aquaculture located in Aceh and Central Java have been launched to raise barramundi and seabass. Tri Hariyanto, Secretary of the Directorate General of Aquaculture, said the offshore aquaculture is not only to increase the country’s aquaculture production, but also to ensure food security. Mr Hariyanto said the project uses technology from Norway.
|Better Pharma gains ground in Indonesia|
[05 September 2017] Better Pharma, Thailand’s Betagro Group’s subsidiary producing veterinary pharmaceutical products and feed supplements, two years ago ventured into the Indonesian market. Marthi Yefri Saleh, Sales Manager of Better Pharma Indonesia, told Asian Agribiz that the company’s products are gaining ground in the poultry sector. The company currently works with two distributors. Indovetraco Makmur Abadi distributes its water-soluble antibiotics for disease treatment and water-soluble vitamins, while Pyridam Farma distributes its feed additive products (acidifiers and an enzyme).
|Cofco Meat’s finisher pig output rises 35.7% in H1|
[05 September 2017] Chinese pork integrator Cofco Meat Holdings Ltd said it produced 1.01 million finisher pigs in the first half of 2017, up 35.7% from a year earlier. The average finishing weight per head was 107 kg, up 1.2 kg year-on-year. “The increase in production volume and finishing weight partly offset the adverse effects of the fall in pig prices in China,” the company noted, adding that it has built a pig farming capacity of 3.49 million heads. In the first half, Cofco Meat ran at 76.7% of its slaughtering capacity and sales of fresh pork rose 29.5% to 80,000 tonnes. Its processed meat sales also grew 2.1% to 4700 tonnes during the period.
|Saudi lifts poultry import ban from Malaysia|
[05 September 2017] Saudi’s Ministry of Environment, Water and Agriculture has lifted the ban on the import of poultry from Malaysia. The temporary ban on the import of live birds, hatching eggs and chicks from Malaysia was imposed, following an alert by the Malaysian authorities after the H5N1 bird flu virus was found in farms in Kelantan in March this year. The Director General of the Department of Animal Risk Assessment, Dr Sanad Al-Harbi, said that the lift was based on the follow-up of the epidemiological situation by the World Organization for Animal Health (OIE). The reassessment showed that no new hot spots for bird flu were registered in the past three months in Malaysia.
Regional dairy update
[05 September 2017]
Philippines aims to achieve dairy self-sufficiency in five years
The Philippine dairy industry will try to increase dairy production by 10% and achieve self-sufficiency within five years. According to Isidro Albano of the Dairy Industry Confederation of the Philippines, the industry will squarely face the challenge of producing 99% of the local dairy production which depends on imports. Currently, Filipino producers account for 1% of the total demand the country only produces 1% of domestic production. The goal of achieving self-sufficiency would include herd build-up, importing dairy cattle breeds like Girolando and proper care for dairy cattle, including carabao, cows and goats.
Import of powdered milk doubles, worrying Bangladesh farmers
Bangladesh has doubled its import of powdered milk, driven by increased industrial use and home consumption, reported The Daily Star. In 2015-16 average annual import rose to 104,000 tonnes, according to the Bangladesh Bureau of Statistics. “The government should increase incentives to encourage farming and local processing,” said Kamruzzman Kamal, Director for Marketing at Pran-RFL Group. “Rising imports is the main constraint to the dairy industry. We appeal to the government to establish plants to make powdered milk and to ensure proper marketing of locally produced milk,” said Mohammad Imran Hossain, President of the Bangladesh Dairy Farmers Association. The number of registered dairy farms rose to 1.2 million in 2015-16 from 79,942 in 2010-11.
a2 Milk plans for greater reach in Southeast Asia
Australian listed dairy company a2 Milk is expanding its reach into Southeast Asia with the launch recently of fresh milk sales in 44 supermarkets and high-end food stores in Singapore. Peter Nathan, a2 Milk Asia Pacific Head, plans to use Singapore and fresh milk sales as a 'launching pad' for the company to expand into neighbouring markets including Malaysia, Thailand and South Korea. The company expects to sell at least 100,000 litres of air-freighted milk in Singapore in 2017-18. The key to a2’s milk opportunity in Asia lies in the protein composition of the milk. a2 milk comes from selected cows that have just a2 type beta-casein protein in their milk, rather than the more common mix of a1 and a2 beta-casein, making it easier for many people with dairy intolerance to digest.
Vinamilk to take advantage of AEC
Vinamilk, Vietnam’s largest dairy company, is looking to take advantage of more business opportunities in the Asean Economic Community (AEC). Mai Kieu Lien, CEO, said Vinamilk welcomes healthy competition in the dairy industry as it is good for both the company and consumers, who get more choices and better prices. In the short-term, the company plans to continue expanding its milk plants and dairy farms, including organic farms, to serve rising demand within and outside Vietnam. It is also looking for M&A opportunities to expand its market and increase its sales. In Southeast Asia, Vinamilk products have a presence in Thailand, Laos, Cambodia and the Philippines. Apart from its 13 factories in Vietnam, Vinamilk has invested in a milk plant in the US, one in New Zealand and one in Phnom Penh. In 2016, it reported total sales of nearly USD 2.1 billion, up 17% year-on-year.
Frisian Flag Indonesia automates its packaging lines
Frisian Flag Indonesia, part of Dutch international dairy group Friesland Campina, has turned to robotics, after adding end-of-line automation to 16 packaging lines at its Pasar Rebo manufacturing facility. Production processes are run on the principles of four zeros: zero accidents, zero incidents, zero waste and zero losses. This makes productivity, efficiency, and safety important drivers when investing in new equipment. Johannes Althuisius, Project Manager, said: “In the past, the packing department was crowded. It was also quite hard to manage that many people.” Labour costs are also a concern. Each year in Indonesia, minimum wages rise by 10-15%. “We realised we needed to mechanise and automate our packing solution,” he said.
Laos’ F&F Organic invests in integrated diary project
Laos’s F&F Organic Company said it has invested over USD 2.5 million in an integrated diary project under a 30-year concession, Lao News Agency reported. The project will involve the building of a diary factory, a cattle farm, and the promotion of sugar cane farming in Lamam district, especially in the villages of Tiew, Pahung, and Janam. An agreement on the project development was recently signed by Thongkham Manyvong, Director of Xekong Provincial Department of Investment and Planning and Zhen Xi Ting, President of F&F Organic Company.
Flavoured milk gains ground in India
India’s packaged flavoured milk segment has been enjoying an increased level of interest in recent years. This attention has brought about a significant amount of product innovation. New research from Mintel reveals that flavoured milk products accounted for 43% of dairy drink introduction in India in 2016, up from just 20% in 2012. While the number of product launches in India is growing, so too are sales of flavoured milk. Mintel research shows that retail volume sales for flavoured milk in India reached 72 million litres in 2015, while sales value grew by 40%, reaching USD 125 million.
Fonterra bullish on Asia’s cream cheese market
New Zealand’s Fonterra is spending USD 112 million on two new cream cheese plants to meet growing demand in Asia. The two-stage project at the Darfield site in Canterbury will see the first plant completed in 2018 with a second to follow within two years. Grant Watson, Fonterra Director of Global Foodservice, said rising demand for cheese, butter and UHT goes with changing consumption patterns. Particularly as people in China’s big cities shift away from oils, they want more dairy in their cooking, as a table spread or in a glass, said Mr Watson. “In markets like China, where dairy hasn’t traditionally been a staple, there are fewer pre-conceived notions on how it should be eaten, and with that we’re seeing versatility in their dairy applications,” he said.
|Issues specifically for the SEA layer industry @ Layer Feed QC|
[04 September 2017] With the theme ‘Science, trials & application’ the Asian Agribiz Layer Feed Quality Conferences in Jakarta and Ho Chi Minh City this October, will address key issues with carefully selected papers for the Southeast Asian layer industry, with actionable take home messages to help producers improve their profitability, productivity and sustainability. For details and to register online visit SEA_LAYERfeedQC17 or contact Sutasinee Lake at email@example.com.
|Thaifoods Group raises processing capacity |
[04 September 2017] Thaifoods Group (TFG) will increase daily processing capacity to 600,000 chickens in the middle of 2018, up from 550,000 chickens in 2017, said Chirdsak Kukiattinun, Chief Operations Officer of TFG. The company targets to export 40,000 tonnes of frozen chicken meat in 2018, up from an estimated 32,000 tonnes this year. Meanwhile, TFG, together with its subsidiary in Vietnam, will raise total processing capacity to 80,000 head per month in 2018, up from 70,000 head per month currently, Mr Chirdsak said, adding the company will expand sales of its pork products into food service and industrial sector next year. TFG estimates that sales in 2018 will grow at least 20% due to expansion of its existing businesses and cooked chicken business. TFG’s cooked chicken plant will come online in Q2 2018.
|CJ CheilJedang completes acquisition of Selecta|
[04 September 2017] CJ CheilJedang has completed the takeover of Brazilian animal feed raw material supplier Selecta and launched 'CJ Selecta'. CJ announced its decision to buy Selecta in June and acquired a 90% stake of the company for USD 320 million. With the launch of CJ Selecta, CJ CheilJedang has completed its business portfolio as a company that produces both fermented soybean meal and soy protein concentrate. These two products are used as materials for high protein vegetable feed for poultry and livestock. The market of the high protein vegetable feed for poultry and livestock is about USD 1.42 billion. The company aims to reach over USD 712 million in sales from Korea, Brazil, Vietnam and China by 2020. Based on this, it expects to increase its share of global soy concentrate market up to 40%.
|Johor to establish seed, livestock banks to increase production|
[04 September 2017] The State of Johor in Malaysia is working towards establishing seed and livestock banks by next year, in order to supply high quality seeds for agriculture, fishery and livestock. According to Ismail Mohamed, Chairman of the State Agriculture and Agro-based Industry, Entrepreneurship and Cooperative Development Committee, the state is hoping that through these seed and livestock banks, production would increase to meet the demand from local and foreign businesses, especially from Singapore. To achieve this goal, the state government has sought the cooperation of the Malaysian Agricultural Research and Development Institute (MARDI) to identify existing operators and give them the agency's seal of approval for their seed and livestock production.
|IFC supports Myanmar’s agricultural sector |
[04 September 2017] International Finance Corporation (IFC), a member of the World Bank Group, signed an advisory agreement with Myanmar’s Ministry of Agriculture, Livestock and Irrigation last week to support its efforts with boosting sector productivity and skills development. IFC’s technical assistance will support the government’s objective of increasing the productivity, market access and competitiveness of the agricultural sector by improving the provision of quality inputs to farmers. IFC said it will also assist with establishing quality standards for key export commodities. Vivek Pathak, IFC Regional Director for East Asia and the Pacific said, “by supporting Myanmar’s agricultural development, we hope to help create potential markets for agricultural products through exports.”
|IPF in Jilin taps into Singapore's standards|
[31 August 2017] The Integrated Pig Farm (IPF) project in Jilin, China which is jointly owned by Charoen Pokphand (CP), and Singaporean companies, Ascendas-Singbridge and SATS, is tapping the strength of Singapore’s good governance, sound procedures and standards and penchant for safety and security. “We are confident that we will be able to cultivate a model food zone that is safe, secure, disease free, and which generates safe produce. This is a system that works in Singapore, and which can be adapted by China,” Yeo Chun Cheng, Executive Vice President, Sustainable Urban Development, Ascendas-Singbridge, told Asian Agribiz.
|Japan’s Kakegawa plans for pig farm in Cambodia|
[31 August 2017] Japan-based Kakegawa Yeat Pig Farm plans to invest USD 1 million to develop a large pig farm in Cambodia. Matsumoto Hiroaki, the owner of Kakegawa, said he plans to invest in the Kirirom Mountain area in Kampong Speu province, starting off first with an experimental farm, the Khmer Times reported. The experimental farm currently has 10 pigs and the breeds are native. The company is testing out their feed. Mr Hiroaki said, “If our experimental farm succeeds, we would then request for a farm licence.” Mr Hiroaki also said he was studying the local market to determine the price of premium pork. In Japan, Kakegawa’s pork is priced at USD 70/kg.
|Malaysia offers incentives to boost beef production|
[31 August 2017] According to the Malaysian Deputy Agriculture and Agro-based Industry Minister, Datuk Seri Tajuddin Abdul Rahman, Malaysia will remain dependent on imports and face shortage of local beef. This dilemma has forced the nation to import livestock products from Thailand and Australia, as well as frozen meat from India. Malaysia currently produces 52,000 tonnes of beef worth USD 38 million and imports beef worth USD 259 million annually to meet local demand of about 191,000 tonnes. To counter this issue, Datuk Tajuddin said the government is offering various incentives and programs to encourage and assist entrepreneurs to venture into the livestock market by opening their own cattle farms.
|Singapore and Philippines team up to put agri waste to good use|
[31 August 2017] Singapore Ambassador to the Philippines, Kok Ling Peng, led a ground-breaking for the first biogas plant using agricultural waste in Barangay Santa Catalina in the Philippines. According to Albert Alquiros, President of First Quezon Biogas Corporation (FQBC), the 1.2-megawatt biogas power plant will use chicken manure and other agricultural waste, as fuel to produce electricity supporting the Luzon grid. The plant will require 20 tonnes of agricultural waste annually, which will considerably lessen the problems encountered by poultry operators and eventually realize zero waste programs in this town.
|Pakistan to remove hurdles and boost poultry exports|
[31 August 2017] Pakistan’s government is making efforts to reduce the cost of doing business for the poultry sector as well as removing hurdles, said Mohammad Pervaiz Malik, Federal Minister for Commerce. Exporters have urged the government to discourage imports, boost exports and reduce cost of doing business to save the sector. Khalil Sattar, Central Chairman of the Pakistan Poultry Association, said if the government allows the sector to export 10% of the total production in the halal market, it will help boost the poultry industry.
|Conference to address specific challenges of egg producers in South Asia|
[30 August 2017] The South Asian Layer Feed Quality Conference by Asian Agribiz will be held on 11-12 September 2017 at the Landmark Hotel in Bangkok, Thailand. It will feature leading regional and international speakers in academia and industry, who will address topics tailored to address the specific challenges facing egg producers in Bangladesh, India, Nepal, Pakistan and Sri Lanka. The conference is designed to help producers and feed millers in South Asia improve their profitability, productivity and sustainability. For details and to register online, visit SouthAsianLAYERfeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|DMC prepares for post-AGP era|
[30 August 2017] Since Indonesia plans to ban the use of in-feed antibiotic growth promoters (AGPs) from January 2018, Dinamika Megatama Citra (DMC) is preparing to enter the post-AGP era. The East Java-based poultry integrator has been conducting field trials since early 2017 to compare broiler and layer performances with and without AGP. “We are still trying to find the best formulation. We use probiotic, prebiotic, acidifier, enzyme and herbal products,” Yunindra Andriyanto, Vice CEO told Asian Agribiz. Mr Andriyanto said several trials are in progress. He expects birds consuming AGP-free feed in the trials to at least show equivalent performance as birds consuming AGP feed.
|Vaccine trials against Nipah virus to be done in Malaysia and India|
[30 August 2017] A grant of USD 3.06 million was recently awarded to a team of international scientists to develop an inexpensive, safe and effective vaccine to protect pigs against the Nipah virus (NiV). Recipient of the grant by Innovate UK, Dr Simon Graham, leader of the Porcine Reproductive and Respiratory Syndrome Immunology group at The Pirbright Institute, with partners in the UK, Malaysia, India and Australia, will develop a prototype vaccine that will help control NiV outbreaks. Vaccine trials will be conducted in NiV endemic regions in Malaysia and India. The team hopes the vaccine will enable differentiation of vaccinated and infected animals to help monitor, control and eliminate the disease.
|Traceability will be key to improve transparency for Thai Union |
[30 August 2017] Thai Union Group (TU) said it is working to combat modern slavery, human trafficking and forced labour. The company is committed to providing safe, legal and freely-chosen employment in its supply chain, Darian McBain, Global Director for Sustainable Development said last week in Perth, Australia. From vessel to factory, TU’s supply chains will comply with labour regulations, its business ethics and labour code of conduct. TU also believes that traceability is the backbone of sustainability. “With full traceability in place, we can track every product from catch to consumption. We can ensure our suppliers abide by the same sustainability standards as TU,” he added.
|Vietnam's corn imports rising|
[30 August 2017] Vietnam is likely to buy more corn to meet increasing local demand, which is associated with the expansion of livestock and aquaculture feed production. According to the report by Ministry of Agriculture and Rural Development, corn import in seven months surged to 4.13 million tonnes, valued at USD 825 million, up 9% in volume and 11% in value against 2016. Of the exporting markets, Argentina and Brazil are the two largest suppliers, accounting for 49.5% and 15% of total import volume, respectively. There has been a strong rise in imports from Thailand, both in volume and value, at close to 15 times and 3.5 times, respectively. In 2016, Vietnam spent USD 1.6 billion to purchase 8.3 million tonnes of corn for feed production and is among the world’s 10 largest corn importers.
|Singapore-China IPF project targets a million pigs|
[29 August 2017] Work has started on an Integrated Pig Farm Project in Jilin, China. An initiative by SATS and Ascendas-Singbridge of Singapore with Thailand’s Charoen Pokphand Group, it is set to produce a million pigs annually at full fruition. Yeo Chun Cheng, Executive Vice President, Sustainable Urban Development, Ascendas-Singbridge, told Asian Agribiz that on the blueprint are plans for 33 industrial-sized farms all fitted with controlled farming technology and state-of-the-art systems. The output is expected to reach 300,000 pigs annually in the first phase.
|Japanese investors plan to modernise Cambodia’s agri sector|
[29 August 2017] A Japanese delegation from Japan’s Osaka province intend to invest in Cambodia’s agriculture sector. Kazuyuki Nui, Vice President of the Osaka Prefectural Assembly and leader of the delegation, said the group hoped to introduce modern technology to Cambodia to help increase the country’s agricultural production and enable it to export either raw or processed products. Mr Nui said Cambodia was still lagging behind with modern technology. The group could invest in the production of corn, rice, cassava and other crops listed in the Cambodia trade integration strategy.
|Danish Crown to sell pork via Chinese e-commerce giant Tmall|
[29 August 2017] Europe’s largest pork exporter Danish Crown said it has signed a memorandum of understanding with Tmall, a Chinese e-commerce platform with 466 million annual active consumers. As part of the agreement, the meat of over 1000 Danish pigs from one of Danish Crown’s cooperative members will be reserved for sale to Chinese consumers around the Lunar New Year in February 2018. The Danish Crown product range for Tmall will be picked, processed and packed at its facility in Ringsted, Denmark. In spring 2019 production will move to a newly established Danish Crown factory in east China’s Pinghu. Last year, Danish Crown exported more than 260,000 tonnes of pork to China representing a turnover of approximately USD 706 million.
|Melaka turns to the Netherlands for expertise on pig farming|
[29 August 2017] The High Commissioner of the Netherlands to Malaysia, Karin Mossenlechner, recently met with Datuk Seri Idris Haron, the Chief Minister of the state of Melaka in Malaysia, and expressed her willingness to share her country’s expertise on effective methods for pig farming. Mr Idris applauded the Netherlands for their environmentally-friendly technology in pig farming. He said the Dutch technology would help resolve the existing environmental and pollution concerns caused by pig farming in Paya Mengkuang.
|UK beef heading for the Philippines|
[29 August 2017] Filipinos can now enjoy British beef following a new export deal estimated to be worth USD 43.77 million. This was disclosed by the Department of International trade team at the British Embassy Manila, saying the deal will provide significant support to the UK economy. Beef reared in the UK will now join pork, poultry, lamb and dairy on the list of UK food and drink shipped to the Philippines.
|Dr Doug Korver to present at South Asian Layer Feed QC|
[28 August 2017] Dr Doug Korver, Professor of Poultry Nutrition at the University of Alberta, Canada will make two presentations during Asian Agribiz's South Asian Layer Feed Quality Conference in Bangkok, Thailand on September 11 and 12. His presentations are titled 'Pullet nutrition: setting the stage for success' and 'Feeding the hen for longer laying cycles'. In addition to practical research on feedstuff quality and dietary supplement evaluation in poultry diets, his work focuses on nutrition-immune function interactions and bone biology in meat and egg-type poultry. For details and to register online, visit SouthAsianLAYERfeedQC17 or contact Sutasinee Lake at email@example.com.
|CP China, Agco to set up livestock farming equipment JV|
[28 August 2017] CP China said it has signed an agreement with Agco Corp of the US to set up a joint venture to manufacture world-class livestock farming equipment. Located at a CP compound in Cixi, east China, the JV will be involved in the design, manufacture and distribution of equipment for pig and chicken faming, with Agco’s GSI division to offer all its latest technology fit for the Asian markets. According to Agco, both parties will each own 50% of the JV, and manufacturing is expected to begin in early 2019. “The JV will support CP Group's planned expansion in Asia while enabling Agco to better serve other animal protein producers in the region,” said the US company.
|Indonesia’s aqua feed sales to see double digit growth|
[28 August 2017] The total sales of aqua feed in Indonesia has recorded a slight increase in the first half of this year. Sales of fish and shrimp feed during the period reached 650,000 tonnes and 200,000 tonnes, or an increase of 4% and 11% from the same period last year. Denny Indradjaja, Chairman of the Indonesian Feed Producers Association (GPMT), expects sales of aqua feed to escalate in the second half. Last year, the association noted that the total sales of fish and shrimp feed touched 1.3 million tonnes and 380,000 tonnes, respectively. “This year, we expect total aqua feed sales to increase by 10-15%,” he said. Mr Indradjaja believes the aqua feed business in Indonesia will continue to grow. “Most of aqua feed here is produced locally. Aqua feed imports are small, just for market testing before investors set up a plant.”
|UAE restricts poultry imports from bird-flu hit Philippines|
[28 August 2017] The United Arab Emirates is restricting poultry imports from the Philippines following the nation's first outbreak of avian flu. The UAE Ministry of Climate Change and Environment said it will lock down import control gates to guard against any incoming live or processed bird products originating from the province of Pampanga. Dr Majid Sultan Al Qasimi, Director of Animal Health and Development Department, Ministry of Climate Change and Environment, said the action was "based on the notification from the World Organisation for Animal Health about the registration of highly pathogenic avian influenza in the Republic of the Philippines." However, the UAE will allow "the importation of thermally-treated poultry products (treated meat and processed egg products) and thermally treated poultry waste from the Philippines."
Regional dairy update
[28 August 2017]
GEA installs automated dairy plant for Hatsun Agro
India’s Hatsun Agro Product Limited has contracted GEA to install an automated dairy plant on a turnkey basis at Dharapuram near Coimbatore, Tamil Nadu. This greenfield dairy project is designed to handle 650,000 litres of milk per day, to produce 300,000 litres per day of milk in pouches and 150,000 litres per day of curd. The plant is expected to be fully operational by early 2018. Abhay Chaudhari, GEA Country Managing Director, India cluster, said the plant is fully automated for the processing and packaging of liquid milk and curd. Management Information System (MIS) reports can be generated to capture data regarding process parameters, production and packaging making it highly responsive and efficient. Hatsun Agro is one of the leading private sector companies in the dairy business in South India. It manufactures and markets dairy and ice cream products under various brands, including Hatsun, Ibaco, Arun and Arokya.
Import duty elimination will impact India’s dairy industry
The Indian dairy sector, will be severely hit if import duties on milk and milk products are eliminated under any free trade agreement (FTA) including the Regional Comprehensive Economic Partnership (RCEP), according to the local dairy cooperative Amul. Separately, farmers’ organisations have threatened to hold nationwide protests if the dairy sector is opened up under the RCEP or any other FTA including those proposed separately with Australia and New Zealand, reported The Hindu. Jayen Mehta, Senior General Manager of Amul said that it is important for India to ensure that duties on all Indian dairy products are not eliminated or reduced under the FTA, as cheaper imports would threaten local farmers’ incomes. Currently, the duty on milk and milk products ranges from 40-60%.
FrieslandCampina wins supply chain management award
FrieslandCampina, one of the world’s leading dairy companies, has won an award recognising its excellence in supply chain management at the Sustainable Business Awards (SBA) Singapore 2017. The award specifically highlights FrieslandCampina’s meticulous approach to providing high quality and safe products, and supporting dairy development across Asia. The company’s food safety and quality program invests in knowledge and training to guarantee high food safety standards. At the same time, its dairy development program trains thousands of smallholder dairy farmers every year in improving the quality and safety of milk production in their farms. Piet Hilarides, COO, Consumer Products Asia at the company said: “We are humbled by this affirmation of the positive impact our business model has had in creating a sustainable environment for the communities we operate in.”
Philippines to start embryo transfer cattle reproduction program
The Philippine government will begin its national reproduction of cattle program this month to assure the regular reproduction of the breeding stock and to gradually wean the country away from imports. According to Isidro Albano, President of the Dairy Confederation of the Philippines, the reproduction would be done through embryo transfer, a process of implanting the embryo into the reproductive tract of female cattle. Mr Albano said the embryo would be taken from the breed Gearolando, a cross from the Holstein Friesian and the Brahman Sahiwal, which are found in some private cattle ranches and farms. He said the embryo transfer, though intended to ensure that the industry has adequate stocks of the breeder, would also “vastly improve” the quality of the local breeding stock.
Gujarat’s dairy business suffers losses due to floods
The floods that ravaged India’s north Gujarat have resulted in losses of USD 11 million to the state’s dairy sector, according to The Times of India. This is the highest ever loss incurred by the dairy sector due to a natural calamity in Gujarat, said R S Sodhi, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF). “Although things are coming back to normal, we are still getting less milk,” said Mr Sodhi. Banas Dairy was the worst hit, followed by Mehsana’s Dudhsagar Dairy, Sabarkantha’s Sabar Dairy, Rajkot’s Gopal Dairy and Anand-based Amul Dairy. Between July 23 and 30, Banas Dairy saw a loss of 11 million litres of milk valued at USD 7 million loss. Before the floods, Banas Dairy used to procure around 3.8 million litres of milk per day.
Vinamilk to further divest 48.33 million shares
Vietnam’s State Capital Investment Corporation (SCIC) will sell another 3.33% stake or 48.33 million shares of the Vietnam Dairy Products JSC (Vinamilk) in October, said Nguyen Duc Chi, SCIC Chairman. The government investment arm expects to gain USD 300 million from this divestment, which is part of the 3.6% of the company’s registered capital left from the offering in late 2016 when it planned to unload 9%. After this divestment, SCIC will hold 82.3 million shares. Being the largest and first cash cow to exit from SCIC, Vinamilk not only brought 3/4 of SCIC’s dividend income in 2016, but also beefed up SCIC’s asset value in the first half of this year. SCIC said it had gained profit before tax of USD 835 million, or 40% of its total profit before tax in 2016 from the investment in Vinamilk.
|3 major themes at South Asian Layer Feed QC in Bangkok|
[25 August 2017] Asian Agribiz's South Asian Layer Feed Quality Conference in Bangkok, Thailand on September 11-12, will consider three major themes - • Tackling pullet nutrition • Extending the laying cycle and • Winning with home-mixing. For details and to register online, visit SouthAsianLAYERfeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|Brighter prospects with action against pork smuggling |
[25 August 2017] Hog raising in the Philippines is expected to be much better with the current administration’s mandate and action against pork smuggling, according to the Davao Hog Farms Association (DHFA). DHFA officer Virgilio Estrada commended the Department of Agriculture for lending priority to eliminating pork smuggling which, he said, is one of the reasons why backyard raisers are losing out. Eduardo So, President of Southern Mindanao Agri Resources Trading Inc. said opportunities for pork export is huge especially now that the country is certified food-and-mouth-disease-free.
|McDonald's to gradually eliminate HPCIA in broilers|
[25 August 2017] Starting 2018, McDonald's will begin implementing a new broiler chicken antibiotics policy which, will require the elimination of antibiotics defined by the WHO as Highest Priority Critically Important (“HPCIA”) to human medicine. The Group will take a tiered approach starting first with HPCIAs eliminated in chicken for Brazil, Canada, Japan, South Korea, the US and Europe, followed by Australia and Russia in 2019 and by 2027 in all other markets. The company added that treating sick animals is consistent with McDonald’s long-standing commitment to animal health and welfare. Engaging farmers, producers and veterinarians in the responsible use of antibiotics is key to our vision of preserving antibiotic effectiveness through ethical practices.
|Wens H1 losses exceed USD 200m|
[25 August 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, posted gross losses of USD 201 million from its yellow-feather broiler segment in the first half of 2017. The company said its sales of the native birds rose 4.65% to 381 million, while revenue fell 26.3% to USD 888 million, as bird prices declined sharply amid the H7N9 human infections. “We are seeking to upgrade our poultry business by promoting direct sales,” Wens said. It is also speeding up broiler slaughtering and recently kicked off construction of a slaughterhouse with an annual capacity of 50 million birds.
|Perindo's new feedmill to uplift lot of aquaculture farmers|
[25 August 2017] Perikanan Indonesia (Perindo), Indonesia’s state-owned fishery company, expects its new aqua feedmill in Subang, West Java to start operations in 2018. The plant will have an installed annual production capacity of 32,000 tonnes of shrimp feed and 32,000 tonnes of fish feed. For corn, rice bran and palm kernel meal, the plant will use local supply. Meanwhile, for fishmeal and soybean meal, the plant will use imported products. Agung Pamudjo, Corporate Secretary, said the plant is expected to support the development of aquaculture in the country. “Feed price and availability so far has been the main problem for our small-medium scale aquaculture farmers,” he said.
|Long drought in Sri Lanka affects farmers and cattle herders|
[25 August 2017] Since the last big rains in July 2016, there has been little to no harvest, which has forced many farmers and herders to abandon their cattle and farms in search of work and water elsewhere. A joint report by the World Food Program and the UN Food and Agriculture Organization that was released in mid-June, classified the drought in Sri Lanka as the worst in 40 years. Thus far, the drought has affected 19 of the island’s 25 districts and in particular, the arid regions outside the country’s wet western plains and mountains.
|DA should be proactive with diagnostics|
[24 August 2017] The Philippines government should be more proactive and run diagnostics in farms outside the controlled area to assist producers in moving their products. Identifying which farms are negative of the disease will assure local governments and markets that the poultry products they are getting from these farms are safe, an industry practitioner told Asian Agribiz, and help prevent instances where products are held or banned. Since the AI outbreak was first reported, there has been a reported slowdown in demand. However, he said there have been cases where demand has not been met because supply was held back due to trade regulations by local governments that do not match those issued by the Department of Agriculture.
|Sera Food enjoys good sales in traditional markets|
[24 August 2017] Sera Food Indonesia, a subsidiary of Yogyakarta-based chicken carcase producer Saliman Group, is enjoying good sales in traditional markets. Nandang Hikmat, General Manager, told Asian Agribiz that its 'Ooye' branded ready-to-cook chicken products are now popular in traditional markets due to its taste, quality and price. He said last year, Ooye products dominated the company’s total production (65%), followed by customised products for food service and OEM (25%) and 'Hato' branded products (10%). Hendi Iswanto from the Sales & Marketing Department added that: “Our monthly sales are growing. Of all our products, Ooye Funny chicken nuggets and Ooye Stik chicken nuggets are the two best sellers.” Launched in early 2015, Sera Food’s products are distributed to Greater Jakarta, West Java, Central Java, East Java, East Kalimantan, Batam and Papua, in traditional and modern markets.
|Shaxian Delicacies upgrades over 400 chain restaurants|
[24 August 2017] Chinese fast food chain giant Shaxian Delicacies completed renovations of more than 400 restaurants at the end of June, according to pork integrator Chuying Agro-Pastoral Group, which set up two joint ventures specialising in supply chain and advertising services respectively with the chain operator in late 2016. A central kitchen and a cold chain logistics project under the partnership are also under approval. Chuying said they target to upgrade a total of 60,000 Shaxian restaurants in three years, and each outlet is expected to consume over 4 tonnes of pork a year. "The renovated restaurants will also facilitate our marketing of pork products with installed video media, and by acting as offline pick-up points," said the integrator.
|Philippine government urged to ban egg imports |
[24 August 2017] Poultry and egg groups in the Philippines have urged the government to ban imported chicken eggs as this might have been the source of the avian flu virus which first spread in San Luis, Pampanga. The United Broiler Raiser Association (UBRA) and the Philippine Egg Board also denounced the possibility that the virus came from migratory birds in Candaba swamp in Pampanga as there was no incidence of bird flu despite the birds’ regular visits in the area. UBRA Chairman Georgio San Diego also urged a ban on imports of chickens from unknown origins.
|CPF joins Indian fishery associations in support of sustainable fisheries|
[24 August 2017] Six key fishery associations, fishmeal producers and aquatic feed manufacturers including CPF (India) Pvt Ltd, recently signed a memorandum of understanding (MOU) in India to support a fishery improvement project (FIP). The FIP project will focus on Indian oil sardine in the coastal regions of Goa and Ratnagiri District of Maharashtra. The project aims to improve fishery management and governance, food safety, environmental responsibility, and traceability throughout the supply chain. Sandesh Surve, Chairman of Ratnadurga Macchimar Society said the stakeholders in the seafood industry will protect marine resources. The key practices of the project includes the implementation of effective fisheries management that prevent, deter and eliminate IUU fishing and overfishing and development of credible monitoring and a traceability system.
|Norwegian firm to conduct EIA in Cambodia on marine fish project|
[24 August 2017] Norwegian aquaculture firm Vitamar AS has been asked to submit an environmental impact assessment (EIA) study to Cambodia’s Ministry of Environment for its large scale marine fish farm project in Preah Sihanouk province, Khmer Times reported. In April, Council for the Development of Cambodia approved the USD 24 million quality investment project submitted by Vitamar AS. Of the total investment, USD 11 million is to be used within the next two years for infrastructure, including construction of a coastal facility and egg-hatching site. Another USD 9 million will be used over the following three years to increase fish production from 1,000 to 2,500 tonnes annually, and to expand distribution and exports.
|Chaired discussions, networking session at the South Asian’ Layer Feed QC|
[23 August 2017] Chaired discussion forums and a networking session at the South Asian’ Layer Feed Quality Conference in Bangkok, Thailand on September 11-12, will ensure that delegates have the opportunity to interact with the speakers and their colleagues. Don’t miss the pportunity to learn about the specific challenges facing egg producers in Bangladesh, India, Nepal, Pakistan and Sri Lanka and their solutions. For details and to register online, visit SouthAsianLAYERfeedQC17 or contact Sutasinee Lake at email@example.com.
|Bangkok Ranch invests in Chef Man restaurants |
[23 August 2017] Bangkok Ranch recently said that it has entered into a joint venture agreement with Thailand’s BTS Group Holdings and Man Wai Yin to establish Man Food Holdings to undertake and carry on Chef Man restaurants and food service business. BR will invest up to USD 12 million in the new JV, representing 42.5% of the total shares in the company. Chef Man is well known for its dim sum, peking duck and mooncakes. Man Food Holdings will own and operate the existing five restaurant chains with 11 branches. It plans to open more outlets and will invest in one central kitchen. “We are excited to invest in the fast-growing premium Chinese restaurants business,” said Joseph Suchaovanich, Vice Chairman and Managing Director of Asia and Asia Pacific. The investment reflects BR’s focus on developing a fully integrated food business, Mr Joseph said.
|Cobb introduces MV male in Indonesia|
[23 August 2017] Cobb-Vantress held a series of seminars in Indonesia recently, to introduce the new Cobb MV male. The seminars were organised by Cobb’s distributors Bibit (Malindo Group), Super Unggas Jaya (CJPIA Group), Hybro (Manggis Group), Taat Indah Bersinar, Expravet (Mabar Group), Wonokoyo and CP Group. According to Steve Bolden, Cobb Director of the World Tech Support Team, the MV has proven performance in different climates, including tropical climates like Indonesia.
|Phu Yen applies high technology in shrimp farming|
[23 August 2017] The central coastal province of Phu Yen in Vietnam will use high-tech shrimp cultivation models to reach its 2025 production target of USD 100 million. The province has set aside USD 2.4 million to zone off cultivating area, upgrade infrastructure, produce breeding varieties, examine the environment and diseases as well as transfer technology and promote trade and investment. Production will be reorganised to create a large-scale material production area. The province will link local shrimp suppliers with markets. By 2020, Phu Yen will work to reduce total water surface area for shrimp breeding to 1943 ha from 2028 ha last year and raise the volume of shrimp production to 9950 tonnes from 6760 tonnes.
|Kelantan encourages local cattle breeders to learn to vaccinate|
[August 23] The state government of Kelantan in Malaysia is urging over 60,000 cattle breeders to learn to vaccinate their animals themselves, as a precautionary measure against foot and mouth disease that has often afflicted local livestock. According to Datuk Che Abdullah Mat Nawi, Chairman of the State Agriculture, Agro-Based Industry, Biotechnology and Green Technology, the Kelantan Veterinary Services Department has limited manpower to administer vaccinations if the disease breaks out in the state. “We estimate that there are more than 112,000 cattle being reared in the state and if disease breaks out here, we will not be able to curtail it in a short period.
|US to assess food standards in Cambodia |
[23 August 2017] The US, one of the Cambodia’s key trading partners, is going to assess sanitary and phytosanitary standards in Cambodia, opening up the opportunity for Cambodian agricultural products to be exported to the US, Khmer Times reported. Sanitary and phytosanitary standards were one of topics discussed by Cambodian delegates and US trade representatives on strategic actions to broaden and strengthen trade and investment under the US-Cambodia Trade and Investment Framework Agreement. The US will provide technical assistance on food safety and consumer protection to Cambodia to build up the trust of consumers, according to a post at the Ministry of Commerce’s website.
Asian Agribiz Broiler Feed Quality Conference Highlights
Jakarta, Indonesia - August 21-22
[23 August 2017]
Conference addresses farming in the post-antibiotic era
Since countries in the Asian region are now entering the post-antibiotic era, the second day of the conference offered participants strategies on reducing the use of in-feed antibiotics. Not less important, formulating broiler feed using alternative raw materials and by-products.
Role of feed additives after AGP ban
Removal of AGPs from poultry diets should be carefully planned and executed. Daniel Ramirez, Business Development Manager – Digestive Performance at Nutriad International, said feed additives have gained considerable interest lately because of their ability to improve performance by sustaining a healthy gut environment through similar physiological mechanisms. Of several feed additives, Mr Ramirez said short-chain fatty acids, medium-chain fatty acids, plant extracts and botanical components probably represent the best potential to approach the balance of the gut health ecosystem, promote poultry intestinal health, and maximise broiler production in the absence of antibiotics. However, “there is no direct replacement available for AGPs. Therefore, a multifactorial approach is needed,” he emphasised.
Holistic approach to reduce reliance on AGPs
When it comes to sustainable antibiotic-free broiler production, there is no silver bullet which can fully replace antibiotics and manage intestinal disorders, said Rolando A Valientes, Regional Category Manager for Eubiotics at DSM Nutritional Products. “It is critical that basics on hygiene and sanitation, nutrient digestibility and health (gut and respiratory) have to be covered adequately,” he said. In the area of gut health, Dr Valientes said a number of eubiotics such as organic acids, essential oil compounds and probiotics are often able to deliver a comparable zootechnical response vis-à-vis the AGPs. But he underscored that eubiotics only form part of a holistic approach to reduce reliance on AGPs in broiler production.
Choosing the right probiotics
Evonik conducted a global customer survey and found that probiotics were rated as having the highest potential to replace AGP. Kiran Doranalli, Global Technical Support Manager at Evonik said probiotics cover a broad range of gut health challenges and are core to tackle gut health challenges. However, to choose the right probiotic with proven mode of action, “we must consider that selection of the right strain for the probiotic product is a multi-step process,” Dr Doranalli said. In addition, quality of the probiotic, different modes of action, growth performance improvement and value addition must be considered.
Characterising nutritional value of rice by-products
Rice for human consumption is expected to remain strong over the next few decades and the production of rice by-products such as rice bran will remain high. However, according to Alex Wu, Regional Technical Manager at Adisseo Asia Pacific, the nutrient variability of rice by-products is one of the limitations for usage in monogastric feeding. “Our investigations showed NIRS can predict the nutrient profiles of the key rice by-products. By highlighting the portion and quality of the nutritional information ignored or underestimated by other tools currently available, NIRS confirms its added value with respect to formulation optimisation concerns,” he said. Dr Wu added in-vivo trial results demonstrate that Adisseo’s NSP enzyme Rovabio can improve digestibility of rice bran, and suggested dietary inclusion of 5-8% rice bran with addition of the enzyme.
Asian Agribiz Broiler Feed Quality Conference Highlights
Jakarta, Indonesia - August 21-22
[22 August 2017]
Jakarta welcomes 142 participants
Following through from a successful Broiler Feed Quality Conference in Bangkok last week, the first day of Asian Agribiz’s conference in Jakarta, Indonesia yesterday discussed topics on translating the latest broiler nutrition research into practice and reducing feed costs, plus a special presentation on effective pen trials design and objectives.
Assumption of phosphorus in MBM is not valid
It is generally assumed that the phosphorus (P) in meat and bone meal (MBM) is highly digestible with high availability values of approximately 80%. However, data from Prof Ravi Ravindran and his team at Massey University in New Zealand suggest that this assumption is not valid since P digestibility in the three MBM samples assessed ranged between 42% and 69%. Prof Ravindran said differences in raw material composition and processing techniques may explain the observed variability. “Such variability, however, will be a concern in feed formulations.”
Efficient experimental design in broiler research
Implementation of new feed additives in large operations is a tedious process, and technical staff must prove that proposed changes will pay off. That is why more feed producers are investing in research capabilities that allow them to evaluate interventions “in house”. Twan van Gerwe, Head of Global Technical Management – Poultry at EW Nutrition, said laboratory conditions are likely to give the most accurate results, but the outcome might not be easily extrapolated to the population at large. Meanwhile, commercial feed studies have been used for applied research, but they are difficult to control. Therefore, “commercial pen studies might turn out to be the most efficient solution, as they can combine a high level of control, with good statistical power and high validity to the target population,” he explained.
Effect of enhanced E coli phytase on broiler performance
The effect of supplementary microbial phytase in improving the availability of phytate-bound phosphorus has been well documented in poultry nutrition. However, according to Usama Aftab, Technical Director Asia Pacific of AB Vista, the maximum potential of phytases to replace inorganic phosphates and thus reduce feed costs is far from being completely exploited. An experiment designed by AB Vista demonstrates increasing doses of an enhanced E coli phytase can allow greater replacement of expensive mineral nutrients in broiler diets. In addition, Dr Aftab said growth performance and bone data suggest that 1500 FTU/kg of an enhanced E coli phytase may completely substitute for inorganic phosphates in an all-vegetable broiler diets.
Maximising profitability with NIR
The cost of energy is increasing. Alejandro Cirado, NIR Technical Sales Manager Asia Pacific at AB Vista, said 100kcal of energy currently costs USD 15.5 per tonne and is set to increase. Therefore, maximising energy utilisation of the (broiler) diet is essential to maximise profitability. NIR (Near-Infrared) technology, according to Mr Cirado, will help for economic feed formulation to reduce cost based on balanced nutrients especially energy (ME – metabolisable energy), protein (amino acid), minerals (calcium and phosphorus) which are the real drivers of feed formulation.
|CP Prima bullish on canned fish market|
[22 August 2017] Central Proteina Prima (CP Prima), Indonesia’s seafood producer, launched its first two Fiesta Seafood canned products, sardine in chilli sauce and sardine in tomato sauce in August last year. These were followed by mackerel in chilli sauce, mackerel in tomato sauce, and mackerel in balado sauce. Adhitya Purnama Ardi, CP Prima’s GM Fresh, told Asian Agribiz that consumption of canned sardine and mackerel in Indonesia is relatively high. Coupled with growing seafood demand, the products are gaining traction. “Our knowledge and expertise in raw material, processing, taste and quality is our strength in this market that is worth USD 50 million,” he said. Mr Ardi revealed that sales have been growing monthly. This year, CP Prima targets to sell 1500 tonnes of the products.
|China launches anti-dumping probe against Brazilian chicken imports|
[22 August 2017] China’s Ministry of Commerce announced on August 18 that it has started an anti-dumping investigation into the imports of Brazilian chicken products. The ministry in late June received requests from China Animal Agricultural Association, which accused Brazilian exporters of dumping broiler products in the Chinese market and jeopardising the domestic industry. The investigation is scheduled to be complete in a year, with an optional extension of another six months. Data from China Customs shows that the country imported 205,614 tonnes of frozen chicken valued at USD 467.3 million in the first half of 2017, down 19.8% and 16.2% respectively.
|Poultry businesses in Myanmar’s Dawei close in wake of H5N1|
[22 August 2017] Poultry businesses from breeders to sellers across Dawei Township in Myanmar’s Tanintharyi region, have been forced to close indefinitely after the recent outbreak of the H5N1 influenza virus, Myanmar Times reported. According to the Livestock Breeding and Veterinary Department's (LBVD) statistics, 5,822 infected birds have died and 25,788 were culled as a result of an outbreak in 18 poultry farms between July 22 and August 3. The H5N1 virus is a sub-strain of the influenza A virus which can cause illness in humans and animals. There have been no reports of human fatalities so far. The virus was reported to have stopped spreading since August 3 but there is a waiting period of 21 days from the date the last H5N1 case before areas hit by the virus are declared disease-free, said Nyan Lin, Director of the Regional LBVD.
|Sri Lanka cuts import taxes on rice, corn, wheat and fish amid drought|
[22 August 2017] Sri Lanka has cut import taxes on corn, rice, flour and fish, early August to bring down prices amid a drought, the finance ministry said. Corn, a key ingredient of feed will be charged a new SLR 10 (USD 0.06) special commodity levy replacing a 15% import duty, 15% value-added tax, 7.5 port and airport levy, 2% nation building tax and a 35% cess. The various taxes totalled about SLR 60 -70/kg of imported corn. The import taxes on corn slapped to give extra profits to domestic farmers and a grain collector cartel has been blamed by some analysts for protein malnutrition of kids.
|Singapore bans poultry products from the Philippines|
[22 August 2017] Following the recent outbreak of bird flu in Pampanga, the Philippines, Singapore has imposed a temporary ban on poultry products and pet birds from the Philippines. Singapore’s Agri-Food & Veterinary Authority (AVA) informed Enrico P. Garzon Jr, the Agriculture Assistant Secretary for Livestock that all importation of ornamental birds from the Philippines will be immediately banned. According to Charmain Chng, senior veterinarian at the AVA, “We note that there are currently no establishments in the Philippines that are approved by the AVA for the export of poultry, poultry products and egg products to Singapore.”
|15 presentations specific to South Asia at Layer Feed QC|
[21 August 2017] With the theme ‘Science, trials & application,’ Asian Agribiz's South Asian Layer Feed Quality Conference in Bangkok, Thailand on September 11-12, will feature 15 presentations from leading regional and international speakers in academia and industry who will provide actionable take-home messages to help producers and feedmillers improve their profitability, productivity and sustainability. For details and to register online, visit SouthAsianLAYERfeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|Philippines confirms two new bird flu cases|
[21 August 2017] The Philippine Department of Agriculture (DA) has confirmed cases of avian influenza in another two farms in Nueva Ecija, a province adjacent to Pampanga province where the first AI cases were reported. DA Secretary Manny Piñol said a quail farm in Jaen town and layer farm in San Isidro town were found positive for the virus and that the farms have been contained. Asked about the possible source of the virus, a local poultry practitioner told Asian Agribiz that it might have spread from the original outbreak location due to lax implementation of the quarantine procedures, although this is speculative at this time. As of August 17, the DA said about 92,000 birds had been culled.
|Shuanghui H1 pig slaughtering up 2.16%|
[21 August 2017] Top Chinese pork processor Shuanghui said it slaughtered over 6.34 million pigs in the first half of 2017, up 2.16% from a year earlier. Meat sales rose 1.04% to 1.45 million tonnes. However, its turnover fell 5.81% to USD 3.6 billion, with net profit down 11.5% at USD 286.46 million. “Slaughtering increased as consumer demand improved when pork prices were lower. In addition, the expansion of production to capture more market share is one of our longer-term strategies,” WH Group, the parent company of Shuanghui, said, adding that the decrease in pork prices in China was primarily due to the ample supply of hogs in the market.
|Sri Lanka begins to position its Food Processing SME sector for more exports|
[21 August 2017] Sri Lanka has begun work on the country's first ever international standard food testing and safety centre that directly focuses on food producers in the country, even those in villages. According to the Minister of Industry and Commerce, Rishad Bathiudeen, a huge sub-sector within Sri Lanka's crucial Small and Medium Enterprises (SME) is being positioned for exports. The Minister added that the SME sector of the country directly impacts national food supply and security, and the nation is encouraged by the rising exports within this sector.
|Perindo to optimise its aquaculture production|
[21 August 2017] Perikanan Indonesia (Perindo) is optimistic to book incomes of USD 16 million from its aquaculture division and USD 15 million from its seafood trading division this year. The Indonesian state-owned fishery company recorded positive performance in the first half where production increased 44.8% to 452.5 tonnes. Of this, the aquaculture division contributed 435 tonnes. Agung Pamudjo, Corporate Secretary, said early this year the company put its new shrimp farms in South Sulawesi and West Kalimantan into operation. “We will optimise production of the new farms and existing farms in Karawang and Central Java,” he said. According to him, shrimp farming is positive. “The market will absorb whatever you produce with prices around USD 5.24-7.48 per kg,” he said.
|Aavishkaar looks to invest in Indonesia’s agri, poultry and dairy sectors|
[21 August 2017] India-based investor Aavishkaar is in discussions with an Indonesian food start-up over a possible investment of USD 2 million. Aavishkaar has invested in three Indonesian companies since it entered the country in 2015, including seafood company Bali Seafood. Vineet Rai, Aavishkaar Venture Management CEO and Managing Director, said that the company is hoping to invest in 10-15 Indonesian companies within the next few years while looking to raise up to USD 150 million for the region. “We are looking at various sectors including agriculture, poultry and dairy. Indonesian entrepreneurs have ideas that we have not yet encountered in India, and some of them are developing solutions for global problems,” Mr Rai said.
|Foot-and-mouth disease hits cattle in Cambodia|
[21 August 2017] More than two hundred cows found with foot-and-mouth disease in two villages of Kampong Cham province’s Sambour Meas commune in Cambodia received medication recently, while about two hundred others are under observation, Khmer Times reported. “We gave villagers some medicine to inject. The people were taught how to treat the cows themselves and we will continue to follow up on the conditions of the cows,” Kim Savoeun, Chief of the Provincial Agricultural Department said, adding that villagers should pay close attention to their herds. He also urged the commune chief to promptly report to the department so that quick action can be taken.
Delegates give thumbs up to Broiler Feed QC in Thailand
[18 August 2017]
The second day of Asian Agribiz's Broiler Feed Quality Conference in Bangkok, Thailand yesterday saw eight experts address topics on translating the latest broiler nutrition reserach into practice and formulating using alternative raw materials and by-products. The conference moves to Jakarta on this Monday and Tuesday, featuring highlights from the Bangkok edition.
Maximising the use of alternative raw materials
Future feed supply will be affected by many factors including oil price, weather and global trade policies and producers should look for potential alternative raw materials, said Ravi Ravidran, Professor of Poultry Science at Massey University. “We should not wait for a crisis to start evaluating the alternative ingredients. We need to be ready for this,” he said. However, the factors limiting the use of alternative ingredients include nutritional, technical and socio-economic aspects. Overcoming the nutritional challenges posted by alternative ingredients requires multi-dimensional strategies including better feed evaluation, with focus on protein and energy, and feed additive technology, Dr Ravidran said. For example, when using poorly digested ingredients, feed formulation on the basis of digestible amino acids is a requisite.
Unconventional raw materials in broiler feeds
The driving force for using unconventional raw materials such as guar meal, cotton seed meal and rice DDGS, is the price of main protein sources used in diet, said Sudipto Haldar, Director Research and Development at Agrivet Consultancy. The scope of using such raw materials in broiler feeding system comes mostly with the protein sources. However, variability in the composition of the unconventional raw materials, is a constraining factor towards their inclusion in broiler diets. “The decision of using unconventional raw materials must be based on nutritional acumen,” Dr Haldar said, adding producers should take into account the chemical composition of such raw materials and their digestibility values and presence of anti-nutritional factors. Also, specific dietary strategy must be chalked out before using the unconventional raw materials in broiler diets.
The use of medium chain fatty acids in broiler nutrition
Challenges affecting gut health in broilers include mycotoxin contamination of feed raw materials, high disease pressure both viral and bacterial and antibiotic resistance development, said Randy Laluna Payawal, Technical Manager-Monogastric at Nuscience Singapore. Meanwhile, the use of medium chain fatty acids (MCFA) can improve gut health status and support strong performing flocks, he said. More benefits had been observed with MCFA optimal blend supplementation such as its efficient antibacterial action, reduced pathogen virulence, improved gut morphology and improved immunity. Mr Payawal said Nuscience’s aromabiotic
MCFA can be considered as either on top of diet with antibiotic growth promoter (AGP) or alternative replacement for AGP and antibiotics to maintain a healthy gut.
New selenium molecule for broiler breeder and progeny
Birds under intensive production systems live with more stress and challenges and an effective antioxidant system is essential for their fertility and immunity, said Kevin Liu, Vice President at Adisseo Asia Pacific. The organic selenium (Se) source, especially hydroxy-selenomethionine (OH-SeMet) can enhance broiler breeder performance such as male fertility and hatching yields, Dr Liu said. Breeding hens can effectively absorb and transfer OH-SeMet into their eggs that benefits embryogenesis, hatchability, leading to more Se reserve and healthier DOC. It also helps preserve egg freshness and meat quality such as drip loss and meat colour. Meanwhile, OH-SeMet has a clear advantage over Se-yeast in terms of purity, consistency, bio-efficacy and ease of use, he added.
|Japfa Comfeed invests in breeder farm and hatchery|
[18 August 2017] Japfa Comfeed Myanmar Pte Ltd, a pan-Asian agri-food company based in Singapore, is investing USD 7.07 million in a poultry breeder farm and hatchery to help boost the growth of Myanmar’s farm sector. The farm and hatchery will be located in the Myingian district of Mandalay Region. Japfa Comfeed is already engaged in the production and distribution of poultry feed and also provides poultry breeding and hatching services. The company has farms, processing and distribution facilities across Indonesia, China, Vietnam, India and Myanmar.
|Confusion in poultry trade a problem for the industry|
[18 August 2017] Confusion about trade regulations for poultry and poultry products within Luzon, the Philippines after the announcement of the AI outbreak are causing problems among producers. While the Department of Agriculture said the movement of birds is allowed outside the 7-km radius controlled area, some local governments have issued their own regulations, preventing producers from shipping their products to their regular markets. A local poultry practitioner told Asian Agribiz that egg producers in Batangas, which is AI-free and located far from Pampanga, have had their shipment halted in areas they have previously been supplying. He said if this continues, it is possible that trade problems will cause more harm to the industry than the virus itself.
|Johor plans relocation of local pig breeders to a centralised area|
[18 August 2017] In an effort to facilitate the management of local pig farms, as well as to prevent pollution and other sensitive issues, the state of Johor in Malaysia is currently working with its Economic Planning Unit to identify a suitable site for the modern pig farming zone. According to Ismail Mohamed, Chairman of the State Agriculture and Agro-based Industry, Entrepreneurship and Cooperative Development Committee, there are 47 local licensed breeders, with a total of 266,940 pigs, and the state government intends to combine all these breeders under a consortium and relocate them to one location.
|Sri Lanka’s CGE sees Q2 net profit drop by 51%|
[18 August 2017] Sri Lankan poultry integrator Ceylon Grain Elevators Plc, which owns a majority stake in Three Acre Farms, the market leader in broiler and layer day-old chicks, saw its net profit for the June quarter declining by as much as 51% year-on-year (yoy) to USD 917,000, as the direct costs rose faster than revenue. Revenue for the same period rose by 9.0% yoy to USD 25 million but the cost of sales rose by 17% yoy to USD 23 million, significantly narrowing the gross profit to USD 2.12 million from USD 3.46 million a year ago. The company is urging the government to licence local feedmillers to directly import corn to relieve local shortages and help reduce chicken and egg prices.
|China corn production is forecast to decrease from last year|
[18 August 2017] The USDA forecasts China’s 2017/18 corn production at 215 million tonnes, unchanged from last month but down 4.6 million or 2% from last year. Harvested area is estimated at 35 million ha, unchanged from last month but down 5% from last year. Planted area has shown a downward trend in recent years as farmers switched to alternative profitable crops such as soybeans, and rice, as well as returning land to pasture. Yield is forecast at a record 6.14 tonnes per ha, unchanged from last month, and up 3% from last year. Despite unseasonably warm and localised dry weather from April through June, satellite data indicates favourable soil moisture conditions and with no significant crop stress.
|Philippine government to cull more flocks|
[17 August 2017] The Philippine Department of Agriculture (DA) said it will slaughter another 400,000 birds from 30 farms within the 7-km controlled area in San Luis, Pampanga. The agency said 36 farms are now set for depopulation, with the total number of culled birds to reach 600,000. As of August 15, 73,110 birds from both commercial and backyard operations have already been slaughtered. DA Secretary Manny Piñol welcomed that farm owners were “willing to make sacrifices,” by surrendering their flocks and depopulating. The farms inside the controlled area will now serve as a buffer zone to ground zero, reducing the chances of the virus spreading to other areas. Meanwhile, two farm workers who reportedly showed signs of flu-like symptoms have tested negative for the virus.
Broiler Feed QC welcomes over 340 Asian delegates
[17 August 2017]
Delegates to the Asian Agribiz Broiler Feed Quality Conference which opened in Bangkok, Thailand yesterday heard nine speakers address topics on reducing the use of in-feed antibiotics and reducing feed costs.
Gut health in the face of reducing antibiotic usage
Public concerns over antibiotics usage has been going too far in many countries. In Norway, erroneous newspaper stories eventually resulted in a self-imposed ban on the use of coccidiostat narasin, said Birger Svihus, Prof of Nutrition, Norwegian University of Life Sciences. “Of course, we should take the antibiotics away if there is an issue of antibiotic resistance but we should not go too far. We have to use common sense and science in broiler production, not public opinion,” Dr Svihus said. If the ban on chemically defined antibiotics goes too far, the alternatives such as acids and other organic compound with some antimicrobial effect will not be able to address disease completely.
Raising broiler chickens in an antibiotic free era
Despite inclusion of some of the best alternative additives, the most likely consequence of removing antibiotics from broiler production will be an increased flock variability and fluctuations in broiler performance, said Sudipto Haldar, Director Research and Development at Agrivet Consultancy. Removal of antibiotics will keep the intestinal micro-flora unrestrained and variability in raw material quality will increase the amount of undigested nutrient supply to the unrestrained micro-flora. Meanwhile, by enhancing intestinal strength and minimizing gastrointestinal ruptures during evisceration and processing, and by reducing the shedding of the likely human pathogens, the use of antimicrobial feed additives in animal feeds ultimately enhances the safety of the final product for the consumer, Dr Haldar said.
Alternative approach to antimicrobial therapies
Targeting bacterial virulence is an alternative approach to conventional antimicrobial therapies, said Thilo Borchadt, Senior Manager, Science and Technology, EW Nutrition. Virulence can be defined as the ability of an agent of infection to produce disease. Antivirulence focuses on strategies that inhibit bacterial virulence rather than bacterial viability and antivirulence strategies inhibiting specific mechanisms that promote infection, maintain its persistence in a pathogenic cascade and cause disease symptoms, he said. Inhibition of virulence properties without threatening survival of bacteria may offer a reduced selection pressure for drug resistance. However, Dr Borchadt said there is no dedicated antivirulence drug yet in clinical or commercial settings. Most antivirulence drugs, either of synthetic or natural origin, are still at the stage of confirming in vivo efficacy.
Optimizing nutrition with accurate NIR data for improved profitability
Precision feeding, powered by NIR and nutritional database, is key to improving probability and competitive position, said Andre Brand, Poultry Portfolio Manager at Trouw Nutrition. With variation in quality of feedstuffs, it is vital to determine exact composition of ingredients by using NIR. Free fatty acids and fatty acid profile parameters can be used to define digestibility and energy levels of feed. Acidity value and elutable matter parameters can be used to define the quality of the raw material. NIR can analyse the lysine available for protein deposition, Mr Brand said, adding NIR also improves quality control of blended fats and oils. “More accurate classifications and assessments result in significant cost saving, enhanced purchasing position and optimized return on investment,” Mr Brand said.
|Thaifoods Group posts 18% revenue growth in Q2|
[17 August 2017] Thailand’s Thaifoods Group (TFG) has reported revenue of USD 186.75 million in Q2, up 18.54% from the same period last year, supported mainly by higher revenue from its poultry business. TFG’s revenue from its poultry business climbed 38.65% year-on-year to USD 128.47 million in Q2. The company’s sales volume of chicken increased from 78,754.79 tonnes in Q2 2016 to 85,867.46 tonnes in Q2 2017 due to increased capacity for both export and local markets. However, TFG’s revenue from its swine business decreased 10.81% year-on-year to USD 40.26 million in Q2 due to lower pork prices. The company’s sales volume of swine increased from 16,603.40 tonnes in Q2 2016 to 20,825.89 tonnes in Q2 2017 due to increased capacity. Meanwhile, TFG’s net profit decreased 10.43% year-on-year to USD 18.06 million in Q2.
|Chinese market promising for Vietnam shrimp as exports surge 30%|
[17 August 2017] Vietnam’s shrimp exports to China rose 30% in H1 2017, reaching almost USD 283 million, making it a potential destination to replace established markets that are struggling. According to the country’s association of seafood producers and exporters, Vietnam’s shrimp exports to China made strong recovery in the second quarter, surging 57.6% following a fall of 3.9% in the three months previous. The proportion of warm water shrimp is stable, while that of cold water shrimp is on the rise, forcing Vietnam to compete with not only exporters in Asia but also with cold water shrimp providers from Argentina and Canada. However, thanks to the Asean-China Free Trade Agreement, Vietnam can enjoy tariff preferences when exporting shrimp to the world’s second largest economy.
|Indonesia seeks access to Vietnamese wagyu beef, egg markets|
[17 August 2017] Indonesia and Vietnam have agreed to strengthen bilateral ties with the aim to enhance trade activities at the Asean level. “Our strategy is to strengthen Vietnam’s position as Indonesia’s main regional chain of supply in Asean. This strategy is more practical for Indonesia instead of directly competing with Vietnam,” said Enggartiasto Lukita, Indonesia’s Trade Minister to the press. For agricultural products, Mr Lukita said Indonesia is seeking access to Vietnam’s wagyu beef and egg markets. He continued that Vietnam is the third largest market in Asean – after Indonesia and the Philippines – with 93.3 million people.
|Singapore clears concerns over Fipronil egg contamination|
[16 August 2017] Singapore's Agri-Food and Veterinary Authority (AVA) recently issued a statement that eggs in the country are safe for consumption. In a recent Facebook post, AVA said, "Singapore does not import eggs from the affected countries in Europe." The statement was made after recent concerns over the Fipronil incident in Europe involving the spread of insecticide contaminated eggs and egg products, which spread to Hong Kong.
|Zen to bring Japanese food chain to Southeast Asia|
[16 August 2017] Zen Corporation Group, a Bangkok-based operator of more than a dozen restaurant brands, is looking to expand its AKA Japanese yakiniku restaurant chain across Southeast Asia using the franchise model, the Nation reported. Thanyachate Ekvetchavit, Chief Commercial Officer, told the Nation that the company is in talks with prospective franchisees and expects to open 10 new AKA restaurants in Cambodia, Laos, Malaysia and Myanmar in the next five years. In Thailand, there are 14 AKA restaurants in Bangkok and one in Pattaya. Zen Corporation Group recently acquired Tummour, a chain of north-eastern food restaurants with over 123 locations in Thailand and countries in Southeast Asia.
|CP Pokphand H1 feed sales up 18.4% in China|
[16 August 2017] CP Pokphand Co said its overall China feed sales rose 18.4% to 3.25 million tonnes in the first half of 2017, thanks to a focus on the commercial segment and, in particular, large-scale farms. Feed revenue was up 14.1% at USD 1.5 billion. Swine feed continued to be the largest component of the company’s China feed business, increasing 27.9% to 1.69 million tonnes and accounting for 52.3% of revenue. “The strong performance of the swine segment was also due to strengthened marketing efforts in promoting the use of our feed products for the entire life cycle of the pig,” it noted. CP Pokphand also saw its feed sales in Vietnam up 5.2% at 940,000 tonnes.
|Bitcoin entrepreneur to revolutionise Indonesia’s cattle financing model|
[16 August 2017] Hong Kong-based Bitcoin entrepreneur and investor James Bang hopes to revolutionise the cattle financing model, specifically in Indonesia where most farmers are unable to buy their cattle assets outright. He announced that CashCow Coin was designed to increase Indonesian cattle farmers’ profits from the sale of their cows from 20% to 33%. Mr Bang hopes to raise USD 15 million through the offering set for launch in October 2017, which will be used to fund the purchase of calves. He will give investors 33% from every cattle sale, with his start-up reinvesting the remaining third to purchase further cattle and build larger cow sheds.
|Ajinomoto to farm out lysine, threonine production to Meihua|
[16 August 2017] Ajinomoto Co Inc will subcontract the manufacture of lysine and threonine to a major Chinese producer of amino acid-related products. These products will then be sold via Ajinomoto Animal Nutrition Group Inc (AANG), a consolidated subsidiary of Ajinomoto Co, from next year. Meihua Holdings Group Co Ltd is the second company to act as AANG’s manufacturing subcontractor for amino acids. The move will help Ajinomoto rebuild its global supply system for amino acids, which are the foundation of its animal nutrition business, Ajinomoto said in an announcement. AANG said it intends to meet the needs of its customers by offering a stable supply of amino acids.
|CJ Cheiljedang’s Q2 profit plunges 40%|
[16 August 2017] CJ Cheiljedang, South Korea’s leading food manufacturer, said its net profit dropped 40.1% in Q2 from a year earlier, mainly due to increased production costs and weak domestic demand. Net income came to USD 38.31 million on a consolidated basis in the April-June period, down from USD 64 million posted a year earlier. However, the company said its sales of processed food increased due to strong growth of new products and overseas businesses. Its mainstay food manufacturing unit basked in USD 1 billion in sales, up 7.1% from a year earlier, backed by growth of its home meal replacement products. The company said it will bolster efforts to tap deeper into overseas markets to deal with weak domestic demand. The company has been expanding investment abroad, including Vietnam, taking over three local foods makers from the Southeast Asian country since February last year.
|Floods affect Bangladesh’s livestock sector|
[16 August 2017] Floods in 10 north-eastern districts of Bangladesh have caused a loss of USD 444,000 in the country’s livestock sector. The Department of Livestock Services (DLS) revealed that around 8332 heads of cattle and poultry have died due to the natural calamity. In addition, floods also damaged 2513 tonnes of cereal food and submerged at least 5590 acres of pasture land which has created a crisis in cattle feed in the affected districts. The DLS has distributed 93,149 doses of livestock vaccines and 193,895 doses of poultry vaccines in the affected districts.
|Layer Feed QC to be held in Jakarta and Ho Chi Minh City|
[15 August 2017] The 2017 Asian Agribiz Layer Feed Quality Conferences in Jakarta, Indonesia (October 16 & 17) and Ho Chi Minh City, Vietnam, (October 19 & 20) will focus on providing the latest regionally relevant research and practical information from leading regional and international speakers from academia and industry. For details and to register online visit SEA_LAYERfeedQC17 or contact Sutasinee Lake at email@example.com.
Update on avian influenza outbreak in the Philippines
[15 August 2017]
Economic impact minimal so far
The AI outbreak that hit several farms in Pampanga province has had minimal economic impact to the industry so far, Philippine Agriculture Secretary Manny Piñol told the press yesterday following a meeting with industry stakeholders. However, he emphasised the importance of containing the outbreak as it would be difficult to control it should it move to other parts of the country. He ordered all poultry farms in the country to observe strict biosecurity measures and stringently monitor all poultry trade nationwide. Mr Piñol said that they have yet to trace how the virus entered the country, but noted that migratory birds and smuggled poultry products are potential carriers. Meanwhile, Edwin Chen of the Philippine Association of Layer Breeders Inc, told Asian Agribiz that while there may be some supply concerns regarding eggs, he does not expect any with broilers.
Lack of workers slows down culling
Of the targeted 200,000 birds to be destroyed following the outbreak of avian influenza in San Luis, Pampanga province, only 18,685 have been culled due to lack of manpower, said Arlene Vytiaco, head of Animal Disease Control at the Bureau of Animal Industry. Dr Vytiaco said the misinformation about AI has sowed fear among workers that the virus is fatal and may be transmitted to them. Of the 30 workers that were recruited for the job, only five reported for work. Dr Vytiaco also said that uniforms worn by the workers emit heat from their bodies, making it difficult to work in for a long duration, thus also slowing down culling activities. As a result, she said culling will run for 5-6 days instead of three days.
Chicken prices drop on AI outbreak in the Philippines
[15 August 2017] Despite the pronouncement of the Philippine Department of Agriculture (DA) that it is still safe to eat poultry products, prices of chicken meat in Metro Manila have declined following the announcement of an avian influenza outbreak in Pampanga province. The Samahang Industriya ng Agrikultura (SINAG) said that just days after the announcement, wholesale price of chicken dropped to USD 2.15/kg from the previous USD 2.45/kg, while retail prices of chicken in Metro Manila, the biggest market in the country, fell to USD 2.65/kg from the average USD 3.14/kg. While the affected farms are producing eggs only for markets within Pampanga province, SINAG Chairman Rosendo So said that consumers are already afraid of buying chicken meat, hence the lower price.
DA to provide assistance to affected poultry farmers
Philippine Agriculture Secretary Manny Piñol said the farmers will be compensated with USD 1.60 for each bird that will be destroyed due to the AI outbreak. He added that a financial package worth USD 500 will be provided, collateral-free and interest-free, to affected poultry farmers. The loan will be payable within 24 months. Small farmers who will have no income source during the four months waiting period for the government to clear the outbreak will also be provided with livelihood assistance. Mr Piñol reiterated that the strain which hit the country is not the H5N1 that can be transmitted to humans, adding that this was confirmed by four laboratories, including those from big poultry integrators in the country.
|Aerofood opens new central kitchen in Cilegon|
[15 August 2017] Aerofood ACS, the inflight catering business arm of Indonesia’s national airline Garuda Indonesia, recently opened a new central kitchen in Banten province. The 135sqm kitchen, which can produce 5000 portions of ready meals a day, targets the industrial catering market in Cilegon. “This new kitchen cater to demand from industries in Cilegon,” said Aerofood ACS in a statement. The company revealed that this year it will open two more central kitchens in Cikarang and Cikupa. Aerofood ACS has been in the industrial catering business since 2002, catering to hospitals, schools and dormitories. The company, which has halal, ISO 9001 (quality management) and ISO 22000 for Food Safety Management certifications, has nine branch facilities and produces 80,000 ready meals daily.
|GFPT posts 30% growth in Q2 |
[15 August 2017] Thailand’s GFPT has reported a net profit of USD 14.87 million in Q2, up 30% from the same period last year, backed by higher sales revenue and lower raw materials costs. GFPT’s sales revenue increased 6.74% year-on-year to USD 125.36 million in Q2 due mainly to higher revenue from its chicken processing segment. The company’s total export of chicken products was 7,500 tonnes, up 29.31% from Q2 2016, supported mainly by an increase in export volume of both frozen and cooked chicken products to Japan and South Korea. However, revenue from its feed segment dropped 10.6% year-on-year to USD 24.77 million, hurt by intense competition in animal and aquatic feed in Thailand. Also, revenue from its processed food segment decreased 2.72% year-on-year to USD 6.20 million.
|KFC India sees 9% system sales growth in Q2|
[15 August 2017] Fast food chains KFC and Pizza Hut in India have posted 9% and 8% growth respectively in system sales growth (SSG) for Q2 2017. The chains are owned by US-based fast food major Yum! Brands Inc, which also operates Taco Bell in India. SSG is a term used in the franchising industry to assess growth of a franchised brand and the sales figure excludes foreign currency translation. Globally, India contributed 1% to the total sales of Pizza Hut and KFC markets each. “The April-June 2017 quarter is our fourth consecutive quarter of positive system sales growth,” KFC India Managing Director Rahul Shinde said in a statement.
|Myanmar’s govt educates public about avian influenza|
[15 August 2017] Myanmar’s Ministry of Agriculture, Livestock and Irrigation hosted a chicken meat feast in Nay Pyi Taw recently to encourage people to eat chicken meat, and eggs, in a bid to dispel fears about being infected with H5N1, reported Myanmar Times. Tun Lwin, Deputy Permanent Secretary at the ministry, said the feast will also be held in other parts of the country to educate the public about the virus. “At present, people don’t eat chicken meat and eggs for fear of contracting avian influenza,” said Ko Myo Lin Aung, who sells chicken eggs and dry goods in Pyinmana.
AI outbreak in the Philippines - what we know so far
[14 August 2017]
The Philippine Department of Agriculture (DA) confirmed on Friday the outbreak of avian influenza of the H5 subtype in a layer farm in San Luis, Pampanga. An estimated 37,000 birds have died, and at least another 200,000, including chicken, ducks, quail, pigeons and fighting cocks in and within a kilometer of the affected area will be culled. Meanwhile, DA Secretary Manny Piñol has also ordered a halt on the movement of birds within a 7-km radius of the affected areas.
Outbreak began end July
A report from the World Organization for Animal Health (OIE) said the Philippine outbreak began on July 24, killing 36,485 of 190,000 birds. Samples have been sent to Australia to determine the N subtype of the virus, but DA Secretary Manny Piñol said no bird-to-human transmission of the virus has been reported. He urged the public not to panic as the DA is prepared for this eventuality, adding that both the national and local governments as well as the poultry industry is cooperating to contain and eliminate the virus. Meanwhile, Philippine College of Poultry Practitioners President Dr Paulino Abad told Asian Agribiz that the group “is coordinating with the Bureau of Animal Industry in whatever capacity we have vets” to address the situation.
DA bans movement of birds from Luzon to Vis-Min
Following the outbreak of an H5 subtype avian influenza in a town in Pampanga province, Philippine Agriculture Secretary Manny Piñol has issued a temporary ban on the movement of live birds, poultry meat, DOC, eggs and semen from Luzon to the Visayas and Mindanao. Meanwhile, movement of poultry and poultry products from outside the 7-km control area will be allowed if these are accompanied by a shipping permit and a health certificate issued by a government veterinarian that the products come from farms with no AI incidence for the past 21 days prior to shipment. Meanwhile, the United Broiler Raisers Association (UBRA) issued a statement saying that while supply of chicken meat and eggs “may become volatile in the days ahead, we at UBRA will continue to provide quality, disease-free and nutritious poultry products.”
Chicken, egg demand decline
Since the confirmation of an H5 subtype avian influenza in the province of Pampanga on Friday, there has been reports of a decline in chicken meat and egg demand in the country. “It is expected,” Elias Jose Inciong, President of the United Broiler Association told Asian Agribiz. “We will see in the coming days as the public receives more information.” However, broiler and layer industry players have commended the Department of Agriculture and the Bureau of Animal Industry for their quick action to contain the virus and control its spread out of the affected areas. Mr Inciong also said that Department of Health has assured the public that it is safe to eat poultry products provided that these are cooked properly.
|Thailand to export more chicken meat in 2017|
[14 August 2017] Thailand targets to export more than 770,000 tonnes of chicken meat in 2017, up from 743,000 tonnes last year, Kukrit Arepagorn, Manager of the Thai Broiler Processing Exporters Association told Asian Agribiz. The main reason behind Thailand's revised chicken export target is Japan, a growing market for Thai chicken meat. “While we exported more frozen chicken products to Japan, the country is shifting to buy more cooked chicken products from Thailand, instead of China due to food safety issues,” he said, adding Japan's booming tourism industry needs more cooked chicken meat. Meanwhile, Thailand aims to export 150,000 tonnes of frozen chicken products to Japan this year, up from 125,295 tonnes last year, Mr Kukrit said. In total, Thailand exported 375,285 tonnes of chicken meat during the first half of this year, up 8-9% from the same period last year.
|McDonald's China plans for 2000 more restaurants by 2022|
[14 August 2017] McDonald's China aims to drive double-digit sales growth in each of the next five years by increasing the number of restaurants from 2500 to 4500, according to its strategy termed 'Vision 2022' just after its completion of a strategic partnership with Citic and Carlyle. Opening pace of new McDonald's restaurants in mainland China is expected to ramp up from approximately 250 per year in 2017 to 500 per year in 2022 under the new partnership. In addition, Vision 2022 includes plans to increase its restaurant portfolio mix in tier 3-4 cities to about 45% of all McDonald's restaurants in China.
|GGL wants Indonesia to free up feed grain access|
[14 August 2017] Australia’s peak lobby group Grain Growers Limited (GGL) has demanded better access for Australian feed grain in Indonesia. It made the call in its submission to the Indonesia-Australia Comprehensive Economic Partnership Agreement negotiation process, according to The Weekly Times. Since 2015 Indonesia has restricted import permits for feed grains including feed wheat, barley and corn, to support local grain production. Before the restrictions, Indonesia imported up to 3 million tonnes of corn for stockfeed and up to 1.8 million tonnes of feed wheat, but this year the country is not expected to import any feed wheat. GGL estimates Indonesia needs about 2-3 million tonnes of imported feed grain a year since data shows the Indonesian stock feed market is growing by 1.1 million tonnes or 7% a year.
|Pig prices in Cambodia bounce back|
[14 August 2017] The price of live pigs in Cambodia has risen this August from USD 1.35/kg to USD 2/kg but the increase varies with some areas getting USD 1.75/kg, according to the Pig Raiser Association of Cambodia. Srun Pov, President of the association, said small backyard pig raisers, farms and commercial pig farms could get these prices depending on quality and location. “The rise in pig prices is due to their higher cost in neighbouring countries. Because of that importers spend more to import them,” he said. He added that the government is preparing to restrict the free flow of pigs from neighbouring countries while there is a lack of pigs to supply the market, so it pushes the price higher than before. Mr Pov called on all stakeholders to join his association so that they could collectively agree on common prices for consumer.
|Layer Feed QC especially for South Asia|
[11 August 2017] Acting at the suggestion of delegates to the very successful 2016 Layer Feed Quality Conferences in Jakarta and Kuala Lumpur, Asian Agribiz will hold a conference tailored to address the specific challenges facing egg producers in Bangladesh, India, Nepal, Pakistan and Sri Lanka. The South Asian Layer Feed Quality Conference will be held at The Landmark Hotel in Bangkok, Thailand on September 11-12. For details and to register online, visit SouthAsianLAYERfeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|CPF raises USD 653 million in rights offering|
[11 August 2017] Charoen Pokphand Foods (CPF) said it has received USD 653 million from its recent rights offering. On August 4, CPF sold 868 million subscription shares and CP Group, its major shareholder, has subscribed to its full rights. On June 27, shareholders approved the increase in registered capital and the allotment of new ordinary shares on the basis of five existing ordinary shares to one newly issued ordinary share, at the offering price of USD 0.75 per share. CPF said it plans to use the proceeds to repay high-interest debt from overseas operations and consequently reduce the company’s interest expenses. It said earlier that its increased capital will also be used for future investment.
|CGE seeks corn import permit for feedmillers|
[11 August 2017] Ceylon Grain Elevators Plc (CGE), Sri Lanka’s leading poultry integrator, has asked to import corn where licenses have been issued to third parties, restricting trade. CGE said in a quarterly review that hiked price of local corn and associated import restrictions persisted during the period under review, which have directly affected the company’s bottom line. “Therefore, with the aim of relieving the local corn supply shortage, appeals have been made to the government to issue import permits directly to feedmillers to procure better quality corn at competitive prices,” it said.
|China to build slaughterhouse for cattle from Myanmar|
[11 August 2017] Hunan Dakang International Food & Agriculture Co said it has signed with the local government of Ruili, a border city in southwestern Yunnan province close to Myanmar, to build a processing complex for imported cattle. Costing USD 268 million, the complex will include a quarantine station and slaughterhouse with annual capacity of 500,000 heads, a cooked beef plant, as well as leather and offal processing facilities. It is part of China’s efforts to regulate cross-border livestock and meat trade, so as to reduce smuggling from some neighbouring countries. The Yunnan province also shares borders with Laos and Vietnam.
|ThaiBev to acquire 240 KFC stores in Thailand|
[11 August 2017] Singapore-listed Thai Beverage (ThaiBev), announced on Tuesday that its subsidiary, the QSR of Asia (QSA), has entered into an asset sale and purchase agreement with Yum Restaurants International (Thailand) to acquire more than 240 existing and a number of developing KFC stores in Thailand. ThaiBev said the preliminary amount of consideration is approximately USD 339.61 million for existing stores, with an additional amount of consideration for the developing KFC stores. The deal will allow ThaiBev to expand further into the food business. Nongnuch Buranasetkul, Senior Vice President of Food Business (Thailand) at ThaiBev said “with QSA’s restaurant management expertise, we are well positioned to accelerate KFC’s expansion in Thailand.” The acquisition is expected to be completed by the end of the year.
|India maps FMD-free zones to unlock markets for buffalo meat|
[11 August 2017] Despite the controversy surrounding the sale of cattle for slaughter, India is taking steps to expand the export of buffalo meat to countries such as China and the US, which have bans in place due to the existence of foot and mouth disease in India. The Department for Animal Husbandry, Dairy and Fisheries has marked out FMD-free zones across the country where the virus is absent, and has sent the list to the OIE for recognition, a government official said. “We hope that once the OIE recognises the FMD-free zones, India can start exporting from such zones to markets such as China, US and the EU,” the official said.
|Vietnam unveils on-farm antibiotic management plan|
[10 August 2017] Vietnam recently rolled out its National Action Plan for the management of antibiotic use and control of antibiotic resistance in livestock production and aquaculture for 2017-20. The plan receives aid from the US Agency for International Development and was developed in collaboration with the UN Food and Agriculture Organisation (FAO). Jong Ha Bae, FAO representative, said antibiotic resistance threatens the health and livelihood of people, as well as the sustainability of food and agriculture production systems and the environment. “Farmers, veterinarians and animal drug sellers should share responsibility by using antibiotics responsibly and find alternative ways to maintain animal health and productivity by improving bio-security and farming practices,” he said.
|Rhone Ma acquires factory building to expand operations|
[10 August 2017] Malaysia-based animal health solutions provider Rhone Ma Holdings Bhd is acquiring a semi-detached factory in Klang for USD 1.3 million, reported theedgemarkets.com. It will be used for storage of food ingredients should it decide to venture into the manufacturing of food ingredients in the future. “The acquisition is in line with the group’s expansion plans as it allows the group to cater to the increasing storage needs of food ingredients,” it said. Rhone Ma also plans to set up a GMP-compliant plant in Negeri Sembilan. The plant will be the company’s own in-house manufacturing and r&d centre aimed at supporting Rhone Ma’s business.
|NZ, Indonesia strengthen food safety initiatives|
[10 August 2017] New Zealand’s Minister for Food Safety David Bennett has met with Penny Lukito, Chairwoman of Indonesia’s National Agency of Drug and Food Control (BPOM) to discuss both countries’ relationship in strengthening food safety. “This meeting is important to ensuring that both parties are aware of the goals each are working towards within their country’s food safety systems, a key tool underpinning agricultural trade,” said Mr Bennett. BPOM and New Zealand’s Ministry for Primary Industries signed a Food Safety Agreement in 2014. “Indonesia’s demand for imported food with changing dietary habits, including milk, yoghurt, red meat and cheese, is increasing. New Zealand needs to have a good working relationship on all levels, but especially at a food safety level to ensure we can meet their needs,” said Mr Bennett.
|Pilmico International takes over Eurofeed |
[10 August 2017] Pilmico International Pte Ltd—a business unit of Philippine conglomerate Aboitiz Equity Ventures (AEV)—has acquired 70% of the outstanding shares of Vietnam-based animal feed producer Europe Nutrition Co., Ltd (Eurofeed) in a bid to expand its animal feed business in Vietnam. Pilmico has reportedly bought 2.8 million shares of Eurofeed worth USD 3.7 million. To date, Eurofeed’s enterprise value is USD 5.3 million, minus long-term debt and short-term debt, according to the company’s financial books. In 2016, Pilmico also took 100% ownership interest in Pilmico Vietnam Trading Company Limited—a limited liability establishment engaged in the wholesale of food products, beverages, agriculture and forestry raw materials.
|Thai Union’s net profit drops 7.6% in Q2|
[10 August 2017] Thai Union Group (TU) has reported a 1.2% year-on-year sales increase to USD 1.04 billion in Q2 2017, while net profit was USD 42.36 million in Q2, down 7.6% from the same period last year due to fluctuating raw material prices and rising interest cost. However, TU said the profit decline was partly offset by prudent cost control, lower tax payment and income contribution from both Red Lobster and Avanti Feeds. For the first half of 2017, the sales contributions from TU’s own brands remained stable at 43%, with the balance was from the company’s private label and food services sales. The US remained the largest market with 38% of TU’s total sales in the first six months, followed by Europe at 33%, the Thai domestic market 8%, Japan 6% and other markets 15%.
|South Korea to downgrade AI alert|
[10 August 2017] South Korea will downgrade its avian influenza (AI) alert by one notch from the highest level, the government said. The Ministry of Agriculture, Food and Rural affairs said in a statement that the risk from highly pathogenic AI had dropped, with no new cases reported since June 19. South Korea, Asia’s fourth-largest economy, was hit hard by the deadly H5N8 AI strain after the first case was confirmed last November, leading to a record culling of over 37 million farm birds, or more than a fifth of its total poultry population. The ministry said it will keep disinfecting farms and monitoring the situation until September.
|Corn prices drop further in Thailand|
[09 August 2017] Thailand’s farm-gate prices for corn further declined to USD 0.15-0.18/kg in July 2017, 28% below last year’s price, according to USDA GAIN report. This is partly due to competition from relatively cheaper duty-free corn imported from neighbouring countries under the Asean Free Trade Agreement. Despite the low farm-gate price, the cabinet approved measures to increase target corn acreage. To achieve this the government will offer a direct payment of USD 375 per hectare during marketing year 2017/18 – marketing year 2019/20. This is part of a plan to diversify 0.1 million hectares of marketing year 2017/18 off-season rice into alternative crops. The total budget for this program is USD 39 million. Sources expect that the government is unlikely to achieve this target due to attractive rice prices and sufficient water supply for rice cultivation.
|Malaysia processing plant audit team to skip Uttar Pradesh state |
[09 August 2017] Malaysian officials from the Department of veterinary Services (DVS) are scheduled to audit Indian buffalo meat plants but operators in Uttar Pradesh are worried they will be sidelined. DVS inspected plants in June but skipped Uttar Pradesh due to time constraints. One exporter told Asian Agribiz that the officials have indicated they will skip Uttar Pradesh because of political unrests. “The situation here is normal. The Philippines have sent auditors, and have not expressed any apprehension,” CA Anupam Sharma from Al Faheem Meatex Pvt Ltd said.
|Hike in Philippines feed wheat imports from Australia|
[09 August 2017] Four years ago, the Philippines was importing 3 million tonnes of wheat from Australia. Today, demand has doubled to about 6 million tonnes, according to Luke Mason, head of grains of Singapore-based Concordia Agritrading. Mr Mason said there was a massive jump for Australian wheat for feed in the Philippines in 2017 for its 7% tariff advantage over wheat of other origins. At the same time, non-Asean corn has 30% import tariff to protect Philippine corn producers and the only exporting Asean country is Thailand where corn prices are high compared to corn from anywhere else, mainly South America. With not so much imported corn entering the Philippines, this explains the increase in Australian feed wheat imports, said Mr Mason.
|HCMC pork traceability program falls short|
[09 August 2017] Ho Chi Minh City’s pork traceability program hit a roadblock when compliance fell short on its first day. Nguyen Ngoc Hua, Deputy Director of the Department of Industry and Trade, said that the program involves farmers, abattoirs, pig dealers, and pork retailers, many of whom have not complied with its requirements. On July 31, the first day of the project, some 9600 pigs were sold. Of these, only 35% were cleared at farm level, 21% were cleared at slaughterhouse level, and only 13% was cleared at the wholesale market.
|McDonald's completes sale of China, Hong Kong franchises|
[09 August 2017] A consortium led by Citic Ltd has completed the acquisition of a controlling interest in McDonald’s mainland China and Hong Kong businesses. The acquisition, completed on July 31 via Grand Foods Investment Holdings Ltd, has created the largest McDonald’s franchise outside the US, said Citic Ltd. The partnership encompasses McDonald’s 2700 restaurants in the markets. According to an earlier statement, the deal was valued up to USD 2.08 billion, giving China's state-owned conglomerate Citic and its alternative investment unit Citic Capital Holdings a controlling stake of 52% in Grand Foods, with Carlyle and McDonald's Corp taking 28% and 20% respectively.
|Myanmar to conduct livestock census |
[09 August 2017] The Myanmar government will conduct a national-level livestock census in January 2018, said Toe Min Tun, an official from the ministry of agriculture, livestock and irrigation, Myanmar Times reported. The census has not been conducted since fiscal year 1993-94 and the long pause has caused a gap between government calculated livestock data and the actual livestock figure, Dr Tun said. By collecting data, figures on animals and livestock products can be confirmed and this can also provide correct data for drawing up policies on the country’s food security and poverty alleviation, livestock breeding plans and veterinary plans, he said.
|Srinivasa Group invests USD47m in business expansion|
[08 August 2017] Srinivasa Group, a prominent player in India’s poultry industry, will invest USD 47 million over the next 3-5 years on new facilities in different parts of the country. The Hyderabad-based company also plans to setup at least 300 retail stores for eggs and chicken products in the South. Suresh Rayudu Chitturi, Vice Chairman and Managing Director said a 2000 bird/hour chicken processing plant being set by the Group in Narsapur, near Hyderabad, will be ready soon. The Group has collaborated with Malaxmi Group for a mega food park in Andhra Pradesh. An egg powder plant and facility for value added products will take shape here and will take 18 months to complete, said Mr Chitturi. This plant will process 0.5 million eggs per day and the further processing facility will produce nuggets, burger patties, chicken samosas, stuffed parathas, sausages and ham.
|Rotisserie ducks a new craze in Singapore|
[08 August 2017] A roasted duck stall in Singapore has been selling about 400 ducks per day. The month-old stall called Duck Master operates three spinning rotisseries. Each whole duck, weighing 1.8-2kg, is priced at USD 11.05, about half the price of those sold in most hawker centres. Owner Paul Boh said he is tapping the popularity of duck, with restaurants such as Four Seasons Chinese Restaurant and London Fat Duck having opened here. These restaurants are famed for serving roast Irish ducks. “Food costs will always increase. If I want to sell food in huge quantities, I need to use new technology to cut down on operational costs,” he said referring to the cost-effective electric-powered rotisseries, as opposed to the typical charcoal-fire or gas-powered metal ovens.
|Thailand’s wheat imports revised up |
[08 August 2017] Thailand’s wheat imports have been revised up to around 3.8 mmt in marketing year 2016/17, according to USDA GAIN report. Part of this upward revision is due to shrimp feed manufacturers who have used imported feed wheat in their feed rations following the Ministry of Commerce’s June 2017 decision to allowed 110,000 metric tonnes of feed wheat to be exempted from the domestic corn purchase requirements for shrimp feed manufacturers. However, total feed wheat imports in marketing year 2016/17 are expected to decline to approximately 2.5 million metric tonnes, down 27% from marketing year 2015/16 due to the government’s import restrictions on feed wheat.
|4Fingers sees strong market in Malaysia |
[08 August 2017] 4Fingers, a Singaporean chain of fast casual restaurants, is looking at opening 20 outlets in Malaysia over the next four to five years, reported a local daily. With its fourth store in Malaysia recently launched, the company has ambitious growth and expansion plans, both within Malaysia and in Asia Pacific. “We have invested USD 747, 000 in the first four outlets. We are currently searching for the right leases to meet Malaysia’s growing demand for great fried chicken,” 4Fingers CEO Steen Puggaard said. “We also have customers who are asking for 4Fingers to be delivered to their doorstep, and are exploring having a delivery service as well to serve more customers,” he said.
|South Africa offers frozen beef to Indonesia|
[08 August 2017] South Africa has offered frozen beef to Indonesia at prices that are roughly half of the current retail prices. Enggartiasto Lukita, Indonesia’s Trade Minister said his ministry would, in assessing the offer, refer to regulations set in the 2014 Animal Health and Husbandry Law, hygiene standards set by the Agriculture Ministry and halal standards set by the Indonesian Ulema Council. “South Africa has seriously asked us for a chance to export its beef. So far, most of our beef comes from Australia as well as from India, Mexico and Chile,” said Mr Lukita.
|China's Inner Mongolia reports H5N1 bird flu|
[08 August 2017] China's Ministry of Agriculture said a H5N1 strain of highly pathogenic avian influenza was found in north-eastern Inner Mongolia region on August 1. The virus was detected on a commercial layer farm in Tongliao, with some 35,000 birds infected and 15,000 dead. Local authorities have sealed off and sterilized the infected area, culling 66,500 birds. The disease is now under effective control, said the ministry.
|Good potential for layer farming in South Sumatera|
[07 August 2017] Indonesia’s South Sumatera province holds good potential in layer farming business, according to Ismaidi, Chairman of South Sumatera’s Poultry Society Association. He told Asian Agribiz that in the next 5-10 years, Sumatera will be the island of choice for egg producers to expand farming operations. Layer population in South Sumatera is now about 7 million birds, said Mr Ismaidi. A farmer on average raises 30,000 birds. Egg production is estimated at around 250 tonnes a day. The local market absorbs 70%, while the rest is exported to the Bangka Belitung Archipelago, Greater Jakarta and West Java. Per capita egg consumption in the province is around 7.6kg or 121 pieces, higher than the national consumption of around 100 pieces.
|Wens building slaughterhouse with 50m annual capacity|
[07 August 2017] Guangdong Wens Foodstuff Group, the largest yellow broiler producer in China, said it has kicked off construction of a slaughterhouse with an annual capacity of 50 million birds. The facility is located in Xinxing County where the company is headquartered, and a cook products plant is also in the pipeline. Wens has been seeking an ‘upgrading’ of its broiler business with more slaughtering, as the native birds are normally sold live at wet markets and are easily affected by bird flu. The company currently has two semi-automatic broiler slaughterhouses - one in Xinxing and the other in Huzhou in east China- with a combined daily capacity of 110,000 birds.
|Modern Indian farms urged to adopt antibiotic-free systems|
[07 August 2017] Intensive farming has taken much of the flak for the misuse of antibiotics on farms. According to Ramanan Laxminarayan, Director at the Centre for Disease Dynamics, Economics and Policy in New Delhi, intensive farming is not all evil. “It’s an appropriate solution to the high demand for animal protein, provided it is able to improve on the standards of nutrition, hygiene and access to veterinary services,” he told Asian Agribiz. Mr Laxminarayan believes that India can drop antibiotics on farms. “Many new farms are state-of-the-art, and can adapt to an antibiotic-free system provided they are encouraged to go in that direction.” He said farmers must shift their focus to better nutrition, higher standards of hygiene, a good vaccination program and quality PS.
|Low quality feed slows broiler growth in Malaysia|
[07 August 2017] Inferior feed ingredients such as corn and soy has delayed broiler harvest days and affected layer production in Malaysia, reported a local daily. Johor Small and Medium Poultry Breeders’ Association Chairman Lau Ka Leng said instead of 30 days, broilers are now harvested at day 35. Egg production too is seeing a slight slowdown. Mr Lau said corn and soybean-based feed, imported from the US, Argentina, India and China, had been deteriorating in terms of quality since early this year. Mr Lau said farmers were still paying the same amount or more (following the weakening of the ringgit) for feed that was not up to the mark, at about USD 467 per tonne.
|Ajinomoto acquires French frozen food company|
[07 August 2017] Japanese food giant Ajinomoto has recently strengthened its position in the European consumer foods market with the acquisition of Labeyrie Traiteur Surgelés (LTS), a French frozen food business. Although the company declined to disclose the purchase amount, the deal values the company at USD 24.5 million. LTS is a frozen food subsidiary of Labeyrie Fine Foods, a maker and marketer of chilled foods including foie gras and smoked salmon, with net sales last year of USD 58 million. The deal will place Ajinomoto in a strong position from which to further strengthen its food business in Europe and accelerate growth for the group.
|Strong pork prices driving EU from export markets|
[07 August 2017] Firm demand vis-à-vis tight supply have hiked pork prices in the EU in Q2 this year, reaching levels not seen since 2013. In its Pork Quarterly Q3 2017 report, Rabobank noted that prices in EU now are higher than competitors Brazil, Canada, and the US, leading to the EU’s reduced share in China’s pork imports. Total EU pork exports were down 2.8% in the first four months of this year, with exports to China and Hong Kong 15% lower year-on-year. The lower shipments to China and Hong Kong have been offset by increased exports to Japan, South Korea and the US.
|Last day to register for the Broiler Breeder Masterclass |
[04 August 2017] Registrations close today for the Broiler Breeder Masterclass on August 18 in Bangkok Thailand, straight after the Asian Agribiz Broiler Feed Quality Conference. It will be led by Robert Renema, Principal of Robert Renema & Associates Poultry Consulting, and Producer Programs Manager with Alberta Chicken Producers, Canada. Apart from Dr Renema there will be a number of specialist technical presenters covering specific nutrition and management issues including Alex Chang, Ampai Nangsuay and Manfred Pietsch. Special presentations will be given by two of the region’s leading breeders: Dr Munawar Ali of Islamabad Feeds, Pakistan and Dr Ha Jong Su of Samhwa GPS Breeding, Korea. They will discuss their breeding operations and lessons they have learnt in their respective flocks. For details and to register visit BroilerFeedQC17 or contact Sutasinee Lake at email@example.com.
|S.Khonkaen placing more focus on ready-to-eat products |
[04 August 2017] Thailand’s S.Khonkaen Foods will continue to develop ready-to-eat (RTE) products to cater to changing consumer behavior, Jaraspon Rujirasopon, Assistant to CEO (QSR Business) told Asian Agribiz. “From ready-to-cook products, we are placing more focus on RTE products because consumers are looking for quick, easy and convenient food,” he said. S.Khonkaen sells its RTE products such as crispy flossy pork with sticky rice and spicy Vietnamese pork sausage salad in 7-Eleven convenience stores. Meanwhile, for its traditional food business, S.Khonkaen produces pressed pork, pork floss, crispy pork, north-eastern style sausage and other products. Although its main distribution channels for its traditional food are modern trade outlets, the company aims to sell more products in new channels such as wet markets and tourist attractions, Mr Jaraspon said.
|Ceva Philippines gets international accreditation for CHICK program|
[04 August 2017] Ceva Philippines recently received its accreditation from the international certifying body Bureau Veritas for the company’s Ceva Hatchery Immunisation Control (CHICK) program. The CHICK program is the first program in the world to be certified by France-based Bureau Veritas. “The accreditation is important because it challenges us to maintain the strict standards. It gives assurance to our customers that we have world-class standards that we have to meet,” Levi Directo told Asian Agribiz. Out of 77 hatcheries in the Philippines, Ceva has 47 hatcheries applying the CHICK program.
|CP China kicks off construction of Kunming layer complex|
[04 August 2017] CP China said it has kicked off construction of a three-million-layer complex in Kunming in southwestern Yunnan province. Costing some USD 89 million, the facility will include a 120,000-tonne feedmill, a one-million-bird pullet farm and a three-million-bird layer farm, in addition to egg packaging and processing plants. The construction will last two years. CP China said earlier that the Kunming complex is designed to serve Yunnan and its neighbouring provinces, as well as the Southeast Asia.
|Japfa Comfeed to raise feed production in Vietnam|
[04 August 2017] Indonesia’s Japfa Comfeed Vietnam, which began operating in Vietnam in 1996, plans to expand production in Vietnam to raise its annual feed production capacity to 1 million tonnes. Currently it has five animal feedmills and 12 breeding farms in Vietnam. Two years ago, it established a joint venture with the Netherlands’ Hypor BV Company to produce global swine genetics in Vietnam.
|Disease outbreaks in Korea’s beef and poultry sectors to benefit pork market|
[04 August 2017] With FMD hitting its cattle sector and avian influenza outbreaks hounding its poultry industry, South Korea has been a strong market for pork in 2017. Rabobank, in its Pork Quarterly 3Q 2017 report, predicts that local production would rise by 2% this year, and although this is lower than the 4% growth the industry posted in 2016, imports are also on the rise. From January-April 2017, pork imports from the US were up almost a third compared to 2016. Pork accounts for nearly half of all animal proteins consumed in the country.
|Betagro raises transparency with inclusive labour monitoring program|
[03 August 2017] Betagro Group will collaborate with Issara Institute, an independent non-profit organisation, on a pilot program, called your voice, we care, for long-term labour development. The Institute’s inclusive labour monitoring model is a worker voice-driven approach, supporting supply chain transparency. It provides monitoring of workplace conditions to identify and address labour risk through technology and supplier collaboration. It will launch its worker voice channels on Betagro poultry farms, enabling workers to access 24/7 confidential hotlines and an app for migrant workers. Vanus Taepaisitphongse, Chief Executive Officer, said by working closely with the Issara Institute, the company is certain that labour issues across its entire supply chain will improve.
|China says ban on Australian beef is temporary|
[03 August 2017] China imposed a temporary ban on beef products from six Australian plants because of concerns over hormone and spoilage, in addition to a label non-compliance, an official with General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), China’s quality watchdog, told Asian Agribiz. However, the ban will be lifted once the problem is resolved, since “some of the beef plants are key suppliers for China,” said the source. Australian officials are reportedly scrambling to resolve the dispute, as the suspension may endanger a significant value of exports.
|Myanmar swine flu death toll climbs to 10|
[03 August 2017] Ten people have died in an outbreak of H1N1 influenza in Myanmar as the government stepped up public awareness campaigns about the swine flu virus, Reuters reported. The latest H1N1 outbreak began more than a week ago, said Thinzar Aung, Deputy Director of the infectious diseases department at the Ministry of Health and Sport, with Yangon, the worst affected area. Authorities have carried out health awareness campaigns and described the latest outbreak as a regular seasonal occurrence. Separately, Myanmar's livestock ministry has also reported an outbreak of H5N1 bird flu in the south. More than 1,800 chickens were culled after the virus was detected at a farm in the southern town of Dawei last month.
|Philippines lifts ban on poultry imports from Poland |
[03 August 2017] The Philippine government will allow the entry of poultry imports from Poland after the latter was cleared by the World Organization for Animal Health (OIE) for highly pathogenic avian influenza. The Department of Agriculture (DA) will allow shipments of domestic and wild birds, including poultry meat, day-old chicks, eggs and semen from Poland. All import transactions of the above mentioned products will be allowed according to the existing rules and regulations of the DA, Bureau of Animal Industry and the National Meat Inspection Service.
China’s layer sector seeking solutions for overcapacity
[03 August 2017]
Average egg retail prices in China fell to their lowest in a decade in the first half of 2017, and the layer sector attributed the downturn to an overall overcapacity, while having taken actions to address the problem, writes ALLEN SHU.
Association sets up capacity control mechanism
The China Animal Agriculture Association (CAAA) said it has set up a capacity control mechanism for the layer sector with a regular meeting of the country’s major breeder companies, aiming at a balanced supply of commercial chicks. China had 15 layer GP producers with a combined stock of 650,000 sets in the first five months of 2017. However, a GP stock of 360,000 layers is sufficient for market demand, according to the association. Chinese layer breeders sold 1.26 billion commercial chicks in 2016, much higher than a balanced annual stock of 900-950 million birds, it said.
Professor calls for a slowdown in investments
Despite a downturn in the layer sector, major players have announced aggressive expansion plans this year. “The sector has attracted much investment, but they should keep calm at this stage to avoid intensifying overcapacity,” said Yang Ning, a professor of the China Agricultural University. According to him, there is no need for China to expand its stock of layers, as their productivity has been increasing. Moreover, the sector should switch its focus to value-added egg products. “Producers should also work closely with retail groups, which normally have a say in food consumption,” said Dr Yang, who is the chief scientist of a national technology system for the layer sector.
Yukou promotes its ‘smarter’ service system
Beijing-based Yukou Poultry is China’s top layer breeder, claiming about 50% share of the domestic market. The company has been promoting a ‘smarter’ system to provide better breeds and services for the sector. The internet-based platform offers industry news, farming technology as well as trading of ingredients. It has also set up ‘layer supermarkets’ nationwide to provide on-site one-stop services for farmers. “We will collect big data along the entire value chain with the platforms, thus indicating and guiding a balanced supply of layer chicks,” said Chairman Sun Hao.
Breeders offer more choices of egg shell colours
According to Yukou’s Mr Sun, unlike the dominant white shell eggs in the US, China has demand for shell colours, with brown and pink shells accounting for 58% and 40% respectively. The green shells are also preferred by Chinese. “There would be risk if offering eggs in a single shell colour,” said Mr Sun. As a local breeder, Yukou has developed a variety of new breeds with pink shells. Another leading poultry genetics distributor Shandong Yisheng has also started importing Isa Pink grandparent layers, with the first shipment of 22,000 birds from Canada to arrive on August 5.
More egg processing plants to be launched this year
Ovodan Foods is a former unit of Sanovo Egg Group and a liquid egg processing pioneer in China. According to its Assistant President Michael Han, only 140,000 tonnes of eggs out of total 25 million tonnes were processed into liquid products last year. At least five new egg processing plants will be launched by the end of this year. However, “the existing plants run at only 40% of their capacities, while legislation is necessary to promote the products among restaurants and bakeries,” said Mr Han. Meanwhile, CAAA President Li Xirong said that China should move towards more egg processing to facilitate export.
|Registrations close today for Broiler Feed QC in Bangkok and Jakarta|
[02 August 2017] Registrations close today for Asian Agribiz's 2017 Broiler Feed Quality Conference to be held on 16-17 August at the Amari Watergate Hotel in Bangkok and the Broiler Feed Quality 'Highlights' Conference at the Doubletree by Hilton on August 21 and 22. Don’t miss an exceptional program of strong science-based technical program with carefully selected papers containing relevant trial data and practical solutions for Asia. For details and to register visit BroilerFeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|Aviagen to acquire Hubbard Breeders|
[02 August 2017] Aviagen has signed an agreement to purchase Hubbard Breeders, the broiler genetics division of Groupe Grimaud. The agreement between the two companies was signed on July 31 and will be concluded later this year. As part of the agreement, Hubbard will operate as a wholly owned subsidiary of Aviagen Group, under the direction of Aviagen CEO Jan Henriksen. It will remain an independent broiler breeding company with separate breeding and commercial activities, and will continue to be headquartered in France.
|Candi Farm shortens supply chain, improves cash flow|
[02 August 2017] Candi Farm, a layer farm based in South Sumatera of Indonesia, raises around 30,000 layers at its farm in Musi Banyuasin. The farm produces around 1.2 tonnes of eggs a day. More than 50% are sold directly to egg sellers in traditional markets in Palembang, the capital city of South Sumatera. Andi Santoso, owner, revealed to Asian Agribiz that since early this year he has ventured into the institutional market. “I have to change. In the past I sold more eggs to agents who buy on credit. This disrupts the cash flow of my business,” he said. “By selling directly to restaurants and hotels, I determine the selling price and shorten the supply chain.” Mr Santoso sells his eggs by kilo, but he plans to produce packed, value-added eggs like Omega-3 eggs in the future. He also aims to produce free-Salmonella eggs.
|Provisur acquires Lutetia |
[02 August 2017] Provisur Technologies Inc, a global leader in innovative food processing technologies and systems, has acquired Lutetia. Philippe Longo, the former owner of Lutetia, will continue to manage the business for Provisur, ensuring a seamless transition and continuity of customer relationships. France-based Lutetia is a leading manufacturer of equipment for the food industry. Its products include tumblers, massagers, injectors as well as smoking and defrosting equipment. “Lutetia is a natural fit for our business. Their portfolio of equipment is complementary to our existing offering and will allow us to provide additional solutions and deeper value to our customers,” said Mel Cohen, Provisur President and CEO.
|China pork imports seen to fall 10% in 2017|
[02 August 2017] China’s pork imports in the first five months of 2017 were flat, thanks to the recovery in local production coupled with strong international prices, Rabobank said in its Pork Quarterly 3Q 2017 report. It said production is expected to increase by 2% in 2017, “as hog production recovery was faster than expected in the first half,” as producers had a positive view of the market and sped up herd replenishments. Rabobank sees China’s imports falling by 10% to about 2.8 million tonnes for the year.
|Fire disrupts production at CCK’s processing plant|
[02 August 2017] Malaysian poultry processor CCK Consolidated Holdings Bhd reported a fire incident which occurred at the fish ball production section of its CS Choice factory. CS Choice is a subsidiary of CCK, engaged in the manufacturing, processing and packing of meats and other food products. The company said the fire affected a small area, causing damage to the fish ball production line, leading it to temporarily cease production for clean-up, repair works and inspection. Production is expected to resume in one to two months.
|CPF reduces fishmeal in shrimp feed production|
[01 August 2017] Charoen Pokphand Foods (CPF) said it has managed to reduce the fishmeal used in shrimp feed production from 35 % to 7 % in the last two decades and it aims to lower the fishmeal portion further to 5% in the next three years, said Sujint Thammasart, Chief Operating Officer of CPF's aquaculture business. CPF aims to reduce the use of marine resources by upgrading animal breeding and cut sea water use in its aquaculture operations, he said. "We have a clear guideline in protection and conservation, to ensure the sustainability of marine resources,” Mr Sujint added. CPF said it is innovating shrimp feed formulation to reduce fishmeal and is shifting from black tiger shrimp farming to white shrimp (Vannamei). CPF said its fishmeal is sourced from by-products of processing plants and is subjected to traceability rules under IFFO’s responsible supply standard.
|China H1 pork imports down 13.1%|
[01 August 2017] China’s Ministry of Agriculture said the country’s pork imports fell 13.1% to 662,000 tonnes in the first half of 2017, while pork offal imports fell 8% to 626,000 tonnes. The imports have been slowing down this year due to a continued decline in domestic pork prices. Data from the ministry shows that local prices had declined for 22 consecutive weeks by the end of June, while the US and European pork prices were growing. “Pork imports are expected to fall slightly due to the narrowing price gaps,” said the Chinese ministry.
|CJ CheilJedang builds new food production complex in Vietnam|
[01 August 2017] CJ CheilJedang, South Korea’s leading processed food maker, will spend USD 63 million on a new production complex in Vietnam to expand its presence in the Southeast Asian market. The company said it held a ground-breaking ceremony on July 24 for the 66,000sqm base in Ho Chi Minh City. Once construction is complete by July next year, the new base is expected to produce up to 60,000 tonnes of foodstuffs, including both refrigerated and frozen products annually. CJ CheilJedang has been investing in Vietnam, taking over three local food makers since February last year. The company said it views Vietnam as the outpost for the Southeast Asian market, adding it aims to log USD 626 million in annual revenue in the country by 2020.
|Ban on Brazil meat imports may increase prices of Philippine processed meat |
[01 August 2017] Retail prices of canned and processed meat in the Philippines may increase to as much as 15% following the ban on meat shipments from Brazil. Rex Agarrado, President of Philippine Association of Meat Processors Inc. (Pampi) said the ban would hike prices of raw materials such as mechanically deboned meat which is used for meat loaf, beef loaf and luncheon meat. Mr Agarrado appealed to the Department of Agriculture (DA) to reconsider its zero-tolerance policy for salmonella in raw meat. The DA imposed the ban in July, noting the safety of consumers. It will send a team of inspectors to Brazil in August to check 25 meat establishments there that are exporting meat to the Philippines.
|Ghanim to expand bruneihalalfoods market globally|
[01 August 2017] After making a successful entry into the UAE recently, Brunei’s Ghanim International Corporation is setting its sights on the Middle East market, to build bruneihalalfoods as an iconic international brand. “We sent a trial shipment of bruneihalalfoods products to UAE a few weeks ago. We now have orders in hand and we hope to fulfil them soon. The products are ready-to-cook chicken and lamb and the initial orders will be sent as air cargo,” said Nur Rahman, CEO. Dr Rahman also revealed that following the recent success of Brunei’s blue shrimp crackers in China, a second customer there has also started buying them. “We are also about to send the blue shrimp crackers to Singapore in the coming weeks,” he said, adding that its next targets are Korea, Japan and Europe.
|Myanmar reports H5N1 outbreak in Tanintharyi Region|
[01 August 2017] Myanmar has reported an outbreak of highly pathogenic H5N1 avian influenza on a farm in the southern Tanintharyi Region, according to a report from Myanmar’s Livestock Ministry. The virus was detected on July 16 on a farm of 5000 Lohmann layers in Dawei where it killed 1806 birds, the ministry said, pointing to a lack of biosecurity on the farm and illegal processing in front of the farm. The report came a day after the government said 13 people were confirmed to have contacted H1N1 influenza and a boy had died with flu-like symptoms, raising fears of a new outbreak of a virus also known as swine flu.
|Dedicated Masterclass for breeding and integrator specialists|
[31 July 2017] The Broiler Breeder Masterclass which will be held at the Amari Watergate Hotel in Bangkok, Thailand on August 18, will be for a maximum of 100 breeding and integrator specialists. In a classroom environment, participants will discuss the links between nutrition and concepts of growth, physiology and management. Led by Robert Renema, Principal of Robert Renema & Associates Poultry Consulting, and Producer Programs Manager with Alberta Chicken Producers, Canada, the objective is to create a forum for the discussion of selected issues facing the broiler breeder. For details and to register visit BroilerFeedQC17 or contact Sutasinee Lake at email@example.com.
|Feed One to boost production in Vietnam|
[31 July 2017] Major Japanese livestock feed producer Feed One will raise production capacity by 50% at its plant in Vietnam, with plans to offer chicken and swine feeds that are easier to eat than traditional products and can lead to shorter raising periods. The production increase could start in September this year. The plant, run by Kyodo Sojitz Feed Co Ltd where Feed One holds 49% of the share with the rest held by to Sojitz Corp, is located in Long An province.
|Indonesia develops banana shrimp|
[31 July 2017] The brackish water aquaculture agency in Jepara, Indonesia has successfully developed Penaeus merguensis, also known as banana shrimp. Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries and Marine Affairs said the agency in Jepara, has an 18 million fries/year hatchery. “Penaeus merguensis is an indigenous shrimp in Indonesia, which can be developed commercially as an alternative to vannamei shrimp, and is more resistant to diseases.” At six months and weighing 30-40g, banana shrimp can be used as parent stock. Average daily gain of the shrimp is 0.15-0.20g per day with a survival rate of 40-60%. In addition, banana shrimp only needs feed with a protein content of 24-28%. In Indonesia, banana shrimp (size 60) is sold at USD 6.75 per kg.
|CJ CheilJedang widens reach in Vietnam with food plant |
[31 July 2017] South Korean CJ CheilJedang will invest USD 62.7 million to build an integrated food production site in Vietnam, a South Korean news website reported. To be ready by July 2018, it will be in Nha Be District. It will be the company’s first integrated food plant to cover a wide range of products from chilled to frozen food, rolling out up to 60,000 tonnes of products a year, the company said. Key products would include Bibigo brand dumplings, kimchi, home meal replacements, frozen food and processed meat products. CJ CheilJedang acquired kimchi distributor Kim&Kim and frozen food company Cau Tre last year. In March, it acquired fish and meat processor Minh Dat Food to expand its reach in the country.
|Cambodia’s Health Ministry warns of new bird flu strain|
[31 July 2017] Cambodia’s Health Ministry recently expressed concern about the latest strain of avian influenza, urging the public to take precautions and maintain good hygiene when handling poultry, an online news portal reported. The current strain of virus known as Asian H7N9, is a subgroup of the previous H5N1 strain. It can infect both humans and live birds. Doctor Ly Sovann, Director of the ministry’s Communicable Disease Control Department said the H7N9 is difficult to contain. He said unlike the H1N1, which kills the birds immediately, the H7N9 does not kill infected birds. H7N9 has infected poultry in Laos as well as in Vietnam.
|Godrej Agrovet to raise capital through IPO |
[31 July 2017] Godrej Agrovet, India’s leading agro company, has filed draft IPO papers with markets regulator Securities and Exchange Board of India (Sebi). In a press statement, the company said it will sell new shares worth USD 47 million. Godrej Agrovet operates across five business verticals including animal feed, crop protection, oil palm, dairy, and poultry and processed foods. The company reported a 30.5% yoy increase in revenue to USD 775 million in FY16-17. During FY2015-16, the company acquired a dairy firm Creamline Dairy and an agri-chemical and pharma intermediates firm Astec Lifesciences Ltd, further strengthening the company’s presence across the agro and food business value chain.
|14 presentations by renowned speakers in Jakarta|
[28 July 2017] The 2017 Broiler Feed Quality ‘Highlights’ Conference in Jakarta, Indonesia will be held on August 21-22. There will be 14 presentations from 12 world class speakers. Two chaired panel discussion forums will ensure that delegates have opportunities to ask these leading experts’ questions and get the answers needed to raise production parameters. For details and to register visit BroilerFeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|Cargill expands business services centre in China|
[28 July 2017] Cargill has expanded the offices of Cargill Business Services (CBS) in Nanjing, China. Being Cargill’s first and only CBS operation in North Asia, the centre was launched in January 2015 with 30 employees and has grown to 300. It provides shared services to Cargill businesses across China, Singapore and Korea. “Expansion of CBS Nanjing is another demonstration of Cargill’s commitment to the China market. It will enhance Cargill’s efficiency in China and North Asia and help our businesses to be more focused on serving customers well," said Robert Aspell, President of Cargill China. The company has seven CBS Centres around the world, including two in India.
|Indonesia to see shortfall in corn production|
[28 July 2017] Based on data from Indonesia’s Ministry of Agriculture, corn production in the country grew significantly in the last decade. Dwi Andreas Santosa from Bogor Agricultural University said corn production jumped 162.72%. The Ministry of Agriculture projected corn production this year will touch 30.5 million tonnes with a surplus of 18.3 million tonnes. On the other hand, USDA estimated production to reach 10.9 million tonnes. “So, there is an over estimation of 19.6 million tonnes,” said Mr Santosa. According to the Indonesian Feed Millers Association, feedmillers and layer farmers need 700,000 tonnes and 250,000 tonnes of corn per month, respectively.
|Management, operators keys to a safe feedmill|
[28 July 2017] A safe, clean and well maintained feedmill takes the effort of management, operators and maintenance, Charles Stark, Associate Professor of Feed Technology, Kansas State University said at the Novus Advanced Feed Mill Management Symposium in Bangkok, Thailand on July 24. Management has to commit to a safe work environment and culture and preventive maintenance program. “It needs to set aside time and people to undertake preventive maintenance,” he said. Meanwhile, operators need to alert management about potential problems before breakdowns occur, Dr Stark said. Maintenance also needs to work with operators to keep equipment maintained and sealed to prevent dust leaks.
|Kazakhstan keen to import meat from Cambodia|
[28 July 2017] Kazakhstan is keen to import agricultural products and meat from Cambodia and enter into partnerships with Cambodian entrepreneurs. At a recent official meeting with Cambodia’s Minister of Agriculture Veng Sakhon, Kazakhstan Ambassador to Cambodia Beketzhan Zhumakhanov said: “Kazakhstan hopes to import meat and agricultural products from Cambodia. It just takes 14 days by sea for goods to reach Kazakhstan through China. Also, Kazakhstan is a corridor to Europe.”
|Kerala keen to raise white meat production|
[28 July 2017] India’s Kerala state, which depends on Tamil Nadu to meet its demand for chicken, is drawing up a mega two-pronged strategy to raise local production of white meat. “The plan is to set up 5000 sheds to rear 1000 chicks across the state,” said K Raju, Animal Husbandry Minister. “The fully-grown chickens will be bought back by the government-run Meat Products of India (MPI), Kerala State Poultry Development Corporation (Kepco) and Brahmagiri Development Society in Wayanad,” he said. The state requires 155 million birds annually, while local production is only 700,000 birds, reported The New Indian Express.
|TFG targets to export 32,000 tonnes of frozen chicken |
[27 July 2017] Thailand’s Thaifoods Group (TFG) aims to export 32,000 tonnes of frozen chicken meat to countries such as the EU, Japan and Malaysia this year, up from 24,000 tonnes last year, said Chirdsak Kukiattinun, Chief Operations Officer of TFG. In overseas markets, average prices for frozen chicken meat will be 25% higher in Q3 and Q4 compared to Q1, he said. TFG plans to raise its production capacity of frozen chicken in 2018, Mr Chirdsak said. Meanwhile, the company is building its cooked chicken plant, which will have a production capacity of 25,000 tonnes a year. The plant will come online in Q2 2018. “Cooked chicken exports have massive growth potential because market size of cooked chicken is two times bigger than frozen chicken exports,” he said. TFG said it expects annual revenue of USD 173.33 million from its cooked chicken business.
|Venky’s share appreciates 44%|
[27 July 2017] Shares of Indian poultry company Venky’s has risen by around 44% this year fuelled in part by a campaign against beef consumption. India’s consumption of processed chicken meat is rising by as much as 20% a year, according to the USDA. The average Indian consumed a mere 1.7kg of poultry in 2015, according to the Organization for Economic Cooperation and Development. However, industry professionals told Asian Agribiz at a briefing in Mumbai last week that consumption is closer to 7kg/capita currently. Another factor that contributed to better performance is the lower price or corn and soy.
|China raises dominance in seafood sector|
[27 July 2017] China is winning a scramble among Asian countries to get to the top of the seafood production pyramid, said an article on seafoodsource.com. Recent trade data showed that Asean was the biggest buyer of Chinese seafood in the first quarter of the year, with China’s seafood exports to the region up 32.6% in volume and 7.9% in value. Shipments to the Philippines rose 53.8% and 25.9% in volume and value terms, respectively, to 61,000 tonnes and USD 192 million. Exports to Malaysia rose 33% to 24,800 tonnes and shipments to Indonesia rose 476% to 35,900 tonnes worth USD 77 million – up a remarkable 407% from the same period last year.
|Quality feed boosts Indonesia’s pangasius industry growth|
[27 July 2017] The Pangasius industry in Indonesia has shown significant growth in the last five years, according to Sarifin, Director of Feed and Fish Health of the Ministry of Fisheries and Marine Affairs. “New pangasius farming centres have come up in regions in West Java and North Sumatera. Meanwhile, pangasius hatcheries are spread in Java, Kalimantan and Sumatera,” he said. Pangasius production in the country is targeted to reach 870,000 tonnes. According to Azam B Zaidy, Secretary General of the Indonesian Catfish Businessman Association: “Pangasius producers and farmers must focus on quality of the pangasius meat. One way is by using quality feed,” Mr Zaidy said. The quality of pangasius meat or fillet is determined by its colour (white is preferred) and smell (no muddy smell).
Regional dairy update
[27 July 2017]
India to emerge largest milk producer in 2026
India will be the world’s largest milk producer by 2026, said a report by the UN and Organisation for Economic Co-operation and Development. India’s population will grow from 1.3 billion to 1.5 billion, an increase of almost 150 million. The report said that given its strong population growth, India will also drive a large share of global demand. It further said that over the first quarter of the 21st century, milk production in India will be nearly tripled. “Over the course of the outlook period alone, milk production in India will grow 49%; in 2026, India will be the world’s largest milk producer, with an output one-third above that of the second largest producer, the European Union,” said the report.
Go Farm to produce UHT goat milk in 2020
Indonesia’s dairy goat farm Go Farm aims to produce UHT goat milk in 2020. Darwin Saragih, owner, said he will increase the number of dairy goats to 1000 heads. Of which, 500 heads would be lactating does. With a productivity of 3 litres/doe/day, the daily milk production would be around 1500 litres. “I will invest in a milking machine for better milk quality and efficiency,” he told Asian Agribiz. “The milk will be processed into UHT [ultra-high temperature processing] milk. I will partner with an OEM milk processing plant to produce the UHT milk, which will be marketed in modern markets.” Currently Go Farm raises 200 goats with 30 lactating does. Every day the farm produces 32-35 litres of milk. As much as 90% is sold fresh at a price of USD 2.25 per litre. Meanwhile, the rest is processed into kefir (USD 4.50 per litre) and kefir cream (USD 15 per kg).
Vietnam clears air on milk terminology
Vietnam’s Ministry of Health plans to withdraw the sterilised fresh milk term and replace it with reconstituted milk and compound milk. The sterilised milk term emerged two years ago to define liquid milk products made from reconstituted powder. It has caused confusion among consumers with liquid milk made from fresh cow’s milk. Milk-producing companies welcomed the move. "Consumers need to be correctly informed on the origin of the product they are buying, whether it’s from fresh cow’s milk or reconstituted powder,” Tran Bao Minh, Director General, International Dairy Products JSC, said.
Small farms seen to help increase Philippine milk production
Community farms in the Philippines are expected to ramp up local milk production by meeting at least 10% of the annual domestic requirement by 2022. According to Agriculture Secretary Emmanuel F. Piñol, the government will establish community multiplier farms in at least 1,000 communities by 2019, particularly in areas where forage and feed materials, are abundant. He said every community multiplier farm will have a minimum of 100 heifers and will serve as a breeding farm, a dairy-production area and a learning centre. This program is part of the five-year livestock and dairy road map that is currently being drafted by the Department of Agriculture to increase the country’s cattle population and reduce reliance on imports.
AmulFed Dairy to build a new milk production facility
India’s AmulFed Dairy, a unit of Gujarat Cooperative Milk Marketing Federation, will build a new milk production facility in Gandhinagar, Gujarat. The company has ordered GEA to set up the turnkey dairy plant, which will produce 150 tonnes/day of skim milk powder and 120 tonnes/day of dairy whitener and baby food. The plant, which is scheduled to begin production in 2018, will process around 90,000 litres/hour of milk to produce multiple value-added products. “We will provide AmulFed with a hygienically-superior plant that will deliver peak performance. The AmulFed milk powder plant at Gandhinagar will be the largest in Asia as well as the most environment friendly,” said Abhay Chaudhari, GEA Country Managing Director, India Cluster.
|Interactive learning @ Broiler Breeder Masterclass|
[26 July 2017] The Broiler Breeder Masterclass which will be held on August 18 in Bangkok, the day after Asian Agribiz's 2017 Broiler Feed Quality Conference is aimed at creating a forum for the discussion of selected issues facing the broiler breeder. Set in an interactive environment, topics addressed will include • Genetics with a splash of biology • Meeting the needs of the embryo • Growing the ideal breeder • Biology of the chicken (including lighting issues) • Transition to reproduction • Trouble shooting breeder fertility issues • Health issues (including innovation in vaccines) • Nutrition of the pullet/hen. It will be led by Robert Renema, Principal of Robert Renema & Associates Poultry Consulting, and Producer Programs Manager with Alberta Chicken Producers, Canada. For details and to register visit Broiler FeedQC17 or contact Sutasinee Lake at email@example.com.
|China’s Yisheng imports Isa Pink grandparent layers|
[26 July 2017] Leading Chinese layer breeder Shandong Yisheng said it has started importing Isa Pink grandparent layers, with the first shipment of 22,000 birds from Canada to arrive on August 5. “Isa Pink was introduced to China a decade ago, and the pink shell eggs are popular among Chinese consumers,” Shang Lei, Area Manager China for Isa, told Asian Agribiz. Yisheng imported Isa Brown GP stocks in 2015 for the first time, and it sold about 4 million sets of parent chicks by May 2017. The company targets to import total 42,000 Isa Pink and 70,000 Isa Brown GPs this year.
|Cambodia to work with Thailand, Malaysia to develop halal standards|
[26 July 2017] Cambodia wants to encourage the production of halal products and plans to work with countries that have a strong production base in the category. “Our Cambodian halal steering committee is working closely with Thailand and Malaysia to create halal standards,” Commerce Secretary of State Mao Thora said. “We have yet to understand the full extent of halal standards.” Osman Hassan, Secretary of state at the Ministry of Labour and deputy head of the halal steering committee, said the halal food industry would be a boost for the economy when Cambodia adopts the standards. He said the standards would apply to preparation, processing, packaging, storage, presentation and distribution, food safety, marketing and labelling.
|Alarming use of antibiotics on farms in India|
[26 July 2017] Random tests on 18 poultry farms raising about 50,000 birds each in Punjab, India, found that two-thirds of fowl harboured bacteria that produce extended-spectrum beta-lactamase, or ESBL, that destroy most penicillin and cephalosporin-based antibiotics, revealed a Bloomberg news report. Of tested broilers, 87% had the super germs, a study published recently in the journal Environmental Health Perspectives showed. That compared with 42% of layers. “This study has serious implications, not only for India but globally,” said study author Ramanan Laxminarayan, Director at the Centre for Disease Dynamics, Economics and Policy in New Delhi. “We must remove antibiotics from the human food chain, except to treat sick animals, or face the increasingly real prospect of a post-antibiotic world.”
|Marubeni acquires US beef company|
[26 July 2017] Japan-based Marubeni Corp has entered the US beef market sector by acquiring Creekstone Farms Premium Beef LLC (CSF). CSF has established a business model that focuses on supplying high-quality beef produced from selected Black Angus cattle fed mainly grain. CSF also exports its beef products to Asia and Europe. “As the quality of eating habits improve worldwide, especially in emerging countries, it is predicted that the demand for beef will grow strongly,” Marubeni said. With the acquisition of CSF, in addition to its existing subsidiary Rangers Valley, which engages in cattle feeding and beef distribution in Australia, Marubeni said it will secure its production base in the two largest beef-producing countries and establish its organisation to meet the globally growing need for high-quality beef.
|India-Bangladesh’s illegal cattle trade estimated at around USD776m|
[26 July 2017] The number of cattle smuggled into Bangladesh from India every year is unclear but the trade is estimated to be worth around USD 776 million annually. The sheer amount of money involved in the illegal cross-border cattle trade makes it impossible to prevent smuggling of cows and bulls to Bangladesh where the demand for beef is high. This encourages the smugglers to take risks and come up with innovative strategies to keep the flow of cattle stable. India and Bangladesh share a porous 4096km border. Smugglers are active particularly along the West Bengal and Assam borders where certain points are less protected than others.
|Broiler Feed QC: Special package for groups in Indonesia|
[25 July 2017] The 2017 Broiler Feed Quality ‘Highlights’ Conference organised by Asian Agribiz, will be held on August 21-22 at the DoubleTree Hotel in Jakarta and will offer 14 presentations – many with data presented in Asia for the first time – from 12 world class speakers. A special package is available for local groups who bring teams to the conference. A team of eight or more earns one complimentary registration in addition to the generous discounts already offered to teams of six or more. The conference will feature separate slide shows delivered simultaneously in Bahasa Indonesia and English plus verbal summaries in Bahasa Indonesia at the end of each presentation. For details and to register visit BroilerFeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org.
|SunJin invests USD3m in breeder farm in Myanmar|
[25 July 2017] SunJin, a leading South Korean livestock and animal feed company, is investing USD 3 million in Myanmar to set up its breeder farm business. The investment will be in SunJin Livestock Co Ltd formed earlier this year as a joint venture with SunJin holding a 95% stake and a local partner holding the rest. “The company will raise 100,000 broiler PS up to 2018,” said Byung Ha Lee, Managing Director of SunJin Livestock Co Ltd. The company’s presence in Asia, covers China, Vietnam and the Philippines. It aims to secure a total of 18 overseas production bases by 2020 and expand to Cambodia and Indonesia.
|Vietnam’s import of feed raw materials touches USD1.8b|
[25 July 2017] Vietnam’s import value for animal feed and input for animal feed stood at USD 1.8 billion in the first half of 2017, a year-on-year increase of 17.3%. Argentina remained the leading source, the General Department of Customs said. In the reviewed period, Vietnam imported products worth USD 828 million, a 21.6% yoy surge, accounting for 46.7% of its total imports. Brazil and China ranked second and third at USD 68 million, up 5%, and USD 75 million, down 32%, respectively. The Department of Animal Husbandry has urged the Ministry of Agriculture and Rural Development to temporarily stop building new feedmills.
|Japanese wagyu beef regains world market access|
[25 July 2017] More than a decade and a half after mad cow disease prompted widespread import bans, many markets are reopening to Japanese wagyu beef, creating opportunities for producers eager for international sales. Beef was Japan’s top export in the agricultural and livestock category last year at USD 121 million. Arguments from the Japanese government and beef producers that the danger has passed are finally being heeded. The EU, Brazil and Myanmar have resumed imports, with Taiwan expected to follow suit in September and Australia as early as this year. The EU and Japan reached a broad deal on an economic partnership agreement this month that will immediately eliminate an EU tariff of 12.8% plus up to USD 352 per 100kg on Japanese beef.
|Philippines bans Brazilian meat imports|
[25 July 2017] The Philippines has imposed a temporary ban on all meat shipments from Brazil after some shipments were found to contain salmonella. Agriculture Secretary Emmanuel F. Piñol said the government will inspect meat-packing plants where imports that tested positive for salmonella were sourced. A technical group may be sent to Brazil to investigate and inspect the accredited Brazilian meat processors exporting to the Philippines. According to the Meat Importers and Traders Association (MITA), the ban could result in higher prices of meat and meat products. MITA has also requested to hasten the investigation so as not to further push up prices of meat.
|Precision feeding to help industry meet consumer demand|
[25 July 2017] Increasing demand for both meat production and sustainability will pressure the feed manufacturing industry to produce more feed in a more accurate manner, Charles Stark, Associate Professor of Feed Technology, Kansas State University said at the Novus Advanced Feed Mill Management Symposium in Bangkok, Thailand yesterday. Precision feed manufacturing from formulation to load-out and delivery will help the industry meet the demands of its stakeholders and customers, Dr Stark said. “If we know the nutrient requirement of the animals based on its genetics, ages and health status, then we can feed the animals accordingly,” he said. The industry can determine the nutritional potential of feed ingredients by using NIR and particle size. It can also formulate balanced diets that limit the amount of excess nutrients and adjust nutrient content to match the requirements of animals.
|Indonesia pushes modernisation in livestock sector|
[24 July 2017] Animal husbandry, has been contributing significantly to the economic growth of Indonesia. The Directorate General of Livestock & Animal Health (DGLAH), through its programs, has been working hard to raise productivity, efficiency and sustainability, according to Fadjar Sumping Tjatur Rasa, Director of Animal Health at the DGLAH. “We are self-sufficient in chicken meat and export hatching eggs to Myanmar. We have exported further processed chicken products to Papua New Guinea and Japan has approved five further processing units for export,” Dr Rasa said at a seminar in Jakarta which was attended by Asian Agribiz. He said the government is now encouraging poultry farmers and producers to improve biosecurity and farm management. More investment is expected in processing and cold storage to move the market from live bird to processed products.
|Chilled product bolsters US beef exports to Asia|
[24 July 2017] US beef’s year-to-date export results have been bolstered by exceptional performance for chilled US beef in key Asian markets, according to Erin Borror, Economist of the US Meat Export Federation (USMEF). Mr Borror noted that the US now holds more than 50% of the chilled beef import market in Japan and South Korea, and more than 70% in Taiwan. Dan Halstrom, USMEF Senior Vice President for Marketing, added that chilled exports are especially important to the US beef industry because they represent a consistent, 52-weeks-per-year business. Exporting chilled product also allows USMEF to better showcase the flavour and tenderness of US beef for customers in Asia.
|Philippine importers want meat tariffs removed|
[24 July 2017] The Philippine Meat Importers and Traders Association want tariffs on meat imports to be removed to reduce the price of meat locally. The group said the added tariff is one of the misguided protectionist policies and has become an added cost to the Filipino consumer, making meat products expensive to lower-income families. The tariff especially affects the majority of the population who are not able to consume good quality protein.
|Taiwan lifts ban on Japanese beef imports|
[24 July 2017] Taiwan has decided in principle to lift a ban since 2001 on beef imported from Japan, imposed after the discovery of cattle with mad cow disease, the Food and Drug Administration (FDA) said in a statement. In 2000, Japan shipped only four tonnes, or 0.01% of the total amount imported by Taiwan that year. An FDA official told Kyodo News that if all goes smoothly, Taiwan will resume imports of Japanese beef no later than October 15. When shipments resume, Japanese beef and beef products exported to Taiwan must come from cattle less than 30 months old. Taiwan also agreed to resume Japanese beef imports on the condition that the cattle is slaughtered or processed at government certified facilities, and comes from cows which can be traced to the farms where they were born and raised for more than 100 days.
|Weak Asian demand hits Wellard’s cattle exports|
[24 July 2017] Shares in Wellard lost more than a quarter of their value on July 18 after Australia’s biggest cattle exporter warned it would sink further into the red as high prices for local cattle weighed on demand from Asia. Wellard said that cattle prices in Australia remained 'uneconomically high' as farmers held stock and grew their herds, reducing demand from live export markets in Southeast Asia. “These sustained high prices have meant that the traditional Indonesian and Vietnamese live export markets have been depressed, with buyers reducing the number of cattle purchased and not willing to absorb or pass on the increased costs,” Wellard said in a statement.
|Upgrade your knowledge at the Broiler Breeder Masterclass |
[21 July 2017] On August 18, straight after the 2017 Broiler Feed Quality Conference at the Amari Watergate Hotel, Bangkok, Asian Agribiz will hold a one-day Broiler Breeder Masterclass at the same venue. This Masterclass will be for a maximum of 100 breeding and integrator specialists to discuss in a classroom environment the links between nutrition and concepts of growth, physiology and management. It will be led by Robert Renema, Principal of Robert Renema & Associates Poultry Consulting, and Producer Programs Manager with Alberta Chicken Producers, Canada. For details and to register visit BroilerFeedQC17 or contact Sutasinee Lake at email@example.com.
|Indonesia’s animal protein processing sector bracing for significant growth|
[21 July 2017] With a projected economic growth of 5.4%, Indonesia’s food processing industry is expected to record an 8% growth this year, according to Juan Permata Adoe, Vice Chairman for Strategic Food Industry at the Indonesian Chamber of Commerce and Industry. Increasing disposable incomes and a growing middle class will contribute significantly. The government’s current infrastructure development projects will benefit this industry. “Logistic costs could be pushed to 10% once the projects finish,” he said at a seminar in Jakarta which was attended by Asian Agribiz.
|Muyuan Foods H1 operating revenue up 85%|
[21 July 2017] Muyuan Foods Co, China’s second-largest pig producer following Wens, said its first-half operating revenue rose 85% to USD 625 million. Net profit increased only 12% to USD 177 million due to lower pig prices during the period. In the six months, Muyuan sold 2.95 million pigs, including 1.97 million finishers and 948,000 piglets. Unlike contract farming adopted by Wens and many other producers, Muyuan has its own farms to raise the animals, and it had set up 66 subsidiaries nationwide by the end of June. The company forecasts a net profit of USD 266-295 million, or a rise of 12-14%, for the first three quarters ended September.
|Cans still the best packaging option for sardine, mackerel|
[21 July 2017] Most sauced sardine and mackerel products in Indonesia are packed in can. By using this technology, the product has a shelf life of up to two years. Adhitya Purnama Ardi, GM Fresh at Indonesia’s seafood producer Central Proteina Prima (CP Prima), said although pouch packaging is handy and lighter, shelf life is shorter than canned products. “A company selling sauced sardine in pouces failed beacuse of mishandling,” Mr Ardi told Asian Agribiz. Seeing this, CP Prima, which ventured into sauced sardine and mackerel in 2016, proceeded with sauced sardine and mackerel in cans.
|Southeast Asia imports more US DDGS |
[21 July 2017] US exports of distiller’s dried grains with solubles (DDGS) to Southeast Asia have increased 16% from September 2016 to May 2017, according to data from the US Department of Agriculture and analysis by the US Grains Council. The Southeast Asian region, currently represents the third largest market for US DDGS. During the period, sales to the region totalled more than 1.7 million tonnes. Year-on-year, shipments of US DDGS have increased by 55% to Thailand to 630,000 tonnes, and 42% to Indonesia to 348,000 tonnes. Exports have more than doubled to both Malaysia and Myanmar compared to the same time the year prior.
|Thaifoods Group appoints young executives to lead sustainable growth|
[20 July 2017] Thailand’s Thaifoods Group (TFG) has appointed five young executives at key business units in preparation for the expansion of its businesses, said Chirdsak Kukiattinun, Chief Operations Officer of TFG. Phet Nantavisai has been appointed Executive Vice President of Farm and Feed Development, Siriluck Tangwiboonpanich has been appointed Assistant Vice President of Finance and Accounting Unit, Jullachak Chunluan has been appointed Assistant Vice President of Slaughterhouse (Kanchanaburi), Sugun Thampon has been appointed Assistant Vice President of Slaughterhouse (Prachinburi) and Patrapan Rungcharoen has been appointed Assistant Vice President of Research and Development Poultry, Swine and Feedmill. “The new generation of executives, aged 35-40 years, will lead the company to sustainable growth,” Mr Chirdsak said.
|Macquaire Capital helps revive Sujaya Group |
[20 July 2017] Indonesia’s West Kalimantan based Sujaya Group is optimistic that postponing debt obligations of its two subsidiaries – PT Bintang Jaya Proteina Feedmill and PT Sinka Sinye Agrotama – will end peacefully. The two subsidiaries’ debt is around USD 154 million. Fransiskus Alip of AJ Capital, financial consulting company for the Group, said a USD 12 million investment from Hong Kong based Macquaire Capital will be enough to recover the two subsidiaries’ operations. “Sujaya Group still has a bright future if the Group is managed professionally,” Mr Alip said. According to some sources, Sujaya group, which is the largest egg producer in West Kalimantan, failed to manage its general management and finance when it expanded to Java Island in 2013-14, resulting in a significant loss. Mr Alip said the company hopes to revive performance through the renewal of the Group’s poultry farming facilities and improvements in feed management, health and biosecurity.
|China’s H1 pork output up 0.8%|
[20 July 2017] China’s pork output stood at 24.93 million tonnes in the six months ended June, up 0.8% from a year earlier, said the National Bureau of Statistics. The growth was 0.6 percentage points higher than in the first quarter, the bureau noted, adding that there were 403.5 million pigs registered in the first half, a year-on-year rise of 0.4% and 321.83 million pigs slaughtered, an increase of 0.7%. China’s H1 output of pork, beef, mutton and poultry totalled 38.92 million tonnes, up 1.0%.
|US Farm Bill could jeopardise Vietnam’s tra fish export|
[20 July 2017] Vietnam’s tra fish exporters in the Mekong Delta have been warned about the disadvantages of exporting to the US because of stringent provisions set by the US Farm Bill. The Vietnam Association of Seafood Exporters and Producers said the US is likely to add Vietnam’s tra fish into the list of catfish from September 1, 2017 (in the past, the US called it ‘pangasius’, not ‘catfish’). Nguyen Chi Thao, Deputy General Director of Can Tho Seafood Import/Export, said most export companies have high-quality farming processes, so there is no need to worry about origin tracing. The processing also meets high standards. However, the Farm Bill sets many other stringent provisions. For example, treated water, not river water, must be used when carrying fish to processing factories by boats. After this, the water used during transportation must be collected for treatment. These are heady requirements for Vietnam’s companies.
|Indonesia gaining muscle in fight against IUU fishing|
[20 July 2017] Indonesia’s Minister of Fisheries and Marine Affairs, Susi Pudjiastuti said her ministry will continue to fight illegal, unreported and unregulated (IUU) fishing in the country’s territory. “Around 30% of global seafood production comes from illegal fishing,” she added. The country’s fight to IUU fishing has been successful so far, resulting in increasing catch fish production. In line with this, Mrs Pudjiastuti targets to increase the country’s per capita fish consumption. “In 2016, consumption touched more than 40kg. If we compare with Japan’s per capita fish consumption of 86kg, we need to do more seafood education, promotion and campaign activities,” she said.
|India’s Law Commission recommends prudent use of antibiotics|
[20 July 2017] India’s Law Commission has recommended that antibiotics, including coccidiostats, “should not be administered” to broilers and layers except under the supervision of a veterinarian. In its report, the law panel pointed out that it is important that the feed used is nutrient-rich and “devoid of antibiotics” as it affects food quality. However, a report entitled “Transportation and house- keeping of egg-laying hens and broiler chickens” stated that there are no statutory regulations for the standard, quality and quantity of feed for poultry in India which leads to rampant use of antibiotics in feed. It said that climatic conditions such as temperature and humidity play an important role in attaining maximum production.
|International speakers, Asian focus at Broiler Feed QC|
[19 July 2017] Asian Agribiz’s 2017 Broiler Feed Quality Conference on August 16-17 in Bangkok, Thailand will feature 19 Presentations by 16 reputed speakers from as far afield as Norway, Germany, India, Australia, New Zealand, Canada and the USA. Together they will provide a strong international perspective, focusing on relevance to Asia. Visit Broiler FeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Pangasius fillets raise earnings for CP Prima|
[19 July 2017] Indonesia’s seafood producer Central Proteina Prima, popularly known as CP Prima, enjoyed healthy sales of its pangasius fillet in the second quarter of this year. Adhitya Purnama Ardi, GM Fresh at the company, told Asian Agribiz that the government had been successful in controlling illegal imports of pangasius fillet during the period. “This has resulted in a supply shortage,” he said. Based on its market share, CP Prima is the market leader of pangasius fillet in Indonesia. Besides selling pangasius fillet under its Frosh brand, the company also receives customised orders for the product.
|Pork prices in Vietnam swing up|
[19 July 2017] Pig prices in Vietnam recorded its first rise after six months of decline. Last week, price of live hogs in Dong Nai province, an important pig production area in the country, hovered between USD 1.23-1.32/kg, up from USD 1.01/kg in June. Au Thanh Long, Chairman of South-eastern Livestock Production Association, attributed the rise to increasing purchases from Chinese traders. He added however, that producers have not really benefitted as the current price barely touched production cost.
|China’s Meihua has sights on 400,000-tonne amino acid plant|
[19 July 2017] Meihua Holdings Group, a leading Chinese provider of amino acid nutrition and health solutions, said it plans to build a feed-use amino acid plant with annual capacity of 400,000 tonnes in northeast China’s Jilin or Heilongjiang. Investment is estimated at USD 369-517 million, and construction of the project will last 2-3 years, according to the company. “Once completed, the plant is expected to change the supply pattern of China’s feed-use amino acid market, and strengthen our pricing power of the product,” it said, adding that Meihua wants to site the plant in northeast China as the region is rich in corn, while major livestock producers are also seeking expansion there.
|Indian farmers hope to resume egg exports to Qatar|
[19 July 2017] Indian farmers have prodded the government to initiate measures to resume exports of eggs to Qatar, which is now buying the commodity from the EU and US at higher prices after the Gulf nation was isolated by its neighbours. Before 2008, India was meeting 80% of Qatar’s requirements for table eggs. However, after the outbreak of avian influenza in 2006 and 2008 in the northern region of the country, Qatar banned poultry products from India including eggs. Bahrain and Oman have resumed imports of poultry eggs from India. During the 2016-17 financial year India exported close to 450,000 tonnes of eggs (including fresh, dried, not dried, in shell, liquid, yolks and others) worth USD 77.59 million. The major export destinations were Oman, Maldives, Indonesia, Saudi Arabia and Russia.
|Fish canning stable and growing in Indonesia|
[19 July 2017] According to Indonesia’s Minister of Industry Airlangga Hartarto, one part of the country’s fish processing industry that has developed well is canning. In 2015, the industry had 41 companies, with a total employment of 46,500 people and an investment of USD 143 million. The installed capacity of the industry reached 630,000 tonnes. Meanwhile, the value of fish export in cans reached USD 26 million. The ministry claimed that Indonesia’s fish processing industry is already advanced in the export market. Based on ministry records, the fish processing industry consists of 636 large-scale fish processing units and 36,000 small-scale fish processing units or households with simple technology.
|DPP expands its seafood division|
[18 July 2017] Indonesia’s leading meat and seafood trader Dua Putra Perkasa (DPP) will continue to expand its seafood division. To ensure stable supply, DPP has 10 fishing vessels with a capacity of 90-100 tonnes each. In the next five years, the company plans to have 100 fishing vessels. For shrimp, DPP has opened 60ha with 156 ponds in Bengkulu. This farm is projected to produce 4500 tonnes of shrimp per year. To absorb the produce, the company will set up a 20 tonnes/day shrimp processing plant. Ardi Wijaya, Business Development Manager, told Asian Agribiz that they are still assessing the location for the plant. “We want it close to shrimp supply because we want to produce super fresh shrimp targeting the premium segment of local and export markets.” Meanwhile in the pangasius fillet market, DPP, which has been a leading supplier, is considering a pangasius processing plant and partnerships with local farmers for raw material supply.
|Sunner introduces New Zealand red meat to China|
[18 July 2017] Sunner NZ Ltd, an overseas unit of China's largest white-feather broiler integrator Fujian Sunner Group, has won approval to acquire Stratford-based Taranaki Abbatoir for about USD 900,000, said the Overseas Investment Office of New Zealand. The vendor is Gold International Holdings Ltd, which is also owned by a Chinese citizen. The performance of the abbatoir had declined significantly since 2010, and Sunner has undertaken initial upgrades and proposes further investment to develop it into an export operation, supplying red meat to the Chinese market, according to the office. 'Without the investment, the abbatoir would be likely to close,' it noted. “Now it is likely to result in the retention of 25 jobs at the facility.”
|New options with seafood-based ready meals|
[18 July 2017] Ready meals – complete meals generally with rice, protein and vegetables – have shown good growth in the last five years in Indonesia. Economic growth, increasing disposable incomes, a growing middle class and changing lifestyle are driving growth. Leading mini market chains such as Indomaret since last year have started sell ready meals at their outlets, especially those close to offices, bus terminals, train stations and rest areas. Budhi Wibowo, Chairman of the Indonesian Fish Product Processing & Marketing, sees this trend as an opportunity for its members. “Majority, if not all, ready meals available in the market are meat based. It is a good opportunity for producers to introduce seafood based ready meals, offering healthy alternatives to existing meat-based ready meals,” he told Asian Agribiz.
|Zydus to produce Phibro’s poultry vaccines in India |
[18 July 2017] India’s Zydus Cadila and US-based Phibro Animal Health Corp are looking to enter into an arrangement to bring Phibro’s poultry vaccine technologies and know-how to the Indian market. This will see the technologies and know-how licensed to a new vaccine manufacturing facility to be built by Zydus Cadila. Pankaj R Patel, Zydus Group Chairman and Managing Director said: “The availability of new advanced poultry vaccines, which are currently imported, adds a new dimension to the Made-in-India movement in the animal health segment.” This agreement with Phibro will help bring innovations to the poultry market in India, he added. “We are proud of the more than 20-year partnership with Zydus Cadila serving the Indian animal health market and we view this as an exciting step in our relationship,” said Jack Bendheim, Phibro President and CEO.
|Diseases, antibiotics challenge Vietnam’s shrimp industry |
[18 July 2017] Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Producers, said shrimp producers are worried about new regulations imposed by importing countries on farming and disease-free conditions as it is difficult to control these criteria while the farmers are forced to use antibiotics to cope with pathogens inherent in the environment. “The success rate in Vietnam’s shrimp farming is still low, approximately 25-30% due to poor farming skills. The competitiveness significantly relies on low price material, but this has to change when new regulations are enforced,” said Dang Quoc Tuan, Vice Director General at Viet UC Seafood, a leading shrimp farming company in Vietnam.
|Thai Union commits to sustainable seafood|
[17 July 2017] Thai Union Group (TU) said it has committed to measures that will tackle illegal fishing and overfishing, as well as improve the livelihoods of worker throughout the company’s supply chain. “Thai Union has embraced its role as a leader for positive change as one of the largest seafood companies in the world,” said CEO Thiraphong Chansiri. Among its commitments, TU will reduce the number of fish aggregating devices by 50% by 2020 and reduce longline fishing. It will also move to full digital traceability, allowing people to track their tuna back to the vessel it was caught on and identify the fishing method used. “This marks huge progress for our oceans and marine life, and for the rights of people working in the seafood industry,” said Greenpeace International Executive Director Bunny McDiarmid. Greenpeace and TU have agreed to meet every six months to assess the company’s progress and implementation.
|Philippines facing food safety challenges|
[17 July 2017] Food safety in the Philippines was one of the topics discussed during the Philippine leg of the Asian Tour of Diamond V held on July 13, 2017 in Quezon City. April Shane Lobaton- Sulabo, Associate Professor from the Institute of Food Science and Technology at the University of the Philippines-Los Baños, citing a report by the UN Food and Agriculture Organization said that the Philippines has the lowest number of inspectors among countries in Southeast Asia and said enterprises should comply with the international standards such as GMP and HACCP. She also recommended implementation of regulations regarding food safety, creating a food safety culture in the country; and encouraging agro, food and feed industries to be proactive.
|Japanese delegation inspects UK beef production controls|
[17 July 2017] A government delegation from Japan has inspected beef production controls across the UK and this could reopen the market on UK exports. The delegation toured farms, laboratories and abattoirs to learn about UK’s food hygiene controls more than 20 years after the BSE outbreak. Phil Hadley, International Market Development Director of UK’s Agriculture and Horticulture Development Board said: “Japan is a lucrative market for specific premium beef products and the visit has foresees opportunities for UK exporters. Meanwhile, UK Farming Minister George Eustice said opening the market to Japan could boost the industry by an estimated USD 19 million each year, driving growth for UK farmers and producers.
|Sumber Unggas increases its native chicken production|
[17 July 2017] Sumber Unggas Indonesia, one of the largest native chicken producers in Indonesia, is bullish about the potential of the native chicken market in the country. The market in Greater Jakarta alone needs around 9-10 million birds per month while suppliers are few. The company has started to expand its breeding and commercial farming operations since early this year. “For our breeding operation, we target to increase production to 60,000 DOC per week,” said Naryanto, owner and Managing Director. Of the target production, 50% is for commercial farming while the rest is for external sales. Sumber Unggas’ sales of DOC have reached regions outside Java. Meanwhile, the company has partnered with institutional industry players in Greater Jakarta to market its native chicken carcasses.
|India declares AI free status|
[17 July 2017] India has declared itself free from highly pathogenic avian influenza (AI) H5N1 and H5N8 viruses. The move will help it resume export of poultry products to the countries such as UAE and Hong Kong which banned trade early this year. The Agriculture Ministry said all the outbreaks of avian influenza were notified to the world body and the control and containment operations were carried out as per the action plan on preparedness, control and containment. India is now the world’s fifth largest egg producer and the 18th largest broiler producer. In terms of export, poultry products recorded 18% growth during the 2015-16 financial year over the same period of 2014-15. The country exported almost 660,000 tonnes of poultry products worth USD 119 million during 2015-16. The major importing countries were Oman, US, Saudi Arabia, Japan, UAE and Germany.
|Antibiotics and cost reduction feature at Broiler Feed QC|
[14 July 2017] Antibiotics and cost reduction feature at Broiler Feed QC
Following strong feedback at Asian Agribiz’s 2016 Broiler Feed Quality Conference, this year, the conference will address three major themes and also look at how to translate the latest research into on-farm results. The themes are Reducing the use of in-feed antibiotics; Reducing feed costs; and Translating the latest broiler research into practice. The conference will be held in Bangkok, Thailand on August 16-17. Visit BroilerFeedQC17 or contact Sutasinee Lake at email@example.com for more information and to register.
|Thailand’s CSTT to invest in new machinery |
[14 July 2017] Thailand’s CSTT International, a manufacturer of cooling pads and knock-down chicken house, said it will invest USD 1.18 million in European-made machinery and factory expansion over the next three years, Managing Director Cherdchai Sinsarng told Asian Agribiz. The new machines will double CSTT’s monthly production capacity of cooling pad to 40,000 pieces, up from 20,000 pieces currently. “From semi-automation, we will be moving towards full automation,” he said. The new robotic systems will increase production efficiency and accuracy of its products. “The new systems will also reduce overhead costs and our products will become more competitive,” Mr Cherdchai said. CSTT distributes around 80% of its cooling pad in Thailand, and plans to boost exports to Indonesia and Myanmar.
|Cargill Indonesia targets 600kt of animal feed production|
[14 July 2017] Cargill Indonesia targets its animal feed production this year to increase by 20% to 600,000 tonnes with its new 100,000 tonnes/year feed mill in Pasuruan, East Java. Arief Susanto, Director told a local media that the company still focuses on poultry feed production which accounts for 80% of its total animal feed production – the rest is production of fish and cattle feeds. “We will continue to escalate our feed production since the market potential is good. Moreover, protein demand in Indonesia grows annually at 10%, so there is potential for new feedmills,” Mr Susanto said. He claimed that the company controls around 5-6% of the total 13 million tonne animal feed market share in the country.
|HK's Celebrate International buys loss-making pork integrator|
[14 July 2017] Hong Kong-listed Celebrate International Holdings Ltd said it will acquire Volk Favor Food Group Ltd, which is engaged in an integrated pork business in mainland China for USD 2.56 million. "The acquisition will bring synergy to our food and beverage business while assisting us to tap the market potential in the pork industry China," said Celebrate International. Volk Favor generated an operating revenue of USD 2.23 million last year, up from USD 1.64 million in 2015, while loss narrowed to USD 631,300 from USD 1.18 million during the period. Moreover, the company will adopt a new business model focusing on online sales. Its products include fresh, chilled and frozen pork, as well as processed products such as pork floss and preserved sliced pork.
|Pakistan government boosts wheat procurement|
[14 July 2017] The government of Pakistan procured 6.3 million tonnes of wheat from its recent harvest, lower than the 7.05-million-tonne target but still the largest procurement in at least five years, according to USDA GAIN report. Producers who receive the procurement price of USD 310 per tonne are among the better compensated wheat growers in the world. With opening government stocks of 4.5 million tonnes on May 1, the government has 10.8 million tonnes at the start of the local marketing year. “The government shields producers from imports with a tariff of 60% on imports," the USDA said. While the government only procures about a quarter of the crop, the high procurement price supports the pricing of wheat that is marketed commercially.
|Positive trial results with sorghum, corn for pangasius|
[14 July 2017] Feeding trial results in Vietnam using sorghum and corn for catfish showed promising results. The trials compared diets based on sorghum (20% inclusion rate), corn (10%) or cassava (15%). They concluded both grains could replace cassava as a source of starch for pangasius. Results showed no difference between the sources of starch on growth performance, fillet colour or physical properties of feed pellet. Beyond starch, sorghum is also low in tannins and contains higher protein and amino acids than cassava, particularly tryptophan and threonine. “Both grains can be used for feeding catfish, but limited research on doing so is available,” said Manuel Sanchez, US Grain Council Assistant Director for South and Southeast Asia. “This report fills a need for information about feeding sorghum and corn to Vietnamese catfish as a substitute for cassava.”
|SMFI gets nod for two meat processing plants |
[13 July 2017] The construction of two proposed meat processing plants of San Miguel Foods Incorporated (SMFI) in Sta. Cruz, Davao del Sur and Pagbilao, Quezon has been approved by the Philippine Board of Investments. The USD 25.65 million Davao del Sur and USD 19.7 million Quezon plants will be equipped with the state-of-the-art integrated processing facilities. The Davao del Sur plant is expected to produce 17,215 tonnes of dressed chicken and 16,900 tonnes of further processed chicken parts annually while the Quezon plant should have an annual output of 10,000 tonnes of processed chicken and 23,000 tonnes of further processed chicken parts. Broilers will come from SMFI’s contract growers. The plants are expected to begin operations by January 2018 and will employ more than 1000 workers.
|CPF says it adheres to migrant labour law|
[13 July 2017] Charoen Pokphand Foods (CPF) recently said that its migrant worker recruitment and practices are in line with Thailand’s migrant labour law. Mr Swang Suksri, CPF’s Senior Vice President for Human Resources, said the company is committed to following the new migrant labour decree. This is in line with CPF's policy to treat foreign workers fairly and equitably. “CPF has employed migrant workers who adhere to new migrant labour laws, so foreign workers have confidently worked with the company,” Mr Suksri said. CPF now employs about 8800 migrant workers, representing 18% of its workforce. Of the total, 6300 are from Cambodia and 2500 from Myanmar. The migrant workers work at CPF’s feedmills and food processing plants.
|Cambodia disbands private pig smuggling control task force|
[13 July 2017] A private sector task force set up by Cambodia’s pig farmers to monitor live pig imports and investigate reports of illicit smuggling has been disbanded after receiving a cold reception from government officials, the initiative’s leader said. Mong Reththy, a prominent local businessman whose agro-industrial conglomerate operates the nation’s largest pig-breeding farm, said the government objected to its plan to independently investigate reports of pig smuggling. The task force was formed by local pig farm owners in April to curb falling domestic prices of live pigs. It threatened to publicise the names on Facebook of those found in violation of the law. Veng Sokhon, Agriculture Minister, said the government welcomes information but the task force cannot operate unless it forms a legal association.
|Kerala govt orders cap on chicken selling prices|
[13 July 2017] Chicken merchants in Kerala, India are up in arms after the state government ordered a cap on the retail selling price at USD 1.34/kg. Poultry industry sources said the price does not meet their input costs. The state government’s directive came when it was noticed that there had been no reduction in chicken price although it was exempted from the goods and services tax (GST). Kerala had been charging 14.5% value-added tax on poultry before GST was introduced. When GST put chicken in the zero-tax category, the price should have dropped. However, it remained steady or appreciated to USD 2.01/kg. The state’s Chicken Merchants Association blamed the high price on ‘middlemen’, who manipulate prices. On the other hand, the state’s Poultry Farmers and Traders Association said that poor weather conditions in Tamil Nadu have led to a drop in poultry production and thus led to a price rise.
|South Korea’s pet food industry booming|
[13 July 2017] Companies in South Korea are seeking to take advantage of the booming pet food industry. Food companies, such as CJ CheilJedang, Dongwon F&B, Korea Ginseng Corp, Seoul Milk and LG Household & Health Care, are expanding their pet food businesses. Harim Group opened its first pet food plant last month as well, launching 'The Real' as a 'human-grade' pet food brand. In line with the trend, the government proclaimed an amended animal protection law recently. According to KB Financial Group’s research centre, about 5.9 million households own pets, up from 4.57 million in 2015. Three in 10 respondents spend USD 43-86 a month on their pets. However, 9% of pet-owning households spend more than USD 870 a month on their pets. Most of the expenses are for feeding their animals.
|CP Pokphand estimates H1 loss of up to USD 20m|
[12 July 2017] CP Pokphand Co, a Charoen Pokphand unit that operates agri-food business in China and Vietnam, said it is expected to record a consolidated loss of USD 10-20 million for the six months ended June 30. The estimated loss compares to the consolidated profit of approximately USD 154 million for the corresponding period last year. “This is primarily due to the continued drop in Vietnam swine prices, resulting in a significant drop in profit margins of the Vietnam farming business and a significant negative net change in fair value of biological assets,” the company said. It is scheduled to announce its first-half results in mid-August.
|India records soybean meal export jump|
[12 July 2017] India’s total export of soybean meal and related value added products during October 2016 to June 2017 was 1.5 mt as against 319,000 tonnes during the same period last year, according to India’s Soyabean Processors Association (SOPA). The data has been collected and compiled by SOPA based on the information received from the Directorate General of Foreign Trade, members, port authorities and other agencies. However, a long dry period is may set the industry back.
|Singapore-made iKooK automates chicken cooking|
[12 July 2017] Productivity and automation have been the latest buzzwords in the food business. About 15 years ago, a Singaporean entrepreneur Alson Teo teamed up with engineers and food scientists to create iKook, an automated poultry cooker. Now in its sixth edition, the iKook, which is conceptualised, designed and assembled in Singapore, can cook up to 10 birds in about 40 minutes. The machine ensures consistent cooking when braising or poaching a chicken, retaining its flavours and nutrients. The sixth prototype is equipped with a touch screen and made with Japanese parts. The iKook is used in Roost, a local eatery that serves chicken rice and other Asian dishes.
|Skretting opens 60,000t shrimp feed plant in Vietnam|
[12 July 2017] Aquatic feed maker Skretting’s new shrimp feed plant in Vietnam will serve the country’s fast-growing shrimp sector. Launched in June, Lorica, its functional health feed for shrimp, is formulated for the different life cycles of shrimp. Located at the Mekong Delta, Vietnam’s biggest shrimp production region, the plant is 23,000 sqm and has an initial annual production capacity of 60,000 tonnes. Skretting has been in Vietnam for seven years through the acquisition of Tomboy Aquafeed, a Vietnamese fish and shrimp feed company. Skretting Vietnam now conducts research, raw material procurement, as well as provides products and services for aquaculture in the country.
|CJ CheilJedang to acquire Selecta|
[12 July 2017] South Korea’s food giant CJ CheilJedang will spend around USD 314 million to buy 90% of Brazil-based Selecta’s shares by the fall. Selecta, which produces soy protein concentrate and other plant-based products used in animal feed, logged sales of about USD 349 million last year. The South Korean company aims to create synergies with group companies that raise chickens and pigs. It also hopes to reach over USD 699 million in sales in the plant-based protein market by 2020 by combining Selecta’s sales with fermented soybean meal production in Korea and Vietnam. CJ CheilJedang, which set up an animal feed ingredient plant in Vietnam last year, aims to develop the animal feed segment into its second-biggest business after food processing.
|A&W returns to Singapore, expands across Asean|
[11 July 2017] American fast-food chain A&W, popularly known for its hamburgers and hot dogs, will set up outlets in Singapore again, after exiting the market more than 10 years ago. Kevin Bazner, A&W CEO, said that A&W has had an office in Singapore since 2016, and that the company is looking to open 30 to 40 new restaurants a year across Indonesia, Malaysia, Singapore and Thailand. The company is currently looking for a retail space for its flagship in Singapore, which is scheduled to open next year. This flagship will also serve as a training store for other Southeast Asia outlets. A&W made its debut in Singapore in 1966 at Dunearn Road, and the first A&W drive-through opened in 1970 at Bukit Timah Road. However, by 2003, A&W faced stiff competition and shuttered its remaining outlets in the same year.
|Semen Cardona’s stud farm in the Philippines to open this year|
[11 July 2017] Semen Cardona will begin construction of its new facility for artificial insemination in the Philippines this year where it will initially house 200 boars that will be placed in four independent buildings. It will be built in Umingan, Pangasinan and will be named Semen Cardona Philippines. It will manage and market the doses of locally-produced semen for the domestic market. The company has been exporting semen to the Philippines for more than eight years through its local partner Plaridel Products and Services. The company will apply the same protocols of biosecurity, quality and traceability that are being used in their studs in Spain and Mexico.
|Thailand relaxes rules for wheat import |
[11 July 2017] Thailand’s Ministry of Commerce will allow feedmills that produce shrimp feed, a 110,000 metric tonnes exemption to the domestic corn purchase requirements for feed wheat imports, according to a USDA GAIN report. This request was made by the Thai Feed Mill Association in March 2017. Meanwhile, other animal feed production using imported feed wheat is still subject to the domestic corn absorption requirements. USDA GAIN report’s forecast for total wheat imports remains unchanged at 3.6 million metric tonnes in marketing year 2016/17 and 3 million metric tonnes in marketing year 2017/18. This is a 23% and 17% reduction in total wheat imports due to the government’s import restrictions on feed wheat as well as the substitution of rice for feed wheat in poultry and swine feed rations.
|Imported meats dominate Cambodian market|
[11 July 2017] Cambodians spent over USD 100 million on imported meats (pork, beef and chicken meat) last year, further widening the gap of domestic supply. Lor Reaksmey, spokesman for the Ministry of Agriculture, said Cambodia’s heavy dependence on imports to supply the 280,000 tonnes of meat consumed in the Kingdom last year was a missed potential for domestic production. “If we could meet the demand locally, it would add significant revenue to our local businesses,” he said. According to the ministry’s figures, domestic supply of buffalo was 520,000 heads last year, a 6% decrease over 2015. Meanwhile, the Kingdom recorded 2.9 million heads of cattle, a 3% decrease, while pig farming increased by 2.9%. Mr Reaksmey added, despite sufficient stock to cover domestic demand, only 1.3 million livestock were slaughtered last year.
|CJ CheilJedang constructs new food plant in South Korea|
[11 July 2017] South Korea’s food giant CJ CheilJedang will spend USD 798 million on the construction of a new domestic food-processing plant and the acquisition of a Brazilian producer of animal feed ingredients. Construction of a roughly 330,000-sqm food processing plant is planned to start in August in North Chungcheong Province. The Seoul-based company will then invest an additional USD 472 million through 2020 to raise production capacity of the plant to roughly 120,000 tonnes, boosting its total capacity for processed food by 40%. The plant will focus on production of home meal replacement products, including instant rice, instant meals and frozen foods.
|ICAR cautions farmers about Tilapia Lake Virus|
[11 July 2017] The Indian Council of Agricultural Research (ICAR) has cautioned tilapia farmers about an outbreak of Tilapia Lake Virus (TiLV) in India. TiLV previously caused huge losses to the industry in Latin America and Israel. Fish infected by the virus become inactive, turn pale, lowers feed and suffers rashes and wounds. “We have cautioned farmers on the virus and the MPEDA [Marine Products Exports Development Authority] officers and technicians are educating farmers on the symptoms and preventive measures,” said Archiman Lahiri, MPEDA Deputy Director. He added that farmers are requested to test their produce regularly. In India tilapia is cultivated in about 2500 acres in Krishna, East and West Godavari districts.
|Thailand’s domestic corn prices decline|
[10 July 2017] Farm-gate prices of corn in Thailand remain at USD 192 per tonne, far below the government's target of USD 237/tonne, according to the USDA GAIN report. This is due to the sale of government feed-quality rice stocks which can be used as a substitute for domestic corn and imported feed wheat in poultry and swine feed rations. Currently, government rice stocks are cheaper than domestic corn and imported feed wheat. The government is expected to maintain the domestic corn purchase requirements for import permits of feed wheat in order to raise domestic corn prices. Despite the lower price, the government said it will continue to encourage farmers to shift from off-season rice production to corn production in marketing year 2017/18.
|Danish Crown sees more pork exports to Japan with FTA|
[10 July 2017] Danish Crown said the EU-Japan free trade agreement may help to significantly boost its pork exports to Japan, which were previously budgeted at USD 460 million in 2017. The FTA not only opens up new opportunities, but also helps to safeguard exports which last summer appeared to be challenged by abattoirs in the USA and Brazil, the company noted. Pork exports from Denmark to Japan began in the mid-1970s, and now the Japanese market accounts for a considerable share of Danish Crown's streaky bacon and brisket sales. Last year Danish Crown exported more than 100,000 tonnes of pork to Japan.
|Vietnam's pangasius exporters address dwindling sales in EU|
[10 July 2017] Twenty leading Vietnamese pangasius exporters have established a fund of USD 200,000 to cope with the public relation crisis in the EU, which has negatively affected Vietnam’s pangasius sales. Truong Thi Le Khanh, Vinh Hoan Corporation Chairwoman said improving fish quality is key to dealing with the EU problem. Vietnam's pangasius industry has found it increasingly tough to sell to the EU since Cuatro television channel from Spain misled viewers about fish farmed in the Mekong Delta. A report by VASEP shows that in the first four months of 2017, Vietnamese pangasius exports was USD 518.6 million, a 2.2% increase from the same period last year.
|Animal feed drives up corn demand, price in Cambodia|
[10 July 2017] Growing demand for animal feed is driving up both the demand and price of corn in Cambodia, with smallholder farmers claiming the field crop offers a more stable market than cassava. Corn is grown on more than 140,000ha in Cambodia and can be harvested twice a year, with the main areas of cultivation being Battambang, Preah Vihear and Kandal provinces. Each ha yields about 4.5 tonnes, putting Cambodia’s total production at around 640,000 tonnes last year. Lor Reaksmey, spokesman for the Ministry of Agriculture explained that over 60% of domestically produced corn is earmarked for export, with most of these shipments destined for feedmills in Thailand and Vietnam. The remainder is sold locally, with a small amount purchased by local food-processing plants and retailers.
|Harim ventures into USD525m pet food biz|
[10 July 2017] South Korea’s Harim Group opened a pet food manufacturing plant on June 22. The pet food industry in the country is estimated to be worth USD 525.62 million. With the launch of the Harim Pet Food brand, the company hopes to exploit the higher-end of the market with 'human-grade' products, emphasising that it has 'minimised artificial factors and conveys freshness of nature'. Yang Jae-hyeon, President of the Pet Food Division, said the company will show the excellence of domestic pet food with superior quality that imported contenders cannot match. The company has set a USD 17.52 million revenue target for this year and will also expand overseas, he added.
|Myanmar’s FDA to investigate food labels|
[10 July 2017] The Food and Drug Administration (FDA) in Myanmar will investigate whether food products’ labels contain essential information. The country has over 100,000 food brands, and labels are required to contain the addresses of the producers, contact numbers, manufacturing dates, serial numbers, expiration dates, FDA certification numbers and license numbers. Than Htut, FDA Director General said: “Only a handful of brands follow the regulations. Action will be taken against manufacturers who fail to provide the necessary information after July 1.” In May, the FDA found many foods to contain toxic formaldehyde in Theingyi Market in Yangon.
|OSI Weihai awarded for animal welfare performance|
[07July 2017] OSI Group said its wholly-owned Chinese subsidiary, OSI (Weihai) Poultry Development Co, was honored with a 3-Star Good Chicken Production Award by the International Cooperation Committee of Animal Welfare (ICCAW), which is under China’s Ministry of Agriculture and cooperates with UK-based Compassion in World Farming (CIWF). “This recognises our excellence in animal welfare. We will continue to work hard to ensure we continue to operate in such a manner as to be an example to all of China,” Jerry Lin, General Manager of OSI Weihai, told Asian Agribiz. Founded in 2009 as a fully integrated poultry operation, OSI Weihai operates 50 standard farms, each of which is equipped with an auto water supply and feeding system, an adjustable ventilation and heating system, and an auto alarm system, ensuring each broiler’s needs are fully satisfied.
|Thailand’s PFP to invest in interconnected machinery this year|
[07 July 2017] Thailand’s Pacific Fish Processing (PFP), a fully-integrated seafood processor, will invest USD 5.87 million on Japanese-made interconnected machinery late this year, Piyakarn Piyapatana, International Marketing Manager told Asian Agribiz. The new machines to be installed at its existing factory in Songkhla province, will have a monthly production capacity of 300 tonnes and they will produce frozen seafood products such as imitation crab and shrimp. “We are automating to reduce labour costs,” she said, adding that reducing human intervention in processing will improve food safety. PFP produces around 1000 tonnes of imitation crab and fish tofu per month. Although its core business is frozen seafood, PFP will focus more on producing shelf-stable, ready-to-eat seafood products, Ms Piyakarn added.
|1,000 workers needed for new Jollibee poultry plant|
[07 July 2017] Filipino fast food giant Jollibee Foods Corporation (JFC) will need 1,000 new employees once it opens its USD 17.1 million) poultry plant this year. Located at Sto.Tomas, Batangas, the new plant will supply JFC with dressed and marinated chicken. The facility will be operated by Cargill Joy Meats Production—a joint venture between JFC and Cargill Philippines. Cargill Philippines will lend its expertise, technology and quality standards to the new poultry plant. JFC operates 3555 stores worldwide, of which 1000 are in the Philippines. Cargill holds a 70% stake in the joint venture.
|Guangdong Wens H1 finisher pig sales at 9m heads|
[07 July 2017] Guangdong Wens Foodstuff Group, the largest pig producer in China, said it sold 1.52 million finisher pigs valued at about USD 359 million in June. Average sale price stood at USD 2.01/kg, down 3.6% from a month earlier and down 33.87% year-on-year. Based on its monthly disclosures, Asian Agribiz calculated that Wens’ pig sales totaled 8.97 million heads in the first half of 2017, up 11.46%. However, its first-half revenue of the operations fell 10.28% to USD 2.44 billion due to lower pig prices. Wens expects its full-year pig sales to grow about 10%, reaching 27.5 million heads a year by 2019.
|India’s buffalo meat exports expected to pick up gradually|
[07 July 2017] After the shutting down of Uttar Pradesh’s illegal abattoirs in March, India’s buffalo meat exports contracted but have since picked up gradually. In volume and value terms, exports dipped just 1.7% in May compared with the corresponding month a year ago, while the fall was sharper at 10% in April, reported the Financial Express. In April-May, exports stood at 176,000 tonnes or USD 528 million, down 6% from a year-ago. In dollar terms, the decline in exports in the first two months of the current financial year was just 4.3%. In the last fiscal, India exported buffalo meat worth of USD 4 billion. In 2014-15, this item for the first time became the largest in the agriculture exports basket, surpassing basmati rice. In 2015-16, buffalo meat exports amounted to USD 4.12 billion against the shipment of USD 3.51 billion worth of basmati rice.
|Duck egg farm in Taiwan hit by bird flu|
[07 July 2017] A duck egg farm in Tainan's Xiaying District of Taiwan was confirmed to be infected with the highly pathogenic H5N2 and H5N8 avian influenza (AI) viruses at the end of June, leading to the culling of almost 7000 birds, the city’s Animal Health Inspection and Protection Office said. It was the 15th poultry farm hit by avian influenza subtype H5 in the city this year, according to data released by the Cabinet-level Council of Agriculture (COA). As of June 24, a total of 1.4 million birds at 147 poultry farms were culled since the beginning of the year, the council said.
|Harim ventures into ready meal business|
[06 July 2017] Harim Group, South Korea’s leading livestock and animal feed company, aims to add ready meals and natural seasoning businesses to its portfolio to grow to a comprehensive food processing company, according to its Chairman Kim Hong-kuk. To achieve the goal, the company will invest about USD 533.4 million by 2019 to build ready meals and natural seasoning factories on a site of 165,200 sqm in Iksan, North Jeolla province that it already purchased. With the addition to its business portfolio, the company will likely become a fully vertically integrated company. Upon completion of the new factories in Iksan, it will dedicate the existing factories to poultry processing and the new ones mainly for ready meal production, Mr Kim said.
|Hun Ty to open fresh-food market chain|
[06 July 2017] Cambodia-based integrated food-distribution company Hun Ty plans to open its own retail fresh-food market in July and will increase its cold storage and food-distribution business by opening two additional locations in the Kingdom. Kain Poly, Marketing Manager for Hun Ty said the company will launch its new fresh-food market chain, Fresh Mart, in Phnom Penh. The flagship store will act as a retail outlet for the company’s wholesale partners. He added that the new venture would benefit from the firm’s current facilities, which will help facilitate food distribution and reduce costs. “We are already the largest cold storage operator and food distributor in Cambodia,” he said. “The prices of the products from the Fresh Mart will be cheaper by at least 30-50% compared to other stores.” Hun Ty currently operates a USD 10 million cold storage facility in Phnom Penh that opened in April.
|Corn protection policy to escalate chicken prices in Sri Lanka|
[06 July 2017] Sri Lanka's excessive measure to protect corn farmers could have a devastating impact on the chicken industry. The government in a bid to prevent the chicken prices from increasing introduced a control price of USD 2.48/kg and the price remains at USD 2.74/kg even after the control price was removed. But this situation could change if the authorities continue to protect corn farmers and impose the proposed tax of USD0.06/kg on corn, which will further increase the corn price which has risen from USD 0.27/kg to USD 0.34/kg. This would raise chicken prices by USD 0.13/kg. The world market price of corn is at USD 0.23/kg.
|Shrimp exports from Bangladesh decline due to short supply |
[06 July 2017] The Bangladesh Frozen Foods Exporters Association (BFFEA) said export earnings has dropped by 1.89% over the last five months as exporters can supply only 15% of raw materials against the capacity of their processing plants. This has pushed production cost up and jeopordising competitiveness. Amin Ullah, BFFEA President said many of their factories are struggling to survive due short supply of raw materials. “If we want to continue our business, shrimp production has to increase,” he said. “Despite healthy demand for frozen shrimp in the global market, we are unable to tap the opportunity as our costs are high."
Partnerships to grow dairy industry in Indonesia
[06 July 2017]
Indonesia’s local milk supply to the milk processing industry is still low. Supply contracted in the last three years due to the high price of beef that pushed dairy cattle farmers to sell their animals to slaughtermen. To address this situation, the government will encourage more win-win partnership projects between milk processors and farmers. Some milk processors have partnered with milk cooperatives to empower local dairy cattle farmers.
Not enough local milk to meet increasing demand
The Centre for Data and Information System of Indonesia’s Ministry of Agriculture said last year's national milk production was about 853,000 tonnes, or only 23% of total demand from the milk processing industry. Import volume of milk and milk products therefore, continues to increase. On the other hand, milk consumption has been growing at an annual rate of 4.1%, while national milk production is growing by less than 3% every year. Based on the Ministry of Industry’s data, of the total 533,000-head dairy cattle population currently, only 267,000 heads are lactating cows.
Industry Ministry supports dairy cattle farming development
Indonesia’s Minister of Industry, Airlangga Hartarto said there are 58 milk processors in the country, but only eight that partner with local dairy cattle farmers and absorb local fresh milk. Of the total 3.7 million-tonne milk demand as raw material in 2016, 2.8 million tonnes (77%) were imported from Australia, New Zealand, the US and EU in as skim milk powder, anhydrous milk fat and butter milk powder. “This situation must change to support the national dairy cattle farming industry. We support partnership programs between milk processors and dairy cattle farmers. Through this initiative, we target local milk production can meet 41% of the total milk processing industry’s demand in 2021 from 23% in 2016.
Indonesia’s low milk consumption offers growth potential
According to Mr Airlangga Hartarto, the milk industry in the country has good growth potential as per capita consumption is relatively low at only 12.10kg (fresh milk equivalent), while other countries like Malaysia, Thailand and the Philippines already consume 36.20kg, 22.20kg and 17.80kg, respectively. Mr Hartarto hopes there will be more investment in dairy cattle farming to help increase national fresh milk production and reduce dependency on imports.
New regulation for mutual processor-farmer partnerships
The Ministry of Agriculture is preparing a regulation which will oblige milk processors in the country to partner with dairy cattle farmers. Partnership proposals will be prepared by milk processors and should include partnership model, calculation of milk supply & demand, production costs, and milk price agreed by milk processors and farmers. The proposals must be sent to the Directorate General of Livestock and Animal Health (DGLAH) for approval. Fini Murfiani, Director of Livestock Products Processing and Marketing of DGLAH said the new regulation is aimed at increasing dairy cattle population, milk production and milk quality in Indonesia. “Partnerships proposed must follow the concept of win-win. Milk processors get quality milk, while farmers get good milk prices,” she said.
Availability of grass land a concern
Grass land availability is a crucial problem for dairy cattle farming. The Indonesian Milk Cooperatives Association (GKSI) noted that of the total farmers in the country, only 10% have grass land, while 20% have grand land but not enough to meet their farms’ need, and 70% have no grass land. Dedi Setiadi, GKSI Chairman hopes the central government will cooperate with state-owned plantation company PT Perkebunan Nusantara to provide special grass land under a profit-sharing scheme. “If we can use minimum 5% of PT Perkebunan Nusantara’s land to plant grass, it will significantly impact the national milk industry,” he said. The scheme proposed by GKSI is not new since the association has done it with the state-owned forestry company Perum Perhutani. GKSI rents Perum Perhutani’s land at USD 23 per ha per year.
The Indonesian Milk Cooperatives Association (GKSI) currently has 96 members in West Java, Central Java and East Java with a total dairy cattle population of 325,000 heads. Of the population figure, 150,000 are lactating cows with average productivity of 10-15 litres per day. One farmer in average has 2-3 lactating cows. Dedi Setiadi said some of its members cooperate with milk processor Frisian Flag Indonesia under the company’s Farmer2Farmer program to increase milk production. “This is a useful program for us. We hope we can produce 20 litres of milk per cow per day like in the Netherlands,” he said. Since 2013 Frisian Flag Indonesia has been introducing the program which has successfully reached 899 farmers and increased their income by 20%. Through the program, farmers from the Netherlands share their experience with Indonesian farmers.
Frisian Flag develops ‘Milk Village’ project
Frisian Flag Indonesia, a subsidiary of the Netherlands’ FrieslandCampina, has invested around USD 4.34 million to develop a ‘Milk Village’ in Lembang, West Java which is expected to supply two tonnes of fresh milk per day for the company’s milk processing plant. Currently the company absorbs around 300 tonnes of fresh milk per day from cooperatives. The Milk Village, which uses 1ha land of the state-owned plantation company PTPN VIII, is targeted for operation in Q4 2017. Akhmad Sawaldi, DDP & Project FDOV Manager of FrieslandCampina said the concept of Dutch dairy cattle farming will be adapted to the Milk Village. “This Milk Village will be our pilot project and we plan to develop it in other regions,” said Mr Sawaldi.
|Tech-Bank plans USD 295m pork facilities in east China|
[05 July 2017] Chinese feedmiller and pig integrator Tech-Bank Food said it has signed with the local government of Xuyi in east China’s Jiangsu province to develop a pork complex costing USD 295 million. The complex will include a pig slaughterhouse it is acquiring this year, and it will upgrade the facility to have an annual capacity of 400,000 heads. For 2018, it is planning for a 10,000-tonne further processing plant to produce dried meats, sausages, as well as bacon. The third stage will be an expansion of both the slaughterhouse and the meat plant, driving the complex’s slaughter capacity up to 5 million heads in 5-8 years, while adding meat snacks and central kitchen products to its further processing lines.
|String Bio converts methane into alternative protein source|
[05 July 2017] India-based start-up String Bio was granted USD 100,000 at the inaugural Future Food Asia Award. String Bio converts methane into proteins, which are then used to make animal feed. “String Bio through its proprietary platform – String Integrated Methane Platform – leverages advances in synthetic biology, fermentation technology, chemistry and process engineering for fermentative conversion of methane into products. The methane can be from natural gas, biogas, landfill gas etc. We are agnostic to the sources of methane which can be from any source of waste,” Ezhil Subbian, CEO, told Asian Agribiz. String Bio is now working with several animal and aquaculture feed manufacturers in India to test its product called String Pro, a brown, granular protein powder. The company believes the product can reduce feed cost by 30-50%. String Bio is raising a Series A round of funding that it intends to use to expand to other Asian markets.
|IFAD to invest USD33m in Sri Lanka|
[05 July 2017] The International Fund for Agricultural Development (IFAD) and the government of Sri Lanka have signed a financing agreement that will help 57,500 poor rural households in Sri Lanka increase their incomes and food security by expanding livelihood and business opportunities in agriculture. The Smallholder Agribusiness Partnerships Program, financed through an IFAD loan of USD 33.7 million plus USD 19.4 million from the government, will help alleviate rural poverty and under nutrition. “Developing the agribusiness value chain - which encompasses agricultural production, processing, distribution and marketing - will help smallholder farmers to increase their incomes and improve employment opportunities and household nutrition in rural areas,” said Hubert Boirard, IFAD Country Program Manager for Sri Lanka.
|CJ Group’s aggressive global expansion|
[05 July 2017] CJ Group Chairman Lee Jay-hyun is speeding up the conglomerate’s global expansion with aggressive M&A deals. He has come up with massive investment plans. “By 2030, more than three of our businesses must become the global number one,” he said. The Group plans to invest USD 31.42 billion by 2020 in content, logistics and food. It will invest USD 4.36 billion this year alone. To achieve this goal, CJ Group plans to go all out to generate USD 87 billion in sales by 2020, with 70% of them from offshore markets. It posted USD 27 billion in sales last year, 30% of which was from overseas. Among the Group’s 70 subsidiaries, CJ CheilJedang is leading Mr Lee’s overseas expansion initiative. The processed food manufacturer plans to spend a combined USD 785 million in building a new domestic plant and acquiring foreign rivals.
|Brazil overtakes India as top beef exporter|
[05 July 2017] Brazil has exceeded India as the world’s biggest beef exporter, thanks to the recent ban imposed on the sale and transportation of live animals across the country. According to Arshad Ali Quddus, proprietor of Al Quddus Sons International, a Delhi-based buffalo meat exporter: “After the ban slaughtering and export of buffalo meat has stopped. India has, therefore, lost almost the entire buffalo meat export market to Brazil, Australia and the US. Brazil is likely to gain the most.” Data compiled by the Agricultural and Processed Food Products Export Development Authority (Apeda) showed India’s buffalo meat exports declined by 11.4% from a year before to 86,119 tonnes this April. For 2016-17, exports stood at 1.33 million tonnes worth USD 3.93 billion. About 50% went to Vietnam, followed by Malaysia and Egypt.
|Cambodia to export corn to China|
[05 July 2017] Cambodia’s government is working to promote corn exports to China, which has already signed an agreement but first requires local corn to comply with its sanitary and phytosanitary (SPS) requirements. “We are trying to expand our market to China, since we already agreed on the potential crops for export,” said Lor Reaksmey, spokesman of the Ministry of Agriculture. “But we are now preparing the SPS criteria to comply with their requirements. Then we will able to export directly.” The Ministry of Agriculture data shows total corn exports reached 70,487 tonnes last year, a 25% increase over 2015.
|CPF to acquire German-based Paulsen Food |
[04 July 2017] CPF Europe S.A. (CPF EU), a subsidiary of Charoen Pokphand Foods (CPF), said it will acquire a 95% stake in Germany-based Paulsen Food GmbH (PF) for USD 13.73 million. CPF EU has entered into a share purchase agreement with Peter Paulsen Import-Export GmbH & Co. Handels KG (PP) for the purchase. Under the agreement, PF and its subsidiaries will engage in the sales of meat (mainly chicken and duck meat) to food services and food manufacturers in Germany and countries in the EU. The deal will allow CPF to enhance its import quota licenses for poultry meats and other poultry products to the EU by around 6100 tonnes per year. Moreover, CPF will obtain network and channels for food services and food manufacturers in Germany and the EU.
|KKR to invest more in Southeast Asia|
[04 July 2017] KKR & Co, fresh off raising a record USD 9.3 billion, is gearing up to invest more in Southeast Asia. The private equity firm is seeking to invest in companies catering to the region’s expanding middle class, which is demanding higher-quality products, according to Ashish Shastry, KKR’s Southeast Asia Head. KKR would like to do “a lot more” in the under-penetrated Indonesian market and could also boost investments in Vietnam and the Philippines, he said. In April, KKR said it would spend USD 250 million to buy stakes in Vietnamese conglomerate Masan Group Corp and its meat business. Last year, KKR bought a stake in Japfa Comfeed Indonesia.
|SH Group is new distributor of Hy-Line in India|
[04 July 2017] Layer poultry genetics company Hy-Line International has announced a new partnership with India's Srinivasa Hatcheries Group (SH Group) to distribute Hy-Line commercial layers throughout the country. Beginning August 2017, SH Group will supply DOC from their flagship company Srinivasa Farms Pvt Ltd in Hyderabad, India. Hy-Line Layers Pvt Ltd located in Tamil Nadu will continue to oversee the production and distribution of parent stock. SH Group, which was founded by C Jagapati Rao and K Somi Reddy, has grown to 440,000 layer PS. Jonathan Cade, President of Hy-Line International said: “SH Group has earned a reputation of being one of the best poultry breeding companies adopting international standards of quality, hygiene and efficiency.”
|VendCafe opens second outlet in Singapore|
[04 July 2017] Singapore saw its second Chef-in-Box VendCafe open recently. Located at the Lakeside MRT station, the launch of the vending machine café offers more than 90 food and drink options ranging from local favourites such as nasi lemak (rice cooked in coconut milk) and roasted pork rice to international selections from Thailand, Japan and Italy. Some new dishes include green curry chicken and paella. All meals are priced below USD 4.34 and are replenished twice daily. Chef-in-Box VendCafe uses the cook-chill technology, instead of cook-freeze technology. This means shorter waiting times of around 30 seconds for a meal to be dispensed, instead of the usual four minutes, a statement from the company said.
Indonesia’s meat processing industry expanding
[04 July 2017]
Indonesia’s meat processing industry enjoyed good sales in June due to demand during the fasting month. Some players are now expanding their production capacities on the back of strong economic growth. On the other hand, the industry is hoping for real action from the government to control imports of processed meat products.
Good sales of further processed products during fasting month
Indonesia’s chicken further processing industry enjoyed good sales during the fasting month in June. Sales of chicken products increased by 15% compared to the same period last year, but escalated by 50% compared to sales in normal months. Processors maximised their production capacities and promotions. Nugroho Edi Sasongko, Marketing Manager of So Good Food, a subsidiary of Japfa Comfeed Indonesia, claimed that sales of its further processed chicken products jumped more than 50%. With this good performance, So Good Food is optimistic to record double-digit growth this year. Charoen Pokphand Indonesia’s (CPI) further processed chicken products were also in high demand. CPI is actively promoting its ready meals - Chicken Rendang with Rice, Chicken Teriyaki with Rice and Chicken Curry Noodle.
Industry bounces back in Q2
Indonesia’s meat processing industry is expected to grow at around 20-30% in the second quarter of this year, triggered mainly by surging demand. Ishana Mahisa, Chairman of the National Meat Processors Association (Nampa), said in the first quarter, demand for further processed meat products declined by 6-10% compared to the same period last year due to weaker purchasing power. However, “in the second week of May demand gained traction, prior to the start of the fasting month,” said Mr Mahisa.
Beef processing industry relies heavily on imports
Beef demand for Indonesia’s beef processing industry is fully met by imports since local beef is more expensive and supply is inconsistent, according to Ishana Mahisa, Chairman of the National Meat Processors Association (Nampa). The red meat is imported from Australia, New Zealand, Spain and the US. The price of imported beef is around USD 4.61 per kg – this is much cheaper than local beef and the quality is better. “For end-consumers, if it’s hard to find beef in the market, they can switch to other meats. However, for this industry, supply continuity is crucial,” Mr Ishana said. For chicken meat on the other hand, 100% of the demand is met by local supplies. Of the total meat required by Nampa members currently, 65% is beef and the rest is chicken meat.
Capacity utility expected to increase
The total installed capacity of the meat processing industry in Indonesia has reached 300,000 tonnes per year. Ishana Mahisa, Chairman of the National Meat Processors Association (Nampa) said utility of the installed capacity is expected to reach 70% by end this year from the current 62-65%. Every month Nampa members produce around 1300-1500 tonnes of processed beef products and 2000 tonnes of processed chicken products. Mr Mahisa revealed that some Nampa members this year are expanding production capacities.
Imported processed meat products threaten local industry
Indonesia’s meat processing industry is currently facing tight competition with imported sausages and nuggets, especially from Malaysia. The National Meat Processors Association (Nampa) said in 2012 imports of processed meat products reached USD 231,000. The figure then jumped to USD 11.54 million in 2015. In 2016, the import value increased 30% over 2015. According to data from the Statistic Centre Agency, in 2014 Indonesia imported processed meat products valued at USD 5,55 million or 18 times higher than in 2012. Of the value, around USD 4.76 million was for sausages and other processed meat products from Malaysia. Ishana Mahisa, Nampa Chairman said the government has to take a real action to control the imports.
|TGM’s new factory focuses on robotics, food safety and traceability|
[03 July 2017] Thai-German Meat Product Co (TGM) has invested around USD 35 million in the past two years for its second factory in Thailand’s Chachoengsao province, Managing Director Jantana Puapatanakajorn told Asian Agribiz. TGM’s new factory has a production capacity of 40 tonnes a day and it produces ham, special ham and bacon products. “The second factory is not running at full capacity yet and is currently operation at 10 tonnes/day,” she said. Ms Jantana said the company invested around USD 11.77-14.71 million in German-made machinery, focusing on automatic production lines, food safety and traceability. “We are the first company to use robotic systems to collect and store raw material,” she added. Meanwhile, its first factory, which has a daily production capacity of 20 tonnes, produces sausage products.
|Processing is solution for pig oversupply in North Sulawesi|
[03 July 2017] Most pig farmers in North Sulawesi, Indonesia suffered losses last year due to oversupply. The situation has not improved although some farmers have controlled their pig population. Weak consumer demand has also contributed to this situation. Ferdinand Suryagiri, Regional Manager of Agro Terra Makmur, a producer of probiotics for livestock farming, told Asian Agribiz that venturing into processed food is a possible solution for pig farmers in the province. “There are many Minahasa traditional pork dishes that they can be developed and sold directly to end-consumers or through partnerships with tourism agencies. The tourism industry here is growing. Pig farmers should grab this opportunity to promote signature pork dishes from this province,” he explained.
|China’s Cofco Meat offers chilled US beef online|
[03 July 2017] State-owned Cofco Meat Holdings Ltd said it has completed the first import of US beef products by a Chinese company in 14 years. The shipment, supplied by Tyson Foods Inc, was inspected and approved by the Beijing Entry-Exit Inspection and Quarantine Bureau on June 23. The US beef is now offered on Cofco Group’s e-commerce platform womai.com under the brand Angel’s, with a 180g chilled rib-eye steak priced at USD 11. Shelf life is set at seven days. “The re-entry of US beef to China will be an effective supplement to the domestic demand for premium meats,” said Cofco Meat.
|Cambodia’s pig industry decline drives down corn prices|
[03 July 2017] Ly Laville, General Manager at M’s Pig ACMC Cambodia Co Ltd, an industrial piggery that operates its own feedmill, said corn is the most important raw material in the production of animal feed, accounting for about 60%. While he said his company alone uses about 40,000-50,000 tonnes of corn last year for production, the forecast for the coming year is gloomy. The collapse of the domestic pig industry, which he said has seen about 40% of smallholders driven out of business, is expected to reduce demand for animal feed and drive corn prices down. “Corn farmers will be impacted by this through slower demand and low pig prices in the market, so we expect production of feed to decrease next year,” Mr Laville said.
|Cobb500 MV Male introduced in the Philippines|
[03 July 2017] Cobb Asia introduced its new breed Cobb500 MV Male in the Philippines during a week-long series of seminars in June. According to Dr Orlando Fernandez, Technical Director of Cobb Asia, the MV Male will improve feed conversion by two points with better liveability as it performs well in all climates, including tropical areas like the Philippines. On the other hand, Cobb Asia General Manager for Asia Pacific Region Pelayo Casanovas believes the Cobb500 MV is the ideal strain for the country’s dynamic chicken market. Breeder and broiler management, nutrition, male management, ventilation, egg and chick quality were the main topics discussed. The seminars were organized by Gama Foods, Bounty Fresh, San Miguel, PhilMalay and Cobb Philippines.
|Vietnam’s shrimp exports to Japan continue to grow |
[03 July 2017] Despite the higher price, Vietnam’s shrimp exports to Japan has gained traction. Vietnam’s Association of Seafood Exporters and Producers said that exports to Japan has increased over 29% to USD 135.4 million in Q1, making it, the largest buyer of Vietnam’s shrimp, overtaking the US. Exports increased sharply due to the demand and the rise of the yen that encouraged Japanese enterprises to import more shrimp. “Japanese consumers tended to buy cheaper seafood, which also drove their choice for shrimp against other expensive seafood items such as tuna, salmon and cuttlefish,” said the Directorate of Fishery.
|Broiler Feed Quality Conference - Translate the latest broiler nutrition research into practice|
[30 June 2017] Covering a broad range of topics, this session will bring you recent research and advances, translating broiler nutrition science into best practice and commercial gain. The 2017 Broiler Feed Quality Conference by Asian Agribiz on 16-17 August in Bangkok, Thailand, will features six presentations from world-leading speakers. Dr Ravi Ravindran Professor of Poultry Science, Monogastric Research Centre, Massey University, New Zealand will present the topic, Towards a digestible calcium and phosphorous system. Dr Twan van Gerwe – Head of Global Technical Management – Poultry, EW Nutrition, GmbH, Germany will present the topic, The fundamental importance of effective pen trials design & objectives that conclude with trial data of significance and value. Visit BroilerFeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|etanee to disrupt long meat supply chain in Indonesia|
[30 June 2017] Solusi Pangan Perwiratama, a subsidiary of Indonesia’s Perwiratama Group, has launched an e-commerce platform focusing on meats and other groceries called ‘etanee’. Cecep Moch Wahyudin, CEO told Asian Agribiz that etanee is a solution for both producers and consumers. “Through this platform, farmers and meat processors will get good prices while consumers will enjoy reasonable prices. It will shorten the supply chain,” he said. Currently, etanee offers frozen chicken meats, frozen beef and rice. Chilled meats will be added soon. Initially, etanee’s products will be available in Greater Jakarta. “We target 70,000 transactions per day initially,” he added.
|Huayu to expand hatching capacity to 250m layer chicks|
[30 June 2017] Chinese layer breeder Huayu, in which Hy-Line International holds a majority stake, will see its annual hatching capacity expanded to 250 million commercial chicks by February 2018, Chairman Wang Lianzeng told Asian Agribiz. The company is building a hatchery with an annual capacity of 100 million chicks in Handan, north China’s Hebei province. A USD 109 million breeding complex that will house a 50-million-chick hatchery is also under construction in Chongqing.
|Lay Hong bullish on halal export market|
[30 June 2017] Malaysian integrated poultry farmer Lay Hong Bhd is bullish on expanding its halal product offerings for both local and international markets once its new food processing plant is operational. Group Executive Director Yap Chor How said the company will be producing halal products that target both the Muslim market as well as the Japanese market for the upcoming Olympic Games. He said the new plant will double Lay Hong’s production capacity to 4000 tonnes monthly. Lay Hong holds a 49% stake in the joint-venture (JV) company with Japan’s NH Food Ltd — NHF Manufacturing (Malaysia) Sdn Bhd. “The JV company is now actively working on the plant set-up and product development,” he said.
|Thailand’s DLD intensifies efforts to prevent disease outbreak|
[30 June 2017] Thailand’s Department of Livestock Development (DLD) said it has ordered livestock offices in all provinces to closely monitor poultry disease outbreaks. These offices will also mobilize its staff and volunteers to disinfect all poultry-raising areas including risk areas. The DLD’s latest move is to prevent a crisis similar to the recent outbreak of fowl cholera in chicken farms in Sukhothai province, where an old woman became sick after she handled dead chickens. Apai Suttisunk, Director General of DLD said the DLD has urged farmers to closely monitor their animals and if they find unusual chicken deaths, they should inform DLD’s staff immediately. The DLD said Thailand has not had any bird-flu outbreaks in the country.
|Cropital offers alternative lending scheme to Filipino farmers |
[30 June 2017] A group of young Filipinos has formed an agribusiness enterprise which aims to alleviate the country’s food security problems by helping farmers maximize their profits through an easy lending scheme. Cropital is a crowdfunding platform that generates funds from both international and local sources for farmers who often fall prey to predatory lending. Founded by Ruel Amparo, Rachel de Villa and Everett Ubiadas—all below 30—Cropital aims to increase income and productivity of the farmers. To date, Cropital has already facilitated 600 farmers in six provinces throughout the Philippines and is currently focusing on corn and rice farmers.
|Thailand's Industry Ministry to suspend operations at CPF plant|
[29 June 2017] Thailand’s Industry Ministry is planning to suspend operations at one of the factories owned by Charoen Pokphand Foods (CPF), following an accident last week that killed five people at the facility, the National News Bureau of Thailand reported. Deputy Permanent Secretary of the Industry Ministry Nisakorn Jungjaroentham said officers from the Water Technology and Industrial Pollution Management Bureau and the Department of Industrial Works have started an investigation into the cause of deaths of the five people, including interns and employees of CPF, who fell into a wastewater treatment pond at the company’s Bang Na-Trat Road facility. Ms Nisakorn said the ministry is working on the issuance of an order to suspend the factory’s operations.
|Malindo books USD22m net profit in 2016|
[29 June 2017] Indonesian poultry integrator Malindo Feedmill recorded a net profit of USD 22.32 million last year due to a more stable currency. The company reported that during the year it booked sales of USD 400 million, a 9.9% increase from the previous year. Sales of DOC increased 17.8% while sales of broilers, processed food and feed increased at 23%, 43% and 0.3%, respectively. According to the company, broiler and DOC prices during the year were relatively stable triggered by the decreasing price of feed raw materials. The company’s net profit in the first quarter of this year decreased USD 2.11 million due to the high price of local corn. Meanwhile, the company’s net sales during the period decreased USD 2.43 million due mainly to the decreasing sales of feed and eggs.
|Philippines FDA to regulate processed food products |
[29 June 2017] Beginning July 1, the Bureau of Animal Industry, under the Philippine Department of Agriculture, will no longer issue the Sanitary and Phytosanitary Clearances (SPSIC) for processed food products of animal origin intended for human consumption. The Department of Health, through its Food and Drug Administration (FDA) will be responsible for the regulation of processed food products. Only accredited importers are allowed to transport their products into the Philippines and new exporters must have a License to Operate (LTO) and a Certificate of Product Registration (CPR) from the FDA.
|OECD blames factory farming for bird flu outbreak in South Korea|
[29 June 2017] Poor breeding conditions at poultry farms in South Korea may have accelerated the spread of the bird flu virus, said a report by the Organisation for Economic Cooperation and Development. According to the report, battery cage-facilities at poultry farms and stockbreeding farmhouses accelerated the bird flu spread. Since early June, the government has been grappling with a fresh outbreak of bird flu and 185,000 chickens have been culled so far as part of containment measures. The report also warned that the government lacks awareness and measures to strengthen farming facility management in the country.
|Vietnam enjoys good shrimp market in South Korea |
[29 June 2017] Vietnam is currently the largest shrimp supplier to South Korea, accounting for 49% of the country’s total shrimp imports. This is the result of the Vietnam-South Korea free trade agreement (FTA), which became operational a year ago. Under this FTA, Vietnam enjoys low import tax at 10% compared to other competitors such as China, India and Ecuador. In Q1, Vietnam earned USD 61.8 million from exports, up 30.8% yoy, making South Korea the fifth largest market for Vietnamese shrimp.
|Russian investors express interest in Cagayan de Oro agriculture, livestock|
[29 June 2017] Industry players from Russia have expressed confidence to invest in agriculture and livestock in Cagayan de Oro (CDO) City, in Northern Mindanao, Philippines. This was disclosed by Robertino Pizzaro, President of the CDO Chamber of Commerce during the Cagayan de Oro Agriculture and Livestock Expo 2017 held from June 22-24. Amid the current declaration of Martial Law in Mindanao Mr Pizzaro is confident the investments would materialize as Martial Law would help protect local commerce from external disruptions with the national government’s complete takeover of the entire Mindanao region. CDO Mayor Oscar Moreno said the region remains an agricultural community with more than 10,000 hectares out of the city’s 57,000 hectares devoted to agriculture.
|Broiler Feed Quality Conference - Formulating using alternative raw materials and by-products|
[28 June 2017] The evolving feed raw material market demands that broiler and feed producers evaluate and understand alternative, less traditional raw materials and by-products – their potential and limitations for inclusion in diets. However, the nutrient content and digestibility of the alternative feed ingredients is typically lower compared to traditional raw materials. Therefore, broiler diets formulated with alternative ingredients must be based on digestible amino acids, which can help to reduce intestinal problems. The 2017 Broiler Feed Quality Conference by Asian Agribiz on 16-17 August in Bangkok, Thailand, will feature three presentations from world-leading speakers on this issue. Prof Ravi Ravidran, Professor of Poultry Science, Institute of Veterinary, Animal and Biomedical Sciences, Massey University, New Zealand will present the keynote address, Maximising the use of alternative raw materials: challenges and strategies. Visit BroilerFeedQC17 or contact Sutasinee Lake at email@example.com for more information and to register.
|Philippines chicken inventory down 42.65%|
[28 June 2017] Figures from the National Meat Inspection Service (NMIS) show the Philippines’ chicken inventory in June dropped by 42.65 % to 10,906.6 tonnes from a year ago. This is attributed to poultry farmers cutting production to avoid losses, according to Elias Jose Inciong, President of the United Broilers Raisers Association. Mr Inciong added the decline is also due to the shift of big industry players to contract growing from the 'volatile' wet market supply chain, thus, less excess production. He assured that retail prices of chicken will remain stable. NMIS data showed that both the chicken imports and locally produced dropped year-on-year. Chicken imports which accounted for 64.12 % of the June inventory, reached 6,993.48 tonnes, 30.04 % lower than a year ago.
|China to vaccinate poultry against H5 and H7 bird flu|
[28 June 2017] China’s Ministry of Agriculture said the nation has started the commercial production of a vaccine against both the H5 and H7 sub-type avian influenza, and the first batch of the product will be shipped to the southern provinces of Guangdong and Guangxi, a dominant farming region for the native yellow-feather broilers, at the end of June. It will be the first vaccination program for the H7N9 virus that emerged first in China in 2013. Due to the new wave of human infections, China has recorded the loss of hundreds of lives since last winter, as well as major damage to the poultry industry.
Regional dairy update
[28 June 2017]
Heritage Foods to grow its dairy business
Selling off its own retail business to the Future Group and acquiring Reliance Retail’s dairy business has earned India’s Heritage Foods shelf space in two major retail chains. This will help grow its dairy business, according to Brahmani Nara, Executive Director of Heritage Foods. Ms Nara said Heritage Foods is focused on its core dairy business which it hopes to more than triple over the next five years. The company has over 120 outlets in the South but with the business going to Future Retail, Heritage’s dairy products gain shelf space in a much larger chain. Along with that of Reliance Retail’s chain, it will be present in over 1000 outlets, she said. Heritage Foods handles about 1.4 million litres milk daily and has a presence in 15 states.
Vietnam still imports 60% of milk
Vietnam’s dairy industry has seen strong growth in recent years, yet it is still among the world’s top 20 milk importers. “Vietnam has more than 24,000 farms, raising some 283,000 dairy cows, yielding 800,000 tonnes, and that can only supply 40% of domestic demand,” said Le Van Thong, standing Vice Chairman of the Vietnam Ruminant Husbandry Association. “We need to grow faster, improving both cow herds and productivity. And to achieve this, we need to bolster the breeding structure transfer and devise land planning for ruminant production,” said Tong Xuan Chinh, Deputy Head of the Department of Livestock Production.
China’s dairy industry records better efficiency
Despite contracting herds in China recent consolidations have led to improvements in genetics and production facilities that have enhanced efficiency, said the USDA in a recent report. Milk output per animal continues to rise and along with lower feed costs, industry profitability continues to improve. Small farms continue to withdraw from the industry while farms with at least 100 head of dairy cattle are increasing. For the first time, larger farms will account for over half of the dairy cattle inventory in China. This transition also contributes to increasing demand for soybean products in China as most commercial farms use soybean meal in mixed feed rations.
Pakistan to increase domestic milk production
The Food and Agriculture Organisation (FAO) said Pakistan is one of the top dairy producing countries in Asia. According to Pakistan Economic Survey 2016-17, milk production in Pakistan is on the increase and during the current fiscal year gross production was 56.08 million tonnes. FAO said the sector needs to be more sustainable and competitive. This means helping smallholders gain greater access to markets and services and develop successful dairy business models to increase domestic production. To facilitate dairy farmers, duty free import of calf milk replacer and cattle feed premix is allowed. In addition, regulatory duties to the tune of 25% have been imposed on the import of skimmed milk powder and whey powder.
Engro Foods aims for higher milk quality
Last December, the Royal Friesland Company acquired 51% of Engro Foods Pakistan, which is one of the largest private sector foreign direct investments in Pakistan’s dairy sector, amounting to USD 450 million. Under the new deal and 2020 strategy arrangements, Engro Foods will aim for higher milk quality, variety of milk packages and products and farmers’ capacity building leading to a reduction in poverty.
|Broiler Feed Quality Conference - Reducing feed costs|
[23 June 2017] With feed accounting for 70% of total broiler production costs, optimisation of feed costs is critically important in determining profitability. Feed additives can allow reformulation of diets by improving the digestibility and availability of protein, starch and fats, without sacrificing bird’s performance. The 2017 Broiler Feed Quality Conference by Asian Agribiz on 16-17 August in Bangkok, Thailand, will features four presentations from world-leading speakers on this issue. Dr Bindhu L Vasanthakumari, Senior Scientist, Kemin Industries (Asia) Pte Ltd, Singapore will present the topic, Managing variability in nutrient quality and utilisation of dietary fat in broiler diets. Visit BroilerFeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Chuying to launch 2m-head pig slaughterhouse in Jilin|
[23 June 2017] Leading Chinese pig integrator Chuying Agro-Pastoral Group is scheduled to launch a new slaughterhouse with an annual capacity of two million heads per shift by August, Vice Chairman Hou Wuqun told Asian Agribiz. It is part of the company’s complex in northeast China’s Jilin province that aims to produce four million pigs a year. “We could expand the slaughtering capacity with additional shifts, while allocating some animals for shipment to other regions,” Mr Hou said. The company now has two one-million- head slaughterhouses in central China’s Henan province where it is based. It plans to build a two-million-head slaughterhouse in Inner Mongolia where it is developing a three-million-head pig complex. Another one-million-head slaughterhouse is also in the pipeline for its free-range pig farms in Sanmenxia of Henan.
|CPF targets 10% sales growth in 2017|
[23 June 2017] Charoen Pokphand Foods (CPF) said it aims to achieve 8-10% growth this year, backed mainly by its overseas operations with a high opportunity for expansion, Adirek Sripratak, Chairman of the Executive Committee said. CPF expects its overseas business sales to increase to 70% of total sales over next five years from 64% currently. CPF’s feed and farm business contributed more than 80% of its total sales in 2016, while its food business contributed 12% to total sales. CPF’s food business will contribute 17% of its total sales in 2017 and its sales contribution will reach 25% in the next five years, Mr Adirek said earlier. Meanwhile, CPF said it is focusing on business practices, which aim to reduce costs, increase production efficiency and strengthen competitiveness.
|Singapore’s 4Fingers eyes matured markets for growth|
[23 June 2017] Singapore’s 4Fingers Crispy Chicken saw phenomenal growth in the last few years, from a USD 2 million to a USD 30 million business in four years. The brand has 12 outlets in Singapore. There are three outlets in Malaysia, with one more coming up soon, and two in Indonesia. In mid-June it opened in Melbourne, Australia, and there are plans for two more stores in Brisbane. Steen Puggaard, CEO, said the focus is on mature western markets where “people are fed up and unhappy with the old entrenched brands. We prefer countries where the currency is a multiplier, not a divider- markets with substantial spending power.”
|South Korea tightens shrimp import procedures|
[23 June 2017] From April 1, 2018, there will be a big change that affects Vietnamese shrimp exports to South Korea. Frozen shrimp should have import certificates while testing of seafood samples should be undertaken before exports leave Vietnam. Vietnamese shrimp exporters therefore, will have to pay for the costly process, according to Tran Van Pham, General Director of Stapimex, a Vietnamese shrimp exporting company. To deal with the costs, he added, companies would have to lower the price of seafood material, which will affect farmers and the whole sector.
|Himpuli targets DOC, DOD export opportunities in Malaysia|
[22 June 2017] A representative of the Indonesian Native Poultry Farmers Association (Himpuli) recently visited Malaysia to seek export opportunities of native day-old chicks (DOC) and day-old ducks (DOD). According to Ade Zulkarnain, Himpuli Chairman, farmers in Malaysia import native chicken genetics from France. However, “the country recently banned the import due to avian influenza (AI) in France,” he said. Mr Zulkarnain revealed that Himpuli will partner with Malaysia’s Green Valley Genetics to realise the export plan. The association targets to export 200,000 DOC and 100,000 DOD per month to Malaysia. “We hope it can be realised this year,” he said. Native chicken breeder Sumber Unggas Indonesia and native duck breeder Putra Perkasa Genetika are ready to participate in the export plan.
|Harim to expand its Iksan plant|
[22 June 2017] South Korea’s poultry producer Harim Co will install four new processing lines, spread over five different floors in its fully modernised plant in Iksan. In South Korea, little land is available for building, as 75% of the country is covered by mountains. Harim cleverly solved this problem by designing a five-story high building, attached to the existing plant, extending their existing 80,000 sqm production area to 150,000 sqm. Two existing lines will be overhauled and reused. The four new lines will use Marel Poultry’s latest technology. Hong-kuk Kim, Group Chairman said Harim wants to be more open about poultry processing. “We welcome not only to our customers but also others who are interested in poultry processing. We like to show how our high-speed lines produce good quality chicken meat with a strong focus on hygiene, food safety and good working conditions.”
|Vietnam should only export processed pork|
[22 June 2017] Vietnam’s Minister of Agriculture and Rural Development is encouraging pig farmers to only export processed products instead of live animals. “I strongly recommend that we focus on the export of processed livestock products, such as frozen meat, including suckling pigs and other products. Even Thailand only exports processed products,” Vu Van Tam, its Deputy Minister told a local daily, adding that controlling epidemic diseases should be the country’s top priority. He also encouraged advanced technology for livestock rearing and diversifying their livestock breeds for good quality meat and to lower product prices. This will allow producers to compete on a regional scale, and increase the volume of meat exports.
|Spanish jamon sales leads the category in China|
[22 June 2017] The Spanish jamon has a following in China, where it is sold as a luxury product. Despite Italians having a head start in the local cured meat market with their parma ham, Spain caught up and is now leading the category raking in USD 2 million in sales last year (excluding Hong Kong), reported the French Federation of Pork Industries. By comparison, Italy made USD 1.56 million last year and France's export value was USD 33, 000. Sales of jamon have doubled between 2012 and 2016, said Jesus Perez Aguilar, spokesman for the Inter-professional Association of Iberian Pork. “China has become the second foreign market for Spain’s porcine sector, after France,” he said.
|Vietnam sees market potential for tiger prawns in China|
[22 June 2017] China is seen as a vibrant market for Vietnam’s shrimp, according to Vietnam’s Ministry of Industry and Trade. China saw the highest import growth rate of 24.3% yoy with fresh/frozen/live tiger prawn registering up to 58% of its imports from Vietnam. “With a drop in domestic production in China, it has strong demand for shrimp for its processing and re-exporting sector. Also, shrimp imports for local consumption has grown to serve demand from the middle-class, who prefer imported products,” said Vietnam’s Association of Seafood Exporters and Producers.