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24 July 2017
|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 firstname.lastname@example.org.
|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 email@example.com 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 firstname.lastname@example.org 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 email@example.com 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 firstname.lastname@example.org 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 email@example.com 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.
|Broiler Feed Quality Conference - Reducing the use of in-feed antibiotics |
[21 June 2017] There is growing societal and regulatory pressure on poultry and livestock producers to change their production practices as antibiotic resistance has become a major public health concern. The 2017 Broiler Feed Quality Conference by Asian Agribiz on 16-17 August in Bangkok, Thailand, will features six presentations from world-leading speakers on this issue. An integrated approach with best practices in management, health care and nutrition enables chicken meat producers to establish responsible and prudent use of antibiotics while maintaining performance and profitability. Dr Birger Svihus, Prof of Nutrition, Norwegian University of Life Sciences, Norway will present the keynote address, Gut health in the face of reducing antibiotic usage. Visit BroilerFeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Cargill expands corn grinding plant in China’s Jilin|
[21 June 2017] Cargill said it has kicked off construction of an expansion project for its corn grinding plant in Songyuan in northeast China’s Jilin province. The annual capacity of Cargill Bio-Chemical Co will be expanded to 2 million tonnes from 0.8 million, making it the largest corn further processing plant in Asia and the third largest one for Cargill in the world. The expansion is expected to be finished by the end of 2018, according to the company. Founded in 1997, Cargill Bio-Chemical processes corns into starches, syrup, as well as feeds.
|Malindo invests in corn drying facilities|
[21 June 2017] After meeting with Malaysia’s Minister of International Trade and Industry, Dato Sri Mustapa Mohamed, Indonesia’s Minister of Villages, Disadvantaged Regions and Transmigration, Eko Putro Sandjojo revealed that Malindo Feedmill, a poultry and feed producer based in Jakarta which is part of Malaysia’s Leong Hup Holdings Berhad and Emivest Berhad, will invest in corn drying facilities in several villages in Indonesia. “Malindo has been investing in Indonesia for a long time. It will support our ministry’s program by setting up corn drying facilities in corn producing villages in Sumatera and Sulawesi,” said Mr Sandjojo.
|AVA declares Ma Ling luncheon meat safe|
[21 June 2017] Following reports that a Hong Kong consumer group found antibiotics in a sample of the popular Ma Ling Premium pork luncheon meat, Singapore’s Agri-Food and Veterinary Authority (AVA) assured consumers that test results it conducted have so far shown that the brand “meets our local food safety standards.” The agency said all meat products are subjected to inspections and sampling to ensure that they comply with its food safety standards and requirements. “Our tests cover a wide range of chemical contaminants and microbial contaminants such as antibiotics and Salmonella.” Ma Ling pork luncheon meat is manufactured in China by Shanghai Maling Food Co Ltd.
|Vietnam’s tuna exports bounce back|
[21 June 2017] Vietnam’s tuna exports have seen a strong return to important markets after a slow down due to market saturation at the start of the year. Local experts expect the trend will continue in the next three months. According to the Vietnam Association of Seafood Exporters and Producers, tuna export in Q1 increased 23% yoy to USD 121 million. Export volume saw impressive growth particularly with canned tuna up 39.7% over the same period last year. Meanwhile, frozen tuna loin remained the top export item, accounting for 47% of total exports in Q1, fetching USD 57 million, up 12.5%. Israel saw the highest growth of 172.9%, surpassing Asean and Japan.
Thailand’s leading pig producers move up the value chain
[20 June 2017]
Backed by changing consumption trends and export potential, Thailand’s major pork companies are producing more processed pork products reports PAYUNGSAK WIRIYABUNDITKUL. These include chilled and frozen pork and ready-to-eat products.
VC Meat Processing invests USD 26.5 million in first pork processing plant
Thailand’s VC Meat Processing invested around USD 26.46 million over the past two years in its first pork processing plant, which includes a slaughter house and processing lines for cuts and special cuts, Sarawut Techasattaya, Managing Director told Asian Agribiz. VC Meat Processing opened its new plant four month ago. The new plant in Ratchaburi province, has a production capacity of 5000 pigs per day, he said. However, the plant is currently running at 3000 pigs per day. “It will take two or three years before we run at full capacity,” he said. The company plans to build a processing line for marinated products late this year. Meanwhile, VCF Group, its parent company, was established around 40 years ago. It raises 35,000 breeders and 350,000 live pigs at four farms at Ratchaburi province. “We aim to be Thailand’s largest pork producer in five years,” Mr Sarawut said.
VPF Group building new processing plant
Thailand’s VPF Group is investing around USD 6 million in its second pork processing plant in Chiang Mai, Vorapong Jeeraprapapong, Business Development Manager told Asian Agribiz. The plant will have a daily slaughter capacity of 10 tonnes and products will include sausages, bacon and pork balls. It will also increase the company’s processing capacity for special cuts to 200 pigs per hour from 80 currently. The processing line for special cuts will be completed late this year and the new plant will be completed late next year. “Officials from Japanese food chains and restaurants have visited our plant and have expressed interest in our premium cuts,” Mr Vorapong said. While VPF sells most of its fresh meat in Thailand, it plans to export its ready-to-eat pork products to Japan, Singapore and Hong Kong.
VC Meat to export chilled and frozen pork to Myanmar
Thailand’s VC Meat Processing has partnered with a local company in Myanmar and established its subsidiary, VC Meat Inter. It will distribute VC Meat’s chilled and frozen pork to hotels and food chains in Yangon this year, Sarawut Techasattaya, Managing Director told Asian Agribiz. “They need high quality pork products but there are no such products in the country,” he said, adding “our partner will help us distribute and sell pork products and manage stocks.” VC Meat Inter also plans to sell its pork products to wet markets in Myanmar. “We can sell a high volume at wet markets but with a lower margin,” he said. VC Meat Processing is also eyeing export markets including Cambodia, Laos and Vietnam.
Major pig producers increase size of contract farms
Major pig producers are actively expanding their contract farms in Thailand, especially in the north-eastern region, Surachai Sutthitham, President of the Swine Raisers Association of Thailand, told Asian Agribiz. “The size of contract farms is getting bigger,” he said. Meanwhile, it is getting harder for small-sized pig farmers to compete with big companies because the latter has better pig genetics and more capital, Mr Surachai said. Big companies also operate a total value chain including slaughterhouses and processing plants. “Pig farmers need to expand their farms and increase economy of scale. Consequently, their production costs will decrease and negotiating power will increase,” one industry source said.
|Kido buys 50% stake in DBC Food |
[20 June 2017] Vietnam’s major food company Kido Group, previously known as Kinh Do Corporation, has stepped into the meat processing sector with a 50% ownership of Dabaco Food Processing Co (DBC Food). The purchase is in line with the Group’s target to become Vietnam’s leading food producer in 2-3 years and achieve a revenue of USD 454 million in 2018. Tran Le Nguyen, Kido Group CEO said acquiring 50% of DBC Food’s stake gives the Group the full right to make decisions on the company’s products and brand. “Taking up DBC Food provides access to three important segments in the food sector, including fresh food (fresh meat and fresh sausage), frozen food and canned food,” he said.
|China’s yellow broiler sector agrees to reduce capacity|
[20 June 2017] Major yellow-feather broiler producers in China have reached a consensus to reduce their capacities, so as to offset the impact of an industry downturn caused by the H7N9 bird flu. The producers from Guangdong and Guangxi, a dominant farming region for the native birds, met at Guangdong Wens Foodstuff Group in early June to discuss the issue, according to the Yulin Aquatic and Animal Husbandry Association from Guangxi. Particularly, Wens, the largest yellow broiler producer with an over 20% market share in China, has agreed to cut its capacity by 18% in the second half of 2017. The sector is also considering modern slaughtering for the yellow birds that are traditionally sold live at wet markets.
|Indian carabeef eats into local farmers’ market share|
[20 June 2017] Beef cattle farming in Indonesia is not promising anymore. The entry of frozen carabeef from India has taken about 50% of local beef cattle farmers’ market share, said Ferry Kusmawan, a feedlot businessman. He said to reach a break-even point, farmers must sell their live cattle at USD 3.46 per kg, but buyers only pay USD 3.07 per kg. Mr Kusmawan said the only thing farmers can count on is the Ied Adha religious festival where Muslims sacrifice cattle, goats and sheep. During this period, the price of live cattle is expected to touch USD 3.84 per kg.
|Egg prices in Indonesia declining|
[19 June 2017] While other agro-commodities are enjoying good prices during the Muslim month of Ramadhan, the price of eggs in Indonesia has contracted. According to Ki Musbar, Coordinator of the Indonesian Layer Farmers Forum, the egg price in Blitar, East Java, which contributes around 40% of the total egg production in Indonesia, has been declining since early June. The price has fallen to USD 1.11 per kg. “Since Blitar is the largest egg producer, other regions also feel the impact,” Mr Musbar said. In addition, he suspects that egg traders are playing a ‘game’ on the back of the government’s regulation on reference price of eggs. “The traders stop buying eggs for several days causing farmers in panic, then they push the farmers to sell at lower prices,” he said, adding that the government should take actions against this unfair practice.
|Aqua spurt drives China’s soybean consumption up|
[19 June 2017] China’s fish farming accounts for approximately 60% of globally farmed warm water species. In 2006, China’s total artificially cultivated aquatic production was estimated at 31 million tonnes. Last year production was estimated at a little over 50 million tonnes. This is driving the country’s soybean consumption up, said a USDA report. Total aquaculture feed production in 2015 was estimated at approximately 55 million tonnes. Fish meal and roquette seed meal are the main protein sources in aqua feed; however, some 9 million tonnes of soybean meal is also used in fish farming. Industry sources expect this trend will continue to grow to satisfy rapidly increasing fish production, both for export and domestic consumption.
|Outlook for Indian poultry industry remains positive|
[19 June 2017] The Indian poultry industry’s performance has been improving since Q4 2016, driven by a combination of relatively low supply with high DOC prices, relatively strong demand and lower feed prices, Rabobank said in its research report. Supply has been relatively low after the end of last year’s AI outbreaks in the country, when breeders reduced supply as a precaution. Prices for feed are expected to remain low due to expected strong harvests for soybeans, corn and wheat crops. Meanwhile, the outlook for the Indian poultry industry remains positive, with strong fundamentals, such as ongoing high DOC prices which will reduce industry expansion, ongoing low feed prices and expected improved demand. Rabobank said there will be a seasonal slowdown in Q3 due to the festive season, but this should recover quickly later this year.
USSEC Annual International Aquaculture Feed Formulation Workshop
[19 June 2017]
This workshop by the US Soybean Export Council, which was also conducted in Thailand, Vietnam and the Philippines, was aimed at helping aqua feed producers to have a better understanding of aquaculture nutrition, feed quality & safety and feed formulation.
Evaluating, improving aqua feed quality
Most of Southeast Asian aqua feed manufacturers must formulate and produce feeds for a wide variety of aquatic species with different specifications for different market needs, according to Dominique Bureau, Professor in Fish Nutrition at the University of Guelph, Canada. To achieve this, he said that they must be able to critically evaluate the value, quality and reliability of existing studies, results and technical reports made available to them. “They also must carry out or support their own r&d efforts to determine by themselves what works; to test and verify the suitability of their feeds; to define optimal nutritional specifications; to characterise the nutritive value; to determine usefulness of different products; and finally, to examine the effects of different factors,” he explained.
Mycotoxins: Growing problem in aquaculture
Problems related to feed safety include drug residues, organic and chemical contaminants, microbial contaminants, and mycotoxins. On mycotoxins, Kai-Jens Kuhlman, Technical Commercial Manager, Feed Quality of Trouw Nutrition said mycotoxins produced by moulds are a growing problem in aquaculture production. Some factors affecting the presence of mycotoxins in aqua feed include shift from animal to plant protein sources in feed raw materials; domination of plant based proteins; and ubiquitous presence of fungi that produce mycotoxins as secondary metabolites. Therefore, analysing mycotoxins is an essential step in understanding and controlling mycotoxin risks in raw materials and feed, said Mr Kuhlman. Trouw Nutrition offers its mycotoxin management program which combines mycotoxin analysis (Mycomaster rapid analysis reader) with Toxo feed additive solution.
Sustainable aqua feed production
Sustainable aqua feed means ‘less fishmeal and less fish oil’. Mark Newman, USSEC Feedmill and Nutrition Consultant, said a net loss of protein occurs through the production of shrimp and carnivorous fish that consume feed containing high levels of fishmeal and fish oil. “Industrial fishing reduces the availability of food for sea birds, marine mammals and wild fish,” he said. “Aquaculture currently uses over 80% of the world’s fishmeal and fish oil.” According to him, the use of soy products is a way to reduce the amount of fish meal and fish oil in aqua feeds. Soybean meal, soy protein concentrates, soybean oil, and other vegetable proteins and oils, can replace from 1/3 to 1/2 of the fishmeal in feeds for many farmed species, reducing the need for wild-caught fish for fishmeal. In addition, soybean meal costs significantly less than most animal meals.
High need for integration
Huge amount of data to be analysed, lots of quality data sources, and risk of mistakes when managing feed formulation & production make integration of all processes and workflows in feed production necessary. Tai-han Cheng, Bestmix Consultant of Adifo China, said Adifo has developed Bestmix LIMS for feed. It is an open data-processing application that allows feed producers to collect comprehensive data from their sample management processes with ease, integrate it seamlessly into core applications and evaluate and distribute the results in a consistent and flexible way.
|Three major themes at the Broiler Feed QC|
[16 June 2017] The 2017 Broiler Feed Quality Conference by Asian Agribiz will address three major themes and also look at how to translate the latest broiler nutrition research into on-farm results. The three major themes include reducing the use of in-feed antibiotics, reducing feed costs and formulating using alternative raw materials and by-products. The conference, which will be held on 16-17 August in Bangkok, Thailand, will feature 19 presentations from 16 world-leading speakers. Registrations close on August 2. Visit BroilerFeedQC17 or contact Sutasinee Lake at email@example.com for more information and to register.
|China 2017/18 soybean imports soar|
[16 June 2017] Global soybean consumption is forecast to grow 4% in 2017/18, driven mainly by China’s strong protein feed demand. This demand is projected to lift soybean imports to a record 93 million tonnes, said the USDA in a report. Despite recent variability in animal production, expanding pig populations, consolidation and modernisation of the animal production sectors as well as a growing aquaculture industry, are driving total feed demand and production upward. China’s soybean imports from October to April 2017 stood at 49.6 million tonnes, 4.2 million more than the same period last year. Imports so far this year from the US total 33.4 million tonnes, over 6.8 million more than last marketing year.
|Fast Food to relaunch KFC cheesy menu|
[16 June 2017] Fast Food Indonesia, the operator of KFC in Indonesia, plans to relaunch its Cheesy Chicken menu in August to boost sales. Previously, the company launched the menu, under a limited time offer (LTO) system, in October last year and it pushed the company’s sales up by 20% each month. Justinus Dalimin Juwono, Director, said preference for cheesy menus is growing. "We will relaunch the menu, again under an LTO system,” he said. This year Fast Food targets its revenue to grow by 11-12%. Operating 575 outlets, the company processes 1.8-2 million chickens a day.
ProPak Asia 2017, June 14-17, Bangkok, Thailand
Onsite report by PAYUNGSAK WIRIYABUNDITKUL and ARIEF FACHRUDIN
[16 June 2017]
Lima enjoys good sales in Asia
Lima, a France-based producer of meat-bone separators, deboners and desinewers, enjoyed good sales during the first five months of this year in Asia. Roger America, International Sales Director, attributed the good performance to a better economic situation and stronger food demand. “We sold machines and equipment from small to bigger capacities during the period. Small, medium and large-scale companies in this region are back to investment mode again,” Mr America told Asian Agribiz. "We are confident that our business in Asia this year can grow 10%, and this target is achievable by looking at how the market is growing,” he added.
Provisur promotes new separation technology
Provisur took the opportunity to promote its new separation technology called Belug,a in the region. “With Beluga, meat processors will be pleased to discover that product texture and consistency can be noticeably improved, while simultaneously increasing throughput,” said Olivier Kerdile, Vice President of Separation Business Unit. “We are happy to introduce this new machine here as the market wants this kind of machine.” Mr Kerdile explained to Asian Agribiz that Beluga was designed to efficiently handle a wide variety of raw materials and to yield higher volumes of finished product with textures that approximate the look of ground meat. The low pressure, single screw, low rpm design is key to minimising temperature rise, increasing throughput and virtually eliminating product giveaway.
Asia is prospective market for Variovac
Meat processors in Asia are focusing on product quality with better packaging, according to Wojciech Gaczynski, Area Sales Manager Asia of Variovac, a Germany-based thermoforming machines supplier. “With higher packaging quality, they want to have high levels of food safety and shelf-life,” he said. Mr Gaczynski said this positively affects Variovac’s business where in the last three years it handled big thermoforming technology projects. 'Our biggest market is currently in South Korea, followed by Thailand and Taiwan. This year, we are focusing more on China and Vietnam apart from Singapore, Malaysia, Indonesia and the Philippines,” he told Asian Agribiz. In Asia, 70% of Variovac’s thermoformers are used for the sausage industry, while the rest is for the seafood, ready meals and cheese industries.
Inotec promotes connected automation and industry 4.0
Germany-based Inotec is promoting interconnected processing machinery, which can collect information, improve production efficiency and ensure full traceability, Adrien Dessert, Managing Director said. “By connecting machines, one machine can send information to the other and all information comes together in our supervision system,” he said. Supervision system, a main controller of different equipment, is connected to operating software that controls the factory. “We want to promote automation and Industry 4.0, which means all our machines have its own brain (industrial personal computer),” Mr Dessert said. Inotec manufactures processing equipment, including mixers, emulsifiers, and sausage separators. Meanwhile, industry 4.0, defined as digitization of the manufacturing sector, is the name given to the German strategic initiative.
holac sees potential for its medium-sized machines
Market potential is growing in Asia and companies have switched from manual to automatic slicing and dicing solutions, said Sven Bauknecht, International Sales Manager of holac, a company in the food cutting-technology industry. Demand for ready-to-eat products and fast food continues to grow in Asia. “We see business potential for our medium-sized machines in Thailand,” he said, adding holac’s machines focus on multifunction, performance and durability. The company is also seeing potential in Indonesia, Singapore and Vietnam. Meanwhile, food safety and hygiene are becoming more crucial in Asia. “It is important that the machines are easily accessible for cleaning and are easy to dismantle,” Mr Bauknecht added.
ProPak Asia 2017, June 14-17, Bangkok, Thailand
Onsite report by PAYUNGSAK WIRIYABUNDITKUL and ARIEF FACHRUDIN
[15 June 2017]
Celebrating 25 years of innovation, ProPak Asia, a processing & packaging exhibition, opened yesterday at Bitec, Bangkok, Thailand. The exhibition has grown 25% this year in line with industry demand. Covering over 55,000 sqm and featuring over 2000 exhibitors from 45 countries, the show expects over 45,000 trade visitors.
Thailand continues to lead region in food exports
Agribusiness sectors are strongly emphasised by the Thai government as key industries where Thailand can lead. Panuwat Triyangkulsri, Deputy Director General, the Ministry of Industry said: “Thailand leads the way in manufacturing and exporting food products [in the region]. We are known for our advanced manufacturing standards and our manufacturers are investing heavily in operations to gain higher value processing and packaging.” Meanwhile, Justin Pau, General Manager of UBM BES, said ProPak Asia is an important event for both big companies and SME’s as Thailand expands its industrial capabilities.
K+G Wetter says food hygiene becoming more important in Asia
K+G Wetter is seeing big potential in Asia and its business is growing in the region, said Volker Schlosser, Sales Manager. “Asians are consuming western-style food such as burgers and hot dogs and producers have recognised this trend and have invested in high-quality and reliable machines,” he said. K+G Wetter produces meat processing machines, including bowl cutters and mixer grinders. Meanwhile, food safety and hygiene are becoming important as well. Mr Schlosser said K+G Wetter also focuses on hygienic solutions, ensuring easy and secure cleaning of equipment. “Our system construction, makes it easy to remove all moving parts inside the machines to allow thorough cleaning,” he added.
Sealpac sees growing demand from mid-sized companies
Demand for automation is growing fast with medium-sized companies racing to catch up, said Gerben Cornelissen, Area Export Manager of Sealpac International, manufacturer of tray-sealing and thermoforming technology. “A couple of years ago, only big producers were asking for Sealpac quality machines. Now medium-sized companies are demanding high quality automation,” he said. Sealpac introduced a medium segment line of machines. The medium-capacity machines provide value for money for producers with a limited budget, he added. Meanwhile, Mr Cornelissen said Asia is seeing more premium ready-to-eat products, which require high-quality packaging.
Foodmate sees growing demand for cut-up, deboning systems
Demand for chicken cut-up and deboning systems in Asia is growing, according to David Hazenbroek, President of Foodmate, a Netherlands-based poultry processing equipment supplier. “In a processing plant, the cut-up and deboning section has the largest number of operators. An automated cut-up and deboning systems can solve labour problems while offering product quality and consistency,” said Mr Hazenbroek. Besides this, more chicken meat is going to supermarkets and meat shops where portioned chicken is preferred, Mr Hazenbroek added. He told Asian Agribiz that Foodmate’s sales in the region is picking up. “We have good orders from China, South Korea and Taiwan. We are also going to close some deals with customers in Singapore, Malaysia and Indonesia.”
Kolbe introduces new separating machine
Kolbe Foodtec introduced its new separating machine called Kolbe Dynamic Separating System at the show. According to Thomas Hagmeier, General Manager, the new system allows meat processors to separate sinew and collagen from different kind of meats. In addition, it can be installed together with different kind of Kolbe’s mincers. “Some weeks ago, we installed the new system for one of our Thai customers. The customer is happy with the results,” Mr Hagmeier told Asian Agribiz. On its business in Southeast Asia, Mr Hagmeier said in the first five months of this year Kolbe’s business grew 10% compared to the same period last year.
Seydelmann grows business in Asia
The meat processing industry in Asia is changing, according to Steffen Kromer, Sales Manager of Seydelmann, a Germany-based meat processing machines supplier. He said meat processors in the region are looking for hygienic machines with easy-cleaning features, and fully automation that saves labour costs. “With more than 175 years of experience, we continue to supply good quality machines with strong design and hygiene features,” Mr Kromer told Asian Agribiz. In line with the changes, Seydelmann’s business in the region continues to grow positively. “From January until today, we have installed many single machines and complete production lines. To cater to growing demand we have hired new people and set up new buildings in Germany for machines and spare-parts,” said Mr Kromer, adding that its business in the region is expected to grow at 5-10% this year.
Unitherm eyes chilled segment in the Philippines
Barry Hansell, Sales Director Asia Pacific at Unitherm Asia, said he sees business opportunities in the Philippines due to the country’s large population, rising disposable income and more fast-food offering. With many islands in the Philippines, food producers previously distributed only frozen products. “With our processing systems, they can produce and distribute chilled products,” he said. Unitherm supplies a range of thermal processing systems to the food industry. Its innovation centre in Thailand, which allows customers to attend personal trials, will add a new pasteurization line and chilling production line this year. The innovation centre has received visitors from several countries including the Philippines, South Korea and Australia, Mr Hansell said.
|CPF introduces new food standard to ensure food safety and quality|
[15 June 2017] Thailand’s Charoen Pokphand Foods (CPF) has launched a CPF food standard project, aiming to build consistent quality and a food safety management system across its integrated feed-farm-food operations. Virachai Ratanabanchuen, Chief Operating Officer of CPF’s Chicken Business, said the standard will be established for a fully-integrated broiler business, including raw material sourcing, feedmill, hatchery, farm, slaughter house, and processing plant, to ensure that local and foreign customers’ needs are met. The standard will focus on two dimensions, which are laws and standards required for food industry and standards that differentiate its food business by creating advanced values. CPF has been collaborating with British Standard Institute on this project. “The project will strengthen CPF best practices,” Mr Virachai said.
|US, China finalise details on beef trade|
[15 June 2017] The US Department of Agriculture said it has reached agreement with Chinese officials on final details to allow the US to begin beef exports to China. According to the USDA, China has emerged as a major beef buyer in recent years, with imports increasing from USD 275 million in 2012 to USD 2.5 billion in 2016. However, the US had been banned from China's market since 2003. Until the ban took effect, it was China’s largest supplier of imported beef, providing 70% of their total imports. Exports are expected to resume in mid-July with a few qualified plants, said MIG research, a Hong Kong-based beef trade consultancy. “The impact will be limited initially as the US has to recover lost ground,” said the consultancy. “Traders also have to focus on building channels rather than gaining profits at the beginning.”
|Chicken prices in India rise following beef controversy|
[15 June 2017] Chicken prices in many parts of India have started rising and are expected to soar by 25-30% amid raging controversy over beef consumption in the country, according to the Associated Chambers of Commerce and Industry of India (Assocham). Meanwhile, consumption of chicken is likely to go up by 35-40%, it said, due mainly to rising per capita incomes and growth in QSRs. Controversies related to beef and animal slaughter “have come as a blessing in disguise for poultry firms in states like Andhra Pradesh, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and other key regions,” said an Assocham spokesman.
|Strong technical program at Broiler Feed Quality Conference |
[14 June 2017] The annual Asian Agribiz Broiler Feed Quality Conference will once again update broiler and feed industry professionals on the latest feed and research findings in the region. The two-day conference has a strong technical program, in which internationally and regionally renowned speakers from academia and industry will present regionally relevant research and trial data and the latest thinking to provide actionable, take-home messages to help broiler producers and feed millers improve productivity, profit margins and sustainability. The conference on 16-17 August in Bangkok, Thailand, will feature 19 presentations from 16 world-leading speakers. Registrations close on August 2. Visit BroilerfeedQC17 or contact Sutasinee Lake at firstname.lastname@example.org for more information and to register.
|Pati regency targets to produce 12 million ducks per year|
[14 June 2017] Pati regency in Central Java, Indonesia targets to produce 12 million ducks per year. To achieve this, Agus Wariyanto, Head of Central Java’s Livestock & Animal Health Agency, said the local government recently signed an MoU with Putra Perkasa Genetika (PPG) to develop meat-type duck farming under a partnership model with farmers. PPG will supply its meat-type duck DOD, while the local government will facilitate marketing. In addition, Indo PD Mandiri, whose main business in duck meat based restaurants, is setting up a duck processing plant in the regency which is expected to absorb finisher ducks. Ade Zulkarnain, Chairman of the Indonesian Native Poultry Farmers Association (Himpuli), said the government has banned import of duck carcases from Malaysia, “so this should be a turning point for development of the duck sector.”
|Cab Cakaran signs MOU with Panasonic to build solar farm |
[14 June 2017] Cab Cakaran Corp Bhd has, through subsidiary Cab Amesist Biomass Generation Sdn Bhd, signed a memorandum of understanding with Panasonic Eco Solutions Malaysia Sdn Bhd to build a solar farm, called Econation II Project, in Kedah. Cab said it would also control and operate the project, as well as make decisions on socio-economic development in Kedah. Meanwhile, Panasonic will provide consulting and engineering services, as well as bridge the project to the appropriate Japanese investors, besides acting as the main contractor to the project. It would also bring in its professional capabilities and knowledge relative to the construction, operation and maintenance of the photovoltaic plant.
|Philippines to import more meat amid projected increased output|
[14 June 2017] Data from the Food and Agriculture Organization shows the Philippines is projected to increase its meat imports in 2017 by 6.97% or 552,000 tonnes from 516,000 purchased last year. This is despite FAO’s projection of an expanded Philippine meat production by 3.4% to 3.612 million tonnes this year from 3.493 mt recorded in 2016. This year’s local pork production is seen to reach 1.95 mt, 4.5% higher than that produced in 2016 and is expected to account for more than half, or 53.98% of the country’s total meat output.
|Partnership between Indonesian layer & corn farmers|
[14 June 2017] Indonesian layer farmers under the National Layer Farmers Forum (PLN) recently met Director General of Food Crops of the Ministry of Agriculture to discuss partnerships between layer and corn farmers. According to Ki Musbar, PLN President, this initiative is important for layer farmers to secure local corn amidst competition with feed millers. With their huge capital, feed millers dominate sourcing of local corn, leaving layer farmers behind. Through the partnership, “corn farmers will also get a market guarantee,” Mr Musbar added. If this pushes through, a pilot project will be set in East Java for layer farmers from Blitar who need around 1000 tonnes of corn per day, he added.
|Oversupply lowers chicken meat prices in Nepal|
[14 June 2017] Chicken meat prices in Nepal has started to drop due to oversupply. According to the Nepal Chicken Sellers Association, the price of poultry meat reached USD 3.11/kg on June 2. Traders said that output has soared 30% due to climatic conditions. Chicken breeding usually speeds up in the summer, and the mortality rate is lower. The daily requirement of chicken in the Kathmandu Valley and adjoining districts is 300-350 tonnes. This accounts for 60% of the total demand across the country. Chitwan, Kavre, Hetauda, Nuwakot and Sindhuli are the largest suppliers of chicken to Kathmandu and other key cities. The poultry industry has an annual turnover of USD 328 million, according to the Central Bureau of Statistics.
|Vissan helps to reduce pig oversupply|
[13 June 2017] Vietnam Meat Industries JSC (Vissan) has said that it will buy and slaughter an additional 200-300 pigs a day, raising its additional purchases over the normal number to 500-600 pigs a day to reduce oversupply and help farmers. Nguyen Ngoc An, General Director said the move has raised the total number of pigs slaughtered at its facilities to 1600-1800 a day. Nguyen Phuc Khoa, Chairman said Vissan has stopped pork imports since February and has increased local purchase. To stimulate demand, Vissan will continue to offer 10-15% discounts on certain pork products at Saigon Co-op outlets, Vinmart, Vinmart+ and other supermarkets, that sell its pork products. In addition, it will cut prices by 5-10% on some processed food.
|DaChan Food sells stake in Jilin CSD to CP|
[13 June 2017] DaChan Food (Asia) Ltd said it has agreed to sell its entire 30% stake in Jilin CSD Food Co to Chia Tai Animal Husbandry Investment (Beijing) Co, a unit of Thailand’s Charoen Pokphand Group, for USD 7 million. Meanwhile, a 40% shareholder of CSD Food will also transfer a 35% stake to the CP unit. According to China’s enterprise registration system, CSD Food was founded in 2010 as a feed milling and pork processing business, and Singapore Food Industries Pte Ltd holds the remaining 30% of the joint venture. The loss-making CSD Food has not commenced its business due to the changes in operational development strategies, said DaChan.
|Global poultry industry records strong performance|
[13 June 2017] Global poultry is currently performing well, with profitability in most regions despite pressure from avian influenza (AI), especially in Asia, according to Rabobank’s latest poultry quarterly report. The industry’s strong performance is backed by a combination of strong demand, restricted supply, and ongoing low feed costs. However, the big exception remains China, where the negative impact of human AI cases has kept prices down. Chinese local authorities have closed many live bird markets, and this has had a big impact on the yellow-bird market. Meanwhile, global trade has reached record-high levels, but trade streams have shifted. The US, and to a lesser extent, Thailand have been the winners in this trade shake-up, due to AI-related restrictions and the impact of the meat scandal in Brazil.
|Fifty companies unite to fight illegal tuna fishing, forced labour|
[13 June 2017] Fifty of the world’s largest businesses, retailers and fishing companies from across the tuna supply chain recently announced a commitment to stamp out illegal, unreported and unregulated (IUU) fishing in the industry, and to eliminate forced labour on fishing vessels. Launched at the UN’s first global ocean conference, the tuna 2020 traceability declaration aims to stop illegal tuna from coming to market. It is supported by 18 civil society organisations. IUU fishing represents a global theft of about 26 million metric tonnes of fish, worth USD 24 billion each year. Meanwhile, the World Economic Forum will mobilize an 'ocean data alliance' an open-source collaboration between leading tech companies, governments and research institutes. This will bring together the data needed for comprehensive monitoring of ocean resources.
|India is top shrimp exporter to US|
[13 June 2017] US overall shrimp imports rose 16% year-on-year in April, from 39,311 tonnes last year, with India figuring as the most prominent exporter. The increase in volume came despite a 2% rise in the average per-kg value, from USD 9.43 last year. The volume and cost rises combined resulted in an overall shrimp import value increase of 18%, to USD 440.4m this year. Imports from India rose 80%, to 13,871 tonnes surpassing Indonesia, the largest exporter in April 2016. Indonesia exported 8,597 tonnes this year, down from 9,833 tonnes last year, reported Undercurrent News.
|North Sulawesi seeks investment for chicken processing|
[12 June 2017] The poultry industry in North Sulawesi, Indonesia is growing, but slower than neighbouring province South Sulawesi. Broiler population in the province touched 8.3 million in 2016, an increase of 3.22% over the previous year, according to the Directorate General of Livestock and Animal Health’s data. Ferdinand Suryagiri, a poultry industry player in the province, told Asian Agribiz that with a population of around 5 million plus a growing tourism industry, North Sulawesi offers good opportunities for processing. “There is no standard chicken processing plant in this province. Many fast food chains here use frozen carcases imported from Java,” said Mr Suryagiri, adding that he is looking for investors to set up a standard chicken processing plant. In addition, every month the province imports around 300 tonnes of frozen chicken carcases from East Java.
|Myanmar should use better aqua feed|
[12 June 2017] Myanmar has more than 220,000 acres of fish farms. To reduce the production cost, fish farmers should use aqua feed produced with modern technology, according to Myint Swe, Secretary of the Myanmar Aqua Feed Producers. “Only 15% of the fish farms use pellet feed, while 20% use only bran and 25% use the mix of bran and oil cakes (sesame cake and groundnut cake) and the rest use the locally abundant raw feed. Some raw material prices fluctuate according to the season,” Mr Swe said. The country has 27 feedmills, but only 12 produce aqua feed. By calculating the 220,000-acre total fish farms, the feed demand will be around 4793 tonnes per day. However, the 12 feedmills produce only 936 tonnes of aqua feed.
|Vissan to relocate its processing facilities|
[12 June 2017] Vietnam Meat Industries JSC (Vissan) plans to relocate its abattoirs and food processing lines to an industrial cluster in Long An province. This plan will cost around USD 72 million. The first stage of moving the existing abattoirs to the new facility is expected to finish in 2018, while the second stage of moving processing lines will be finished by 2019.
|Kerala now self-sufficient in poultry meat production|
[12 June 2017] India’s Kerala state is self-sufficient in poultry meat production. Almost 80% of the poultry meat in the state is been met from farms within the state, according to Binny Emmatty, State President of the Poultry Farmers and Traders Committee. He cited the entry of integrators, low investments, and minimal area to set up ventures, and self-employment finance options from banks as the reasons for the surge in poultry farming. “Demand for chicken meat is around 6000 tonnes a week,” he said. The business potential in this segment has attracted many and there are at present more than 300,000 poultry farms, employing nearly 800,000 people.
Growing demand for feed wheat in Southeast Asia
[12 June 2017]
Although traditionally dependent on corn-based diets, livestock and poultry producers in Southeast Asia have increasingly accepted feed wheat as an alternative grain.
Effective xylanase boosts feed wheat use
Although feed wheat has a higher crude protein and amino acids content compared to corn, the high level of soluble and insoluble arabinoxylans in feed wheat leads to its lower metabolisable energy. However, with the use of effective xylanases, particularly mono-component xylanase that are not destroyed during feed processing, the negative effects of arabinoxylans are no longer a problem,” explained Benito Oliveros, consultant with DSM Nutritional, to Asian Agribiz. Dr Oliveros added that since the late 1990s, when price of corn increased, a growing number of swine and poultry producers have turned to feed wheat, especially when “economics favour its use.” He said that if feed wheat is used at 5-10% in the diet, the addition of xylanase is optional. Beyond 10%, then xylanase is needed. Meanwhile, the use of pigments like carotenoids has addressed the grain’s lack of xanthophyll.
Philippine feed wheat imports up
Philippine feed wheat imports reached 2.5 million tonnes in 2016, the US Department of Agriculture-Foreign Agricultural Service said in its latest Philippine Grain and Feed Situation and Outlook, citing industry figures. The report also noted that price of feed wheat in the Philippines has been competitive compared to corn over the past three years. Last year, year, the average price of feed wheat was about 15% lower than yellow corn. With livestock and poultry production projected to continue growing as demand for meat increases, and with it, feed production, ample supplies and competitive prices in the global market will ensure increased feed wheat consumption in the country.
Feed wheat is second option in Indonesia
While corn-soy based diets remain the norm in Indonesia, use of feed wheat rose significantly in the first half of 2016 because the government limited corn imports. The Indonesian Wheat Flour Producers Association said the country imported 1.8 million tonnes of feed wheat from the Black Sea region in the first five months of last year. Desianto Budi Utomo, General Chairman of the Indonesian Feed Millers Association told Asian Agribiz that during the period, corn use, normally about 50-55% of (poultry) feed formulation, was reduced to 35%. The remaining 20-25% was substituted by feed wheat, the use of which meant feedmillers had to add enzymes to their feed formulation to increase digestibility. “Feed wheat is a second option for us. Corn is still our priority due to its nutrient content,” he said. However, since last year the government has also been controlling feed wheat imports to push feed producers to use local corn.
New regulation reduces Thailand’s feed wheat imports
While feed wheat has been widely used by Thai livestock producers in the last 2-3 years thanks to competitive prices and insufficient local corn supply, the Thai government’s adoption of a 1:3 wheat import to corn purchase ratio, is expected to reduce the country’s feed wheat imports. Under the new regulation, which took effect in January, any importation of wheat must be accompanied by the purchase of local corn that is three times the import volume. The move is meant to help local corn farmers, who produce around 4.5 million tonnes of corn for feed annually. Thailand’s wheat imports will decrease to around 1.5 million tonnes in 2017, down from 3.5 million tonnes annually before the new import regulations, Boontham Aramsiriwat, Secretary General of Thai Feed Mill Association told Asian Agribiz. Poultry producers used the bulk of feed wheat imports, followed by pig producers, fish, and shrimp producers.
Pig producers embrace feed wheat
While poultry and pig producers in the Philippines turn to feed wheat as a substitute for corn if the price is right, pig producers have embraced it more. “Because the negative effects of arabinoxylans are more easily seen in poultry and piglets but not in pigs and pig breeders, feed wheat is used more in pig feeds than in poultry feeds,” Dr Benito Oliveros, told Asian Agribiz. Meanwhile, a key pig industry official explained to Asian Agribiz that whereas in the past, price of feed wheat was a major consideration, these days, many producers use the grain even when there is barely a price difference with corn. “Feed and animal producers used to be conscious of the price difference, but thanks to enzymes, they are able to bring down the cost of wheat-based diets so that it is comparable to corn,” said Amie Galban, a nutrition consultant.
|GenOSI opens new processing plant|
[09 June 2017] Philippines based GenOSI, a part of Illiniois-based OSI Group of Companies, has opened a new processing plant in Calamba, Laguna. The new plant has been established in partnership with Fred Uytengsu and in cooperation with Golden Arches Development Corporation (GADC). This replaces GenOSI's original facility in Cainta, Rizal. The 7500-square meter plant with an annual capacity of 23,000 tonnes, features state-of-the-art technology and machinery and will boost productivity and quality of GenOSI’s beef, chicken and fish products. The new facility is also a culmination of the company’s 27th year as a premier food supplier and employer in the Philippines.
|Bali pig farmers suffer losses from MSS|
[09 June 2017] Meningitis Streptococcus suis (MSS) has had grave impact on the swine industry in Bali, Indonesia. Following the MSS outbreak in mid-March, the price of live pigs in Bali fell from USD 2.10 to USD 1.50 per kg, I Ketut Hari Suyasa, Chairman of the Bali Pig Farmers Association (Gupbi) told Asian Agribiz. “The disease has dashed our hopes of a good profit at the end of March and early April where demand is high during religious festivals,” said Mr Suyasa. “The situation persists and the price of live pigs has inched up to around USD 1.65-1.80 per kg while our production cost is at USD 1.87-1.95.”
|Egg consumption in Yangon continues to increase|
[09 June 2017] Myanmar’s largest city Yangon, which has a population of 7.4 million, consumes around 2 million eggs per day, according to Kyaw Win, Chairman of Myanmar’s Broiler Association. Menwhile, consumption of duck egg is around 1 million per day. The association projected that demand for chicken egg and duck egg will grow by 20% and 5% respectively this year. On duck eggs, Dr Win said the country needs to import breeds that can produce more eggs. In addition, he asked the government to control illegal duck eggs from Thailand. Up to 300,000 units are said to be traded illegally across the border.
|China’s Tangrenshen revises up H1 earnings|
[09 June 2017] Chinese pig integrator Tangrenshen Group has revised up its first-half net profit due to higher margins from its feed business. The company said the H1 earnings are expected to grow 100-130% from USD 9.8 million a year earlier, compared to a projected rise of 70-100% in its first-quarter report. Its feed sales volume was up 40% during the period, while cost of business fell significantly, according to the company. Separately, Tangrenshen said it is seeking mergers and acquisitions of assets in its value chain.
|CJ CheilJedang acquires Russian frozen food company|
[09 June 2017] South Korean food giant CJ CheilJedang said that it has completed the acquisition of Russian frozen food company Ravioli. CJ CheilJedang acquired a 100% stake in Ravioli for USD 27 million. Ravioli is known for its Russian dumplings called ‘pelmeni’. Its revenues last year reached USD 40 million. Following the acquisition, Ravioli has been renamed CJ Raviollo Rus. CJ CheilJedang said that it will be using the acquisition to pursue a two-track strategy in Russia, offering its own Bibigo Royal Court Dumplings as well as products for the Russian market. The company will be investing more than USD 11.59 million over the next two years in production equipment and infrastructure.
|Himpuli Chairman is Indonesia’s native chicken ambassador |
[09 June 2017] The Japfa Foundation of Japfa Comfeed Indonesia which focuses on agriculture education, nutrition and sport, has named Ade Zulkarnain as Indonesia’s Native Chicken Ambassador. As the ambassador, Mr Zulkarnain, who currently serves as Chairman of the Indonesian Native Poultry Farmers Association (Himpuli), will develop and support research on native chickens, conserve Indonesia’s indigenous chicken breeds, and support the growth of small-medium businesses in native chicken farming. Mr Zulkarnain has been involved in the native chicken industry since 2003. He actively promotes the importance of good farming practices and native chicken meat consumption.
|Bali pig farmers concerned about foreign investment|
[08 June 2017] Negara district in Bali, Indonesia will see a huge investment in pig farming. An industry player told Asian Agribiz that a Chinese investor plans to invest around USD 480 million in the project covering 1000ha. A seaport will also be built to accommodate sales of pigs or pork produced from the facility. Of the production, 80% is targeted for export. I Ketut Hari Suyasa, Chairman of the Bali Pig Farmers Association told Asian Agribiz that this issue has raised concerns about the impact on local farmers. “We hope the investments in pig processing will include pigs from local farms,” Mr Suyasa said.
|Long Farm opens 8th pork meat shop|
[08 June 2017] Malaysia’s Long Farm Meat Sdn Bhd opened its eighth pork meat shop last Saturday. The company also underwent a branding exercise. Long Farm, formerly known as ‘healthy meat’, is now labelled as ‘premium healthy meat’. Its outlet is designed to have a ‘café feel’ with a cosy ambiance, careful lighting and wood panelled walls. The outlet is spacious, modern and clean. In time to come all its other seven outlets will be remodelled this way. The idea, said Nick Ng, Long Farm’s Manager, is to pull in new buyers who currently shop at supermarkets and hypermarkets. “In turn we offer them fresh, clean and hygienically-processed meat sourced from our own farm,” he told Asian Agribiz.
|Canada's pork industry assures Chinese customers of integrity|
[08 June 2017] Canada’s pork industry is confident of the integrity of the Canadian Ractopamine-Free Pork Certification Program, which was launched in April 2013 in response to Russia's requirements banning the import of meat from hogs that have been fed or exposed to Ractopamine, said Canada Pork International (CPI), the Canadian Pork Council (CPC) and the Canadian Meat Council (CMC). Earlier, the banned growth drug was found by Chinese authorities in a shipment of pork from a plant of Canadian meat processor Olymel. In a joint statement, the organisations said they take this detection seriously and want to assure their Chinese customers that the industry is dedicated to providing consumers a healthy, safe and nutritious product. The Canadian Food Inspection Agency (CFIA) has suspended exports of pork to China from the Olymel plant. Product en-route to the Chinese market from this specific establishment is also being recalled and the plant involved will not ship until further notice, according to the statement.
|Thai corn price continues to contract |
[08 June 2017] The sale of feed-quality rice stocks has created downward pressure on farm-gate prices for corn in Thailand as feedmills are substituting rice for corn and imported feed wheat in swine feed rations, according to the USDA GAIN report. In April 2017, farm-gate price for corn further declined to USD 173 per metric tonne, down 7% from the previous month and down 22% from the same period in 2016. The lower corn price occurred despite the government implementing measures to stabilise domestic corn prices. Prices are expected to continue to face downward pressure due to the sale of feed-quality rice stocks. Meanwhile, import demand for feed wheat has continued to decline due to the government’s import restrictions.
|Evergreen’s shrimp feed well received by Indonesian farmers|
[08 June 2017] Indonesia Evergreen Feed, a new contender in the shrimp feed industry, has been selling its vannamei shrimp feed since early this year. The feed is imported from its parent company Guangdong Evergreen Feed Industry in China. “Our vannamei shrimp feed is well received by shrimp farmers in this country,” said Tina Maria, President Director of the company. She said the feed will soon be produced locally when the company inaugurates its first feedmill in Indonesia next year.
|Jeil Holdings to go public|
[08 June 2017] Jeil Holdings, the investment holding company of Korea’s leading poultry processor Harim Group, will go public on the Kosdaq market this month. According to sources, Jeil Holding will determine its IPO price after a book-building procedure due next week. The procedure will be led by KB Investment & Securities and Shinhan Investment. The desired IPO price band is around USD 20 per share that could set its market value of up to USD 1.43 billion. Jeil Holdings owns a 68.1% in Harim Holdings, 47.9% in Harim, 50.9% in recently acquired Pan Ocean and 56.3% in Pharmsco among others, reported Pulse.
|Bangkok Ranch to industrialise Indonesia’s duck sector|
[07 June 2017] Thailand’s Bangkok Ranch (BR) said duck meat has growth potential in Muslim-majority Indonesia where its rising middle class enjoys good food, Joseph Suchaovanich, Vice Chairman and Managing Director of Asia and Asia Pacific told Asian Agribiz. BR Investment (Hong Kong) recently signed a joint venture agreement with the Salim Group in Indonesia. Meanwhile, Indonesian farmers mainly raise ducks in small farms. “It’s time to think about how to industrialize duck meat production, in terms of food safety, processing and supply chain,” Mr Joseph said. BR will focus on grey duck and Pekin duck production in Indonesia. “Now we are handling Pekin ducks, and will target the middle and upper class. But we will also consider grey duck production as well,” he said.
|7-Eleven sale to CP Indonesia cancelled|
[07 June 2017] Charoen Pokphand (CP) Indonesia’s USD 75 million bid to acquire the operator of 7-Eleven convenience stores in Indonesia has been cancelled, leaving the struggling retailer in limbo once again. In a stock exchange filing on June 5, Modern Internasional, the parent company of 7-Eleven franchise operator Modern Sevel Indonesia, said the cancellation was “due to non-agreement of the parties concerned.” A shareholders meeting scheduled for June 21 to vote on the sale has also been cancelled. Modern Sevel Indonesia ran a total of 166 stores as of September 2016, mostly in Jakarta. However, during the year, it closed 25 stores as it struggled to compete with local competitors. Chandra Wibawa, Modern Internasional Director confirmed that the business of 7-Eleven has suffered losses in recent years.
|Vissan sets bold growth targets |
[07 June 2017] Vietnam Meat Industries JSC (Vissan) is targeting a historically rigorous growth in both the fresh meat and processed food segments, driven by the positive signals in the market and expansion strategy of the company. For fresh pork its volume is expected to grow by 35% to 28,500 tonnes, while fresh beef by 35% to 2170 tonnes, and processed food by 14.5% to 19,760 tonnes this year. In addition, the company this year will focus on completing its integrated production chain, applying TE-Food program (QR-coded label on pork packaging) to traditional markets and applying Vissan-Vis-Trace traceability system to all its products throughout the country. “We know that those are bold targets, but we are confident of achieving them,” Nguyen Phuc Khoa, Chairman told Asian Agribiz.
|Ikea Singapore looks for new chicken wings supplier|
[07 June 2017] Ikea Singapore said it is temporarily stopping the sale of its chicken wings as it is looking for a new supplier. Its previous supplier from Malaysia offered smaller wings in the last three months. Ikea Southeast Asia Retail Director Mike King said this was because the supplier was harvesting the broilers earlier. Ikea Singapore sells about 10,000 wings a day. “We are exploring all possibilities as we are committed to offer high quality food that is sustainable and based on high animal welfare, transparent, traceable and affordable,” a spokesperson told Asian Agribiz. “We only source from AVA-approved suppliers,” the spokesperson said adding that it hopes to find a supplier within 2-3 months.”
|Malaysia’s Lay Hong posts 4th straight quarter of profit|
[07 June 2017] Higher contribution from its integrated livestock farming segment has helped Malaysian poultry producer Lay Hong Bhd post its fourth straight profitable quarter in its final quarter ended March 31 2017. The company saw a net profit of USD 1.27 million, compared with a net loss of USD 2.85 million in the corresponding quarter in 2016. Lay Hong saw more eggs, as well as higher price of processed and frozen products sold in the quarter under review. Further, Lay Hong said, the recent entry of NH Foods Ltd as a substantial shareholder, marked a major step forward for the group's manufacturing business with new product development and market penetration.
|Matahari Sakti launches new shrimp feed |
[07 June 2017] Indonesia’s leading aqua feed producer Matahari Sakti has launched a new shrimp feed under the Kaiohji brand. Angga Aditya Putra Nugraha, Head Nutritionist, said the feed is produced in granule form, which is much better than crumble. Crumble feed is not uniform in size and is easily crushed. These unconsumed dust pollutes the water, said Mr Nugraha. Produced using advanced extrusion technology, he believes the granule feed can support the super-intensive shrimp farming in the country. Due to its uniform size, the new feed, which contains 36% protein, is suitable for the auto-feeding system. The new feed is available in two types: KJV 2A with a granule size of 0.7-1.1mm and KJV 2B with a granule size of 1.2-1.6mm.
|Thailand to see higher corn exports|
[06 June 2017] The USDA’s forecast for Thai corn exports in marketing year 2016/17 is revised up to 0.7 million tonnes, compared to 0.5 million tonnes in the previous forecast. This is due to higher-than-expected exports of corn during the first 10 months of MY2016/17. At 0.6 million tonnes, corn exports for the first 10 months of MY2016/17 are three times the exports for the first 10 months of MY2015/16. Destined mostly for the Philippines and Vietnam, larger exportable supplies of corn reflect the substitution of imported feed wheat and feed-quality rice stocks for corn in swine feed ration. Additionally, Thai feedmills are likely to hold minimal carry-over stocks of corn as they expect periodic harvesting of MY2017/18 corn production to begin in July 2017.
|Indonesia sets reference price for live birds, eggs|
[06 June 2017] The Indonesian government, through its Ministry of Trade, has released a new regulation about the reference prices of agro-commodity products both at farmer and consumer levels. On poultry products, reference prices of live birds and eggs at farmer level are similar, at USD 1.35 per kg. At consumer level, the prices are set at USD 2.40 (carcass) and USD 1.65 per kg, respectively. Sugeng Wahyudi, General Secretary of the Indonesian Poultry Organisations Association, appreciated the new regulation which is expected to stabilise prices of live birds and eggs at farmer level.
|Pakistan challenged by feed shortage|
[06 June 2017] The Pakistan Poultry Association (PPA) has warned about chicken and egg shortages in coming weeks as the industry is now facing problems in clearing imported poultry feed ingredients. Owing to misinterpretation by the Customs at ports, the authorities have been denying clearance to poultry feed ingredients including vitamins and amino acids, the association said in a press release. “These poultry feed ingredients and premixes are being imported for the past 50 years as non-drugs. Now these are being viewed as drugs,” PPA said.
|Promising opportunity for Vietnam’s mariculture|
[06 June 2017] Vietnam’s mariculture sector is gearing for growth. Production is expected to reach 1.6 million tonnes by 2020. To achieve this target, the industry needs to better address the obstacles from spontaneous development, input material dependence, and seek sustainable management in industrialised and hi-tech production, experts said. “With USD 1 billion investment, mariculture entrepreneurs can earn USD 3 billion of marine fish material in one year, which would then double with processing,” said Nguyen Huu Dung, former Secretary General, Vice President of Vietnam Association of Seafood Exporters and Producers (Vasep). “Vietnam is favoured with natural and technical conditions to become a major marine fish producer,” he added.
Regional dairy update
[06 June 2017]
DGLAH develops indigofera for ruminant forage
Indonesia’s Directorate General of Livestock & Animal Health (DGLAH) has partnered with the local government of Lingga regency in Riau province to develop indigofera as ruminant forage in the regency. Alias Wello, Lingga Regent said if the 100-ha pilot project is successful, the local government will develop it further. “We have 604 uninhabited islands to do this,” he said. For the project, DGLAH provides indigofera seeds and technical support. Indigofera is a legume that contains 22-30% protein, 0.22% calcium and 0.18% phosphor. I Ketut Diarmita, Director General of DGLAH said indigofera is good for calves and lactating cows. “It can be harvested after eight months. A hectare produces 2.6 tonnes of dry matter,” he said. Besides Lingga, DGLAH plans to develop the legume also in Merauke, Entikong and East Nusa Tenggara.
Vinamilk to export milk to China
The Vietnam Dairy Products Jsc (Vinamilk) plans to export products to China following the signing of a memorandum of understanding with its Chinese partner in May. The signing was in line with Vietnam’s efforts to strengthen trade bonds between the two countries. The milk maker hopes that the memorandum will be an opportunity to export dairy products to the USD 30 billion market in near future. Vinamilk is the largest milk company in Vietnam and among the top 50 milk producers in the world.
Guangdong Wens launches 80,000-tonne dairy processing plant
Guangdong Wens Foodstuff Group said it has launched a new modern dairy processing plant with an annual capacity of 80,000 tonnes. “We have set a strategy to promote our cow farming business with dairy processing, and eye national expansion,” Chairman Wen Zhifen said. Wens, already the largest pig and chicken producer in China, is also the largest dairy farmer in the southern Guangdong province with a cow stock of over 20,000 heads, which includes both Holstein and Jersey. The company started its dairy business in 2000 and became a raw milk supplier to Hong Kong later, enjoying an over 70% share in the territory. Last year, Wens sold 42,900 tonnes of raw milk and 12,800 tonnes of dairy products.
Palpa Dairy Association raises milk prices
Nepal’s Palpa District Dairy Association has raised milk prices by 9-14% to ease the pressure on cost of production. With the hike, cow's milk costs USD 0.67 per litre, while buffalo milk is USD 0.77 per litre. The association said that the increase in rates will benefit farmers who were receiving USD 0.31-0.40 per litre before this. “Now, they will get USD 0.46 per litre,” said Tika Ram Kharel, President of the association. The decision to hike the prices of milk was jointly taken by a meeting between farmers and dairy producers. Due to the involvement of middlemen, farmers were deprived of their fair share of profit reported Kathmandu Post.
|Dagsap to increase slaughterhouse capacity |
[05 June 2017] Indonesia’s Dagsap Endura Eatore based in Jakarta, will increase the production capacity of its 2000 birds/hour chicken slaughterhouse in Bantul, Yogyakarta. Tenty Ellyanti, Chicken Slaughterhouse Unit Manager told Asian Agribiz that the slaughterhouse currently slaughters around 2000-3000 birds/day, but the company plans to gradually increase production capacity to 20,000 birds/day. “To achieve this, we need to escalate sales to external markets. Feedback from customers is good,” she said. The company also plans to add a new cold storage facility with a capacity of 500-600 tonnes at the same complex.
|Betagro places more focus on Middle East|
[05 June 2017] Thailand’s Betagro said it sees high potential in the Middle East and is planning to export more chicken products to Middle Eastern countries including UAE (Dubai), Bahrain, Qatar and Oman, said Narongchai Srisantisaeng, Executive Vice President and Chief Operating Officer of Food Business. “The Middle East is a unique market and Betagro needs to develop special products to fit their requirements,” Dr Narongchai said, adding it will take some time to negotiate with them about product development, product specification and prices.” Betagro has exported its chicken products to the Middle East including frozen chicken, fried chicken meat and yakitori chicken meat. Meanwhile, the rising baht means that this has affected its export revenue and Betagro will continue to focus on cost management and cost reduction, Dr Narongchai said.
|CP China to build feedmill in Yiwu|
[05 June 2017] CP China is going to build a new feedmill in Yiwu in eastern China’s Zhejiang province, according to Zhejiang Huatong Meat Products Co, which plans to take 15% of the joint venture. CP China will directly hold a 55% stake in the Chia Tai Feed (Yiwu) Co, with the investment arm of Chia Tai Conti, a JV between CP China and Conti Feed, taking the remainder. Total investment will be USD 16.7 million. Yiwu-based Huatong is a livestock integrator in which CP China and Conti Feed own a 5% stake each. The company is building new pig and poultry processing facilities after finishing a Shenzhen IPO early this year.
|CCK’s Q1 net profit jumps 52% on higher retail revenue |
[05 June 2017] Malaysia's CCK Consolidated Holdings Bhd said its net profit jumped 52.4% to USD 1.08 million for the first quarter ended March 31 from the previous corresponding quarter. CCK’s revenue was up 14.4% at USD 33.34 million in the quarter under review from a year ago. Its shrimp sector achieved better results with increasing demand from export markets, especially Japan. The stronger US dollar had a positive impact on the performance of the shrimp segment. “The poultry sector’s results showed a decline when compared to last year as feed costs in particular affected the bottom line. Going forward, the group expressed confidence in achieving satisfactory performance for the financial year ending December 31 2017, barring unforeseen circumstances.
|Indonesia to grant 103 packages of catfish farming|
[05 June 2017] Indonesia’s Ministry of Fisheries and Marine Affairs will soon grant 103 packages of catfish farming with biofloc system to farmer groups in the country. A package consists of 12 ponds (diameter: 3m per pond), 42,000 catfish fries, 4 tonnes of feed, probiotics and operational facilities. According to Slamet Soebjakto, Director General of Aquaculture, the USD 1 million grant is expected to produce 1452 tonnes of catfish per year valued at USD 1.64 million. To ensure this project's success, he said the ministry has extension workers to guide the farmer groups. This year Indonesia targets to produce 1.3 million tonnes of catfish. In Q1 2017, production reached 225,000 tonnes.
|High temperature raises chicken price in India|
[05 June 2017] Summer heat has taken a toll on the poultry industry in three of India’s north coastal districts of Srikakulam, Vizianagaram and Visakhapatnam. Nearly 40% of the birds have died since May 10. Farmers here produce 3.5-4 million broilers a month. The sudden shortage of supply has triggered a spike in prices. After May 10, chicken prices rose from below USD 1.39 to above USD 1.86 per kg.
|S.Khonkaen expands its QSR business|
[02 June 2017] Thailand’s S.Khonkaen aims to open more restaurants through a franchise model in 2017, Jaraspon Rujirasopon, Assistant to CEO (QSR Business) told Asian Agribiz. This year it will open three more Zaap Classic, its north-eastern Thai food restaurant, up from 17 restaurants currently. Zaap Classic is also placing more focus on its food delivery business including a call centre and food delivery applications. S.Khonkaen also plans to open five more Yunnan restaurants in Thailand, which focus on stewed pork leg on rice. Yunnan restaurants has 22 outlets in Thailand, one in Laos and three in Cambodia. “In 2017, we will strengthen our QSR systems with training systems, human resource management and equipment training programs,” Jaraspon said.
|Danish Crown to build meat plant in China’s Zhejiang|
[02 June 2017] Danish Crown, Europe’s largest pork producer, has signed to build a processing plant in Pinghu in eastern China’s Zhejiang province, according to the Pinghu Economic-Technological Development Zone (PEDZ). The two parties signed the agreement on May 24, with Danish Crown CEO Jais Valeur attending the ceremony. The Danish giant will invest USD 58 million in its first production facility in China, producing packaged fresh meat and smoked meat products, said the PEDZ. Pinghu is about 90km southwest of Shanghai. Last year, Danish Crown announced plans to invest approximately USD 45 million in a processing and retail products plant in Shanghai, and it said the production would be based on raw material from Denmark.
|Poultry farmers complain of local corn shortage|
[02 June 2017] Indonesia’s Ministry of Agriculture expects a corn surplus this year as the ministry anticipates grain production will reach 23 million tonnes. However, poultry farmers, especially layer farmers who use home-mixed feed, complain that supply of local corn is scarce. “If the government claims there will be a surplus, there must be problems with distribution,” said Tri Hardiyanto, Chairman of the Board of Advisors of the Indonesian Chicken Organisations Association. Meanwhile, Ki Musbar, Chairman of the National Layer Farmers Forum, said competition with feed millers should also be taken into account. “We have to compete with feed millers to get local corn after the government banned corn imports.” He urged the government to improve the post-harvest sector if they want to make local corn available for farmers and feedmillers.
|Cattle ban to affect MPI’s business|
[02 June 2017] Amid a public outcry over the Indian government’s ban on the sale of cattle for slaughter, Meat Products of India (MPI), based in Kerala, fears that its business will be badly hit for want of raw materials. MPI sources materials mainly from Andhra Pradesh, Tamil Nadu and Karnataka and if the rule is strictly implemented, there will be no movement of livestock including buffaloes, said Shaju Jacob, MPI Director. Ironically, the ban has come when MPI enhanced the capacity of its plant spending USD 4.87 million. “The new rule will put MPI in a crisis. Sourcing livestock will be a big problem,” Mr Jacob said, adding that the ban will also affect MPI’s export plans.
|Price of chicken meat, eggs contract in Vietnam|
[02 June 2017] Farm price of broilers and chicken eggs are falling in Vietnam, due in part to oversupply and stiff competition from imports. CafeF, a local provider of financial and economic information, said price of eggs in the northern province of Vinh Phuc declined by 50%, fetching only USD 0.04/egg compared to a month before. In the south, egg price is currently at about USD 0.04/egg. Meanwhile, Nguyen Van Ngoc, Vice Chairman of the South-eastern Poultry Association noted that price of white broilers in the south is USD 1.01-1.06/kg. “At this price, the farmers are losing about USD 0.09/kg,” he said.
|Slowdown in Indonesia’s beef cattle feedlot industry |
[02 June 2017] The growth of Indonesia’s beef cattle feedlot industry is slowing down since the government sanctioned imports of frozen beef and carabeef. In addition, not all feedlotters can realise the government’s new policy of 1:5 cattle importation (feedlotters must import one breeding cattle for every five feeder cattle imported) due to feasibility considerations. Achmad, a member of the Indonesian Beef Cattle Farming Businessmen Association justified the slowdown in the industry. His company, for instance, only imported 2500 heads of feeder cattle in Q1, while his facility can accommodate 20,000 heads. “It’s not easy to implement the 1:5 scheme. Our facility will be full of breeding cattle since we can't slaughter them. Getting cooperatives or farmer groups to partner to raise the breeding cattle is also not easy,” he said.
China’s poultry sector progresses with value addition
[01 June 2017]
Prices of most poultry products have been falling in China due to overcapacity and the H7N9 bird flu infections. ALLEN SHU learns that the sector is moving towards more slaughtering and processing to offset the downstream risks.
Egg retail prices fall to eight-year low
The average retail price of eggs in China has been falling for seven consecutive months and has hit an eight-year low, said the Ministry of Agriculture. As of the third week of May, the egg price in the top 10 provinces has declined to USD 0.7/kg, or down 32.7% year-on-year. The price of commercial layer chicks was also declined 21% from a year earlier, while broiler chick prices slumped 33.4%. The prices of slaughter broilers and chicken carcass fell 15% and 11.9% respectively. “Poultry prices are expected to remain low due to sufficient supply, though the H7N9 infections will ease as summer approaches,” noted the ministry.
Wens turns to broilers fit for slaughtering
Yellow-feather broilers are easily affected by the bird flu as they are normally sold live at wet markets. As the largest producer of the native birds, Guangdong Wens Foodstuff Group said it will adjust its broiler breeds, turning to birds that are fit for slaughtering. Meanwhile, the company said it will boost broiler slaughtering while accelerating the expansion of chilled meat outlets, so as to facilitate the ‘upgrading’ of its chicken business. “We are considering building new broiler slaughterhouses as the existing two are running at full capacity,” Board Secretary Mei Jinfang told Asian Agribiz. Wens currently has a daily slaughtering capacity of 110,000 birds, compared to 819 million yellow broilers it produced last year.
Alliance calls for more broiler integrators
The native yellow broiler segment should also move towards centralised slaughtering like the white chicken segment, said Li Jinghui, President of China Broiler Alliance. “That’s a guideline from the Chinese central government, as well as modern consumer demand for hygiene and safety,” he told Asian Agribiz, adding that integrators who make up over 60% of the white broiler segment, have seen less impact of price fluctuation, as they can share the risks along the value chain. “There is great potential for integrated operations in the poultry sector,” Mr Li said.
White chicken producers expand further processing
Fujian Sunner Group, the largest white chicken integrator in China, is set to launch its sixth cooked product plant with an annual capacity of 48,000 tonnes around mid-2017, adding to its existing and combined cooked capacity of 150,000 tonnes. Furthermore, the company said it targets to build 15 new food plants over the next 10 years, pushing its annual sales of cooked products to about USD 1.5 billion. “Our goal is to become a ‘bellwether’ in China’s food industry,” Spokesman Chen Zhihong told Asian Agribiz. Shandong Xiantan Co is also testing equipment at its new cooked chicken plant with a designed capacity of 42,000 tonnes per year. It will be the first further processing plant for the company.
Egg processor Ovodan to expand to south China
Suzhou Ovodan Foods Co, formerly a China unit of Sanovo Egg Group, said it is planning on expanding to Guangdong province this year. “We will try to establish a sales network in the region in five years, serving markets in south China, Hong Kong and Macau, as well as Southeast Asia,” the company said. As an egg processing pioneer in China, Ovodan has a facility each in eastern Jiangsu province and Tianjin in the north. Its 2016 revenue rose 7.5% to USD 69 million, while net profit jumped 221.4% to USD 7 million with cheaper eggs. “There is great potential for egg processing in China, as processed products account for only 1-2% of the sector, far below the ratio in Japan and the US,” it noted.
|Indonesia approves import of 650,000 broiler GP|
[01 June 2017] Indonesia’s government has decided to sanction an import quota of 650,000 broiler GP this year, allocated to 14 breeding companies. The figure is lower compared to 675,000 birds in 2016 and 700,000 birds in 2015. Surachman Suwardi, Director of Livestock Breeding and Production said the quota reduction was aimed to prevent DOC oversupply in the market. He said that this year’s quota will impact the production in 2018. I Ketut Diarmita, Director General of Livestock and Animal Health said currently the supply of live birds is around 63 million birds per week while demand is only 52 million. “We need to cull PS to reduce the live bird supply,” he said, adding that culling will be done from May to July.
|Vietnam’s poultry industry contends with oversupply|
[01 June 2017] Still reeling from the oversupply of pigs, Vietnam's animal protein sector is taking another hit, this time with an oversupply of chicken meat and eggs that has led to plunging farm prices. Local experts said the glut resulted from the unplanned increase in numbers of broilers and layers in the country. Nguyen Thanh Son, Chairman of the Vietnam Poultry Association, said Vietnam's poultry industry grew by 9.9% in 2016, much higher than the world average of 3.7%. Meanwhile the latest report from the Department of Livestock Production showed that poultry population is up 3.1% while broiler meat supply is up 5.3%, respectively from the same period last year.
|Heat stress hits chicken farms in Andhra Pradesh|
[01 June 2017] As temperatures continue to soar well above 40 degrees in Vijayawada and other parts of India’s Andhra Pradesh, poultry farms are suffering the brunt. Prices of chicken have shot up from USD 2.63 to USD 3.72/kg, while skinless chicken is priced at USD 3.97/kg. Jasti Ramesh, a poultry farm owner in Vijayawada said that 30% of chickens weighing more than 1kg have died because of the heat. “As the adult birds, on which we have already invested heavily, are dying, we have no other option but to increase the price to minimise the losses,” he said.
|Bulog, CCP launch affordable poultry feed|
[31 May 2017] Indonesia’s State Logistics Agency (Bulog) and Cipta Cahaya Perwiratama (CCP) have launched ‘Pakan Ternak Kita’ branded poultry (broiler & layer chicken) feed. This feed project provides quality, affordable feed for small-medium scale poultry farmers in the country at USD 0.46/kg for broiler feed and USD 0.34/kg for layer feed. Around 45,000 tonnes of feed, consuming around 24,000 tonnes of corn imported by Bulog, will be produced in its initial stage. Cecep M Wahyudin, CCP President Commissioner said in the partnership, CCP’s responsibilities include feed additives procurement, feed sales & marketing, administration and control. Meanwhile, to process the feed, CCP entrusts it to Gold Coin Indonesia and QL Agrofood. “The next three months will be crucial for the continuity of this pilot project,” Mr Wahyudin said.
|Godrej Agrovet reports high increase in Q4 profit |
[31 May 2017] India’s Godrej Agrovet reported a 97% increase in its fiscal Q4 profit before tax on higher volume growth, the company said. A spate of acquisitions particularly in the dairy business also helped boost the company’s revenue and profits. The company, which is preparing for an IPO, posted a 4% increase in revenue during the quarter ended March 2017 to USD 159 million. “The animal feeds business grew despite headwinds while Creamline dairy products grew 10%, with growth in value added products,” said Balram Yadav, Managing Director. He added that the company has been expanding its dairy business with smaller acquisitions. “We bought one asset in Hyderabad as we look at temperature neutral products. We also acquired another asset near Tirunelveli called RBS Dairy, which sells products under the Matha brand name.”
|Golden Telor develops egg franchise business |
[31 May 2017] Indonesia’s Golden Telor, a chicken egg producing & distributing company based in Semarang, has developed a franchise model for egg sales & distribution. It recently joined the International Franchise, License & Business Concept Expo & Conference in Jakarta, where it promoted its egg franchise concept. According to Linda, staff of the company, to become a franchisee, interested parties only needs to provide USD 970 to buy the franchise ‘agent’ package. This package includes 150kg of first egg stock, weigher, calculator and promotion materials. On revenue, she assures the franchisee an average income of USD 2400 per month (sales is estimated at 400kg per week). Besides the ‘agent’ package, the company also offers ‘distributor’ and ‘master’ packages.
|Challenges in Vietnam’s mariculture development|
[31 May 2017] Although Vietnam possesses favourable conditions for mariculture growth, heavy dependence on input materials such as breeding stock and feed. Le Van Khoi from the Research Institute of Aquaculture Number 1, said breeding stock, feed, market, environment degradation, climate change and beneficial confliction with other sectors are major obstacles that investors in mariculture need to overcome. “Small-scale breeding stock production and heavy dependence on import sources have led to reduced quality and shortage of broodstock,” Mr Khoi said. “The availability of feed is also a problem.” As much as 80% of marine fish feed is either imported or produced by foreign millers.
|KFC India to provide meals for underprivileged children |
[31 May 2017] As part of the global initiative to create awareness and raise funds to provide meals for underprivileged children, KFC India has set a target of providing 20 million meals by 2020. The QSR chain has partnered with Smile Foundation and other organisations to feed over 10,300 underprivileged children every day, according to a KFC release. “Through addHOPE we are moving closer, each day, to our aim of providing 20 million meals by 2020,” said Rahul Shinde, KFC India Managing Director.
|KPS setting up pig AI centre in North Sulawesi|
[30 May 2017] Karya Prospek Satwa (KPS), a close partner of Charoen Pokphand (CP) Indonesia, is setting up an artificial insemination (AI) centre in Taratara, North Sulawesi province to produce commercial pig semen. “AI is quite popular in this province. Our role at the centre is to supply them with quality semen and train them on the correct procedure,” Phaithoon N Na Ayudhaya, Business Development Advisor of CP Indonesia and consultant for KPS, told Asian Agribiz. “Currently we are setting up the laboratory and preparing equipment like pig dummies, semen containers, microscopes and a device to check sperm motility.” In the province, KPS has two pig breeding farms jointly owned with local feed agents – the GP farm with Unggas Jaya now raises 250 sows while the PS farm with Bintang Jaya raises 300-500 sows. These two farms supply quality PS, growers and piglets to pig farmers in the province.
|South Korea stabilises prices of eggs, poultry|
[30 May 2017] South Korea’s government will release its egg and poultry stock early next month to stabilise soaring prices. Depending on prices, up to 5 million eggs will be released for two weeks at a price 30% lower than the market, according to officials at the Ministry of Agriculture, Food and Rural Affairs. For poultry meat, the government will put in 2100 tonnes from May 31, an amount equal to one to two days of domestic consumption, reported The Korea Herald. The meat will be sold 50% cheaper than the market price. The National Agricultural Cooperative Federation will purchase the eggs and poultry from the government and sell them through its outlets nationwide. Private distributors, who hold an estimated 6000 tonnes of poultry meat, will be encouraged to release their stock as well. Egg prices had soared for months after the AI outbreak in November last year. The ministry is planning to import eggs from Thailand, Denmark and the Netherlands from as early as next month to fend off shortages.
|Halal producers urged to take advantage of global potential|
[30 May 2017] Halal producers in the Philippines are well-positioned to take advantage of the US 1.6-trillion global halal market, said Senator Cynthia Villar, Chair of the Senate Committee on Agriculture & Food, at the opening ceremonies of Livestock Philippines 2017 last Wednesday. She said that Mindanao in Southern Philippines, which has a significant Muslim population, “can be the halal hub of the country and even the rest of the world” adding that it is already being actively promoted or positioned as the halal production centre and is the gateway to the Brunei, Indonesia, Malaysia, Philippines-East Asean Growth Area.
|Indonesia sees no negative impact of carabeef to local industry|
[30 May 2017] Responding to refusals from some provinces on sales of imported carabeef, the Indonesian government has assured that the meat will not negatively affect the welfare of local beef cattle farmers. According to Fini Murfiani, Director of Animal Products Processing and Marketing, imports of carabeef from India is not aimed to ‘shake’ the price of beef, but to offer consumers beef at affordable prices, plus prevent the slaughter of productive cows, as was seen in the last three years due to high price of beef.
|Vietnam to boost marine fish production|
[30 May 2017] Vietnam was first marked on the world map of leading mariculture countries in 2012 and saw its first marine fish exported to the US in 2015, which brought high hopes to the industry for further development. In the period of 2010-2015, the country’s marine culture grew exponentially, reaching 308,587 tonnes in 2015, up from 156,682 tonnes in 2010, according to the Directorate of Fishery. By 2020, Vietnam expects to produce 200,000 tonnes of marine fish. Currently, marine fish that are most popular are grouper, cobia and barramundi.
|India secures WTO compliance panel on chicken imports|
[30 May 2017] India has secured the establishment of a compliance panel at the World Trade Organisation (WTO) regarding the dispute with the US on restrictions on chicken imports. The panel will determine whether it has complied with a previous ruling faulting import prohibitions on poultry due to bird flu concerns. “New Delhi had requested that a panel be established to show that the new measures conform to India’s WTO obligations. The US had disagreed that India’s revised avian influenza (AI) measures comply with the WTO findings. The request has been accepted,” an official privy to the meeting of the WTO’s Dispute Settlement Body told The Hindu Business Line. India’s first request for a panel was blocked by the US in April, prompting India to submit a second request.
|Bangkok Ranch to buy duck processing plant in Netherlands|
[29 May 2017] Duck-To Holding B.V. (DTH), a subsidiary of Thailand’s Bangkok Ranch (BR), said it will enter into a purchase agreement with Lisuda Vastgoed B.V. for the purchase of land and properties in the Netherlands. The properties, which are located in Ermelo and Uden, includes an office building, a slaughterhouse, a duck processing plant, a food processing plant, cold storage and warehouses. DTH will invest no more than USD 7.62 million in these properties, plus applicable taxes not to exceed 6% of the purchase price. BR said the total purchasing price will be around 8.07 USD million. BR said it will fund this purchase through bank loans and its own funds. The transaction is expected to be completed by September 2017.
|Vietnam turns to Cambodia to ease glut in pigs |
[29 May 2017] With the China market closed, pig farmers from Dong Nai province in Vietnam have turned to Cambodia. Phan Minh Bau, Vice Director of Dong Nai Department of Agriculture and Rural Development said that between 8000-9000 pigs have been leaving the province to serve the southern markets in mid-May, some of it going to Cambodia. Meanwhile, Nguyen Kim Doan, Vice Chairman of Dong Nai Livestock Husbandry Association said hog exports to Cambodia has been good since late March, with 2000 heads crossing the border daily. He noted that while export price to Cambodia is low at only USD 1.06-110/kg, it has helped ease the oversupply in the country.
|Danish fund invests in pig complex in northeast China|
[29 May 2017] Newly-established Asia-Europe Animal Husbandry Co, in which Denmark’s Investment Fund for Developing Countries (IFU) holds a 30% stake, has kicked off construction of a pig complex in Suihua in northeastern China’s Heilongjiang province, according to the state-owned Zhejiang Provincial Agricultural Development Group that owns 35% of the joint venture. The complex will include GP, PS and fattening farms designed to produce 350,000 pigs a year. It will also house a 200,000-tonne feedmill and a two-million-head slaughterhouse. Total investment will be about USD 134 million. The pork from the complex will be mostly supplied to the eastern water-rich Zhejiang province where pig farming is strictly controlled due to pollution concerns.
|Bulog faces corn distribution challenges|
[29 May 2017] Last year, the Indonesian government assigned the State Logistics Agency (Bulog) as the stabiliser of corn prices in the country. As the only feed corn importer, Bulog also must absorb local corn. The latter, according to Febriyanto, Bulog Commercial Director, has challenged the agency as the technical rules for procurement and distribution are not in lace. Separately, selling and distributing feed corn to small-medium scale livestock farming enterprises is not easy. So far, Bulog has imported 100,000 tonnes of corn to be distributed to small-medium scale players. “Their absorption is low. As of April, we only distributed 30,000 tonnes while we previously targeted the imported stock to finish in February,” he said. Faced with storage problems, Bulog recently partnered with CV Cipta Cahaya Perwiratama to process the remaining corn into broiler and layer feeds.
|Philippine agriculture grows 5.3% in Q1|
[29 May 2017] The Philippine Statistics Authority said the local agriculture sector expanded 5.3% in the first quarter of 2017, mainly due to favourable weather conditions. The crops subsector saw corn production increasing by 23.4% compared to the same period in 2016. The livestock subsector increased 3.2%. Pig production grew 3.5% and was the top contributor to the subsector’s performance. The poultry subsector contributed 15.4% to total agricultural production, and increased 1.9% compared to the same period for 2016. Average farm prices increased 3.3% in the first quarter of 2017 as compared to the same period in 2016. Livestock prices were higher by 6%. Poultry prices were up 0.3% compared to the same period for 2016.
|Beef market competition in Japan to intensify in 2018|
[29 May 2017] In February US beef exports to Japan outpaced Australian beef shipments for the first time in 14 years. This was achieved despite of a comparatively stronger dollar and an eight-percentage point tariff disadvantage relative to Australian chilled beef, the dominant beef supplier in the Japanese market. The USDA’s Foreign Agricultural Service (FAS) said it expects tight supplies of Japanese and Australian beef to continue to create opportunities for US beef in 2017. However the outlook for 2018 and beyond looks dim, said the FAS. Australia currently benefits from the Japan-Australia Economic Partnership Agreement. If modifications to the Trans-Pacific Partnership materialises next year Australia could realise further benefits making US recent market share gains in Japan difficult to maintain.
|CP Indonesia eyes 25% revenue growth|
[26 May 2017] Indonesia’s largest poultry integrator Charoen Pokphand (CP) Indonesia targets to record a 25% revenue growth this year. Its revenue last year was USD 2.87 billion. The company is optimistic that the revenue target is achievable as last year it acquired a poultry contract farming company which will help to boost its financial performance. In 2015, CP Indonesia also acquired a poultry contract farming company called Prospek Karyatama where the last two years had given a significant revenue contribution. In addition, Tjiu Thomas Effendy, President Director said CP Indonesia is in the process of acquiring the 7-Eleven convenience store chain, and it has allocated USD 75 million for this. If successful, this acquisition is also expected to offer significant revenue contribution.
|Feed, meat companies honoured at Livestock Philippines|
[26 May 2017] Ten feed and 14 meat companies were recognised for their contributions to the Philippine livestock industry during the opening ceremony of Livestock Philippines 2017. The show opened on Wednesday and runs until today at the SMX Convention Centre in Pasay City. Among the companies receiving the Feed Industry award sponsored by the Bureau of Animal Industry were CJ Philippines Inc, AgriSpecialist Inc, Philippine Foremost Milling Corp, Limcoma Multi-Purpose Cooperative, Santeh Foods Corp, Pilmico Food Corporation, Sorosoro Ibaba Development Cooperative and Sunjin Philippines. Meanwhile, 14 poultry exporters, including San Miguel Food Inc and Maharlika Agro-Marine Ventures Corp were honoured by the National Meat Inspection Service.
|Vietnam’s Ca Mau eyes USD2b in shrimp exports |
[26 May 2017] Vietnam’s Ca Mau plans to encourage farmers to apply modern and environment-friendly farming technology in raising shrimp and enhancing links with firms to increase value. The province is striving to earn USD 2 billion from shrimp exports by 2020, with total output of 280,000 tonnes. Ca Mau is the largest shrimp producer in Vietnam with output of more than 145,000 tonnes last year, accounting for 23% of the country’s total shrimp output and 32% of the Cuu Long (Mekong) River Delta’s production. The province has 34 processing plants with total capacity of 150,000 tonnes per year. Ca Mau’s shrimp export was estimated at more than USD 167 million in Q1 2017.
|US’ Proterra invests USD100m in Indonesia’s FKS Food & Agri|
[26 May 2017] US-based private equity group Proterra Investment Partners has invested USD 100 million in Indonesia’s FKS Food & Agri in exchange for a minority stake in the company. FKS Food & Agri is a key part of FKS Group, sourcing food and agricultural products through its global network, with strong marketing, shipping, logistics and distribution management across Indonesia. The group is a major importer, trader processor, and distributor of grain commodities and feed, and is the number one importer and distributor of soybeans and soybean meal in Indonesia. Protein production investments by Proterra include dairy farming, aquaculture, and hog and poultry farming, according to Global AgInvesting.
|Chinese consumers delight in seafood from Pakistan|
[26 May 2017] The first consignment of two tonnes of seafood from Pakistan arrived in Karamay, a city in China’s Xinjiang province on May 20. Sixteen varieties of seafood – including lobsters and black seabass – were shipped from Gwadar Port in Pakistan. The shipments arrived via Urumqi, the capital of Xinjiang Uighur Autonomous Region. “We will have a flagship store, and later we will also import more varieties of seafood which will be sold both online and offline,” said Ma Jinglu, Manager of a fishing company Yufei. The company also has a branch in Gwadar where they have invested nearly USD 74 million to establish several infrastructural setups such as freezing, seafood deep processing, a packaging factory and a scientific research centre.
|TGM opens a second factory in Thailand|
[25 May 2017] Thai-German Meat Product Co (TGM) recently opened its second factory in Thailand’s Chachoengsao province. This factory has a daily production capacity of 40 tonnes and will produce sausage, ham and bacon products. The company said the new factory will serve rising local and overseas demand. TGM said it has upgraded its production standards and selects quality raw materials. TGM said earlier that it has imported new machinery from Germany featuring universal standards for the production of high-quality food products. These are computerised and operated by a robotic system.
|Huangshanghuang builds 8000-tonne plant in south China|
[25 May 2017] Chinese duck parts processor Huangshanghuang said it plans to build a new plant with an annual capacity of 8000 tonnes in Dongguan in southern China’s Guangdong province. The plant, designed to produce braised meat and other cooked products, will replace an old facility with an annual capacity of 5000-5200 tonnes in the same city. Investment will be USD 15 million. “We expanded the capacity as demand for MAP food products is growing in south China,” the company said. It currently operates a 30,000-tonne plant at its headquarters in eastern China’s Jiangxi province, in addition to plants in Liaoning, Fujian and Shaanxi provinces.
|CP Indonesia to add new corn dryers, silo|
[25 May 2017] Charoen Pokphand (CP) Indonesia plans to add corn dryers at its facilities in Gorontalo and in Dongpu, West Nusa Tenggara. “Corn is the main raw materials for our [feed] production,” said Tjiu Thomas Effendy, President Director recently during the company’s annual shareholders meeting in Jakarta. The company said the new corn dryers will have a total capacity of 700-1000 tonnes. In addition, the company also plans to build a new silo in Semarang of Central Java. CP Indonesia’s main business line is poultry feed — around 50% of the company’s total revenue comes from this unit. DOC production contributed 38%, processed chicken 8% and poultry farm equipment 4%. The company recently expanded its market to Papua New Guinea, sending one container there once every two months. The company’s next move will be to expand to Japan, but no final decision has been made.
|Trang Aquaculture promotes large-scale white shrimp farming|
[25 May 2017] Trang Aquaculture Cooperative has inked a memorandum of understanding (MOU) with the Thai government and Charoen Pokphand Foods (CPF), to promote large-scale white shrimp farming. The MOU aims to ensure sustainability among small shrimp farmers, who combine resources and operate as a big group in Trang province. Under the MOU, CPF will transfer its advanced knowledge and farming technology to shrimp farmers. CPF has developed the 'three clean' principles, which focus on the cleanliness of water in the ponds, disease-free baby shrimp, and the cleanliness of the pond floors. Mr Anant Jaranayothin, President of Trang Aquaculture Cooperative, said CPF’s techniques will help shrimp farmers effectively tackle shrimp diseases, boost output and ensure contamination-free and traceable shrimp.
|KFC expands to second city in Myanmar|
[25 May 2017] Fast-food restaurant KFC will expand to a second city in Myanmar, adding Mandalay to its 12 locations here as the fast-food trend spreads especially among the nation’s young people, reported Asia Nikkei. KFC’s operator in the country, Yoma Strategic Holdings, will launch the new outlet in June or July. The location is among the 10 new stores planned for the year, said Yoma CEO Melvyn Pun. Yoma opened the first KFC in 2015 in Yangon. Other foreign-owned fast-food chains have entered Myanmar in recent years, including South Korea’s Lotteria in 2013, Japan’s Freshness Burger in 2014 and Burger King of the US last year.
|Aeon adopts MAP technology for longer shelf life|
[24 May 2017] Japanese supermarket operator Aeon plans to fully roll out the MAP (modified atmosphere technology) technology that can give meat and seafood an extra day or two of shelf life. The technology, which has already been rolled out on a trial basis, mainly at smaller outlets, will now be used at larger stores. The shelf-life-extending technique comes as Japanese are entering supermarkets less frequently. As a result, groceries are staying in stores longer. Aeon hopes the wrap helps keep supermarkets from having to discount foods about to expire and cut down on waste reported Nikkei Asian Review.
|Malaysia local government keen to solve pig pollution issue|
[24 May 2017] Malaysia’s Melaka state government is planning to present a Pig Farm Licensing Act 2017 so that it can act against errant pig operators that release swine effluent into rivers. According to State Agricultural Entrepreneurial Development Committee Chairman Datuk Hasan Abdul Rahman, the environment pollution caused by the pig industry in the Paya Mengkuang area in the state has affected many residents and hoteliers, and raised serious environmental concerns. There are some 32 pig farmers in the area. Also wary of environmental issues, the Penang state government last year urged producers to change their farming methods or risk having stern action taken against them.
|Cargill plans for 5th feedmill in South Korea|
[24 May 2017] Cargill will build its fifth livestock feedmill in South Korea as early as 2018 to expand output and more effectively compete with market leader, the National Agricultural Cooperative Federation, or Nonghyup. Cargill said it plans to capitalise on its growing feed market, which has reached USD 8.85 billion, in line with the country’s increasing meat consumption. “We haven’t decided yet as to where we are going to construct the fifth mill. But it will probably be in either the Gyeongsang or Jeolla provinces,” said Lee Bo-kyeun, CEO of Cargill Agri Purina, Cargill’s South Korean business unit. The company is the third largest producer, employing 600 workers, after Nonghyup and Harim in the world’s ninth largest livestock feed market.
|Dharma Jaya to develop beef cattle farm in East Nusa Tenggara|
[24 May 2017] The Jakarta government-owned company Dharma Jaya plans to invest USD 2.77 million to develop a beef cattle farm in East Nusa Tenggara, Indonesia. Marina Ratna Dwi Kusumajati, President Director said the project is expected to start next year. The farm, which will fatten 2000 heads of beef cattle, will supply quality beef to Jakarta which needs around 60 tonnes of beef per day. Last year, Dharma Jaya was asked to ensure supply of beef in Jakarta as well as to stabilise the price.
|Vietnam’s shrimp exports to reach 660,000 tonnes this year|
[24 May 2017] Vietnamese shrimp exports reached the same value as the same period in 2016, at USD 618.3 million in Q1 2017, according to Vietnam Association of Seafood Exporters & Producers. There was a sharp rise in raw shrimp price, which together with the anti-dumping tax imposed by the US, led to a significant drop in Vietnamese shrimp exports. In the period, exports of live/fresh/frozen white leg shrimp reached the highest value of USD 208.4 million in Vietnam’s total shrimp exports. Exports of other canned/processed shrimp showed the highest increase of 91.3%, worth USD 1.1 million. Meanwhile, export of processed black tiger shrimp decreased 34.8%. It is projected that the output of raw shrimp in 2017 will increase to 660,000 tonnes valued at USD 3.4 billion, a 9% growth year on year.
|Hy-Line China unit starts construction of Chongqing complex|
[23 May 2017] China’s layer breeder Huayu Agricultural Technology Co, in which Hy-Line International holds a 55% stake, said it has kicked off construction of a breeding complex in Fengdu County in the southwest municipality of Chongqing. Costing total USD 109 million, the complex will house a hatchery with annual capacity of 50 million chicks, a 50,000-tonne egg packaging plant, a 100,000-tonne feedmill, as well as eight parent farms to stock 150,000 layers each a year. “The complex is expected to be operational next year,” Spokeswoman Ma Ling told Asian Agribiz. In March this year, Huayu started construction of a hatchery with annual capacity of 100 million chicks in Handan, north China’s Hebei province where it is headquartered. It is also adding a new hatchery to its Jiangxi unit in east China.
|EU to inspect Vietnam’s seafood production|
[23 May 2017] Vietnam’s Ministry of Agriculture and Rural Development said that from June 20 to 29, an EU delegation will inspect all steps involved with food safety in seafood production and business chains, including fishing vessels, fishing ports, aquaculture facilities, wholesale markets, and purchasing, pre-processing, preservation and processing facilities. Nguyen Nhu Tiep, Director of Vietnam’s National Agro, Forestry, Fisheries Quality Assurance Department, said EU is one of the major export markets for Vietnamese seafood products. Results of the inspection will have a direct impact on seafood production and business of many enterprises, and the country’s seafood export value to the region as well as to other countries. “Maintaining the reputation and quality of Vietnamese seafood products in the EU market is important and this determines acceptance by other markets as well,” he said.
|Sri Lanka’s poultry producers opt for high tech equipment |
[23 May 2017] Religiously-diverse Sri Lankans are increasingly picking chicken meat as a healthy and safe option as their per capita income levels rise. The industry, meanwhile, has laid solid ground work by installing modern farming equipment to raise productivity and efficiency. This has raised the industry to one of the most modern in the region in terms of equipment and facilities, Rajive Miranda, Director, Sales and After Sales, Bodum Engineering Solutions Pvt Ltd, told Asian Agribiz. “Sri Lanka has surpassed her neighbours in the region where technology is concerned. Producers expect their suppliers to be up to that standard as well. Hence the more established integrators look for reliable equipment that have a reputation for durability.”
|GFPT posts 54% growth in Q1 net profit |
[23 May 2017] Thailand’s GFPT has reported a net profit of USD 12.29 million in Q1, up 54.29% from the same period last year, backed by higher sales revenue, lower raw materials costs and higher foreign exchange gains. GFPT’s sales revenue increased 5.6% year-on-year to USD 119.38 million in Q1 due to higher revenue from its chicken processing segment. The company’s total export of chicken products was 7500 tonnes, up 38.89% from Q1 2016, supported mainly by an increase in export volume of both frozen and cooked chicken products to Malaysia and Japan. However, revenue from its feed segment dropped 7.02% year-on-year to USD 24.86 million, hurt by intense competition in animal and aquatic feed in Thailand. Also, revenue from its processed food segment decreased 7.15% year-on-year to USD 5.80 million.
|HS code, taxes burden Bangladesh poultry industry|
[23 May 2017] HS code complexities and higher taxes have been affecting the import of some major poultry feed and animal health products, pushing up the production cost of chicks, meat and eggs in Bangladesh. The animal health industry and poultry feed manufacturers said they are even facing double taxation for some feed ingredients, medicines and some other ingredients due to the complexities created by the customs authority under the National Board of Revenue (NBR). “It will be difficult for us to maintain growth of protein production,” Moshiur Rahman, President of Bangladesh Poultry Industries Central Council, told The Financial Express.
|Cargill’s new aqua line to produce high quality extruded feed |
[22 May 2017] Cargill’s new aqua feed line in Ha Nam, northern Vietnam, will produce high quality extruded feed for tilapia and other local species. Cargill now has a total of 10 aqua feed lines across six different plant locations in Vietnam. Thanks to its location in Ha Nam province, the new feed line will improve access to customers in major agricultural areas of Ha Nam, Hanoi, Thai Binh and the broader North Central Vietnam region where farmers are rapidly switching from extensive to intensive farming practices, Chad Gauger, Managing Director, Cargill Aquaculture Nutrition Asia South, told Asian Agribiz. Opened in 2012, the plant produces feed for swine, poultry and now fish. Its total production capacity including aqua feed is 26,000 tonnes per month.
|Thailand’s Spring Kitchen invests USD20m in further processing plant|
[22 May 2017] Spring Kitchen, a subsidiary of Thailand’s TFM group, invested USD 20 million in its first chicken further processing plant in Thailand’s Suphanburi province last year, Nutthapol Dussadeenoad, Commercial Director of Spring Kitchen told Asian Agribiz. In its first phase, the new plant has a production capacity of 12,000 tonnes a year and Spring Kitchen plans to export around 95% of its production capacity to Japan and the EU. With two production lines, the plant produces cooked chicken meat including fried, steamed and roasted chicken. “We see a great opportunity in Japan where more consumers are turning to ready to eat products,” Mr Nutthapol said. In its second phase, the company will install its third production line in late 2018, raising total production capacity to 18,000 tonnes a year.
|Malaysia to maintain fragile self-sufficiency in poultry|
[22 May 2017] Malaysia's Poultry production growth is seen to reach 1.77 million tonnes in 2020, said a BMI Research report. The country is expected to produce 1.59 million tonnes this year. In 2013 the country produced 1.43 million tonnes. “After a decade of strong growth, we forecast poultry meat production to grow at a moderate pace in the coming years, as rising production costs is undermining the development of the sector. Malaysia will maintain a fragile self-sufficiency in poultry,” said the report. The sector will continue to expand at a slow pace driven by ongoing investment in the sector. Foreign investors are growing, as foreign food producers see Malaysia as a good entry point to expand to the booming Southeast Asian meat market.
|Yukou Poultry claims 50% share of China’s layer market|
[22 May 2017] Beijing Huadu Yukou Poultry Co said it dominates about 50% of China’s layer market by supplying a total of 3.5 billion birds over the past eight years. The breeder ended a distribution partnership with Hy-Line eight years ago and has launched its own breed since then. It now has a grandparent stock of 380,000 sets and parent stock of 4 million, hatching 240 million commercial chicks a year. Yukou Poultry also recently launched WOD 168, a meat-type hybrid between broiler and layer. The breed has a meat flavour preferred by Chinese consumers compared to the commercial white-feather broilers, and is better for slaughtering than the native yellow birds, according to the company.
|Perinus to export tuna, squid, value-added fish products|
[22 May 2017] Besides processed octopus, Indonesia’s state-owned fishery company PT Perikanan Nusantara (Perinus) this year also plans to export tuna, squid and value-added fish products to Japan, EU and the US. Dandi Anggi Gumilang, Perinus President Director revealed that the company targets to export 500 tonnes of tuna and 1000 tonnes of squid with values of USD 3.76 million and USD 11.27 million, respectively. Besides targeting export markets, domestic markets are still Perinus’ priority. Last year, the company produced 6000 tonnes of fishery products and 95% of the figure was supplied to domestic markets. This year, Perinus is optimistic of producing 16,000 tonnes of fishery products as it has improved its fishing vessels.
Indo Livestock 2017 in Surabaya, Indonesia
Onsite report by ARIEF FACHRUDIN
[19 May 2017]
Indo Livestock 2017 in Surabaya, East Java, Indonesia opened on May 17. As many as 300 local and international exhibitors promoted their products and solutions to raise efficiency and sustainability in the livestock sector. Around 10,000 visitors are expected to attend the 3-day show.
Big Dutchman launches A-frame cage system
BD Agriculture Indonesia (Big Dutchman) took the opportunity at the show to launch its new traditional cage system for the efficient production of commercial eggs called A-Compact 645. Ansyar Jalaludin, Sales Representative explained that the system features a space saving narrow A-frame structure with high stocking density of up to six tiers, manure scraper on every tier, ability to store the manure in a deep-pit under the system, and direct transfer of eggs into the egg elevator without additional transfers. Pieter Kruit, Joint-Managing Director told Asian Agribiz that the company decided to launch the system in Surabaya since East Java is the largest egg producing region in the country. “Many layer farmers in the province have embraced modern housing technologies. By using the A-Compact 645 in their operations, they will get efficient production and be able to overcome environmental issues,” he said.
Growing home-mixed feed trend in East Java
Moving to home-mixed feed is a growing trend in the layer farming industry in East Java province. According to Hari Susilo, Technical Service Staff of feed milling equipment supplier Kaliber Mitra Sakti, layer farmers with population of more than 200,000 birds produce their own feeds. “Since last year, we have sold many units of mixer with a capacity of 2 tonnes per day. Some farmers also bought dosing systems since they want to produce their own concentrates. By doing home-mixing, they can control cost,” he told Asian Agribiz. Mr Susilo said the company has received many requests for corn dryers.
AWP promotes essential oils product
Italy-based Animal Wellness Products (AWP) promoted its Mix-Oil, a highly-concentrated mix of essential oils to improve the performance and health of all farm animals. Paolo Cristofori, Chairman said the main action of Mix-Oil is its antioxidant, anti-microbial, anti-inflammatory action and the stimulation of the immune defence of farm animals. Haryono Jatmiko, Director of Vetagro Mitra Kusuma, Indonesian distributor of the product, said Mix-Oil is a right alternative to antibiotic growth promoters in feed which will be banned in January 2018. “We are now doing several trials of Mix-Oil in poultry and pigs in some regions in the country,” Mr Jatmiko said.
Van Aarsen supports customers in good, bad times
Although the country’s poultry industry is not robust currently, being present in the market by joining exhibitions like Indo Livestock in Surabaya is important, according to Jos van de Berg, Area Sales Manager Asia of Van Aarsen International. “We want to show that we are always ready to support our customers at all times.” In addition, he said: “Having meetings with our existing customers at the show is important to get feedback which is crucial for our technology and service improvement.” Mr van de Berg revealed that the company is now installing a micro dosing system for a feedmill in the country.
Stagnant dairy cattle farming business
Dairy cattle farming business in Indonesia is relatively stagnant, according to Meddy Wijaya, Manager of Agri Servis Sakti, representative of DeLaval in Indonesia. In the past few years, he has seen that some medium-scale dairy cattle farming businesses (100-200 heads) collapsed. “Poor milk prices and internal management problems were the causes,” he told Asian Agribiz. While small-scale farmers, he said, still survive because they do not add labour cost into their production costs. Mr Wijaya hopes the government can intervene on the price of fresh milk. “If the price of fresh milk is USD 0.45 per litre, farmers can expand their business. Their average production cost is USD 0.37 per litre.”
|Modern pig farm project may not take off in Malaysia’s Johor state|
[18 May 2017] The modern pig farming project proposed by Malaysia’s Veterinary Services Department to the Johor state government last year may not proceed in the absence of a suitable location, the Johor State Legislative Assembly heard. “The project must be located far away from settlements and watersheds,” said State Agriculture, Agro-based Industry, Entrepreneur Development and Cooperatives Committee Chairman Ismail Mohamed in a report in The Star. Mr Ismail said that only 10 of the 47 pig farms in Johor had implemented the closed farming system to address pollution problems. Of the 10 pig farms, seven possessed certificates of Good Agricultural Practice in line with the Good Animal Husbandry Practice.
|Yum China to buy higher-end delivery service provider|
[18 May 2017] Yum China said it has entered into a definitive agreement to acquire a controlling stake in the holding company of Daojia, a Chinese food delivery service provider focusing on higher-end orders in large cities. The transaction is expected to close by the end of this month. “This marks another step in executing Yum China's strategy to accelerate growth through digital and delivery by building know-how and expertise in this growing segment,” the company said. Over 4400 of Yum China’s 7663 restaurants offer delivery services, representing approximately 12% of its sales in the first quarter. “We have a self-operated delivery service each for our brands like KFC and Pizza Hut, in addition to third-party providers,” Public Affairs Director Forest Liu told Asian Agribiz.
|Fast Food Indonesia to open 30 new KFC outlets|
[18 May 2017] Fast Food Indonesia, the operator of KFC, opened five new outlets in Q1 2017. With the new outlets, the company now operates 580 KFC outlets across the country. According to Justinus Dalimin Juwono, Director, the company aims to open 30 new outlets within the next three quarters in regions such as Bengkulu, Sulawesi and Papua. Mr Juwono said opening new outlets is an effective strategy to boost revenue. In Q1 2017, the company’s revenue rose 9.3% to around USD 82 million, while net profit rose 348.9% to around USD 2.79 million. Besides opening new outlets, Fast Food also plans to add new food & drink items. Mr Juwono said new food & drink items can boost sales at an outlet by 20-30%. In Q1 2017, the company spent around USD 4.57 million to promote its brand.
|Vietnam is top shrimp supplier to Japan|
[18 May 2017] Increasing demand and favourable currency exchange rates are driving Japanese importers to purchase Vietnam’s shrimp. According to the Vietnam Association of Seafood Exporters and Producers (Vasep), shrimp exports to Japan in Q1 2017 increased 29.6% to USD 135.4 million, up from 2.7% in the same period last year. Being the world’s third largest shrimp exporter after China and Indonesia, Vietnam is the biggest shrimp supplier to Japan, the third biggest to the US, and the fourth biggest to the EU. In Q1 2017, Vietnam exported shrimp to 68 markets, up from 64 in 2016.
|Neovia launches first call for solutions for ‘farm of the future’ project|
[18 May 2017] Neovia, a global player in nutrition and animal health, announced the launch of a new project, called the 'farm of the future', in July 2016. This project, which will be implemented before 2020, is both an innovative and social project. The objective is to meet the challenge of feeding the world and innovate with stakeholders to develop a new sustainable way of livestock farming. Neovia recently launched a call for solutions. It is aimed at companies, start-ups, research groups, and individuals interested in participating in the project and proposing solutions corresponding to one of the three themes selected by the farm of the future. The three themes are precision farming, easy farming, and sustainable farming and relating to one of the three target species including swine, poultry, and ruminants.
Global poultry diagnostics market to reach USD495.3m by 2022
[18 May 2017] The global poultry diagnostics market is projected to reach USD 495.3 million by 2022 from USD 300.6 million in 2017, growing at a CAGR of 10.5%. According to RnR Market Research, significant increase in the avian disease outbreaks and rising incidence of zoonotic diseases, rising consumer focus on food safety along with the increasing animal health awareness, and increasing trade in terms of export within the poultry industry are the major drivers for the growth. Other factors such as rising demand for poultry-derived food products across geographies and the increasing animal healthcare expenditure in emerging countries also contribute. Emerging markets such as China and India offer significant opportunities for market growth.
|De Heus opens aqua r&d centre in Vietnam|
[17 May 2017] Royal De Heus opened its Aquaculture Research and Development Centre in Vinh Long, Vietnam in early May. It will be used to test feed formulas and new farming techniques. Sitting on 6 ha of land, the facility has 111 indoor tanks and 25 outdoor ponds, as well as two pumping stations, two water treatment ponds, bio-filter tanks, laboratory, storage buildings, offices and the facilities for the employees. The launch of the centre brings De Heus closer to its goal of Powering Aquaculture Progress. “This facility gives the aquaculture sector the ability to develop sustainable and efficient methods of production. It will increase the knowledge of fish farmers, fish processors and fish feed distributors,” Gabor Fluit, Business Group Director, De Heus Asia, said.
|China lifts ban on Canadian poultry imports|
[17 May 2017] China has lifted a ban on import of Canadian poultry products from April 20, said the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and the Ministry of Agriculture (MOA). The ban was announced in December 2014 when two farms in British Columbia, Canada suffered outbreaks of H5 subtype avian influenza. At that time, the US also reported the AI virus and its poultry products were banned by China from January 2015. The ban on US poultry has been affecting domestic production as China relied on the imports of GP broiler stock, particularly from the US and France.
|Perinus ships 30 tonnes of processed octopus to Japan|
[17 May 2017] Indonesia’s state-owned fishery company PT Perikanan Nusantara (Perinus) recently exported 30 tonnes of frozen processed octopus with a value of USD 350,000 from the Makassar seaport to the Ibaraki prefecture seaport in Japan. This is the first shipment for this year’s target of 1000 tonnes. This export is part of the partnership between the Japan International Cooperation Agency (JICA) and the Indonesian government. In this partnership, JICA granted an octopus processing unit for Perinus to operate and export the product to Japan’s Ajirushi Company. To support this program, Nilanto Perbowo, Director General of Fishery Products Competitiveness Empowerment, said the directorate will assist fishermen in Sulawesi in sustainably farming octopus. “It’s important to maintain quality,” said Mr Perbowo.
|CJ CheilJedang to develop sales of its HMR products|
[17 May 2017] South Korea’s CJ Cheiljedang said its net profit in Q1 2017 dropped 39.1%, dragged down by increased production costs. Net income reached USD 80 million on a consolidated basis in the period. Its mainstay food manufacturing unit saw USD 1.17 billion in sales in Q1, up 14.1% from a year ago, as its instant frozen dishes, commonly referred to as home meal replacement (HMR) products, posted strong growth. The company said it will bolster efforts to develop fresh lineups for its HMR and condiment products in line with market trends and tap deeper into Southeast Asia for further overseas expansion.
|Innovation needed to meet increasing food demand in Asean |
[17 May 2017] Rapid innovation is needed to meet a 40% increase in food demand expected in Asean by 2050, according to leaders at the World Economic Forum on Asean and the associated Grow Asia Forum recently held in Cambodia. “Farmers can partner with businesses and government to use sustainable approaches,” said Estrella Penunia, Secretary-General of the Asian Farmers’ Association for Sustainable Rural Development, in a press release received by Asian Agribiz. Grow Asia is an innovative partnership which aims to improve the productivity, profitability and environmental sustainability of Asean’s agriculture sector through multi-stakeholder partnerships and innovative approaches.
|Indonesia’s Q1 fish production grows 3.1%|
[17 May 2017] Indonesia’s fish production in Q1 2017 reached 3.97 million tonnes or a 3.1% increase on a year-on-year basis. The Ministry of Fisheries & Marine Affairs in a press release received by Asian Agribiz said that the value of USD 2.32 billion is up 37% compared to the same period last year. Slamet Soebjakto, Director General of Aquaculture said the production increase was followed by farming business efficiency. The ministry this year launched priority programs including the provision of 100 million seeds for aquaculture in 34 provinces, revitalization of 250 floating net cages, insurance for 3300ha of fish ponds in 13 provinces, development of 210ha of rice-fish farming, catfish farming with biofloc technology, and offshore aquaculture.
|New aqua feed line to help Cargill meet growing demand for fish feed |
[16 May 2017] Cargill recently unveiled its latest production line dedicated to aquaculture feed, in Vietnam. The line, with a production capacity of 3000 tonnes per month, is an addition to an existing feedmill in Ha Nam, North of Vietnam. “Besides investments in the production line, the project also saw upgrades to various plant support systems, expansion, and automation in the warehouse, which amounted to more than USD 8.5 million,” Chad Gauger, Managing Director, Cargill Aquaculture Nutrition Asia South, told Asian Agribiz. “With this expansion, we can increase our aqua feed capacity in the North of Vietnam to meet the increasing demand for floating fish feed and to serve local customers better,” he said.
|CPF approves capital increase|
[16 May 2017] Charoen Pokphand Foods' (CPF) board has approved an increase in the company’s registered capital to USD 268.66 million from USD 223.88 million by issuing 1,548,588,386 new ordinary shares, with a par value of USD 0.029 per share. CPF will offer the new shares to its existing shareholders at a ratio of five existing ordinary shares to one newly issued ordinary share at the price of USD 0.72 per share. CPF said it will use the proceeds to repay loans or debentures, reducing financial expenses incurred from its debts and interests. CPF’s increased capital will also be used for future investment. Meanwhile, CPF has recorded a net profit of USD 114.36 million in Q1, up 5% year-on-year. Adirek Sripratak, Chairman of the Executive Committee said CPF’s aquaculture business has rebounded and broiler exports have increased but its swine business has been affected by oversupply in Asia.
|China to receive US beef imports by mid-July|
[16 May 2017] China will allow imports of US beef, beginning as soon as possible but no later than July 16, according to the US Department of Commerce. Meanwhile, the two nations are to resolve outstanding issues for the import of China origin cooked poultry to the US, with a proposed rule to be published also by July 16. Both are part of a 100-day action plan under the framework of the US - China Comprehensive Economic Dialogue. In approximately one month following a Presidential Summit at Mar-a-Lago, the two sides reached consensus on addressing issues in areas including agricultural trade, financial services, investment, and energy.
|PNG warns of illegal poultry imports from SE Asia|
[16 May 2017] An urgent alert has been sent out to consumers and mainly chicken farmers of the threatening and illegal importation of frozen raw poultry products from Southeast Asia into Papua New Guinea (PNG). The PNG Poultry Industry Association said it has received reports of smuggling of poultry products from Asia which it said is dangerous for local farmers and wildlife. Keith Galgal, spokesman of the association said this is extremely hazardous because highly virulent H5N1 avian influenza, Newcastle disease and Infectious Bursal disease can be carried on frozen carcasses. “Poultry is one of the largest SME sectors in PNG and a significant contributor to the PNG economy. Approximately 14 million birds are raised by SME farmers annually. PNG must maintain its disease-free status with strict biosecurity controls that protects consumers, farmers and wildlife,” Dr Galgal said.
|AHDB to promote meats from Britain|
[16 May 2017] Quality meat from Britain will be highlighted this month at the food and hospitality trade shows Hofex in Hong Kong and SIAL in China. The Agriculture and Horticulture Development Board (AHDB) will be exhibiting a selection of top quality beef, lamb, pork and processed meats at the shows. Both events are expected to offer significant opportunities for exporters, with Asia proving to be an essential market for quality meat from Britain. Both events will be supported by 16 meat exporters in total. “We are thrilled to be attending both major trade shows which every year grow in popularity and size, bringing together leading food experts from around the world. Hofex and SIAL present excellent opportunities for exporters and ensure that quality British meat is top in the mind of buyers,” said Jean-Pierre Garnier, AHDB Head of Exports.
|DGLAH: sufficient beef stock |
[16 May 2017] Indonesia’s Directorate General of Livestock & Animal Health (DGLAH) has prepared 157,000 heads of ready-to-slaughter cattle (equivalent to 33,000 tonnes of beef) to meet demand during Ramadhan and Ied Fitr. I Ketut Diarmita, DGLAH Director General said beef demand during the religious festivals usually increases 15%. “We have anticipated this. Bulog [Indonesia’s State Logistics Agency] has 40,000 tonnes of carabeef and plans to realise their carabeef import recommendation of 51,000 tonnes. So, the supply is more than enough,” he said. The price of beef and carabeef is expected to stay within USD 8.98 and USD 5.98 per kg during the period.
|Shandong Xiantan to launch cooked chicken plant|
[15 May 2017] Shandong Xiantan Co, a leading Chinese broiler integrator, told Asian Agribiz that it is testing equipment at its new cooked products plant, and the facility will be operational once the test is completed. Costing USD 35.4 million, the new plant will have an annual capacity of 42,000 tonnes. It will be the first further processing plant for the company, which targets to produce 120 million commercial broilers and 260,000 tonnes of frozen chicken cuts annually in five years. Xiantan saw its 2016 revenue up over 19% at USD 303.5 million.
|DBE Gurney eyes regional growth for Harumi brand|
[15 May 2017] Malaysian poultry integrator DBE Gurney Resource Bhd is looking abroad to grow its new fried chicken brand Harumi. The company is already eyeing 10 partners in Taiwan and Indonesia, as well as in China. There are plans to also take the brand to Thailand, Vietnam and Laos. As the business model has already been chartered out, Datuk Alex Ding Seng Huat, Managing Director told Asian Agribiz that it should not be a problem to secure overseas partners. “The market in Malaysia is small. As food producers, we need the numbers to sustain our business,” he said adding that the company will leverage on Malaysia’s halal certificate to grow the brand abroad.
|Indonesia to revitalise 36 fish ports & processing units|
[15 May 2017] Indonesia’s Ministry of Fisheries & Marine Affairs will revitalise 36 fish ports & processing units in Java, Sumatera, Sulawesi and Kalimantan this year. Allocation for the revitalisation is around USD 6 million. Sjarief Wijaya, Director General of Catch Fishery said the revitalisation is targeted to finish in August this year and the ministry plans to cooperate with state-owned companies to operate the facilities. Mr Wijaya hopes the revitalisation will push the fish culling rate to 5%. Catch fish production this year is expected to rise to 7.8 million tonnes.
|Thai Union Q1 net profit rises 19.3%|
[15 May 2017] Thailand’s Thai Union (TU) said it recorded a net profit of USD 42.23 million in Q1 2017, up 19.3% from the same period last year, backed by rising revenue from Red Lobster and foreign exchange gains. TU’s revenue increased 0.7% year-on-year to USD 903.55 million in Q1. TU said sales contribution from its frozen and chilled seafood business rose to USD 371.29 million, up 5.6% year-on-year, despite continued sluggish demand in Europe. Meanwhile, TU’s pet food (PetCare) and value-added product sales grew 17.4 % year-on-year to USD 127.77 million due to new product launches and continued improvement in market penetration. Thiraphong Chansiri, CEO of TU Group said, “We’re pleased with our strong profit growth, despite persistent challenges in raw material costs coupled with variable economic conditions in many markets.”
|Ensuring sufficient meat supply during Ramadhan and Ied Fitr |
[15 May 2017] Chicken meat stock for Ramadhan and Ied Fitr in Indonesia is said to be sufficient. Poultry farmer’s association Pinsar Indonesia even said the stock is more than enough. Current chicken consumption is 52 million birds per week while production is around 64 million birds. Singgih Januratmoko, Chairman of Pinsar Indonesia said chicken demand during Ramadhan and Ied Fitr is estimated to increase to 57 million birds per week. He hopes broiler farmers will record profits during the religious festivals. In the first quarter of this year they suffered losses since the price of live birds fell to below production cost of around USD 1.19-1.27 per kg.
|Bangkok Ranch invests USD 4 million in new JV in Indonesia|
[12 May 2017] BR Investment (Hong Kong), a wholly owned subsidiary of Thailand’s Bangkok Ranch (BR), said it recently signed a joint venture agreement with PT Sumber Permata Sejati and PT Elok Permata Indah, aiming to expand its business in Indonesia. Chonlachart Worawuitthichongsathit, Assistant to CEO at BR said PT Rumah Bebek Bergizi, which has a registered capital of USD 10 million, will engage in an integrated duck business in Indonesia. While BR will hold 40% of the new JV, PT Elok Permata Indah will hold 30% and PT Sumber Permata Sejati, a company under Salim Group in Indonesia will hold another 30%. BR said the new JV will support expansion and growth of the company.
|Thailand’s corn prices remain under downward pressure|
[12 May 2017] Thailand’s corn production is expected to remain unchanged at 4.9 mmt, down 6% from marketing year 2016/17 in anticipation of an acreage reduction in response to unattractive returns, according to USDA GAIN report. Despite the domestic corn absorption requirements under the new import regulations for feed wheat, farm-gate price for corn remains low. Moreover, the recent sale of 1.4 mmt of government feed-quality rice stocks to the swine feed industry will likely reduce domestic demand for corn and imported feed wheat throughout 2017. Feed wheat imports have declined significantly since the new import regulations were implemented in January 2017. Forecast for wheat imports remains unchanged at 3.6 mmt in marketing year 2016/17 and 3 mmt in 2017/18.
|China’s Wellhope to buy 50% of Indonesian aquafeed producer|
[12 May 2017] Chinese feedmiller Wellhope, in which Royal De Heus of the Netherlands holds a 9.63% stake, said it will buy a 50% stake in PT Karka Nutri Industri for USD 5.5 million. The Indonesian aquafeed company was previously 70:30 owned by Sekar Bumi and Malvina Investment, whose holdings will be halved following the investment. It will be renamed PT Sekar Golden Harvesta Indonesia after the deal, with business scope expanded to include aquaculture, food processing and ingredients trading. According to Wellhope, Karka generated revenue of USD 5.12 million last year, with net profit standing at USD 255,700.
|Boehringer Ingelheim launches IB vaccine|
[12 May 2017] Boehringer Ingelheim Indonesia, together with its Indonesian distributor Romindo Primavetcom, has launched Gallivac IB88 to help poultry producers in the country control Infectious Bronchitis (IB). Gallivac IB88 is a freeze-dried modified live vaccine against avian IB caused by a coronavirus variant strain CR88121. Andreas Herrmann, Director Global Veterinary Technical Service Avian of Boehringer Ingelheim Animal Health said IB virus is still one of the most important diseases in the industry. To control variable IB virus problems, he said: “vaccination with two IB virus serotypes broadens protection.” He continued that there is clear evidence that with a proper combination of Mass-type Bioral H120 and 793B-type Gallivac IB88 vaccines, good protection against third IB variants (QX-like, IT-02, Israeli variants, etc) can be achieved.
|AACo to expand beef brands in Asia|
[12 May 2017] Australian Agricultural Company (AACo) is set to expand the market for its luxury beef brands in Asia. AACo said it will enter the Taiwan market in June after a successful launch in Singapore in October 2016. “From what we’ve learned in Singapore, we have started the roll-out plans for other markets, the next one being Taiwan, which we will go into on June 8,” said Jason Strong, AACo Managing Director, The West Australian reported. Mr Strong said the Singapore launch of AACo’s two flagship beep brands, Westholme and Wylarah, had been very successful. Sales volumes since the launch up to March had grown by 11% and the average sale price across all products had increased by 28%.
|H7N9 activity expands in China|
[12 May 2017] Last week, Hong Kong's Centre for Health Protection (CHP) fleshed out more details on 22 recent H7N9 avian flu cases, eight of them fatal that were reported between April 28 to May 4, signalling continued steady activity in the country's fifth and biggest wave of infections. Seventeen of the patients had a history of exposure to poultry, poultry markets, or mobile stalls. One of the unique aspects of the fifth wave has been a much wider geographic spread outside of the typically affected southern and south-eastern provinces, and the latest CHP update notes cases in nine provinces, plus the cities of Beijing and Chongqing.
|Thai Feed Mill Association negotiates wheat import policy|
[11 May 2017] Thai Feed Mill Association (TFMA) is negotiating with the government over the new import regulations on feed wheat that was implemented in January. A USDA GAIN report said these new regulations require feed mills to purchase domestic corn prior to importing feed wheat, at a 3:1 domestic absorption rate of imported feed wheat/domestic corn. The TFMA wants the government to reconsider the corn absorption rates for feeds which do not typically use corn, such as fish feed, shrimp feed, and pet food. However, the government is reportedly considering an exemption only for the shrimp feed industry and may allow them to import approximately 110,000 mt of feed wheat without being required to use domestic corn. This figure is based on the amount of feed wheat that has historically been imported for shrimp feed production.
|Indonesian feed companies record weak Q1 performance|
[11 May 2017] Performance of listed feed companies in Indonesia was weak in the first quarter of this year due to the increase in cost of goods sold. During the period, Charoen Pokphand Indonesia recorded a 17.9% decrease in net income to USD 47 million compared to Q1 last year, while Japfa Comfeed Indonesia’s net income plunged 67% to USD 6.85 million. Anton J Supit, Chairman of the Indonesian Poultry Companies Association attributed the weak performance to the government policy of stopping corn imports. He said that feed demand is increasing while local supply cannot meet demand. As a result, the price of local corn has skyrocketed to more than USD 0.30/kg since early this year, narrowing feed millers’ profits. On the other hand, the government has also stopped imports of feed wheat. “The government should consider this situation since this industry supplies affordable animal protein to consumers,” Mr Supit said.
|Zhou Hei Ya launches braised crayfish product|
[11 May 2017] Chinese duck parts processor Zhou Hei Ya International Holdings Co has launched an innovative braised crayfish product in MAP packaging. The traditional food is popular during summer, and Chairman Zhou Fuyu said the crayfish market totalled USD 14.5 billion last year. The 180g/box chilled product is available online at its outlets across central and eastern China where the company has a plant each. “We will employ flexible production and will decide if the offer continues beyond summer,” CEO Hao Lixiao told Asian Agribiz. In 2016, Zhou Hei Ya sold almost 33,000 tonnes of products through 778 self-operated outlets. Its revenue rose 15.8% to USD 408.7 million, while net profit was up 29.5% at USD 103.8 million.
|Chinese corn returns to Japanese livestock farms after 7 years|
[11 May 2017] In March Japan imported corn from China for feed for the first time since February 2010 to ease shortages. Japanese farmers have suffered from grain shortage after snowstorms in January and February caused export delays in the US, reported Asia Nikkei. Delays to imports sparked concern among Japanese livestock farmers that the corn supply could dry up and pushed Japanese trading houses to import the grain from China. Import volume from China totalled 17,935 tonnes in March. Some Japanese producers see imports from China as a stopgap measure. Price of Chinese corn in March stood at around USD 248.10 per tonne in Japan, 20% more than US corn, and 40% more than Brazilian.
|H5N1 strikes Vietnam again |
[11 May 2017] Vietnam reported another highly pathogenic H5N1 outbreak last week while Taiwan reported several more outbreaks caused by low-pathogenic H5N2, according to the latest notifications from the World Organization for Animal Health (OIE).Vietnam, which has been battling a steady stream of H5N1 and H5N6 events, with a new H5N1 outbreak in backyard poultry in Quang Ninh province in the north. This began on April 27, killing 2,000 of 5,000 susceptible birds. Meanwhile, Taiwan is still battling low-pathogenic H5N2 alongside highly pathogenic H5N2, H5N3, H5N6, and H5N8. According to the OIE report, abnormal deaths were observed on five poultry farms, and symptoms were also seen in poultry carcasses at a slaughterhouse in Taipei City. The events led to the slaughter of 91,485 birds.
|DBE Gurney hopes to double revenue with new venture|
[09 May 2017] Malaysian poultry integrator DBE Gurney Resource Bhd posted a net income of over USD 57,000 for FY 2016, a breakthrough after more than a decade of losses. Datuk Alex Ding Seng Huat, Managing Director, attributes this to the setting up of its fried chicken brand Harumi as well as fast-food operator KFC increasing their supply contract to USD 11.6 million (MYR 50 million) per year from USD 3.5 million (MYR 15 million0 per year. “We had a challenge. All this while our plant was functioning under capacity. This meant that our overheads were high. We needed to create economies of scale. We are not expanding capacity but adding value to our business. If all goes well, we can double our revenue,” he told Asian Agribiz.
|Global pork market seen favourable into Q3|
[09 May 2017] The global pork market will remain relatively stable into Q3 this year, as the growing supply in the Americas will be easily absorbed by the main import markets in Asia, Rabobank said in its Global Pork Quarterly Q2 2017 report. “The overall outlook is positive right now,” says Justin Sherrard, Global Strategist Animal Protein at Rabobank. “The demand market will continue throughout Q2, supporting margins along the supply chain.”
|NSF International launches raised without antibiotics certification|
[09 May 2017] Global public health organization NSF International has developed an independent certification protocol, 'raised without antibiotics', to certify animal products that have been raised without exposure to antibiotics. The new certification protocol will help consumers identify products that do not contribute to the growth of antibiotic-resistant bacteria. NSF International’s raised without antibiotics certification can be granted to a wide variety of animal protein products. The certification provides independent verification of on-package claims and is the only raised without antibiotics certification that covers all animal products.
|Cargill Vietnam inaugurates new aqua feed line|
[09 May 2017] Cargill Vietnam launched its 10th aqua feed line at its feedmill in Ha Nam late April. This is Cargill’s second aquaculture feed line in the north of Vietnam. The line has a production capacity of 3000 tonnes per month. It produces high quality extruded feed for tilapia and other local species to serve local demand for floating fish feeds, said the company’s press release. The new line will improve access to customers in the major agricultural areas of Ha Nam, Hanoi, Thai Binh and the broader North Central Vietnam region where farmers are rapidly switching from extensive to intensive farming practices.
|Vinh Hoan seeks marketing collaboration for pangasius products|
[09 May 2017] Vietnam’s Vinh Hoan Corporation is actively seeking collaboration with other players in the production and distribution of Vietnamese pangasius to form a structured marketing organisation, akin to the Alaska Seafood Marketing Institute (ASMI) or Norwegian Seafood Council (NSC). “The ministry [of agriculture and rural development] could push r&d – from broodstock quality up to processing – in the Premium Pangasius Fillets project,” Nguyen Ngo Vi Tam, CEO, told Undercurrent News Undercurrent News. Premium Pangasius Fillets is a product range Vinh Hoan launched to illustrate that the species can reach peak quality.
|Betagro earns NSF's ‘raised without antibiotics’ certification |
[08 May 2017] Thailand’s Betagro Group is the first company to earn NSF International’s raised without antibiotics certification. “Our S-Pure brand chickens are selected with great care and raised in a way that maintains optimal health without the use of antibiotics,” said Vasit Taepaisitphongse, President of Betagro Group. “We want our customers to have confidence in our 'raised without antibiotics' products. That’s why receiving an independent and objective certification from NSF International was important to us,” he said. NSF’s raised without antibiotics mark will appear on the S-Pure brand’s product packaging, including fresh chicken meat, frozen chicken meat and cooked chicken meals for both domestic and export markets. Betagro said it aims to expand its wholesale and retail opportunities in Singapore, Hong Kong and Scandinavian countries.
|Navis Capital acquires NZ’s leading egg producer|
[08 May 2017] Malaysian-based private equity firm Navis Capital has agreed to pay USD 242 million for a major stake in New Zealand’s integrated feed and layer producer Mainland Poultry. Mainland is the largest producer of egg and egg products in New Zealand, producing 36 million dozen egg equivalents yearly. It supplies supermarkets and food service distributors daily with fresh eggs, and refrigerated and frozen egg products. Navis Capital, which has extensive experience in poultry businesses with significant portfolio investments in chicken and duck operations in the UK, Europe, Thailand and China, said on its website that it wants to transform Mainland into “a pre-eminent agribusiness in the Oceania region and expand export links in Asia”.
|Vietnam says cheap meat imports affecting local farmers|
[08 May 2017] By mid-March, Vietnam had imported 7800 tonnes of pork of different kinds, worth USD 9.4 million. The figure represented a 16% increase in quantity and 21% in value compared with the same period last year. The average price for imported pork is now USD 1.20 per kg. By-products were imported at USD 0.88 per kg (5,400 tonnes were imported, worth USD 4.8 million), while fresh pork was USD 1.87 per kg. Local pork price, meanwhile, has dropped to a 30-year low. Farmers now can sell pork at only USD 1.10 per kg of live weight. The Livestock Department has cited oversupply as the cause of low prices.
|CJ Cheiljedang records sales jump for dumplings|
[08 May 2017] CJ Cheiljedang, South Korea’s leading maker of processed foods, said sales of its flagship precooked dumplings soared this year from a year earlier on the back of the growing one-person households and eat-alone trend that have spurred demand for instant food. The company sold more than USD 44.3 million worth of its Bibigo Dumplings in the first four months of this year ending April 26, up 31.5% from last year. Launched in 2013, the Bibigo Dumplings have been a hit in the local frozen meal market as the company distinguished the line up by using fillings like chopped vegetables and meats like home-made dumplings. The dumplings come in three types, which are meat, kimchi and prawn-based. They are also sold in most key overseas markets, including the US, China, Southeast Asia and Europe, reported the Korea Herald.
Highlights in Asian Poultry Magazine, May 2107
[08 May 2017]
Aviagen unfolds intricacies of exporting day-old chicks
Consistently supplying the world with high-quality poultry breeding stock may involve more than meets the eye. It takes careful planning, communication, logistics and navigation throughout a web of complexities, explains BRIAN COSGRIFF. Doing so responsibly adds layers of challenge. The key link that supports a strong global supply chain for poultry breeding company Aviagen is a carefully run Export system, along with a network of highly trained support professionals.
DaChan Food banks on consumer market for value-added chicken
Taiwan-based DaChan Food has been enjoying steady growth in China. It is a major supplier to fast food chains, and used to be the largest broiler integrator in China. But now the company is down-sizing its slaughter business, while expanding to the consumer market with value-added chicken products, ALLEN SHU reports.
Impact of mycotoxins on subclinical symptoms and immune response in poultry
Mycotoxins can contribute to aggravating infections and disease symptoms caused by other factors such as pathogen invasion, endotoxins and environmental stress factors, for example vaccinations, transportation, heat stress, feed changes and high stocking density write EILEEN SEUNG-EUN HAN and GANGGA WIDYANUGRAHA.
Feeding the hen for longer laying cycles
Success with longer laying cycles begins with the pullet. Preventing problems from happening is far more effective than trying to find solutions when problems happen. The bird will tell you what it needs if you are looking at the right details stresses DR DOUG KORVER.
|DBE Gurney eyes brisk growth with Harumi venture|
[05 May 2017] DBE Gurney Resource Bhd, a Malaysian poultry producer, which recently launched an f&b arm, hopes to have a total of 20 restaurants by year end. Datuk Alex Ding Seng Huat, Managing Director, said there are currently six Harumi restaurants in Perak and one in the Klang Valley. These are operated by DBE Gurney. “Our target for the year is to have a total of 10 restaurants in Perak and 10 in the Klang Valley,” he told Asian Agribiz. Besides restaurants there are also currently 200 kiosks and one food truck in operation. By end 2018 it targets 3000 kiosks, 300 food trucks and 30 restaurants.
|Vietnam’s agri ministry attempts to stabilise pig prices|
[05 May 2017] Capping pig population and not issuing new feedmill licences are some of the moves Vietnam’s Ministry of Agriculture and Rural Development may take to halt the current pig price decline. By mid-April the price of live pigs had dropped to USD 1.32 per kg from USD 1.76 some months back. With no indication of an end to this downward spiral, pig breeders across the country are facing losses, the Vietnam News portal reported. One of the reasons for the fall is said to be oversupply. Minister Nguyen Xuan Cuong has also proposed reducing the price of feed and veterinary medicine, and finding a stable market for the consumption of domestic pork meat.
|New Hope’s 2016 overseas feed sales at 1.5 mt|
[05 May 2017] New Hope Liuhe Co, China’s top feed producer, said its annual feed sales overseas hit 1.5 million tonnes last year. The company’s total feed sales rose 2.72% to 14.9 million tonnes during the period. It has set up 40 overseas units in 20 countries, extending its reach to poultry breeding and farming from feed milling only. The company said it was also actively pursuing pork imports in 2016 amid rising domestic prices, with full-year imports close to 10,000 tonnes. “The overseas expansion has not only helped us gain a new growth engine as the Chinese economy is slowing down, but also facilitated our introduction of global quality resources to meet huge domestic demand,” New Hope said, adding that its overseas business has been growing faster than the domestic one.
|US, Japan buying shrimp early says Minh Phu Seafood|
[05 May 2017] Vietnam’s largest shrimp company Minh Phu Seafood has said North America and Japan are placing big orders for shrimp much earlier this year. Le Van Quang, Chairman and CEO told Undercurrent News that major buyers in the US were making orders around three months earlier than usual. The Japanese buyers told the company that they were buying early because they are concerned about growing global demand. “In my opinion prices will start to rise from late July,” said Mr Quang. “How much they increase depends on China. If it is the same as previous years, we can expect an increase in price.” In recent years China has become a major player in global shrimp markets largely due to growing demand and problems with its own production.
|Taiwan culls 42,000 layers over dioxin residue in eggs|
[05 May 2017] Over 42,000 layers at Hung Chang farm in Changhua County, central Taiwan, were to be culled last week after tests confirmed that the farm has been supplying eggs containing excessive levels of dioxin residue. Yin Shih-shuan, Section Chief of the Department of Agriculture, said all eggs produced by the farm will also be destroyed. The authorities are still investigating the source of the dioxin contamination and will analyse the ingredients in the chicken feed used and track its source, reported The China Post . The latest tests found 2.88 pg/g and 3.34 pg/g of dioxin, respectively, in two eggs from the farm, above the permissible level of 2.5 pg/g. Yeh Yen-po, Head of the Changhua County Public Health Bureau, said the contaminated eggs were sampled in February, when the farm changed ownership.
|CPF promotes sustainability initiatives|
[04 May 2017] Thailand's Charoen Pokphand Foods (CPF) said it is driving its corporate social responsibility towards sustainability. Wuthichai Sithipreedanant, Senior Vice President for Corporate Social Responsibility and Sustainable Development at CPF said the company focuses on three pillars, which are food security, self-sufficiency and balance of nature. In 2017, CPF targets zero product recall and it will concentrate on health and nutrition. New product development will constitute 15% of all CPF products and the ratio will increase to 30% in 2020. Meanwhile, it said 30% of its partners in feed meal, seasoning and packaging businesses will be subjected to sustainability evaluation this year and the ratio will increase to 100% in 2020. Main agricultural raw materials must come from accountable and traceable sources, Mr Wuthichai said.
|Entobel's insect meal to be priced lower than fishmeal |
[04 May 2017] Vietnam-based Entobel, which hopes to launch its first insect meal production plant early 2018, chose Vietnam as its launch market as the country offers many opportunities, from demand for feed to affordable labour, and availability of input material. Co-founder Gaetan Crielaard told Asian Agribiz that Entobel’s insect meal will be priced lower than fishmeal in the long term as it is cost competitive. Being in Vietnam helps. The country has the right climate and temperature. It does not need additional investment for heat structures. More importantly, the insect can be found naturally in Southeast Asia. “Our technology is cost efficient, easily transferable and has low capital intensity,” he said.
|Russia to export beef, poultry to Japan|
[04 May 2017] In a landmark agreement reached between Moscow and Tokyo, Russia will begin exporting beef and poultry to Japan in the second half of 2017. According to Evgeny Gromyko, Russia Deputy Agriculture Minister, Japanese officials visited Russian farms in March and gave the final approval to two local beef producers, Ratimir and Miratorg West. Japan will export beef jerky to Russia, he added. Russia also wants to sell pork to Japan in the future, but it is currently not possible due to an African swine fever outbreak in Russia, said the official, reported RT.
|GGL selling its beef cattle breeding station in Australia|
[04 May 2017] Indonesia’s feedlotting company Great Giant Livestock (GGL) is selling its cattle station in Australia’s Northern Territory, to concentrate on backgrounding cattle instead of breeding. GGL has put Willeroo Station up for sale, three years after it was acquired from the Sultan of Brunei. GGL is one of the largest feedlot operators in Indonesia, importing about 50,000 heads of beef cattle from Australia per year. Peter Watkins, Australian adviser to GGL said with Willeroo Station only supplying about 3000 steers per year to the company’s feedlots, the property does not fit the company’s needs, reported ABC.
Highlights in Asian Meat Magazine, May/June 2017
[04 May 2017]
Fisher Farms turns milkfish processing into a fine art
Bangus, as milkfish is known in the Philippines, is a versatile sleeping giant filled with processing potential; one that Fisher Farms Inc, under the leadership of its CEO Imelda Madarang, has tapped and continues to innovate, writes ISA Q TAN.
Guangdong Wens expands with chilled yellow chicken
Guangdong Wens Foodstuff Group has grown into China’s largest livestock producer with a big appetite for pig farming and a focus on yellow-feather broilers. Now the company is dedicated to process chilled chicken products while seeking a northern expansion for yellow broilers that are traditionally sold live in south China, writes ALLEN SHU.
KVB scores well with Vietnamese Wagyu
Two Vietnamese businessmen have ventured into Wagyu cattle breeding in their country. They aim to give Vietnamese consumers access to one of the best beef in the world, HA THU writes.
A second burger boom in Asia?
Premium burgers – high quality meat patties made in small batches and served in fast-casual restaurants – are on the rise in Asia. RACHAEL PHILIP and the ASIAN AGRIBIZ team wonder if the region is seeing a second burger boom.
VIV Asia 2017 records success
VIV Asia 2017 welcomed close to 46,000 visitors from 130 countries. More than 1050 companies from 53 countries such as China, the US, the Netherlands, France, Germany, and those in Asean exhibited at the show. Leading companies in the meat processing industry showcased their equipment and machines to help Asian meat processors produce quality and safe products efficiently.
|Thailand's DIT says domestic corn insufficient for animal feed demand|
[03 May 2017] Thailand’s Department of Internal Trade (DIT) has insisted that the import of wheat and other types of feedstuff ingredients is necessary, as corn supplies are insufficient to meet market demand, National News Bureau of Thailand reported. DIT Director General Nanthawan Sakuntanak said Thai farmers are now able to produce 4.61 million tonnes of corn for animal feed annually, while market demand is at 7.82 million tonnes. Hence, the DIT deems it necessary to import wheat and other animal feed ingredients. Ms Nanthawan said authorities will be adopting a 1:3 wheat import per corn purchase ratio, which requires the import of 100 tonnes of wheat accompanying the purchase of 300 tonnes of domestic corn, to help local farmers. Moreover, authorities will consider tariff measures on wheat imports, so that they will not affect the price of domestic corn.
|Malaysian palm oil producer introduces feed product|
[03 May 2017] Malaysia’s Sime Darby Plantation Sdn Bhd recently launched Purafex, its feed ingredient brand, made from palm kernel expellers, a by-product from the crushing process. The Edge Markets reported that the feed is manufactured at its Carey Island Kernel Crushing Plant in Klang. The plant can cater to 10% of total industry demand for chicken feed. It also houses a new system to produce Purafex. “Purafex is a cost-effective alternative for the feed industry. After a year of feed trials, careful assessment and comparison, I am proud to announce that Purafex has outperformed this expectation,” Sime Darby Plantation’s Managing Director Datuk Franki Anthony Dass said.
|Japfa reports drop in Q1 net profit|
[03 May 2017] Singapore based agrifood company Japfa reported a 91% drop in net profit to USD 2.08 million for the first quarter ended March 31, due to a lower prices in key markets. This was despite a 3% year-on-year increase in revenue to USD 736.12 million, reported The Business Times [http://www.businesstimes.com.sg/companies-markets/japfas-q1-profit-falls]. The group’s profitability was mainly impacted by the significantly lower selling price for swine in Vietnam which started declining in the fourth quarter of 2016 due to China’s import restrictions. In addition, Indonesia witnessed weaker broiler selling prices in Q1 2017 due to a lower-than-expected poultry demand.
|Wellhope slaughtered 275 million white broilers in 2016|
[03 May 2017] Leading Chinese feedmiller Wellhope, in which Royal De Heus of the Netherlands holds a 9.63% stake, said it slaughtered 275 million white-feather broilers last year and has become one of the top chicken processors in China. The company’s chicken cuts are supplied to meat processors like Shuanghui, Jinluo and Yurun, as well as supermarkets and delis. It produced 34.4 million broilers itself during the year, with DaChan Food a major customer for the farming segment. Wellhope has also ventured into pig farming and processing from 2016, though livestock feed is still its core business with sales of 2.15 million tonnes last year.
|DSFI targets to export more than 1000 tonnes of octopus|
[03 May 2017] Indonesia’s seafood processor and exporter Dharma Samudera Fishing Industries (DSFI) expects to record a rebound in octopus exports this year after recording a decrease last year. The company targets to export more than 1000 tonnes of octopus this year over last year's 700 tonnes. Of this, 60% will be exported to Europe, while the rest will be to the US, Australia and Japan. Herman Sutjiamidjaja, Marketing Director said the price of octopus in the international market has increased significantly from last year’s average of USD 2/kg to USD 4-5/kg currently. “The export market is growing. Now only Indonesia and the Philippines compete in the global market,” Mr Sutjiamidjaja said. DSFI sources its octopus from fishermen in Lampung province.
|New Hope Singapore to invest USD 10m in hatchery, breeder farm in Myanmar|
[02 May 2017] New Hope Singapore, part of New Hope Liuhe Co Ltd and backed by China’s top agri company New Hope Group, plans to invest USD 10 million in the poultry sector in Myanmar. Myanmar New Hope Agrotechnique Co Ltd, a joint venture entity, will produce and market day-old chicks in Bago Region. “Phase one of the project will focus on the southern part of Myanmar and phase two will cover the northern part of Myanmar,” said Gou Huayin, Executive Director, Myanmar New Hope Agrotechnique Co Ltd. The company is making long-term investment plans to emerge as an integrator.
|Syngenta Indonesia ups corn seed production|
[02 May 2017] As demand for corn seed in Indonesia grows due to the government’s ban on corn imports, Syngenta Indonesia will maximise the existing capacity of its seed plant in Pasuruan, East Java. Midzon Johannis, Head of Corporate Affairs said the plant has an installed capacity of 8000 tonnes/year. “So far, we have used about 40% of the installed capacity,” he said. The company sees a bright future in for the corn seed business in Indonesia. Once the Pasuruan plant isreaches full capacity, the company can add capacity as it has 2ha of idle land at the same complex.
|Growth in poultry sector fuels Bangladesh corn production |
[02 May 2017] In marketing year 2016/17 corn production in Bangladesh is estimated at 2.8 million tonnes. Assuming normal growing conditions, in 2017/18 corn planted area is forecast at 440,000 ha and production at 3.1 million tonnes on expectation of increase in feed demand from poultry and aquaculture industries, said the latest US Department of Agriculture Foreign Agriculture Service (FAS) report. “Corn market price mechanisms are sensitive and farmers in turn respond quickly to price changes of corn and competing crops. One study estimated that an increase in corn price by 10% leads to a rise in production of 4%,” said the FAS report.
|Shrimp production in 2016 remains stagnant|
[02 May 2017] Global production of farmed shrimp last year remained stagnant at the 2015 level, if not lower, said FAO’s latest Globefish report. Shrimp production in Vietnam and China declined due to persistent disease and related issues. In Vietnam average per ha harvest dropped by 50% due to poor quality shrimp fry and slow growth. Due to this both China and Vietnam had to import large quantities of shrimp for reprocessing and export. Production in India and Indonesia, the two other large producers in Asia, is expected to be lower than the early 2016 forecast. Meanwhile improved farmed shrimp production in Thailand saw a 28% rise in exports to 150,000 tonnes in 2016. More than 40% of these exports consisted of value-added products.
Regional Dairy Update
[02 May 2017]
Amul Dairy registers 18.25% turnover growth
India’s Kaira District Cooperative Milk Producers Union Limited, popularly known as Amul Dairy, has crossed USD 876 million annual turnover in financial year 2016-17, registering growth of 18.25 % compared to its last financial year. Amul targets to achieve USD 3.8 billion turnover by 2025, said K Rathnam, Managing Director. Currently Amul handles 2.66 million litres of milk per day which is 6.2% more than last year. “We already manufacture dairy products like cheese which are being converted into value added products,” Mr Rathnam said. Amul has 27 dairy plants spread across the country including Gujarat, West Bengal, Maharashtra, Tamil Nadu among others of which 14 are owned by the milk union while 13 are contract manufacturing units, Times Of India reported.
Vinamilk acquires all of Angkor Dairy Products
Vinamilk has acquired the remaining 49% of its Cambodian joint venture, Angkor Dairy Products, for USD 10 million from BPC Trading, its local partner. Vinamilk built a 30,000-sqm dairy plant in Phnom Penh last year. Asia Nikkei reported that the plant was built mainly to meet the demand of the Cambodian market, but also expects to supply markets such as Thailand, Laos and Myanmar in the future. Vinamilk is also keen to tap other foreign markets, including Bangladesh, Myanmar, and Thailand. It expects to conclude another deal in the US this year, after spending USD 3 million to acquire the remaining 30% of Driftwood Dairy last year.
Sumul opens new dairy cattle feed plant
India’s Surat District Cooperative Milk Producers Union Limited, popularly known as Sumul, has opened a new dairy cattle feed plant in Bajipura, southern Gujarat. The fully automatic plant, which has a capacity of 500 tonnes/day, cost Sumul more than USD 46 million. Sumul already has an operational cattle feed plant of 300-tonne capacity. In addition, Sumul also inaugurated its new ice-cream plant with a capacity of 25,000 litres per day, also in the district, reported Times Of India.
Australia’s Wellard to ship Australian and NZ dairy heifers to Sri Lanka
West Australian cattle exporter Wellard will soon be looking for dairy heifers from Australia to fill contracts it has in Sri Lanka. The company has sourced 2000 pregnant Friesian-Jersey cross heifers from New Zealand as the first shipment to fill a 20,000 head contract. Wellard breeding and dairy General Manager Colin Webb said the NZ shipment was timed to coincide with the completion of cattle handling and dairies being built in Sri Lanka. “Our next consignment will be sourced from Australia and we will be seeking similar categories of heifers once we start our Australian procurement program,” Mr Webb said.
Hatsun Agro Product posts strong growth
India’s Hatsun Agro Product posted strong growth on higher volumes across milk and milk products in the fourth quarter of 2016-17 over the same quarter in the previous year. The company reported a net profit of USD 6.73 million for the quarter ended March 31, 2017. RG Chandramogan, Managing Director, said the company’s focus on strengthening its ice-cream and curd businesses and the start of the demand season from January; growth in cattle feed and liquid milk, which saw growth in volume and some price increase, have all contributed to the strong performance. Demonetisation in November 2016 helped cattle feed business, he said. Dairy farmers who earlier bought feed on credit from third parties opted for the convenience of feed-for-milk barter deal with Hatsun due to the cash crunch. Subsequently, they chose to stay with the company's feed, reported The Hindu Businessline.
|Indonesia’s animal feed consumption to reach 27.6mt in 2020|
[28 April 2017] In the last seven years Indonesia’s animal feed industry grew at 10-12%, according to Desianto Budi Utomo, General Chairman of The Indonesian Feed Producers Association (GPMT). The growth was consistent with the growing number of poultry breeding farms. Therefore, more feed was needed and industry players responded by increasing the capacity of their existing feedmills, as well as setting up new feedmills. “In 2020, animal feed consumption in Indonesia is estimated to reach 27.6 million tonnes,” said Dr Utomo. This year, the positive trend will continue. Some feed companies have started operations of new feedmills, while others are constructing new facilities. GPMT has estimated that the country’s animal feed industry this year may grow at 6-7%, motivated by increasing consumption of animal protein.
|Entobel’s insect feed plant to come on stream early next year|
[28 April 2017] Insect-based feed ingredient producer Entobel is building its first production plant in Vietnam. The plant, which will be the first of its kind in Asia in terms of capacity and products, will be able to produce 1000 tonnes of insect meal per year. It will come on stream early next year. Co-founder Gaetan Crielaard told Asian Agribiz the company has started trials with shrimp and fish, and is currently registering its products in Vietnam. “Our two-year-old demonstration plant in Vietnam can produce 200kg of larvae insect per day. The new plant will enable us to commercially produce insect meal. By 2025, we aim to produce 100,000 tonnes of insect meal per year for the region,” he said.
|Philippines to import 7000 tonnes of pork|
[28 April 2017] Philippine Agriculture Secretary Emmanuel Piñol has approved the importation of 7000 tonnes of pork under the Minimum Access Volume to address the continuing rise in pork prices. He said that despite the hog raisers’ pledge to control the price of live pigs, prices continue to go up. As of April 24, live pig price in Luzon ranged from USD 2.31-2.71/kg, while data from the Philippine Statistics Authority showed retail prices of pork in Metro Manila, the country’s biggest pork market, range from USD 4.02-5.02/kg during the same period.
|China’s Q1 pork imports maintain momentum|
[28 April 2017] China’s pork imports continued to grow significantly in Q1 2017, after hitting a record high in the previous year. Data from China Customs shows that the country imported 346,151 tonnes of pork during the quarter, up 21% from a year earlier. Meanwhile, imports of beef, mutton and frozen chicken rose 15.3%, 12.1% and 2.9% respectively to 160,082 tonnes, 71,547 tonnes and 102,038 tonnes. According to China’s National Bureau of Statistics, the domestic meat output totaled 22.49 million tonnes in Q1, up 0.2%, while pork alone also rose 0.2% to 14.68 million tonnes.
|CP Indonesia ready to expand 7-Eleven business in Indonesia|
[28 April 2017] Charoen Pokphand (CP) Indonesia is ready to acquire the 7-Eleven franchise in Indonesia for USD 75 million. Tjiu Thomas Effendy, CP Indonesia President Director said the acquisition is awaiting approval of the shareholder of the convenience store chain Modern International, and is expected to go through by June. Chandra Wibawa, Modern International Director confirmed that the business of 7-Eleven has been suffering losses. In 2016, Modern International closed 25 stores – as of September 2016, the company ran a total of 166 stores, mostly in Jakarta. If the acquisition is successful, Mr Effendy said CP Indonesia has plans to lift it out of its losses. To encourage expansion, he said the company wants to run a partnership model. The store expansion will include other regions in Java Island.
|Vietnam submits plan to develop shrimp industry|
[28 April 2017] Vietnam’s Ministry of Agriculture and Rural Development has submitted an action plan for the development of the shrimp industry through 2025. The plan hopes to turn the industry into a key sector with sustainable development that is adaptable to climate change and friendly to the environment. By 2025 the ministry will offer a variety of shrimp that grow quickly and are free of disease. Research work will also go into shrimp feed production. With this, the shrimp industry is expected to gain USD 4.5-5 billion in export value and record an annual average growth of 9.5-12% by 2020. By 2025, the country is expected to have a hi-tech shrimp industry and large-scale eco-shrimp farming areas.
ASIAN AGRIBIZ PIG FEED QUALITY CONFERENCE 2017
Ho Chi Minh City, Vietnam
[27 April 2017]
The second day of Asian Agribiz’s 2017 Pig Feed Quality Conference tackled the topic of reducing the use of in-feed antibiotics and how to manage low protein diets. The topics presented and questions raised pointed to a healthy exchange of knowledge between the presenters and audience.
Replacing AGPs in diets
As calls for reduced antibiotic use in animal production continue to gain ground, the days of AGPs seem to be numbered, with producers looking for alternatives that will help maintain productivity and profitability. Dr Charles Starkey, Assistant Professor at Auburn University, reiterated that producers “must stop looking for a band aid or a magic solution.” Among other things, producers need to better understand diets, the mode of actions of alternatives, the interaction between these alternatives and how diets interact with selected alternative treatments. He discussed alternative ingredients, usage, mechanism for action, and potential for synergies among these various alternatives. The focus, he said, should be on how these strategies affect the gastrointestinal environment. In a second presentation, Dr Starkey also looked at other factors to consider when formulating diets without AGPs, including vitamins, minerals, oxidative processes and stimulation of immunity.
Improving intestinal health with non-medicated feed additives
The weaning period is one of the most stressful in the life of the pig and is associated with reduced feed intake and gut integrity. To solve this problem, producers have traditionally turned to antibiotics. With the trend to reduce the use of antibiotics in feeds, many alternative products have been identified. Dr Joris Michiels, Professor at the Department of Applied Biosciences, Ghent University discussed non-medicated feed additives including potentiated zinc oxide, medium-chain fatty acids and cinnamaldehyde. He underscored the need to ensure to have the right dose, chemical and physical formulation for these alternatives to be effective.
Low protein diets an important factor in addressing AGP removal
Studies have shown that the use of low protein diets for piglets has led to lower incidence and severity of post-weaning diarrhoea thus minimising the need for antibiotic support. However, Tony Edwards of ACE Livestock Consulting in Australia said that “a far more comprehensive approach is needed to cover for the removal of AGPs and a holistic strategy in place to cover all the contributing factors. In addition to looking at alternative ingredients, feed formulation and processing, equally important to consider are biosecurity and pig flow, health management, and feeding management. Antibiotic use, he said, disguised many problems in production, and now producers must “go back to basics to create a production system that can achieve a healthy gut without the use of antibiotics.”
Manipulating dietary protein and fibre to improve intestinal health
Maintaining intestinal health as the pig producers withdraws the use of AGPs is a challenge facing nutritionists and pig producers. Jae Cheol Kim, Techical Manager for Asia Pacific of AB Vista, explained that reducing protein content and increasing protein digestibility will reduce the proliferation of proteolytic pathogens and protein fermentation and production of toxic by-products. This can be achieved by using highly digestible protein, fine grinding of protein meals and phytase superdosing. Meanwhile, restricting the use of soluble NSP while supplementing with selected insoluble fibre can help stimulate the growth of beneficial bacteria that can in turn maintain the pig’s intestinal health.
|Guangdong Wens Q1 net profit slumps over 50%|
[27 April 2017] Guangdong Wens Foodstuff Group, the largest livestock producer in China, said its net profit fell 52.36% to USD 214 million in the first quarter of 2017, due to lower broiler and pig prices that declined by 32.84% and 7.71% respectively from a year earlier. The company sold 202 million yellow broilers during the quarter, up 17.32% year-on-year, but the segment’s revenue was down 21.69% amid the H7N9 bird flu crisis. Its pig sales rose 4.04% to 4.28 million heads, with revenue up 1.01%. “We are selling finisher pigs at higher weights according to market demand,” Wens noted.
|Bulog to launch chicken feed|
[27 April 2017] Indonesia’s State Logistics Agency (Bulog) plans to launch chicken feed under the ‘Pakan Ternak Kita’ brand by end April as a trial project. Bulog has partnered with a third party to produce the feed which will use corn from import leftovers. Currently Bulog still has 137,000 tonnes of corn at its warehouses – of which, 20,000 tonnes will be used to produce the feed. The feed will be distributed in West Java and Banten provinces. Febriyanto, Commercial Director said the price of the feed will be cheaper that feeds in the market, at around USD 0.46 per kg. If this trial project runs well, Bulog will continue the project and it will open opportunities for feed millers to produce the feed under a profit sharing scheme.
|Cargill to focus on aqua and meat segments|
[27 April 2017] Cargill has its sights set on moving up the food chain and focusing on the aquaculture and meat segments, with Asia expected to be a key market. In an interview with CNBC Cargill Chairman and CEO David MacLennan said it has realigned its portfolio to focus on its core food production business. “The rate of growth of fish consumption in the world greatly exceeds pork consumption. We see that trend and we’re getting on it,” he said. He also expressed interest in the prospects Asia offers, adding that Cargill has made recent investments in the region. Among them are feedmills in Vietnam and South Korea, and joint ventures in the chicken business in the Philippines and Indonesia.
|Saudi Arabia wants Vietnamese meat exporters to register online|
[27 April 2017] Saudi Arabia has urged Vietnamese exporters of meat and seafood products to register their companies with product information on its Food and Drug Authority website. On Saudi Arabis’s Ministry of Industry and Trade’s website, its department of African, Western and Southern Asian markets has stated that the ministry received a note regarding the registrations from the Embassy of Saudi Arabia. Saudi Arabia recommends that Vietnamese food export firms register information via a link, the MoIT said on its website. Registration is compulsory for all firms that export food products to the kingdom to facilitate the export process. Saudi Arabia is working to improve its monitoring process with regards to food hygiene and safety of imported products.
ASIAN AGRIBIZ PIG FEED QUALITY CONFERENCE 2017
Ho Chi Minh City, Vietnam
[26 April 2017]
Asian Agribiz’s 2017 Pig Feed Quality Conference opened yesterday with a record breaking attendance of over 200 participants. Continuing its focus on science, trials and applications, speakers discussed various strategies for feeding for heavier bodyweights without sacrificing carcass quality and how to translate nutrition research into practice.
Precision feeding a key to unlocking pig’s genetic potential
Developments in genetics has changed the productive profile of modern pigs, which are now more productive, have higher growth rates and lean meat deposition, but are nutritionally more demanding. One of the nutritional strategies to meet the demands of the modern pig and unlock its genetic potential is precision feeding, said Bruno Silva, Professor of Swine Nutrition and Production of the Universidade Federal de Minas in Brazil. Precision feeding is providing the right amount of feed with the right composition to each pig in the herd. It can reduce feed costs as well as nutrient excretion, and furthermore provide real time, off farm monitoring of feed and animals for optimal slaughter and production strategies, thus improving environmental sustainability of pork production, animal well-being and meat quality.
Bringing up productivity in Asia
Productivity, which refers to the amount of meat produced per sow per year, remains the prime driver of profitability in pig production, Tony Edwards of ACE Livestock Consulting in Australia explained. As such, it is a function of the number of pigs sold per sow per year and the carcass weight of these pigs. Dr Edwards noted that productivity levels in many Asian countries remain “relatively low due to modest reproductive output and constrained carcass weight,” and called for a review and adjustment of current production systems to address these issues. He presented various nutritional and management strategies that producers can implement to achieve carcass weight without compromising carcass quality.
NSP-enzymes enhance growth and uphold carcass quality
Previous studies on the effects of NSP-enzymes on growing and finishing pigs have produced inconsistent results, but recent studies have shown that supplementing NSP-enzymes enhance digestibility of nutrients in major grains, especially at the end of the ileum. “These digestibility improvements translate to a nutrition matrix of the NSPase, approximately DE 60-70 kcal/kg and amino acids by 1-3%, said Alex Wu, Regional Technical Manager-Asia Pacific of Adisseo. He noted that the use of enzymes has no negative effect on carcass traits, and because NSPases have prebiotic-like effect, it can promote better gut health and result in improved growth.
Alleviating heat stress through nutrition
The higher performance potential of modern pigs tends to make them more susceptible to heat stress. Dr Silva discussed nutritional strategies that can maximise the nutrient intake of pigs under heat stress and improve their performance. One such strategy is the use of low increment diets or high-density diets which can reduce the effect of heat stress particularly on finishing pigs and lactating sows, but only when diets are correctly balanced for amino acids to energy ratio. He noted that the strategic use of a feed flavour can help increase the sow’s voluntary feed intake and benefit milk production, thereby improving litter performance “all of which can help attenuate the negative effects of heat stress on the nursing sow.”
|Pengcheng Food launches fine cutting plant in Beijing|
[26 April 2017] Pengcheng Food, the largest pork processor in Beijing, said it launched a fine cutting plant at its headquarters last Friday. Costing USD 22 million, the plant has a processing capacity of 60 tonnes per shift. Gao Yong, Head of Equipment Department, told Asian Agribiz earlier that the facility features modern equipment from Laska, Handtmann and Treif, while products produced there will include diced, shredded and sliced pork and chicken, as well as minced pork. Pengcheng installed China’s first fully automatic pig slaughter lines in 2004. It produced 200,000 tonnes of pork last year.
|Vietnam issues ban on import of feeds with stimulant|
[26 April 2017] By October 1 this year Vietnam will stop imports of feeds with stimulants. The ban will increase the country’s chance of producing safe products for both the local and global markets. According to Saigon GP Daily, the move is a directive from the Department of Livestock Production. Vietnamese importers are responsible for ensuring that the industry is free of stimulants in feed by January 1, 2018. Importers must report the volume of feed imports and consumption of the kinds with stimulants bought before and how to sell them to the department. The ban aims to stop the use of stimulants in husbandry.
|Tris Rating assigns BBB tag to TFG with stable outlook|
[26 April 2017] Tris Rating, Thailand's credit rating agency, has assigned a BBB rating to Thaifoods Group (TFG) with stable outlook. The rating reflects TFG’s market position as a medium-scale producer in Thai agribusiness and food industry, its vertically integrated operation in poultry and swine businesses, plus its plan to expand market coverage and widen its product offerings to include value-added products. However, these strengths are partially offset by volatile earnings caused by a heavy reliance on basic commodity-type products, fluctuations in the price of grain, relatively high leverage, exposure to disease outbreaks, as well as changes in the tariffs of food importing countries. Tris Rating said the stable outlook reflects the expectation that TFG will be able to maintain its competitive position in the Thai poultry and swine industry.
|Ba Huan launches first modern egg processing plant in the north|
[25 April 2017] Ba Huan has just launched its first technologically advanced egg processing plant in Phuc Tho Town in Hanoi City, marking its expansion to the north of Vietnam. Occupying an area of 2 hectares, the USD 4.5 million plant is one of the most modern egg factories in the country, equipped with a fully automatic egg processing line from Moba of the Netherland's. With this line, the plant can reach a capacity of 65,000 eggs/hour. Beside the processing line, the facility includes a chilled storage system to store processed products such as sausages and value-added eggs, from Ho Chi Minh for the northern market. To serve this plant, Ba Huan purchases eggs from Hanoi and surrounding provinces, to help local farmers with more market options and promote Hanoi's clean food production program.
|Chicken from Brazil and US CLQ could help stabilize industry in Indonesia|
[25 April 2017] The decision on Brazil’s complaint to the WTO (DS484) about Indonesia’s unfair trade restrictions on the imports of chicken meat and chicken products will be announced in May this year. A poultry farmer told Asian Agribiz that he hopes Brazil's exports to Indonesia are approved. “This will force local integrators to adjust their expansion plans. They have expanded aggressively, leaving independent farmers with a shrinking market share,” he said. On the other hand, the US also filed its complaint about Indonesia’s animals & animal products import restriction. A meat processing industry player told Asian Agribiz that he hopes Indonesia can import chicken leg quarters (CLQ) from the US for the meat processing industry. “CLQ is good to be processed into meat meal, and the quality is better than MDM [meat deboned meal]. On one hand, CLQ meal will offer a competitive advantage to meat processors and consumers will get further processed products with higher meat content,” he explained.
|GFPT to invest USD 87 million over 3 years to expand broiler production|
[25 April 2017] Thailand's GFPT Group said it will continue to focus on organic growth and on vertical broiler capacity expansion. Anan Sirimongkolkasem, Chairman of the Executive Committee at GFPT said the group plans to increase its daily broiler production by 20,000 – 25,000 birds annually during 2017-2019, up from 260,000 – 270,000 birds a day currently. GFPT Group will invest around USD 29.1 million annually for this in the three-year period. Meanwhile, Dr Anan said Thai chicken exports look promising in 2017 due to strong global demand for Thai frozen chicken meat and cooked chicken products. Thai poultry products, which meet international standards, are trusted for premium quality and food safety due to its farm management standards and good biosecurity, he added.
|Singapore’s SATS to facilitate meat transhipment between NZ and EU|
[25 April 2017] Singapore ground handler Sats has received European Union (EU) approval as an authorised establishment for meat transhipment services between New Zealand and the EU, reported Air Cargo News. Meat shipments from New Zealand destined for the EU markets can now transit through Singapore via Sats Coolport. Sats will break down and re-consolidate meat shipments from New Zealand for redistribution to the EU markets, all within its Coolport’s temperature-controlled premises. A spokesperson for Sats said the approval presents opportunities for Sats as the company establishes itself as a hub and redistribution centre for perishable products from South West Pacific to the rest of the world.
|Asohi addresses climate and disease challenges in Indonesia|
[25 April 2017]
Considering the negative impact of weather on chicken performance, the Indonesian Veterinary Drugs Association (Asohi) invited a viral diseases expert, a bacterial diseases expert and a practitioner to shed some light on this. The seminar also touched on low pathogenic H9N2 AI virus which has been a topic of discussion among layer farmers in the country.
La Nina and AI infections
For most countries, climate change has been found to increase the risk of avian influenza (AI) outbreaks. Speaking specifically on La Nina, Widya Asmara, a viral diseases expert from the University of Gadjah Mada said La Nina’s lower temperature and higher relative humidity conditions increases the persistence and stability of AI virus. However, Prof Asmara said further studies are needed to prove the impact of La Nina on the number of AI cases, new genotype & phenotype of existing AI viruses, latent infection activation and the existence of the H9N2 AI virus.
H9N2 detected in Indonesia
Lately, unofficial reports about H9N2 AI infections in Indonesia have surfaced. Prof Asmara in his presentation confirmed that the low pathogenic AI virus has been detected in the country. “The Veterinary Centre in Maros, South Sulawesi has detected this,” he said. So far veterinary centres in the country only focus on the H5N1 virus, but they will also study the H9N2 virus to determine whether it is a new or an existing virus. Prof Asmara said the H9N2 virus has no indication of high mortality, but its effect on egg production drop needs to be clarified as many other factors could result in this decline. Most recently, H9N2 infections have been reported in several Asian countries.
Concerns over H7N9 from China
In response to climate change, the Directorate General of Livestock & Animal Health has circulated an official letter to industry players to increase biosecurity levels, and to implement the 3-zone type biosecurity, according to Muhammad Azhar, staff of the directorate. Besides studying about the H9N2 virus, he said veterinary centres under the directorate will also study the H7N9 AI virus that recently hit the poultry industry in China. “We must prevent this virus from entering Indonesia. Although it’s low pathogenic to poultry, it could be dangerous to humans.” He added that collaboration between the industry and government is important.
Avian pathogenic E coli in Indonesia
Michael Haryadi Wibowo from the Microbiology Laboratory of the University of Gadjah Mada focused his presentation on avian pathogenic E coli or Apec. “Apec is a pathogenic E coli that attacks all ages of chickens. The most important thing is that Apec can grow or colonise in non-digestive organs and damage them,” he explained. On high level in-ovo pathogenicity, Apec kills up to 20% of infected embryos. Apec serotypes include O1K1, O2K1 and O78K80. From infected chicken organs, feed samples, farm litter and drinking water collected from different regions in Indonesia, the number of the O2K1 serotype was the highest, Dr Wibowo mentioned. “From its several modes of infection, it’s important to know that Apec can infect through respiration and cloaca.”
Best farm management practices must be applied
On his part as a practitioner, Agus Mardianto from Charoen Pokphand Indonesia said climate change affects chicken performance. Best management practices must be applied to prevent negative impact of climate change. “Nutrition also plays a key role. Adequate, balanced and quality feed can improve immunity,” he said. In the field, there is a misperception about vaccination. “Vaccination programs can’t replace poor management.” He added that stress during and after vaccination affects the achievement target of body weight. Therefore, feed intake should be increased 1-2 weeks before vaccination.
|US beef gains expanded access to Thailand|
[24 April 2017] The US Meat Export Federation (USMEF) said recently that US beef has gained expanded access to Thailand. Bone-in and boneless beef from cattle of any age is now eligible for Thailand, as long as the slaughter date is on or after April 1, 2017. For product derived from cattle slaughtered on or after this date, all USDA Agricultural Marketing Service (AMS) Export Verification (EV) Program requirements have been removed. Joel Haggard, USMEF senior vice president for Asia Pacific said, “Although Thailand is likely to remain a relatively small market for US beef, more exporters will now be interested in serving Thailand, where there are a number of foodservice and retail operations that want to feature American beef.” Still, US exporters should note that beef offal and offal products remain ineligible for Thailand, he added.
|China’s sow stock reverses 8-month consecutive decline|
[24 April 2017] China’s sow stock rose 0.04% in March from a month earlier, ending a decline over eight consecutive months, said the Ministry of Agriculture. The stock was still 1.6% lower than a year earlier. Meanwhile, the nation’s commercial pig stock was up 1.0% month-on-month, but down 1.2% year-on-year. “The capacity rebounded as pig farmers were optimistic about the future benefits, as well as a seasonal restocking in spring,” noted the ministry. Data from the National Bureau of Statistics shows that China produced 191.49 million pigs in the first quarter of 2017, up 0.2% from a year earlier.
|Vietnam’s wheat imports impact on corn |
[24 April 2017] Vietnam is finding that wheat is a good alternative to corn. According to a recent US Department of Agriculture FAS report, feed wheat imported in marketing year 2016/17 and 2017/18 is estimated to increase sharply due to its price competitiveness. “Initially wheat was almost exclusively used in aquaculture. Currently, due to the competitive price of feed wheat, it is becoming a crucial ingredient in producing compound feed for aquaculture and livestock. This is impacting total corn imports into Vietnam,” said the report. Imported wheat accounts for about 20-25% of total imported wheat in recent years. However, the import volume is likely to increase greatly from 600,000 tonnes to 1.1 million tonnes.
|Malindo donates 600k chicken eggs|
[24 April 2017] Malindo Feedmill recently donated 600,000 eggs to orphanages and schools in West Java, East Java and South Sulawesi provinces in Indonesia, with the intent of increasing animal protein consumption in the country. “This is part of our CSR. We partner with local animal husbandry agencies in the provinces to distribute the eggs. We think that eggs are the right animal protein source to donate as it’s nutritious, delicious and easy to cook,” said Rewin Hanrahan, Director, in a press-release received by Asian Agribiz.
|Association supports Indonesia’s plan for aqua feed development|
[24 April 2017] A National Independent Aqua Feed Association (APMN) was formed recently in Indonesia to support the Ministry of Fisheries & Marine Affairs’ program for independent aqua feed development (Gerpari) which is aimed at providing aqua feed for farmers at affordable prices. Having 20 members, APMN commits to support the development of aquaculture in the country, said Chairman Syarifuddin. Slamet Soebjakto, Director General of Aquaculture of the Ministry of Fisheries & Marine Affairs said Gerpari, which was initiated in 2015, produced 16,800 tonnes of aqua feed in 2015 and 62,100 tonnes in 2016. “Gerpari has been effective in helping farmers reduce feed costs,” he said, adding that Gerpari also aims to reduce the country’s dependence on imported feed raw materials such as fishmeal.