Feed Watch

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DNA ensures feed corn availability amid Covid-19

6 April 2020 – by Arief Fachrudin – Corn producer Datu Nusra Agribisnis (DNA) and state-owned agriculture company Pertani recently signed a joint agreement on corn availability with the Agriculture Ministry. DNA’s Director Dean Novel said DNA and Pertani are responsible for supply and distribution of the grain and will help stabilize the price. Meanwhile, the Ministry provides data and information of corn availability and demand. Based in East Lombok, DNA supplies corn to the feed milling industry and layer farmers. “DNA and its farmers are committed to ensure supply amid the Covid-19 pandemic,” he told Asian Agribiz.

Indian pet owners running out of pet food amidst lockdown

India faces a pet food shortage.

6 April 2020 – Pet owners in India are experiencing a shortage of pet food due to distribution disruptions from the lockdown. Mars Pet Nutrition India which imports Pedigree, Whiskas and IAMS, also noted that imports have not reached India due to the Covid-19 outbreak in source countries. Remaining supplies are being hoarded and sold in the black market, under inflated prices. Prices of locally produced pet food is expected to rise in future as raw material prices increase with supply breakdowns.

Cargill India chief expects recovery from Covid-19 to take 12-18 months

3 April 2020 – Cargill India is working closely with the Indian government to smoothen supply chain disruptions. Cargill India, President, Simon George told the media this week that feed companies faced many challenges in transport due to the lockdown in the country.
He hoped supply chains to improve as the stakeholders got used to the ‘new normal’. Overall recovery of the food industry after Covid-19 however he estimated would take 12-18 months.
“At present, there are still some challenges around transportation, particularly regarding inter-State movement of raw materials, ingredients, packaging material and finished goods,” he said.
Cargill has temporarily shut down some of its non-essential operations in the country such as the production of bio-industrial solutions to better concentrate on producing essential commodities.
“We are working hard to keep our operations running, as we supply essential commodities like edible oil, wheat flour, feed for dairy, poultry and aqua farmers in India, which are critical to feed people and animals,” said Mr George.
Cargill’s poultry feed business has taken a major hit recently with the Indian poultry industry facing a drastic decrease in demand.
“It is very unfortunate that poultry farmers and the entire poultry supply chain is facing this unprecedented decline due to a rumour that has no scientific rationale,” he said.
According to Mr George, the global economy could take a while to recover, even after the coronavirus has run its course, as the focus would be on winning back consumer confidence.

EW Nutrition launches webinar series

3 April 2020 – In serving the animal production industry in these challenging times, EW Nutrition has started a series of webinars on challenging issues such as neonatal pig management, poultry gut health and more. Called the Partners in Progress – Connect series, the first will be on April 7 titled ‘The silent epidemic: Antimicrobial resistance. How to prevent the next crisis’. It will be at 8am CET. Click here to register. The next titled ‘Gut health: Managing the interaction of myco and endotoxins in poultry production’ is scheduled for April 8 at 8am CET and 5pm CET. It will address the topic of gut endotoxins, their interactions with feed-borne mycotoxins and their effects in animal welfare, health and productivity. You may register for the 8am session or register for the 5pm session.

Lockdown affects feed transport across India

2 April 2020 – India’s lockdown is affecting the transport of feed to poultry farms across the country. The Hindustan Times reported that farmers in Haryana had to bury chicks as they were starving.
Rajbir Singh, owner of a poultry farm in Bhiwani, Haryana, has buried over 12,000 birds alive in the last 10 days due to acute shortage of feed.
Mr Singh noted that the situation was unlikely to improve till August. Similar crisis are affecting farmers across India despite the availability of feed. The nationwide lockdown has snapped the supply of feed. The lockdown in India is to last until April 15. Read more »

Nepal poultry running short of feed ingredients as Nepal-India border closes

2 April 2020 – Nepalese poultry producers are running short of feed ingredients with the closing of the India-Nepal border. Om Shree Pashupati Breeders, Director, Brajen Ksh told Asian Agribiz that the industry mainly depended on India for feed ingredients and additives.
The shortage comes at a time when the industry was already suffering from high feed prices due to a corn shortage.
“We have been having corn shortages for the past 8-9 months,” he added. Despite new harvests beginning in November 2019-January 2020 in certain areas of India, Mr Ksh explained that they were yet to come into Bihar, West Bengal and Uttar Pradesh- where Nepal mainly got its supplies from.
The Covid-19 scare in Nepal is also keeping customers away from poultry, causing a further strain on the finances of farmers,
“High feed costs coupled with lower margins on the broiler and layer sector is going to reduce the farming community in Nepal,” said Mr Ksh.

ASF will continue to dampen Philippine demand for feed wheat

1 April 2020 – Philippine imports of feed wheat are expected to fall in marketing year 2020-21 due to the continued spread of ASF in the country. According to the USDA, the country’s total wheat imports will decline due to lower hog feed demand as farmers stop or reduce production due to ASF. Feed wheat is used more by pig farmers than poultry farmers, who prefer to use corn in their birds’ rations. While previously considered a corn substitute, the USDA said feed wheat is now an integral part of hog feed rations. However, concerns regarding are ASF will pull down feed wheat consumption in the Philippines by 250,000 tons to 3mt in 2020-21.

Japan feed industry shows stable growth in 2020-21 as Covid-19 impacts spare industry

31 March 2020 – Covid-19 has reportedly spared the feed industry in Japan with feed consumption and production not being affected as of yet.
This is coupled with the expectation that the growth of the Japan’s animal protein industry would be stable in 2020-21.
USDA’s GAIN report on Japan’s ‘Grain and Feed Annual’ on March 19, 2020 explained that demand for feed in Japan in 2020-21 would ‘remain stable’. This would be a continuation of the trend in 2019, where the USDA observed, “Strong demand from the poultry sector, slight gains in beef production, and flat pork production, despite the outbreak of Classical Swine Fever and the subsequent culling of hogs, only contributed to the modest feed production gains in 2019.”
Corn production in the meantime is forecasted to be 2,000 tons in 2020-21 and would be selling at a competitive price. This would encourage feedmills to substitute more sorghum with corn.
“Feedmills will look to continue taking advantage of competitive corn prices, having already increased the ratio of corn in compound feed to 48.6 percent, the highest since 2009-10,” stated the report.
Given the demand for corn, Brazil has been able to overtake the US from October 2019-January 2020 as the primary supplier of corn to Japan. During these months, Brazil’s share of the Japanese corn market came to over 70%.
“Industry sources indicate the low protein content and high stress crack ratio of the 2019-20 US corn crop was another factor driving demand for Brazilian corn in Japan,” stated the USDA.
Despite these challenges, imports from the US is expected to rebound for the remainder of the year as supplies from Brazil dwindle. Read more »

Indonesia explores potential of Maggot meal-based fish feed

Maggots make good source of fish meal.

31 March 2020 – Indonesia is very interested in promoting maggot production facilities in the country. The Ministry of Fisheries and Marine Affairs plans to set up seven industry-scale maggot production facilities to produce low-cost aquaculture feed. Maggot meal is a potential alternative protein source for fish feed, according to an Indonesian maggot farmer, Yosep Purnama. He said the use of maggot meal by 30-35% in tilapia feed can generate a feed conversion of 0.8. If the same percentage of maggot meal is included in carp feed, 0.85-0.95 of feed conversion can be achieved. “With maggot meal, cost of feed raw materials can be saved by 50-60%,” Mr Purnama claimed. He believes the boom of maggot farming in the country will support the development of the aquaculture industry.

West Manggarai govt asks pig farmers to use home-mixed feed

30 March 2020 – The government of West Manggarai in East Nusa Tenggara urges pig farmers in the regency to produce their own pig feed as a preventive measure towards ASF recently confirmed in the province. Head of Livestock and Animal Health Services Agency in the regency, Theresia Asmon said the agency intensively educates farmers to stop using leftovers from hotels and restaurants for swill feeding. “They can do home mixing by using locally available ingredients such as banana stems, cassava, rice bran and taro leaves,” she added.

SPECIAL FEATURE: Covid-19 puts pressure on supply of micro-ingredients from China

27 March 2020 – Indonesia’s animal feed industry began feeling the impact of the Covid-19 outbreak in early February when many micro-ingredients from China started to be unavailable.
These included vitamins, minerals, amino acids, dicalcium phosphate, sodium bicarbonate and other feed additives. Their short supply has put pressure on farmers fearing for their animals’ growth performance.
“The impact of Covid-19 in China has been split into two streams: availability and price,” A Harris Priyadi, Secretary General of the Indonesian Veterinary Drugs Association, told Asian Agribiz.

A slowdown in shipments from China affects supply of micro-ingredients to Indonesia .

“Some producers who have ready stock can’t deliver their products due to transport limitations and the temporary closure of some seaports. Because of this, deliveries are being delayed,” he said.
Mr Priyadi has also been seeing a sharp rise in the price of calcium pantothenate and vitamins A, E and D and biotin since early February.
Higher cost
“Some micro-ingredients can be imported from Europe, but at an additional cost of around USD 2.5. The final price in Indonesia will be higher,” he said.
He believes animal feed prices in Indonesia will continue to rise beyond April, “but the situation will quickly recover if a cure is found in the near future and the situation normalizes”.
Timbul Sihombing, Chairman of the Indonesian Feed Millers Association admitted that his members’ dependency on Chinese-made feed micro-ingredients continues to be high. With the Covid-19 situation in China, he said prices of some micro ingredients have increased to varying degrees.
“We have told farmers that the price of poultry feed will increase in the near future. Not only because of the higher price of micro-ingredients, but also the high price of corn,” Mr Sihombing told Asian Agribiz.
If the Covid-19 situation worsens in China, he expects a downward revision of the anticipated 6% growth in Indonesian animal feed consumption this year.

Thai Union launches insect protein

26 March 2020 – After investing USD 5 million in an Isareli insect protein start-up, Flying Spark, Thai Union Group in Thailand, is now ready to launch the product in March. The company plans to spend USD 30 million on food innovation. It is collaborating with the National Innovation Agency and Faculty of Science, Mahidol University by encouraging 23 food tech start-ups from Germany, India, Norway, Singapore and Thailand. CEO Thiraphong Chansiri said the initiative is expected to produce 60 foodtech enterprises within three years.

Sri Lankan government comes down strong on corn traders

26 March 2020 – The Sri Lankan Government will take strict action against traders who hoard corn this season. The President’s Office said the Consumer Affairs Authority would investigate a “racket to push up domestic corn prices.” The government estimates 300,000 tons of corn to be harvested, starting end April. Pussalla Meat Producers, Managing Director, Dilshan Wewita told Asian Agribiz that the harvest could be less than expected, “It is good if the government can get the traders to release stocks to prevent a price hike,” he said.

India to expect bumper harvests this year despite crashing corn prices

25 March 2020 – Corn prices in India are plummeting with few takers from the poultry industry. In the last two weeks, markets reported a price drop of 35%. Price have decreased from USD 0.23/kg to USD 0.15/kg. Covid-19 rumors circulating on social media had resulted in many staying away from chicken. Reports estimated a 50% drop in demand for chicken in India with the industry facing losses of up to USD 1.35-1.75 on every bird.

Indian corn prices have been steadily rising and spiked last year, only to come down in the last two months as Covid-19 shuts down the Indian industry.

Apart from weak demand, greater supply in the upcoming season (rabi) is also easing corn prices. The USDA Gain Report for March 2020 stated that India was heading toward a bumper wheat and corn harvest in 2020/2021. Consequently, the USDA estimated the 2019-20 corn production at 28.5mt, marginally higher than the Indian Government’s second advance estimate of 28.1mt.
“Market sources expect domestic prices to ease further with the harvest of rabi (winter) corn in Bihar and eastern India from end March,” stated the USDA report.
When it comes to wheat, estimated projections for production in 2020/21 stand at 106.2mt. Favorable weather between end March/April however could increase this further to 110mt in 2020-21. Read more »

ADM sets sight on new markets with factory in Vietnam

24 March 2020 – ADM is venturing into new feed markets, after opening a USD 22 million factory in Ha Nam province in Vietnam at the end of 2019, when ASF was still at its peak. The plant specializes in rabbit, horse and pet feed, in addition to its traditional products for swine, poultry and aquaculture. “Within the next two years we plan to become a major player in the feed market with multi-species and multi-activities consisting of shrimp, fish, frog, pet and premix,” ADM Animal Nutrition’s President, Pierre Duprat, told Asian Agribiz.

More soybean from Brazil this year

24 March 2020 – Brazil has reported record soybean harvests with an estimated 126 million tons expected in 2019/2020 and is expected to overtake the U.S. in soybean production.
The USDA March report said production would be 8% higher this year compared to last.
“Soybean area continues to increase, and this year Brazil will overtake the United States as the world’s leading soybean producer,” said the USDA.
The Brazilian harvest which began in January will continue through late May. By late February, approximately 40% of the crop had been harvested and harvest progress is well ahead of the five-year national average pace of 36%. Read more »

Feed demand by sector in Thailand.

Feed price in Vietnam spikes on short supply

23 March 2020 – by Ha Thu – Since the end of February, feed producers in Vietnam have increased their price by USD 0.011 – 0.015/kg. “Feed ingredients are not priority and feed manufacturers are finding it difficult to import raw materials from China,” said Mai Thanh Dieu, Director of Vietnam Animal Nutrition Company. A feed additive distributor told Asian Agribiz that materials such as micronutrients are not coming through from China due to border closure. This has forced producers to switch to alternatives with limited availability and priced higher.

Soybean and oilseed imports to China rise as swine sector recovers

20 March 2020 – A slow but steady recovery of China’s swine sector is driving demand for oilseed in the country. The USDA in its GAIN report on March 19, 2020 forecasted oilseed demand to rise to 148mt in 2020-21.
“Driven by increased swine feed consumption, total protein meal feed use is forecast up 2% and soybean crush volume is forecast up 3% 2020-21 compared to the previous marketing year,” added the report.
The swine sector is also driving increased soybean imports into China, with the forecast for 2020-21 imports reaching 86mt.
On February 18, 2020, China announced a new round of exclusions from the additional tariffs, with soybeans listed as an eligible product for applications by individual importers. Read more »

Lockdown in Kerala and Karnataka leaves pig farmers with no feed

20 March 2020 – by Zahrah Imtiaz – Indian swine farmers in Kerala and Karnataka are facing feed shortages as the state has shut down all public spaces because of the Covid-19 outbreak. DLG Farms CEO, O.K. Sanjit told Asian Agribiz that many farmers were relying on hotel waste to feed the pigs. “Many are resorting to feeding broken rice,” he said. With many of the food establishments also closed, farmers are also unable to sell pork. DLG Farms supplies piglets and Mr Sanjit explained that their operations too were down with few farmers wanting to restock.

Thailand to reap bumper corn and rice harvests in 2020-21

19 March 2020 – Rice and corn harvests are making a comeback in 2020/21 with favorable weather conditions and better pest conditions this year.
USDA’s 2020 ‘Grain and Feed Annual’ Report on Thailand noted, “Rice exports are expected to be more competitive in 2021 due to larger exportable supplies. 2020/21 feed wheat imports are likely to continue an upward trend in line with growing livestock production as domestic corn production is still insufficient.”
The USDA estimates Thai rice production to at 21mt (an increase of 17% from 2019-2020). Further, rice consumption expected to increase due to tourism recovery and increased swine feed demand. Consumption in 2020-21 is forecast to increase to 11.8mt -up 5% from the previous year.
Thai corn production will also experience a resurgence in 2020-21 to a record 5.6mt. The country’s successful management of the fall armyworm threat has helped it increase production this year by 25%.
“However, domestic corn production is still insufficient for the growing demand for feed from poultry and swine sectors,” noted the USDA.
To meet demand from broiler and swine sectors, feedmills are moving to import more feed wheat rather that corn under the ‘domestic corn purchase requirements’. This estimates feed wheat imports to increase to 1.8mt in 2020-21. Read more »

Suguna prioritizes feed production with IFC funding

18 March 2020 – Suguna Foods Private Ltd (SFPL) will spend a portion of its USD 67.2 million from the International Finance Corporation (IFC) to set up feed facilities in North India. “As we expand our presence into North and North East of India, we need our own feed facilities to support us,” Suguna Holdings, Vice President, Finance and Strategy, Deepak Row told Asian Agribiz. A premix plant would be the main highlight of its investments in the North. The company will also establish a new hatchery, processing plant and poultry environment-controlled shed to cater to this market. Expansions in India would be primarily in Uttar Pradesh, Odisha and West Bengal.
“The North has a lot of opportunities for consolidation and broiler integration,” said Mr Row whose company pioneered the contract growing model in the South of India.
Suguna’s investments in Kenya and Bangladesh will also receive an influx of USD 24.3 million. These are to capitalize on the growing economies of these two countries.

Japfa Indonesia books higher revenue but lower profit due to feed costs

17 March 2020 – Increasing raw material costs for feed bit into Japfa Comfeed Indonesia’s profits last year. Profit attributable to the parent entity contracted by 8.5% to USD 124 million last year. Cost of goods sold rose 10.4% to USD 2.1 billion but raw material cost increased 10% to USD 1.8 billion. The largest contributor to the company’s revenue was its commercial farm and processing division (USD 1 billion), followed by its animal feed division (USD 956 million).

Covid-19 impacts availability, price of feed micro ingredients in Indonesia

17 March 2020 – The animal feed industry in Indonesia has started to feel the impact of Covid-19 outbreak in China from early February as many micro ingredients needed come from China. “It is impacting the availability and price of feed micro ingredients,” A Harris Priyadi, Secretary General of the Indonesian Veterinary Drugs Association told Asian Agribiz. He said the disease has delayed delivery of micro ingredients. On prices, he observed calcium pantothenate and vitamin E, D, A and biotin have shown a sharp increase from early February.
Feedmillers in Indonesia in the meantime expect the government to offer recommendations for imports of alternative feed ingredients such as sorghum and wheat as the supply and price of local corn continues to fluctuate. Timbul Sihombing, Chairman of the Indonesian Feed Millers Association told Asian Agribiz: “To assure the government that we will always absorb local corn, we don’t mind if import tariffs are imposed for the alternative ingredients. We are also okay if the import timing is adjusted with the harvest time of local corn.”

Wheat and corn markets suffer as Covid-19 cautions world markets

13 March 2020 – Covid-19’s impact on global economies has placed a damper on US wheat prices. The USDA March report revealed that prices for all wheat classes were down in February. Concerns over Covid-19 in global markets are generating reduced demand. Further, a bumper crop in Russia has also reduced Russian wheat prices, causing many US regulars to switch. US wheat prices decreased from USD 237/ton in December to USD 222/ton in February.
World corn markets have also suffered as a result of Covdi-19 pressures with “major bids drifting lower, weighted by Covid-19 uncertainty and benign weather in South America,” said the USDA report. Argentine bids are down USD 9/ton to USD 172 and Black Sea bids are down USD 5/ton to USD 178. US bids are little changed overall, down just USD 1/ton to USD 177.

Leong Hup buys feedmill in Vietnam

13 March 2020 – Malaysia’s Leong Hup International Bhd (LHI) has acquired a feedmill in Vietnam including its equipment, machinery and motor vehicles, for USD 15.1 million. The integrated producer of poultry, egg and livestock feed said the acquisition marked its diversification into aquatic feed in Vietnam. Currently, LHI and its subsidiaries in Vietnam produce a wide range of feed products.This includes those for PS, broilers, layers, colored birds, ducks, cattle, goats, swine and quail. The asset, which currently produces only aquatic feed, has the capacity to produce up to 118,800 tons of aquatic feed annually.

China’s feed demand to continue to decline in 2020

12 March 2020 – China’s overall feed demand and consumption in 2019/20 contracted, but not as dramatically as expected with the reduction in the pig herd due to ASF. In its latest Grain and Feed Update, the USDA said China’s 2019/20 feed and residual forecasts in total are down more than 5 mt (1%), from 2018/19. Losses were offset by increased feed demand for other animal proteins like poultry, eggs, and aquaculture, which are expanding production. It cited an estimate by a leading feed producer that ASF could cut feed demand by 25% this year.
Despite the decline in demand, the US has gained this year, as China opened up soybean exports from the country. As of the week ending February 27, 2020, US soybean accumulated exports (shipments) to China totaled 11.9 mt and 17.7 mt to the rest of the world.
“US soybean export commitments (outstanding sales plus accumulated exports) to China totaled 12.2 mt compared to 9.4 mt a year ago. Total commitments to the world were 34.1 mt, compared to 39.1 mt for the same period last year,” said the USDA.

Evonik declares force majeure for supply of ThreAmino due to Covid-19

11 March 2020 – The Covid-19 virus outbreak has forced Evonik’s contract manufacturer in China to shut-down its production facilities, thus affecting both production and shipping of the amino acid ThreAmino. Dr Emmanuel Auer, Head of Animal Nutrition Business Line at Evonik, explained: “Regrettably, we are facing a supply shortage for ThreAmino and have sent a Force Majeure notification to our customers with immediate effect, in accordance with our contracts. Meanwhile, we will try to mitigate this situation and re-establish supply as soon as possible.” Evonik is keeping its customers informed as the situation develops.

Extreme mycotoxin threat in Asia

11 March 2020 – Biomin has mapped out the global mycotoxin threats to poultry, swine, ruminants and aquaculture worldwide in 2020 based on its recent feedstuff testing results. In China the risk remains extreme mainly due to high Fusarium mycotoxin occurrence: FUM (94%), DON (93%) and ZEN (86%). In the same region, South Asia showed also extreme risk with Aflatoxin appearing in 82% of samples (average of positives 20 ppb).In 2019, the globally most prevalent mycotoxins were FUM (70%) and DON (68%). The full 2019 Biomin Mycotoxin Survey results are based on 93543 analyses conducted on 21287 finished feed and raw commodity samples that were sourced from 86 countries, between January to December 2019.

Leong Hup may benefit from raw material price drop

10 March 2020 – Malaysia’s Leong Hup expects its FY20-21 to be driven by sales volume growth in emerging markets (such as Vietnam) but is mindful of the African swine fever and Covid-19 effects. The group typically purchases raw materials two to three months ahead. However, its feedmill segment is a cost-plus business and changes in input cost are usually passed on to customers. Nonetheless, the expected drop in global raw material price will benefit the group, which would mitigate slightly the expected pressure on margins from depressed selling prices in the near term.

Feed association expects more government-approved testing labs

9 March 2020 – The Indonesian Feed Millers Association expects the government to approve more laboratories to test commercial feed. Millers now must get a feed registration number before they market their feed. To get the number, their feed must be tested by government-approved laboratories. “Unfortunately, there aren’t enough labs to test feed and so testing takes a long time,” Tevi Melviana, Chairman of the association told Asian Agribiz. Currently the association has 84 members with a total of 104 feed plants.

Corn prices in Sri Lanka rising over speculative pricing

6 March 2020 – Sri Lankan poultry producers are once again dealing with rising corn prices. Local corn traders told Asian Agribiz that prices for dry corn was at USD 0.28/kg while wet corn sold at USD 0.2-0.23/kg (14-15% moisture content). “Prices will increase as farmers are holding on to their harvests, hoping for better prices,” said the trader. In 2019 prices averaged at USD 0.41/kg due to poor local harvests and delays in imports. Harvest this year is estimated at 300,000 tons.

China’s feed demand low for pork but steady for poultry, aqua

5 March 2020 – China’s overall feed demand and consumption are down though not as a dramatically as expected with the reduction in the swine herd due to ASF. Losses have been offset by increased feed demand for other animal proteins, namely poultry, eggs, and aquaculture, all of which are expanding production. Domestic production of most grains remain steady with a slight increase in both corn and wheat production due to increased yields. Stocks of all commodities remain high. While optimism exists in the wake of the US-China Phase One Trade Deal with China’s pledge to import more U.S. agricultural products including grain and feed, these purchases have yet to materialize. However, other barriers such as China’s Tariff Rate Quotas and competition from both domestic production and imports from other nations will present challenges for US products. Read more here.

Van Arsen introduces split-grinding solution for better nutritional value

20 February 2020 – Pre-grinding has a proven advantage over post-grinding when considering the digestive properties of the nutrients but setting up a pre-grinding feedmill can be costly, as it requires individual dosing silos for the pre-grinded material.
Van Arsen’s new split-grinding solution combines the best of both post and pre-grinding, all at a low investment. This split-grinding solution includes the application of the Van Aarsen GD Hammer mill with automatic screen exchange and can be implemented in new and existing feedmills.
So, instead of making one grinding batch with all the raw materials, split grinding enables you to grind separate sub-batches of different raw materials. Afterwards, these sub-batches are collected and mixed for further processing in one batch. The nutrients are ground to the size your animals need, which enhances the nutritional value and therefore increases the quality of the feed. Split-grinding optimizes the feed conversion rate and heightens the line-capacity. Watch the video here.

Thailand to help small farmers produce feed

19 February 2020 – Feed centers are being set up throughout Thailand to help small-scale farmers procure feed ingredients and produce animal feeds. Initiated by the Bureau of Animal Nutrition Development, farmers’ representatives are being selected to operate the centers which will be divided into two types, one for ruminants and the other for monogastric animals such as pigs and poultry. The ruminant feed center will focus on making TMR from local ingredients such as Napier grass, rice straw and corn trunks. The monogastric feed center focuses on feeds for native chickens and pigs from rice by-products, cassava and corn.

Growth of Indonesia’s pet food biz attracts new players

18 February 2020 – The market volume of pet food in Indonesia, mainly dog and cat food, now is estimated at 23,000 tons. With an annual growth of around 30%, “this business is like ‘sugar’ for new players,” Suaedi Sunanto, President Director of Nutricell Pacific, a new player in the pet food industry told Asian Agribiz. Pet food in Indonesia is marketed via technical (pet shop & clinic) and modern trade channels (supermarket and minimart). Nutricell chose the former channel as it believes that product trends/innovations are driven by vets who run pet shops & clinics. Nutricell distributes two pet food brands by ADM Animal Nutrition namely Ciclos and Must for the super-premium and premium market segments of dog and cat food.

STM launches small feed packs for fighting cocks

17 February 2020 – Indonesian feedmiller Sinar Terang Madani has launched premium feed for fighting cocks in 1kg packs retailed at USD 1 per pack. Previously the subsidiary of poultry integrator Perkasa Group produced the feed in 50-kg bags, but users wanted small packs for practicality and feed freshness, according to Marketing Manager, Nanang Wirahadi. He told Asian Agribiz that the feed is enjoying good sales in eastern Indonesia, mainly in Sulawesi, Southeast Kalimantan, North Maluku and Papua.

High feed costs cut into Venky’s bottom line in 2019

14 February 2020 – India’s largest poultry producer, Venky’s posted a net loss for the quarter ending December 2019. The net loss was estimated at USD 822,000 for the December 2019 quarter, compared to the net profit of USD 9 million in the quarter of December 2018. The company informed its shareholders that the losses were due to high input costs, mainly poultry feed ingredients, and lower sales of poultry products.” In March 2020, the company hopes to start production at a new solvent extraction plant and vegetable oil refinery in Srirampur, Maharashtra.

USGC/NCGA explore market potential in Vietnam, Myanmar

13 February 2020 – The leaders of the US Grains Council (USGC) and National Corn Growers Association (NCGA) had a joint mission to lay the framework for trade development in Southeast Asia. The delegation met with customers and end-users to gain information on the advancement of feed production in these markets. “This joint mission was a welcome opportunity to join fellow NCGA and USGC officers to learn more about this important market and continue our efforts to build on our existing trading relationship,” said Kevin Ross, NCGA President. Click here to learn more about the mission.

Indonesia gains preferential access to Australia’s agri products

12 February 2020 – Indonesia ratified the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). Indonesia is the fifth largest export market for Australian agricultural products. Once implemented, IA-CEPA will provide preferential access for more than 99% of Australia’s agriculture goods imported by Indonesia. Australia’s agricultural exports are typically between USD 2-2.5 billion but have fallen the last two years as severe drought in Australia and strong competition from other suppliers have reduced Australia’s wheat shipments to Indonesia. Australian agricultural exports to Indonesia totaled USD 1.48 billion in 2019. Indonesia is the largest market for Australian wheat and the largest market for Australian live cattle and the fifth largest for beef. Click here for more details.

Mobile feed labs to help raise feed quality in Thailand

11 February 2020 – Mobile feed analytical laboratories are being set up and dispatched across Thailand to assist livestock farmers and feed manufacturers evaluate feed and raw material quality. The laboratories conduct proximate analysis of feeds and ingredients, and test for adulteration and contamination in the samples. Livestock officers from across the country were trained to operate the laboratories.

S&P Global’s grains outlook for 2020

10 February 2020 – The proliferation of African swine fever in Asia remains the biggest factor weighing on global demand for soybeans, even though the two-year trade dispute between China and the US has been grabbing the headlines. Click here to read more.

US exporters on trade mission to the Philippines

7 February 2020 – US agricultural exports to the Philippines have more than doubled over the last decade, reaching a record USD 3 billion in 2018. According to Morgan Haas, FAS counselor for agricultural affairs at the US Embassy in Manila, positive consumer attitudes and a healthy business climate point to continued growth potential. “The country’s rapidly expanding retail, food service, and food processing sectors offer robust opportunities for US exporters looking to sell agricultural raw materials, high-value ingredients, and consumer-oriented food and beverage products.” A trade mission is planned for later this year.

Thailand to curb corn imports

6 February 2020 – Thailand is considering shortening the period during which corn can be imported at zero tariff from seven to five months. The move is aimed at controlling local corn stock and price to the level that is profitable for local growers. Local corn stock is growing due to smuggling of the grain from neighboring countries. Authorities are concerned that a glut would hurt local growers.

Soy prices contract in January

5 February 2020 – Both US soybean and soybean meal export prices fell slightly in January, while Brazil and Argentina meal prices strengthened. US Gulf FOB soybean export bids in January averaged USD 361/ton, down USD 2 from December. Brazil Paranagua FOB averaged USD 359/ton, down USD 10 from December. Argentina Up River FOB averaged USD 361/ton, down USD 6. The soybean price spread continues to narrow. US soybean meal export bids in January averaged USD 340/ton, down USD 4 from December. Brazil Paranagua FOB averaged USD 321/ton, up USD 5 from December, and Argentina Up River FOB averaged USD 336/ton, up USD 5. More details here.

Global corn production up

Top 10 destination markets for US containerized grain exports Jan-Sep 2019.

4 February 2020 – Global corn production is forecast up with larger crops in Moldova, South Africa, and Ukraine more than offsetting a decline in Vietnam. Global trade is up marginally from last December with higher imports for Brazil and Turkey. Lower exports for the US are more than offset by higher exports for the European Union, South Africa, and Ukraine. The US season-average farm price is unchanged at USD 3.85 per bushel. Details here.

Feed Watch offers the industry a quick view of feed trends, technology and markets in the Asian region. It provides insights and analysis on the factors the touch on the industry’s challenges and growth. Highlights of Feed Watch include:

– the latest on Asian feed companies
– new products and innovation
– predictions and trends in raw material supply
– comprehensive insights on inter and intra-regional trade
– feed consumption patterns and predictions

Zahrah Imtiaz, Editor