WorldWatch:

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Nutritionists need to think laterally
[3 March 2010] Nutritionists should think laterally to improve the company's bottom line. This was the message delivered to participants attending the Asian Nutritionist Briefing in Bangkok, Thailand yesterday. Key speaker Oliver Ryan said focusing only on nutrition is not enough because there are a number of factors in relation to the feed that affect the bottom line. Besides understanding all those factors, Mr Ryan said nutritionists should "think outside the box" to find ways to improve business efficiency and hence the bottom line. The event organised by Asian Feed Magazine in cooperation  with Phytobiotics, Feed Management Systems and Van Aarsen drew nearly 100 nutritionists and feed industry personnel from Asia.

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 US consumers will pay for ‘ethical’ food
[5 March 2010] Asian suppliers to the US are likely to do well if they can assure customers that their products are produced in an ethical manner. A recent survey by San Francisco-based marketing communications firm Context Marketing revealed that 69% of consumers will pay more for 'ethically produced' foods. Bob Kenney, Context Marketing Principal said that when asked to identify what they meant by 'ethical food', more than 90% percent of respondents identified three main qualities: protects the environment, meets high quality and safety standards and treats farm animals humanely. The survey was conducted in January among 600 adults aged 20 - 64, equally representing men and women living in major US markets. 
 
 
 

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Thailand to export more halal goods and services
[10 March 2010] Thailand is working to boost production and export of halal products and services to reach USD 50 billion in 2012, or a 5% share of world halal market, said Industry Minister Chanchai Chairungruang. A part of this attempt by the Thai government is the hosting of the World Halal Congress 2010 in Thailand from March 19-24 to project the country’s potential as a global center for halal trade. At the moment, halal products and services from Thailand account for only 1% of total global value, but ranking as the world’s seventh largest exporter of halal goods.

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San Miguel food unit posts PHP 2.7b profit
[16 March 2010] Despite the domestic economic slowdown and the sluggish markets, San Miguel Pure Foods Company (SMPFC), the food unit of San Miguel Corporation, posted a record breaking net profit of PHP 2.7 billion (USD 59.12 million) in 2009, up 17-fold from PHP 149 million (USD 3.26 million) in 2008. SMPFC President Francisco Alejo III attributed the strong performance to lower inputs and raw material costs, increased efficiency and distribution. Revenues topped PHP 75 billion (USD 1.64 billion) up 6% from the previous year, while income from operations reached PHP 4.6 billion (USD 100.72 million) or 152% higher than the 2008 level. The company's poultry, feeds and flour businesses, thanks to stable pricing and soft prices of raw materials, were the strong profit drivers, with the dairy and piggery business also exhibiting significant improvements in profits. Mr Alejo expressed optimism that the company will continue on its growth path this year, saying the first two months already indicated a good year. SMPFC has earmarked PHP 5.3 billion for investments in the next few years.

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Government to buy local yellow corn
[17 March 2010] The Philippine government targets to buy 200,000 tonnes of yellow corn from local farmers this year. Gregorio Tan, Chairman of the Agricultural Commodity Exchange System of the Department of Agriculture said the National Food Authority will pay farmers PHP 12.30 (USD 0.27)/kg plus an incentive of PHP 0.70 (USD 0.02)/kg. The incentives include PHP 0.20 for farmers to dry their corn, PHP 0.20 to deliver their corn to NFA warehouses and PHP 0.30 for cooperatives to sell their corn to the government.

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Korea to open organic fertiliser plant in the Philippines
[25 March 2010] South Korean firm Daepoong Fertiliser Co will spend USD 12 million to build an organic fertiliser plant in the Philippines. Located in Batangas, the plant is expected to be operational at the end of the year and it will produce 6000 tonnes of organic fertiliser a day, 70% of which  will be exported to Japan, said CEO Jongmin M. Lee. The plant will use both biodegradable and non-biodegradable waste materials to make the fertiliser. It can process 12,000 tonnes/day of garbage and turn half of the material into organic fertiliser. The other half from from non-biodegradable materials will be broken down in the fermentation process.

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Jollibee opens fifth outlet in Saudi Arabia
[30 March 2010] Philippine fast food giant Jollibee Foods Corp (JFC) recently opened its fifth outlet in Saudi Arabia. JFC Vice President for International Operations said that the company is expanding its presence in the Middle East “not only to meet the strong demand for Jollibee stores in these areas, but also to let people enjoy the favorite Filipino treats they grew up with.” The new store is located in the Al Rahmaniyah Mall at Al-Khobar. JFC now has more than 50 stores outside of the Philippines.

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Good prospects for Phillipine livestock industry
[21 April 2010] The Department of Agriculture (DA) in the Philippines expects bright prospects for the livestock industry this year and beyond owing to its vast export potential, an increasing demand in the local market for its products and the entry of new players to further invigorate the domestic industry. DA Secretary Bernie Fondevilla said there is potential for the sale of hogs and pork products to other Asian economies and Halal goat, chevon meat and processed products to Middle East countries and other Islamic states. He noted that domestic demand is also growing for semi-processed and processed beef, pork and chicken because of the increasing population; rising number of local and foreign tourists in highly urbanized areas; and the growing number of hotels, restaurants and other commercial institutions in Metro Manila and other major cities in the country.

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Global Meat, Egg Sectors to Face More Challenges
GLOBAL - During the VIV Europe in Utrecht on 20 April, Rabobank analysts, Dirk Jan Kennes and Albert Vernooij, addressed the challenges which the global meat sector and the global egg sector face with the rapidly changing consumer attitude and behaviour towards food.



A dynamic meat market towards 2020
“Consumer demand for meat will become even more heterogeneous towards 2020,” senior industry analyst Dirk Jan Kennes said. “Next to intrinsic product quality parameters (e.g. taste, pathogen free), animal welfare and environmental parameters become more important in consumers’ buying behaviour, especially in developed countries.”

Sustainability determines opportunities in developed countries, especially in the European markets where competition is intensifying as consumption stagnates and production increases. Sustainability involves animal-friendly accommodation, low-emission sty systems that fit in with the surroundings, manure disposal and regionally closed cycles. In the short run opportunities lie mainly in Northern and Northwest Europe where the markets set strict requirements of sustainably produced meat.

Contrary, in emerging markets demand of meat is driven by changing diet patterns due to growing world population, rising standards of living and urbanisation. This will heighten competition as demand is outstripping production in many of these countries given the scarcity of raw materials. This makes availability of sufficient raw materials crucial for the development of the meat industry in these countries,

China in particular is facing the dilemma of importing more raw materials to produce meat locally or to import the meat directly. Driven by the growing food industry and the fact that pigs are less sensitive to diet compositions, pork production is likely to stay in China. Poultry relies heavily on straight quality grains and oilseeds. Therefore it can be expected that China accept poultry imports when negotiations ask for it.

Feed to meat
“In the short term (next two crop years) feedstock prices are expected to remain at their current highs and will be volatile while from 2010 onwards markets are likely to be more bearish due to new equilibrium and associated higher stocks levels”, Kennes said. This will certainly generate a production response from farmers.

Sustainable eggs
“The shift to more sustainable production of eggs is increasing as the consumer demand for these products is growing in Europe”, said Industry Analyst Albert Vernooij. Retail is increasingly banning cage eggs in favor of free range eggs driven by both pressure from animal welfare organizations and the European cage ban on 1 January 2012. Globally, egg demand will continue its steady growth. Due to its low price compared with other proteins, eggs are the first protein for consumers moving from a grain based to a protein based diet.

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World meat market to grow by 40%
[28 April 2010] The global meat market is expected to grow by 40% in the next 10-20 years as a result of population and income growth said Dirk Jan Kennes of Rabobank at VIV Europe in Utrecht, the Netherlands. Mr Kennes said the biggest growth can be expected in poultry meat, while pork is projected to stabilize and demand for beef will decline. Of the estimated 40% global growth in meat production around 70% will be in Asia.

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China's Growth Influences Global Meat Sector
The growth in the Chinese economy and its gross domestic product could have a major impact in the meat industry worldwide, writes ThePigSite senior editor, Chris Harris.


Director of market analysts GIRA, Richard Brown, told the recent Outlook 2010 Conference in London that while the world saw a slump of -1.1 per cent last year from a growth of 3.1 per cent in 2008 and an expected growth of 3.1 per cent this year, China had seen continual growth.

Chinese economic growth went from nine per cent in 2008 to slip by just half a percentage point in 2009 to 8.5 per cent and this year it is expected to grow again by nine per cent.

Countries such as Russia saw a slump of 7.5 per cent, Europe 4.2 per cent and the US 2.7 per cent.

However, Mr Brown said that the meat industry inn Europe at present has the luxury of relatively low feed prices, which he said he hoped would run through until the next harvest.

Global animal disease problems appear to be sorting themselves out with the only major threat coming from African Swine Fever in Russia, although the H1N1 virus did have a major impact on the pig meat industry in North America.

Mr Brown said that the virus outbreak had a significant effect on pig prices, but these have risen more quickly than expected this year.

Worldwide meat consumption fell very slightly last year by just 0.2 per cent, however, this year it is expected to grow by one per cent without taking the growth of the Chinese economy into account.

If the Chinese figures are taken into account, consumption last year grew worldwide by one per cent to 230 million tonnes and this year the rise is expected to go up to 234 million tonnes. Included in these figures is a two per cent rise in pig meat consumption to 97,042 million tonnes and a three per cent rise in poultry meat consumption this year to 76,130 million tonnes.

However, global beef consumption appears to be dropping slightly by one per cent after a stable year last year. Last year consumption was 2,478 million tonnes and it is forecast to drop to 52,049 million tonnes this year.


Source - GIRA
"Global meat demand suffered a sharp downturn in 2009, forcing price decreases to clear the volume," Mr Brown said.

Global trade in meat also suffered last year, with pig meat trade falling by 15 per cent to 5,617 million tones, poultry meat trade dropping by one per cent to 9,783 million tonnes and beef trade down by four per cent to 7,732 million tonnes.

However, this year trade is expected to pick up with a three per cent rise in pork trade and a two per cent rise in poultry meat trade. However, beef is still expected to see a fall of half a per cent.

Mr Brown said that one of the main influences on the trade was the recovery in China of the domestic market from the outbreak of PRRS that it had suffered the year before.

The drop in global meat trade of six per cent was felt by all the major meat exporting countries.


Source - GIRA
However, the Middle East and North Africa did see a rise in imports at the region bought more poultry meat from Brazil, but at the same time the Russian trade fell sharply, though it is expected to go up a little this year.

The drop in trade with Russia is to a large part down to the Russian Government's policy to increase domestic meat production and this has meant that prices in Russia are very high, Mr Brown told the conference.

The volume of imports to the US in 2010 is expected to be about the same as in 2009, but Mr Brown said that some people in the US lost a lot of money last year because of the integrated nature of the meat industry in the country.

Of all the countries in the world, China is emerging as the significant importer of certain commodity products.

However, Mr Brown said it was not quite clear what will happen next in China, because if the country becomes more self sufficient, this will depress imports.

For European traders, because the Euro has been strong throughout 2009, there has been a problem in exporting. For the UK on the other hand, the weakness of sterling has been good news for British farmers.

He said that while consumption in Europe has been down slightly, the main markets to be hit are the beef and sheep sector, which had been hit by both low demand and low supply. The limited supply, however, has mean that prices have remained strong.

"The EU's expenditure on meat has been down and it is not expected to rise," Mr Brown said.

He added that the EU exports of meat were down largely because of the situation in the pig meat market and EU beef production has been drifting down because of a drift in the dairy herd.

He warned that the global meat industry is in a period of uncertainty, but he issued a specific warning to the Brazilian sector, which he said was starting to lose its way because it was not responding to the demand of its export customers largely over sanitary and welfare issues.

Brazilians are the largest exporters, with 23 per cent of world beef trade, but they have been limited by reduced supply, weak global demand, and traceability compliance problems with the EU. They also have 11 per cent of the world pork trade with limited market access and they have 43 per cent of world poultry trade with further growth to a range of markets, but at low prices.

He said that last year was a difficult year for the Brazilians, with a Russian downturn in import demand, strengthening currency and more industry consolidation.

April 2010

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Pork, Beef Face Battle with Cheaper Chicken
US - Pork and beef producers face an intensifying battle at the supermarket meat case from cheaper, more plentiful chicken, analysts say.

US grocery stores probably will step up discounts and specials on fresh chicken in coming weeks after wholesale beef and pork prices soared near two-year highs, BB&T Capital Markets analyst Heather Jones said. Wholesale chicken prices have also risen, though not nearly as much as beef and pork.

As a result, price “spreads” – or the difference between what retailers pay for wholesale meat and what they charge in their stores – suggest grocer discounts will favor chicken breasts and legs more than steaks and chops.

“We believe this is bullish for chicken retail feature activity,” Dr Jones said in a report today.

Increased chicken competition could be troubling for pork and beef demand, which suffered in recent years from the recession and a slump in exports. Retailers have been reluctant to raise prices with the economy’s recovery still fragile. Some major chains, such as Wal-Mart Stores Inc., recently launched advertising campaigns touting lower prices for most goods.

For pork and beef, retail prices have yet to catch up with the run-up at the wholesale level, reports Pork Magazine.

Retail pork prices on average were about $1.61 a pound above wholesale values during March, compared with a spread of $1.83 a year earlier, Dr Jones said, citing USDA data. In beef, retail prices were about $1.91 above wholesale, compared with $2.21 a year earlier.

Chicken prices at retail during March were about 92.8 cents above wholesale, compared with 95.4 cents a year earlier.

Rising pork and beef prices reflect tighter supplies of slaughter-ready animals, after livestock producers cut herds in recent years.

On wholesale markets, choice beef cutout values yesterday averaged $1.7027 a pound, the highest since prices approached $1.74 in July 2008, according to USDA data. Pork carcass values averaged 89.83 cents a pound yesterday, up 33 per cent this year.

Beef and pork prices are “still robust,” Dr Jones wrote. Wholesale pork has been “exploding” higher, she said.

Many grocers have already been promoting discounted chicken, as well as specials on pork and beef cuts.

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Antimicrobial Resistance and Greasy Pig Disease
Because greasy pig disease is unlikely respond to injections of penicillin or beta-lactam antibiotics, alternative approaches such as topical treatments and vaccination need to be explored, according to Dr Bob Friendship and colleagues at the University of Guelph. His work is summarised by Wayne Du of the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA).

 

What is Greasy Pig Disease?
The disease is a skin infection caused by bacteria named Staphylococcus hyicus, which is commonly found on the skin of pigs. The oozing of serum from the damaged skin makes the surface greasy, hence the name. Outbreaks of the severe form of the disease cause high mortality and survivors are often poor doing pigs that have to be culled. Pigs with damaged skin due to fighting, mange, etc. are prone to getting the disease.

Why is Greasy Pig Disease on the Increase?
Producer surveys show that the number of cases of greasy pig disease in Ontario is increasing. This is possibly because:

More producers (30 per cent of those surveyed) moving away from routinely clipping needle teeth, which can result in more skin damage due to fighting.


S. hyicus has developed antimicrobial resistance, which results in ineffective treatment of the disease. Many producers surveyed expressed disappointment regarding response to treatment.
How is it Currently Treated
About 70 per cent of the respondents reported that they routinely use topical treatments to control the disease, with mineral oil alone or in combination with an antibiotic such as novobiocin, or they use an antiseptic such as iodine.


Over 50 per cent of the respondents reported they use an injectable antibiotic, either alone or in conjunction with a topical treatment. The popular antibiotic choice was penicillin.
Other Findings
Skin scrapings and skin swabs were collected from six pigs from each of seventeen farms.

60 per cent of the samples showed positive for S. hyicus and 40 per cent of the samples showed positive for S. aureus


All 66 isolates of S. hyicus cultured from skin swabs showed resistance to penicillin and ampicillin and about 70 per cent of the isolates showed resistance to ceftiofur (Excenel®). All three antibiotics belong to the same drug family, the beta-lactams. The resistance pattern was similar to S. aureus.
Take-Home Messages
Greasy pig disease is unlikely respond to injections of penicillin or any of the beta-lactam antibiotics due to antibiotic resistance.

Alternative approaches such as topical treatments and vaccination need to be explored.

Good sanitation, lowering humidity, minimising wounds, eradicating mange and minimising non-essential mixing of pigs are essential to prevent the disease.

Early application of antiseptics to wounds can also help prevent infection and reduce the chance of greasy pig disease.

April 2010

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Singapore invests more in halal products
[19 May 2010] The fast growing halal industry in Singapore has spurred local food manufacturers to venture into development of halal products and services said Muhammad Haifan Usalli, General Manager of Warees Investments Ptd Ltd, a subsidiary owned by the Islamic Religious Council of Singapore (Muis-Majlis Ugama Islam Singapura). He said the number of products certified as halal by Muis had increased from about 2,300 in 2000 to more than 11,500 last year. He said Singapore’s open economy as well as excellent physical and institutional infrastructure was the catalyst for the growth of its halal industry.

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JG Summit bids for Pure Foods
[26 May 2010] JG Summit Holdings Inc of the Gokongwei family is one of at least five companies vying for a majority stake in San Miguel Pure Foods Co Inc (SMPCI), the country’s biggest food company. SMPCI has an enterprise value of about USD 1.8 billion and currently, the company has the biggest market share in the Philippine poultry market at 40% and in the hotdog market (63%). It is a leader in several other businesses. Its business portfolio is seen to be a good complement to Universal Robina Corp, JG Summit’s consumer food unit which is also involved in a wide range of food-related businesses, including the manufacture and distribution of consumer foods, production of hogs and day-old chicks, manufacture of animal and fish feeds, glucose and veterinary compounds, flour milling, and sugar milling and refining.