WorldWatch:

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Jollibee to open 200 new stores in 2010
[26 May 2010] Philippine fast food giant Jollibee Foods Corp (JFC) plans to open 200 new stores across all its brands both in the Philippines and abroad in 2010. The openings are in line with the company’s capital expenditure program that amounts to over PHP 4 billion (USD 85.93 million) for the year. JFC fast food network include flagship brand Jollibee, Chowking, Greenwich Pizza, Red Ribbon bakeshop, Delifrance and the Manong Pepe’s chain of affordable Filipino meals. JFC Chairman Tony Tan Caktiong said the new stores will include the recently-acquired Café Ti-Amo, a Korean restaurant brand that offers gelato and coffee in a casual dining format. The pilot branch of Café Ti-Amo has been opened and nine more are expected to be constructed this year. The new retail outlets to be built this year will increase JFC’s total global network to 2,082 by end-2010.

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Pure Foods post PHP 872M profits for Q1
[27 May 2010] San Miguel Pure Foods Co Inc posted a six-fold growth in profits to PHP 872 million (USD 18.73 milion) during the first quarter of 2010  from PHP 143 million (USD 3.07 million) during the same period last year, thanks to higher sales and operating efficiency. Revenues across the firm’s businesses, which include poultry, animal feeds, flour, canned goods, and processed meat, went up 2% to PHP 18.2 billion (USD 390.98 million) from PHP 17.8 (USD 382.38 million) a year ago. Income from operations almost tripled to PHP 1.4 billion (USD 30.08 million) from PHP 503 million (USD 10.81 million) last year. For the rest of 2010, the company is projecting a 15% profit growth.

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Philippines to stop corn imports due to weak demand
[3 June 2010] Philippine feed millers are no longer keen on importing additional corn as demand from animal feeds users has gone down. Feed manufacturers imported over 80,000 tonnes of corn from Thailand between January to May this year to fill the shortage caused by the El Niño phenomenon, however the Philippine Association of Feed Millers Inc (PAFMI) said that despite the expected drop in local corn production, they are no longer keen on importing more corn. This year’s corn imports will likely amount to no more than 80,099 tonnes from 344,945 tonnes in 2009. Feed millers have also contracted 844,000 tonnes of feed wheat, of which 500,000 tonnes of it has already arrived. The remaining volume is expected to arrive in the country in or before October. PAFMI expects animal feed production to go down by 10% to only 4.9 million tonnes this year.

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Low demand pulls down feed production
[1 June 2010] Weak demand for poultry and livestock products could lead animal feed production in the Philippines to drop by 10% to around 4.9 million tonnes, a report by the BusinessMirror said. Industry sources say that the drop in demand has led poultry and livestock producers to cut back on production, which has pulled down demand for animal feeds. Feed producers are no longer likely to increase the importation of alternative ingredients like wheat, despite the expected drop in local corn production due to the drought currently being experienced in the country. For 2010, the Philippine Maize Federation estimates corn production to reach only 6.8 million tonnes, lower than the 7.3 million tonnes targeted by the government for the year.

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New aqua feedmill in the Philippines
[2 June 2010] The first aqua feedmill in the Philippines' eastern region of Visayas will boost mariculture there. To be built by the Bureau of Fisheries and Aquatic Resources (Bfar), the plant will have a capacity of 3 tonnes/hour and will be equipped with milling technology from Denmark, said Bfar's Regional Director Juan D. Albaladejo. He said the plant's construction will start in early 2010 and when completed it will supply aqua feed for the region that has over 500 fish cages worth over PHP 200 million (USD 4.3 million). Mr Albaladejo said the plant, which is is the first aqua feedmill in the region, will use root crops and by-catch fish that are abundant locally as raw materials.

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Philippine SBM imports to decline this year
[4 June 2010] Philippine imports of soybean meal (SBM) this year is expected to decline because of production problems in the local livestock and poultry industry, a report by BusinessWorld said. The US Department of Agriculture said disease-related problems as well as the dry spell brought about by the El Niño phenomenon have dampened feed demand by the local animal production industries. However, SBM imports are expected to rise in 2011 as feed demand picks up with the expected recovery of the livestock and poultry industry. Last year, SBM imports fell 15% to 1.1 million tonnes from 1.3 million tonnes in 2008. This is expected to go down further this year.

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Field Peas Offer Alternative to Corn and Soybeans in Swine Diets
The positive nutrient and palatability aspects of field peas for pigs are well documented, according to Dr Tom Miller, Iowa State University Extension swine programme specialist, but their use in feeds will depend on cost and availability.

 

Swine producers concerned about continuing high grain prices might want to consider using field peas as a partial substitute for soybean meal or corn in swine diets. Research coordinated by an Iowa State University (ISU) Extension swine program specialist showed this substitution is well tolerated by pigs and can be a more economical choice.

Tom Miller said the research started in 2005 after an inquiry from a southeast Iowa producer. The initial study, funded by the Leopold Center for Sustainable Agriculture at ISU and through the USDA's Sustainable Agriculture Research and Education program, included both raising field peas and using the field peas in swine diets.

Dr Miller said: "We looked at the growth of different field pea varieties in small field plots of 20 to 70 acres in southeast Iowa. We also tested the use of field peas in diets of a hog operation near Keota and at the ISU Swine Nutrition Farm. We hoped this would lead to developing an economical supply of these feedstuffs to use in pork production."

The feed trial results showed that it is possible for swine producers to increase their profits by using field peas because they provide nutrients comparable to corn and soybeans at a lower cost than those grains, according to Dr Miller.

He explained: "Field peas are a good source of lysine, and they're high in fibre with low levels of a trypsin inhibitor. Typically, they're fed raw and can be used for sows, weaned and finishing pigs."

Wider adoption of field pea use by Iowa producers hinges primarily on access to adequate quantities of the crop. The early field tests showed that field peas cannot withstand Iowa's summer heat and winter cold, Dr Miller said. And while double cropping is a possibility, planting one's own field pea crop currently does not necessarily offer an economical advantage to Iowa producers.

He added: "The next step is to find a profitable cropping system in order to be able to utilise the potential of the field pea, which includes research on modifying the peas to survive Iowa's climate."

Another option for producers who want to incorporate field peas in their swine diets is to buy the peas from locations with more conducive growing conditions such as North Dakota and Canada.

In a presentation, Dr Miller presented some early results from his work on field peas for pigs, he explained that peas are widely used in feed for pigs in Europe diets, and increasingly in Canada. Compared to soybean meal, field peas contain less fat, moderate levels of carbohydrates and protein and more fibre.



Chemical composition of two varieties of spring-planted field peas in Iowa (2005)





Nutrient profile of field peas compared to maize and soybean meal (44 per cent protein)
The amino acid profile of field peas worked extremely well with distillers dried grains with solubles (DDGS), according to Dr Miller. DDGS from an ethanol plant contains 0.76 per cent lysine, 0.85 per cent methionine plus cystine, 0.225 per cent tryptophan and 1.01 per cent threonine, he said.

Dr Miller concluded: "Ultimately, the cost of obtaining field peas, whether grown locally or imported from other locations, will be a determining factor in Iowa producer use. The positive nutrient and palatability aspects are well documented."

May 2010

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Philippine cassava output likely to rise in 2010
[11 June 2010] Cassava production in the Philippines increased 7% during the first quarter of 2010, leading the Department of Agriculture (DA) to project higher cassava production for the year. Data from the Bureau of Agricultural Statistics (BAS) showed that cassava production reached 434,320 tonnes from January-March from 405,930 tonnes in the same period last year, thanks to additional areas that were planted to the crop in Central Mindanao, and the provinces of Bohol, Negros Oriental, Bukidnon and Misamis Oriental. Cassava is one of the alternative ingredients for animal feed, but in the Philippines is used primarily for flour, cassava chips for snacks. It is also used for biofuel. In a report by BusinessWorld, Candido Damo, Cassava Project Leader of the DA’s Ginintuang Masaganang Ani Corn Program said demand for cassava this year is expected to reach five million tonnes, and will likely double to 10 million tonnes in 2014.

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Dairy Industry Performance Report
January-December 2009
The total dairy animal population as of January 1, 2010 was estimated at 32,007 head. This was 8.16 percent higher than last year’s inventory. In particular, there was a 12.44 percent increment in the number of dairy cattle.


In 2009, fresh milk production in the country stood at 14.3 million liters, 3.34 percent higher than last year’s level of 13.8 million liters. Of this total, 8.6 million liters or 60.6 percent were cow’s milk, 5.4 million liters or 38.1 percent were carabao’s milk and 0.19 million liters or 1.3 percent were goat’s milk.


In 2009, the volume of dairy imports was 1,789.7 thousand metric tons or 10.56 percent higher than the 2008 level of 1,618.7 thousand metric tons. However, there was a decrease of 34.5 percent in the value of dairy imports, from the 2008 level of US$ 712.0 million to US$ 466.7 million in 2009. This decrease was attributed to lower prices of dairy products in the world market.

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San Miguel enters commodities cargo business 11 Jun 2010
Philippine based conglomerate San Miguel corp. has entered the commodities cargo business by taking over a unit of Asian Terminals Inc. that operates the Mariveles Grain Terminal in Bataan—the Philippines’most modern grain handling facility.

San Miguel president Ramon Ang confirmed that the buyer was a unit of San Miguel, and that the purchase would be done in partnership with Japanese trading giant Toyota Tsusho Corp.
 
For over a year, the conglomerate had been in talks to acquire Mariveles Grain Corp. (MGC), which would set the company on track to become a distribution and logistics powerhouse.
 
San Miguel also wanted to take over MGC to expand the 500,000-ton annual capacity of its feed mill located near the grains terminal.
 
MGC holds a permit from the Philippine Ports Authority to operate the Mariveles Grain Terminal until February 2033. The terminal offers unloading, conveying, storage, outloading, weighing, bagging and sampling services. It handles bulk cargo of commodities like wheat, soybean meal, corn and soybeans.
 
The terminal can accommodate vessels of up to 70,000 deadweight tons, discharge cargo of up to 10,000 metric tons a day, and store 180,000 tonnes of soybean meal and grain.
 
It was earlier announced that San Miguel and Toyota would form a new company to acquire MGC—60% of which would be controlled by the diversifying conglomerate.
 
Apart from its traditional food and beverage businesses, San Miguel’s investment portfolio now includes interests in banking, energy, power, telecommunications, infrastructure and mining.

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Philippines close to total FMD-free status
[16 June 2010] The Philippines is nearer to its certification as an FMD-free country after the Office Internationale des Epizooties (OIE) issued in May a certification recognising two of the three zones in Luzon as FMD-free without vaccination. Only Zone 2, comprising the provinces of Cavite, Laguna, Batangas, Rizal, Quezon and Pangasinan, as well as the Metro Manila area, are still awaiting their certification, but the DA can apply for certification for this zone as early as August this year. In a statement, Agriculture Secretary said that OIE’s recognition of the FMD-free zones in Luzon is a welcome development and that the local hog industry is likely to expand now that export opportunities are likely to be opened for the country.

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Burger King to invest USD 12m for five year expansion
[18 June 2010] PERF Restaurant Inc, the Philippine master franchisee for fastfood chain Burger King Corp, plans to spend up to PHP 600 million (USD 12.98 million) to put up more outlets over the next five years. Company executive Wilson Young said that this would mean almost doubling the current 26 stores to 50. He said the new outlets will be stand-alone, which can be operated for 24 hours, unlike the mall-based stores which “are limited to a nine-to-nine operation.” Each new store will cost about PHP 25 million (USD 0.54 million) to put up. There are currently 10 stand-alone Burger King outlets in the Philippines, the remainder are based in malls and other commercial establishments.

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Too much grain is also worrisome 23 Jun 2010
Two years after the global food crisis peaked, grain shortages are turning into surpluses that could create their own problems.

Some traders and economists are speculating that if the US and world economies don't heat up soon, surpluses could turn into price-depressing gluts.
 
While cheap grain is good news for consumers and livestock producers, excessive supplies increase a government's cost for farm subsidies and tend to ignite trade fights between the big farming powers.
 
This tension is growing partly because many of the farmers in the US Midwest who were plagued by rainy growing seasons in recent years are having few problems so far this year.
 
Storage problems
Farmers in Iowa are preparing their storage bins for what's shaping up as a record-large crop. And in some northern Texas towns, the unfolding wheat harvest is so big that farmers delivering grain to local elevators in recent weeks have had to wait all day in long lines of trucks. Some elevators are so full that wheat is being stored in cotton warehouses.
 
Grain traders in Chicago expect US farmers to produce record-large corn and soybean crops for the second straight year.
 
Farmers in Brazil and Argentina are wrapping up record-large soybean harvests. Asian farmers are poised to produce a huge rice crop.
 
According to forecasts by the United Nations' Food and Agriculture Organization, this year's global cereal reserves -- the buffer against shortages -- will probably be 24% bigger than just two years ago, and the largest in eight years.
 
Two scenarios
With world grain production this year expected to exceed demand for a third consecutive year, many grain traders and farm economists are beginning to debate the prospects for two starkly different outlooks.
 
One scenario pictures a slow economic recovery where price-depressing grain gluts could materialize in a few years, dragging down farmers' profits and chilling farmers' demand for everything from tractors to genetically modified seed.
 
In a second scenario worries are expressed that the world's farmers won't be able to keep up with demand again once the economy does recover, which would increase costs for food manufacturers and create the environment for another food crisis. China's and India's appetites are expected to grow strongly.

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Earthquake pushes fishmeal prices to all-time high
The earthquake in Chile earlier this year destroyed Chilean processing plants tightening world supply of fishmeal and causing world market prices to hit an all-time high.
Related
Too much grain is also worrisome
Skretting brings tuna farming closer
Call for papers: Aquafeed Horizons 2011
Chile is the world’s second biggest exporter of fishmeal. Nature, through the El Niño weather phenomenon, also hits fish catches in Peru, the world's biggest fishmeal exporter, and further tightens global supply of the raw material.

The skyrocketing prices will likely affect fish and meat prices as the commodity is used as a feed raw material in aquafeed and feed for pigs and poultry.
 
On the animal production side demand is surging because of the fast growth of global aquaculture production due to rapid expansion of this industry in China.
 
Fishmeal prices rose to a record $1,937 a tonne last week, up 85% in the past year, because of strong demand coupled with supply disruptions. Prices in Rotterdam, The Netherlands were as low as $1,000 per tonne after the economic crisis of 2008.
 
The industry is now watching catches in Peru, the world's top fishmeal exporter, due to concerns about the impact of El Niño. Normally the deep, cold water Humboldt current off Peru's Pacific coast creates nutrient-rich waters that are ideal for anchovies, but an El Niño brings warm waters, reducing fish stocks.
 
Because the fishmeal industry's main production centre is Latin America, far from Chinese and European consumption centres, fishmeal is one of the world's most internationally traded commodities.
 
The International Fishmeal and Fish Oil Association, the trade body, estimates that each tonne of fishmeal travels an average of 5,000 kilometres to reach its end-user in the aquaculture industry.
 

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Agribusiness turning into an asset class
[25 June 2010] Globally agribusiness is emerging as an asset class and this is due to declining arable land per capita, increasing per capita incomes in emerging economies and rising demand for biofuels. Speaking at a briefing in Kuala Lumpur, Malaysia yesterday, John Baker Regional Head Asia, Food and Agribusiness Advisory of Rabobank International said despite the rising interest in agricultural commodities, short and long-term market volatility has declined in recent months and this is beginning to exert a greater influence on agricultural commodity prices.He also noted increased investor interest in agricultural land.