WorldWatch:

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Food prices to rise in Asia
[30 September 2010] Urbanisation and the growing wealth in Asia is likely to result in soaring food prices and a strengthening of the region's thirst for commodities. The commodities boom and the growing influence of China featured prominently on a wide-ranging first day at the Forbes Global CEO Conference in Sydney on Monday. Jing Ulrich, Managing Director of China equities and commodities at JP Morgan, said the GDP of the emerging BRIC countries - Brazil, Russia, India and China - were growing at an average of 6.9% compared to the world average of 3.6%. The US and Europe were growing at less than 2% on average. Ms Ulrich said this was an indication the emerging markets - led by China - had switched places with developed nations.

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NZ and Australia to emerge as food powerhouses
[5 October 2010] New Zealand and Australia will emerge as global agricultural powerhouses in the long-term with Asia fueling the industry. Sunny Verghese, group managing director and CEO of Olam International, said that New Zealand and Australia would play an important role in supplying food to Asian markets.  “I don’t believe India and China, given their arable land and water constraints, will be able to produce all the food they need and could become significant importers of food,” he said this at the Rabobank Advisory Board meeting in Sydney. “The challenge for Australasian producers will be managing the supply side of the growth in Asia and strengthening their competitive position and building a comparative advantage.”

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Mexico - Livestock and Products Annual 2010
While Mexican cattle inventories for 2011 are expected to decline in 2011, swine production is expected to increase slightly, write Zaida San Juan and Daniel R. Williams II in the latest GAIN report from the USDA Foreign Agricultural Servces.

Report Highlights
Mexican red meat consumption is forecast to increase in 2011 as the economy and consumer purchasing power recover. A lower cattle export level will result in higher domestic meat supplies and stable domestic beef prices. US beef exports to Mexico will continue increasing, principally toward the end of 2010, supported by the elimination of duties on imported US beef. Removal of feet from carcasses and retaliatory duties on bone-in hams are two new challenges for US exporters; however, the United States will continue to be the principal source of imports.

Executive Summary
In 2011, total swine production is expected to increase slightly. The increase will occur due to higher hog prices and stronger pork demand. Ending inventories are expected to increase for both 2011 and 2010. Mexico’s imports of hogs are forecast to increase in 2011, reaching 12,000 head. Pork production for 2011 is forecast to recover (2.0 per cent) after no increase for 2010. Growth in pork consumption is forecast to increase 1.3 per cent in 2011 after a slight decrease (-0.2 per cent) in 2010 due to lower than expected demand recovery. Mexico’s pork exports are forecast to grow 6.3 per cent in 2011 compared to 2010.

Swine production for 2011 is forecast to increase one per cent, higher than 2010. Higher swine prices, stronger consumer purchasing power and a recovery of consumer confidence after the H1N1 influenza outbreak will stimulate production.

Furthermore, the Mexican swine sector could benefit from the efforts of the government of Mexico (GOM) to obtain market access in China. If obtained, the Mexican swine sector will need to increase production, continue with integration and reduce production costs and losses. Although only the most efficient firms will export, medium-sized farmers are aware that there could be more domestic opportunities to sell pork, but they also must improve their competitiveness.

Due to the past economic crisis and H1N1 outbreak, both of which negatively affected the pork sector, sow beginning inventories are currently limited and data previously reported for 2010 were revised down slightly; thus, the slaughter level for 2011 will be comparable to 2010.

Total beginning inventories are forecast to increase 4.4 per cent for 2011, mainly due to a lower-than-expected slaughter level for 2010. However, slaughter is forecast to increase one per cent in 2011 as a result of pork demand and consumption recovery after the H1N1 outbreak.

Pork production for 2011 is expected to increase two per cent over 2010. Furthermore, industry sources believe this 2011 production will be slightly higher than 2009’s. For 2010, a year in which a decrease of approximately one per cent (1.161 million metric tons; MMT) is now expected according to official data, the decrease is minimal thanks to a successful GOM and industry promotional campaign and lower pork prices.

Consumption
Pork consumption is forecast to increase more than one per cent in 2011. However, the increase is tied to price and will depend on retailers’ pricing strategies. Some retailers are selling pork at higher prices, claiming they are merely passing on higher domestic prices as well as the cost of retaliatory duties on imported US pork.

Even though the economy and gross family income have recovered somewhat, pork consumption will increase at a rate lower than that of beef, mostly due to higher prices and a substitution effect by consumers who see poultry as a cheaper and ‘healthier’ protein. In addition, growth in pork per-capita consumption is constrained due to consumers’ perception of pork as an unhealthy meat product.

Mexico’s meat processors will continue to use imported US pork variety meats as well as bone-in cuts because domestic production is not sufficient to meet their demands. Despite the retaliatory duties imposed on US bone-in pork, an analysis conducted by some meat processors has shown that the duties will only slightly affect the cost of production, and they do not expect a large amount of substitution for US boneless pork cuts.

Trade
In 2011, Mexico is forecast to increase imports of hogs by 20 per cent; however it will only reach 15 per cent of the 2008 level. For 2010, an increase is expected of 43 per cent, supported by the imports of purebred breeding animals for repopulating the Mexican herd. Hog exports will remain at zero.

Pork exports are expected to increase 6.5 per cent in 2011 but if Mexico signs a veterinary health protocol with China, the percentage could be considerably higher.

In 2010, pork exports are expected to recover 14.3 per cent following lifting of numerous foreign bans due to H1N1 outbreak; exports will be supported by value-added pork exports to Japan. However, the level will remain lower than in 2008.

Despite the retaliatory duties imposed on US bone-in pork cuts, imports are expected to continue but it is possible that more bone-in pork could be sourced from Canada.

In addition, according to NOM-030, pork carcasses with feet will no longer be permitted to enter Mexico. This is a new interpretation of NOM-030.

Policy
Beef import duties eliminated
As of August 11, 2010, Mexico canceled the compensatory duties imposed on US beef cuts as a result of an anti-dumping investigation in 2000. Even though the Mexican Government announced that these duties would terminate on April 29, 2010, the duties were not effectively canceled until 11 August 2010, according to the official notice published in the Diario Oficial (DOF) (Federal Register). Thus, duties paid between 29 April and 11 August 2010 will not be refunded.

Retaliatory duties on US pork exports
On 18 August 2010, the Secretariat of Economy published in the DOF a list of additional products facing retaliatory duties, which included swine products. This is due to the United States’ failure to comply with the trucking clause of the North American Free Trade Agreement (NAFTA).

The following swine products were added to the product list:
Section Description Import Tariff
0203.12.01 Hams (hocks), shoulders and cuts thereof, with bone. Chilled 5%
0203.22.01 Hams (hocks), shoulders and cuts thereof, with bone. Frozen 5%
1602.49.01 Cooked pork rind in pieces (pellets). 20%


According to industry sources, these duties will increase production costs for value-added products. Imports of US bone-in hams will continue because bone-in ham prices will not be as high as imported boneless pork legs. In addition, the duties could also slightly affect the Mexican rendering industry, because the Mexican rendering industry sources products from TIF establishments which debone imported bone-in hams.

Brazil Free Trade Agreement
The Mexican and Brazilian presidents have stated their intention to sign a free trade agreement. However, the Mexican livestock sector opposes a free trade agreement (FTA) between Mexico and Brazil that would include livestock products. The Mexican livestock sector’s leaders believe they will be unable to compete against Brazil due to dependence on imported feed grains and shortages of commercial credit in Mexico.

NOM-051
The Secretariat of Economy published on 5 April 2010, a new version of Mexican regulation NOM-051-SCFI/SSA1-2010, ‘General labeling and sanitary specifications for pre-packaged foods and non-alcoholic beverages’. (Spanish: Norma Oficial Mexicana NOM-051-SCFI-1994 Especificaciones generales de etiquetado para alimentos y bebidas no alcohólicas preenvasados) or NOM-051.
The new NOM-051 includes new requirements for labelling pre-packaged foods and non-alcoholic beverages. All pre-packaged food products and non-alcoholic beverages for sell directly to consumers are required to comply with NOM-051 (including imported pork and beef meat). Thus, it is important that all US companies exporting to Mexico be aware of these changes and make appropriate modifications to the labels of its products. The new regulation is effective on 1 January 2011.
The most important changes to NOM-051 can be found in GAIN Report MX0505 Mexico Revises Food Labeling Regulations.

Trusted Importer Program and inspection of combos
The Secretariat of Agriculture, Livestock, Rural Development, Fishery and Food (SAGARPA) continues developing a plan of modernizing import inspection procedures. As part of this plan, the trusted importer program (UCON) has been implemented. Via this program, import inspection will occur at the TIF establishment where the imported meat is to be processed. According to the National Service of Health, Food Safety, and Food Quality (SENASICA), the UCON program may reduce import inspections at the border by 48 per cent, since that is the volume of meat imported by TIF facilities (additional information about UCON can be found in GAIN Report MX0506 Mexico Announces Reliable Importer Program for Meat and Poultry).
The next step of the plan involves procedures for import inspections for meat shipped in combo bins. A combo bin is a bulk-palletised, octagonal cardboard container used to pack meat and meat products for shipping at a low cost. SENASICA officially advised the border inspection points that the combo import inspection procedures was postponed indefinitely pending publication in the DOF (Federal Register). This publication will contain a new sampling procedure for import inspections, which SENASICA is currently drafting, and may implement in 2011.
It is possible that these new procedures may be similar to the Canadian or US import inspections for combo bins. SENASICA has stated that the plan is part of an effort to harmonize import procedures with those of its NAFTA partners, and it will not seek to reduce the volume of meat trade in combo bins.

GOM reviewing regulations
As part of a transparent national plan, SENASICA is examining every interpretation of its regulations. For example, SENASICA has changed its interpretation of NOM-030-ZOO-1995 with respect to imported hog carcasses with feet. As of September 2010, SENASICA has informed trading partners that hog carcasses will only gain entry into Mexico when the feet have been removed.

Livestock Forward Contract Purchases
The Mexican Government (GOM) is promoting forward contracting between cow-calf operators and feeders, and is developing draft guidelines to be used with all forward contracts. This program will be coordinated by SAGARPA's paying agency, Support and Services for Agricultural Trading (ASERCA), and the National Confederation of Cattlemen Organizations (CNOG). The purpose of this program is to assist cow-calf operators and feeders with a tool to establish a forward price for calves.

Guidelines for the sale and distribution of food and drink at primary schools
On June 10, 2010, the Health Secretariat (SALUD) and Educational Secretariat (SEP) sent to the Federal Council for Regulatory Reform (COFEMER) draft proposed guidelines for the sale and distribution of food and drink at primary schools. The objective of the guidelines is to regulate the preparation, distribution and sale of healthy foods and drinks in primary schools and is aimed at reducing obesity and chronic diseases.
These guidelines sparked controversy within the food industry, including among meat and dairy processors. As of 22 July 2010, COFEMER had received 860 comments on the draft from industry sectors, government entities and the public. Some comments are against and others are supportive of the proposed guidelines. COFEMER published on 22 July 2010, its preliminary resolution and suggested SALUD and SEP consider comments submitted to COFEMER regarding these proposed guidelines.
The Mexican Meat Council (COMECARNE) and the Coordinator of the Industrial Council (CCE) are negotiating changes with representatives of the Presidency and the Secretariat of Economy (SE). COMECARNE believes working with these government offices will result in more success than directly negotiating changes with SALUD and SEP. The proposed guidelines, if implemented as proposed, could exert a profound economic impact on the meat sector.
COMECARNE’s members import US meat raw materials to produce sausages, hams and other ready-to-eat products, which are sold in schools or used to prepare sandwiches and other products eaten by children at schools. The meat industry has sought changes to the proposed guidelines to ensure meat products are not demonised, thereby resulting in a loss of consumer confidence in processed meat products. The lack of specifics in the guidelines has created uncertainty for the meat industry. For this reason, COMECARNE has created a working group of technical experts to develop a counter-proposal to be presented to SALUD and SEP.
The guidelines were to be implemented at the beginning of the current school year. However, implementation has been postponed until January 2011.

Movement of Animal certificates
As of 25 June 2010, SENASICA began issuing electronic certificates for the movement of animals within Mexico. The electronic certificate replaces the printed certificate which certifies an animal may move between areas within Mexico which have different disease status under Mexican regulations.

Marketing
Red meat, including pork and beef, continues to be purchased by consumers in traditional butcher shops. However, since more and more women are entering the workforce, consumers were increasing purchases of value-added products before the economic crisis, especially cuts and prepared dishes at supermarkets. For 2010, as the economy grows again, it is expected consumers will increase demand for value-added products.

The US Meat Export Federation (USMEF), a non-profit, industry-sponsored trade organization dedicated to increasing exports of US red meat and meat products in all foreign markets, is active in Mexico. USMEF’s Mexico office has promoted the increase of meat consumption in various large retailers and food service exhibitions.

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Russian Federation - Livestock and Products Semi-Annual Report 2010
Feed shortages resulting from this year's drought have accelerate the slaughter of cattle and pigs, according to Morgan Haas and Mikhail Maksimenko in the latest GAIN report from the USDA Foreign Agricultural Service.


Report Highlights
Slaughter rates have and will continue to increase in 2010 and 2011 as widespread drought throughout Russia sharply decreased current and future feed supplies. As a result, red meat supply will be larger than earlier expectations but adversely impact supply potential in 2011. Red meat imports to date are revised upward, reflecting year-to-date trade and have similar market access potential in 2011.

Summary
Changes in USDA Moscow's forecast for swine and pork reflect the shortage in feed supplies that will mostly impact 2010 and 2011 inventories, realised imports through the first six months of 2010, as well as revised expectations of live hog trade. Although kills increased in 2010, slaughter weights were adversely impacted as hogs were marketed earlier than expected and incurred reduced weight gain from the historically hot summer.

Swine Inventory
Total swine inventory increased 1.8 per cent to 16.6 million, while agricultural enterprises increased swine inventory 8.0 per cent. Private households account for 36.6 per cent of swine herd at the end of June 2010 (39.7 in June 2009).

Imports of live swine for slaughter are down sharply in 2010, as the tariff was raised from five per cent to 40 per cent but not <0.50 €/kg. The domestic pork industry continues to push for full closure of the market but slaughter houses will continue to require imported hogs until the domestic industry can fill capacity.

Russia imports pedigree swine to improve domestic breeding stock from the European Union and Canada.

Production
Russian livestock production represented 46 to 52 per cent total agricultural production value during 2000-2008.

Russia produced 4.4 million metric tons (MMT) of meat and poultry meat (live weight) in the first half of 2010, 8.3 per cent more than the first half of 2009. Agricultural enterprises increased meat and poultry production 14.7 per cent (live weight) in the first half of 2010 compared to 2009 (in 2009 – 10.1 per cent over 2008).

The Ministry of Agriculture plans that Russia will produce 82 per cent of total meat and poultry supply to the Russian market in 2012. According to Ministry figures, Russia currently supplies 69 per cent of its beef, 75 per cent of its pork and 75 per cent of its poultry.

Feed Supply
Russia will experience problems with feed supplies for the remaining part of 2010 and in 2011 due to the 2010 drought in the Central, Volga and Ural districts of Russia. In total, 27 regions were declared emergency drought situations in 2010. The grain harvest in 2010 will be lowest since 2003 when 67MMT of grain was harvested. The drought adversely impacts not only the 2010 feed supply but also the seeding of winter crops for next year's feed supply, as well as presents a new threat to Russia's developing pork and beef industries.

The government of Russia (GOR) has taken several measures to soften the drought's impact. The GOR postponed state grain purchases, instituted a grain export ban and decided instead to release 3MMT of grain from the state reserves for drought-stricken regions. Grain is being distributed on the basis of a quota system to enterprises in the processing and milling industry. The shares for each region are based on meat and milk production volume. The regions themselves will be responsible for distributing the grain internally. Furthermore, Prime Minister Vladimir Putin said the GOR will provide 35 billion rubles (RUB; US$1.2 billion) in financial aid to drought-stricken farmers, including RUB10 ($300 million) billion in direct payments and RUB25 billion ($830 million) for three-year discounted federal loans. The money is being disbursed in two stages, the first in August and the second in October-November.

Pork Production
Higher feed prices and therefore higher slaughter rates in the second half of 2010 will increase pork production 8.8 per cent in 2010 but only 4.9 per cent in 2011. The larger slaughter numbers will slow the pace of herd expansion from 3.4 per cent in January 2010 to 2.4 per cent in January 2011.

Pork producers
The major producers of pork are large agricultural enterprises. They increased pork production 14 per cent in 2008 and 21 per cent in 2009. Agricultural enterprises produced 24.4 per cent more pork in the first half of 2010 compared to the first half of 2009. Club-100 swine enterprises increased from 18.9 per cent to 59 per cent at the same time.

According to Rosstat, the 11 largest pork producers (>100,000 head) produced 23.9 per cent of Russia's pork in 2006-2008. These enterprises featured the lowest production costs while average daily weight gain was highest at enterprises between 50,000 to 60,000 head. According to the Intesco Research Group study, Pork Market: the Results of 2009 and Forecast for 2010 – 2011, the three largest Russian pork producers are Prodo, Agro-Belogorie and Miratorg. They account for 15 per cent of the Russian pork production (live weight). Cherkizovo, Siberian Agrarian Meat Processing Group, SV-Volga and Agrifarm Ariant represent the second tier at 10 per cent of the market. Krasnodar region produces 9.3 per cent of the Russian meat, Belgorod region – 8.5 per cent, Rostov region – 6.5 per cent, Omsk region – 4.3 per cent, the Republic of Tatarstan – 3.8 per cent.

The Ministry of Agriculture subsidised the modernisation of 422 pig farms during the last three years. These farms produced 200,000MT (live weight) in 2009 and will add 160,000MT after they are fully operational. The average feed conversion rate was 3.6 on renovated farms and 3.0 on newly built pig farms in 2009.

In particular, the Belgorod region continues to invest in pork production. The agro-industrial holding Miratorg, one of the largest meat producers and suppliers of the Russian market, is investing RUB13.5 billion ($450 million) into the construction of nine hog complexes. The first of the facilities will be started in 2011. Each complex will have an annual capacity of 112,000 hogs. The herd will be slaughtered at an establishment that processes three million animals annually, producing 165,000MT of meat.

The Russian Union of Pork Producers reports producers are experiencing problems with marketing. The Union underlines the reason is that only five per cent of pigs are subject to initial processing at the enterprise, while the rest are traded live. The Union expects this number to grow to 50 per cent by 2012. At this time, the Union believes 90 per cent of pork will be produced by large agricultural enterprises.

Policy
Supply Control (Import Substitution)
Government support for domestic meat production in Russia has and continues to be primarily provided through methods of supply control. In addition to the introduction of the TRQ regime in 2003, trade outside the quota is subject to largely prohibitively high tariffs. Furthermore, trade within the quota is hindered by highly prescriptive, non-science-based Russian technical and veterinary-sanitary requirements that can at times result in country-specific allocations not being accessible.

Agricultural Development Programs
Federal development programs have served as an additional tool of planned support for Russian poultry production. On 21 December 2005, ‘Development of the Agro-industrial Complex’ was issued as one of four priorities for national development, with a focus on revitalizing Russian livestock and poultry production. To further stimulate domestic agricultural production, the federal law ‘On Development of Agriculture’ was approved in 2006 and came into force on 11 January 2007. Later, the GOR approved the ‘Program for Development of Agriculture, Regulation of Agricultural Commodity Markets, and Rural Development for the period 2008-2012’ which called for RUB1.1 trillion ($37 billion) to be spent over five years, with funding being split between federal and provincial budgets.
In line with these programmes, subsidising interest rates for investment projects has been Russia's primary tool of direct support to the producer. However, these benefits are not universal to all producers, as they service only the largest investors and must be in line with the Ministry of Agriculture's vision of the development programme.
In an effort to maintain a positive rate of development in 2009 in the wake of the global financial and economic crisis, the Ministry of Agriculture allocated RUB165.1 billion ($5.5 billion) for the implementation of the State Agricultural Development programme 2009-2012. The Ministry spent RUB45.0 billion ($1.5 billion) from this sum to increase the authorised capital of JSC Russian Agricultural Bank and RUB17.0 billion ($570 million) to subsidize interest payments. Additionally, Russia extended short-term loans for six months, investment loans for three years, and maximum-term eight-year investment loans to 11 years. The subsidy level for investment loans also increased from two-thirds of the central bank rate to 100 per cent for dairy and beef cattle (and to 80 per cent for poultry). The Ministry of Agriculture also noted the single agricultural tax as well as fixed prices for fuel and fertiliser amounted to RUB30 billion ($1 billion) in indirect subsidies to the producer in 2009. These programs continued in 2010, and they will continue for the foreseeable future.
The Ministry of Agriculture reported that 2010 investments will not meet the State programme due to lower-than-expected profits in the industry.

Government Purchases
President Medvedev has tasked Minister Elena Skrynnik to investigate the state purchases of beef in Rosrezerv, as well as to clarify the feasibility of increasing the production of canned white chicken meat. As noted by the President of Cherkizovo, there is a need consider changes of the state reserve purchases since domestic beef supplies are shrinking while poultry is ‘oversupplied’.

Development of the Feed Industry
Also in the planning is a draft development project to improve this component of the supply chain through the construction and modernization of feed mills, with the aim of increasing the production of plant-origin protein feeds. Most recently, the GOR has taken action to support producers impacted by the short feed supplies.

Trade
Russia maintains a TRQ regime for raw pork (HS-0203) and beef (HS-0201, 0202) products with country specific allocation to the United States, European Union, and “other countries”. The pork and beef quotas for 2011 remain unchanged from 2010.

Pork
Russia imported 315,537 MT of pork during January – June 2010, 15 per cent above 2009. The major exporters of pork to Russia are the European Union, Brazil, United States, and Canada. The European Union is the dominant supplier of fresh/chilled and processed pork. The US share of the frozen pork market has fallen steeply for three main reasons: competitive prices in other markets, the virtual ban on US pork through the first five months of 2010, and a reduced quota (from 100,000 MT in 2009 to 57,000 MT in 2010). Russia's recent closure of several US pork facilities on the grounds of tetracycline-group antibiotics will continue to threaten the US's ability to fulfill its quota allocation for the remainder of the year.

There are mixed opinions on decreasing the pork TRQ quantity further before the end of 2012, but focus will remain on preventing growth of out-of-quota pork and live hog imports as well as using sanitary and technical barriers to further regulate in-quota and quota-exempt pork products.

Customs Union
Kazakhstan and Belarus, as well as other CIS countries, have duty-free, quota-free access to Russia for domestically produced meat.

Customs Union members recognise equivalency of each other's veterinary service. Kazakhstan?s Ministry of Agriculture has expressed its intent to utilise this advantage to export 4,000MT of meat (specifically, beef) to Russia in 2010, compared to 400MT in 2009.

Belarus increased meat and poultry exports to Russia by one-third to 72,000MT during January-June 2010. The Government of St Petersburg earlier reached an agreement with Belarus to import 41,100MT of beef, 11,100MT of pork and 8,200MT of poultry meat in 2010.

Consumption
Development of livestock primary processing for 2010-2012
The Ministry of Agriculture has developed a programme for livestock primary processing to support the modernisation of the Russian meat processing industry. The programme envisages the allocation of state subsidies for meat processors from the federal budget. Subsidies will be spent to compensate interest rates from loans taken for construction and modernisation of processing facilities and cold storages as well as for purchasing meat for primary and industrial processing. Planned implementation of the program will allow Russia to increase the collection and processing of the animal to 90 per cent of its live weight.

The Ministry believes that fulfillment of the programme will also increase per-capita consumption of meat and meat products to from 65.9kg in 2008 to 66.1kg in 2012.

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Philippine restaurant to go public, expand
[13 October 2010] Mang Inasal Philippines Inc, a fast growing barbecue restaurant chain in the Philippines, is planning an initial public offering early in 2011. Edgar Sia II, Mang Inasal's Chairman and CEO, said the IPO will help the company raise capital and share profits with employees and other investors. The company, which opened its first restaurant inm December 2003, also plans to expand further in the Luzon, particularly in Manila, next year. To date there are 300 Mang Inasal outlet in the country. The restaurant chain is popular for its chicken and pork barbecue. With the company's rapid expansion, the number of its employees have grown from 20 in 2003 to the current 10,200.

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World Agricultural Supply and Demand Estimates - October 2010
The forecast of total US meat production is raised for 2010 but lowered for 2011, according to the latest USDA World Agricultural Supply and Demand Estimates.


LIVESTOCK, POULTRY, AND DAIRY: Beef and broiler production forecasts for 2010 are raised as second half production is higher than previously expected, but the pork production forecast is reduced due to lower slaughter and slower growth in slaughter weights. The 2011 beef production forecast is raised primarily in the first quarter as larger-than-expected third quarter 2010 placements are marketed. Pork production for 2011 is lowered from last month as relatively high feed prices are expected to keep the growth in sows farrowing modest and dampen hog weights. Broiler and turkey production forecasts for 2011 are lowered from last month as higher feed prices slow growth. Likewise, egg production for 2011 is forecast lower.

Beef import forecasts are lowered for 2010 and 2011 as supplies in Oceania are expected to be relatively tight while foreign demand strengthens. Export forecasts for beef are raised on continuing strong sales to a number of markets. Pork and poultry trade forecasts are unchanged from last month.

The cattle price forecasts for 2010 and 2011 are virtually unchanged. Hog prices are forecast higher on tighter supplies for both 2010 and 2011. The broiler price for 2010 is forecast lower on increased production, but the price forecast is raised slightly for 2011 on reduced output. Egg prices for 2010 and 2011 are forecast lower.

Forecast milk production for 2010 is raised slightly from last month as higher milk per cow more than offsets lower cow numbers. The forecast for 2011 is reduced as higher feed prices are expected to slow the rate of growth in cow numbers and milk per cow compared with last month. Import and export forecasts are unchanged. Fat basis stocks are reduced for 2010 as stocks of butter are forecast to be tight. Skim solids stocks are unchanged.

Continued strength in demand for cheese and relatively tight supplies of butter support higher forecast prices for 2010 and 2011. Price forecasts for nonfat dry milk (NDM) are raised for 2010 and 2011 as supplies are tighter. The 2010 whey price forecast is increased slightly but is unchanged for 2011. Both Class III and Class IV price forecasts for 2010 and 2011 are raised due to the higher product prices. The all milk price is forecast to average $16.45 to $16.55 per cwt for 2010 and $16.00 to $16.90 per cwt for 2011.

WHEAT: US wheat ending stocks for 2010/11 are projected 49 million bushels lower this month with lower estimated production and higher expected feed and residual use. Production is lowered 41 million bushels based on the Small Grains 2010 Summary report. Feed and residual use is raised 10 million bushels on higher-than-expected disappearance during the June-August quarter as indicated by the September 1 stocks. Higher carryin with small upward revisions to estimated 2009/10 production and ending stocks are partly offsetting. The 2010/11 season-average farm price is projected at $5.20 to $5.80 per bushel compared with $4.95 to $5.65 per bushel last month.

Global wheat supplies for 2010/11 are projected 1.0 million tons lower mostly reflecting lower production in the United States. World production for 2010/11 is projected at 641.4 million tons, down 1.6 million tons from last month; however, beginning stocks are raised 0.6 million tons with upwardly revised 2009/10 production estimates for South America and Canada. For 2010/11, production is lowered 0.5 million tons for Mexico and 0.3 million tons each for Algeria and Canada. Production is raised 0.5 million tons for Europe and 0.3 million tons for Ethiopia.

World wheat trade for 2010/11 is nearly unchanged this month. Imports are raised for North Africa and Mexico, but lowered for EU-27 and Iran. Exports are raised for Uruguay, but lowered for Mexico. World exports for 2009/10 are raised 1.6 million tons on the latest available trade data. Large late-season shipments boost 2009/10 Argentina and EU-27 exports 1.0 million tons and 0.6 million tons, respectively.

Global consumption is raised 2.1 million tons for 2010/11 with higher expected feed use for EU-27, Canada, and the United States. Global ending stocks for 2010/11 are projected 3.1 million tons lower with the largest reductions for EU-27 and the United States. Other reductions include Canada, Uruguay, Syria, and Iran. Ending stocks are projected higher for Brazil and Egypt. At the projected 174.7 million tons, 2010/11 stocks remain 50.2 million tons above the recent low in 2007/08.

COARSE GRAINS: US feed grain production for 2010/11 is projected lower this month based on reduced forecasts for corn and sorghum and smaller production estimates for barley and oats from the Small Grains 2010 Summary report. Corn production is forecast 496 million bushels lower as a 258,000-acre increase in harvested area is more than offset by a 6.7-bushel-per-acre reduction in yield. As forecast, this year’s yield and production still would be the third highest on record.

Higher 2010/11 corn beginning stocks raise prospects for 2010/11 feed and residual disappearance, especially during the September-December quarter. Ending stocks for 2009/10 are raised 322 million bushels based on the September 1 stocks estimate. Larger-than-expected carryout of old-crop corn combined with an unusually early start to this year’s harvesting suggest heavy new-crop corn use before the September 1 beginning of the 2010/11 marketing year. Individual state harvest progress reports suggest that 600-700 million bushels of corn were harvested across the South, Southern Plains, and southern Corn Belt before September 1. This is about double the level of the preceding 2 years and similar to what happened between the 2006/07 and 2007/08 marketing years. New-crop corn usage ahead of September 1, 2007, lowered feed and residual disappearance during the June-August quarter of 2006/07 and boosted feed and residual disappearance during the September-December quarter of 2007/08.

Despite the increase in 2010/11 beginning stocks, lower forecast production and higher projected domestic disappearance leave ending stocks down sharply from last month. Feed and residual use for 2010/11 is projected 150 million bushels higher reflecting the expected impact of new-crop corn usage before September 1 on indicated disappearance during the current marketing year. Exports are lowered 100 million bushels with tighter available supplies, higher prices, and increased competition from Argentina. US ending stocks for 2010/11 are projected 214 million bushels lower at 902 million. The season-average farm price is projected at $4.60 to $5.40 per bushel, up 60 cents on both ends of the range.

A number of changes are made this month to 2009/10 corn usage with the biggest a 358-million bushel reduction in feed and residual use as indicated by the September 1 stocks and small upward revisions to exports and food, seed, and industrial (FSI) use based on the latest available data. Sorghum FSI use and exports for 2009/10 are also lowered slightly this month. Changes to 2009/10 feed and residual use for barley and oats reflect small revisions to June 1 stocks from the September 30 Grain Stocks report.

Global coarse grain supplies for 2010/11 are nearly unchanged with lower US supplies offset by increased foreign coarse grain production. World corn production is lowered 6.4 million tons with the lower US production and a 0.5-million-ton reduction for Russia only partly offset by increases for Argentina, Serbia, EU-27, and several Sub-Saharan Africa countries. Production for Argentina is raised 4.0 million tons on higher expected area as rising corn prices and favorable early season soil moisture support a rapid pace of early corn planting. Global barley production is lowered 1.4 million tons with reductions of 0.7 million tons for EU-27, 0.5 million tons for Russia, and 0.3 million tons for Canada.

Global coarse grain exports for 2010/11 are increased this month mostly reflecting higher expected corn exports from Argentina, which are raised 3.5 million tons, along with small increases for Paraguay, Mexico, and Zambia. Corn imports are increased for Turkey, Colombia, Indonesia, and South Korea supporting higher expected corn feeding in these countries. Global corn ending stocks for 2010/11 are projected 3.2 million tons lower this month despite increases for Argentina, EU-27, Zambia, and Iran. The reduction in US corn ending stocks outweighs these increases.

RICE: US rice production in 2010/11 is forecast at a record 242.3 million cwt, but down 13.1 million from last month due entirely to a decrease in yield. Average yield is estimated at 6,687 pounds per acre, down 360 pounds from last month, and the lowest yield since 2005/06. Harvested area is unchanged at 3.62 million acres. Long-grain production is forecast at a record 182.0 million cwt, 9.8 million below last month, and combined medium- and short-grain production is forecast at 60.3 million, down 3.25 million. The import and domestic- and residual-use forecasts are unchanged from a month ago. The total rice export projection at 119 million cwt is unchanged from a month ago; however, the rough rice export projection is raised 1.0 million, and the combined milled- and brown-export forecast (rough-equivalent basis) is lowered the same amount. Total rice ending stocks are projected at 52.5 million cwt, down 13.1 million from last month and the largest stocks since 1985/86.

The 2010/11 all rice season-average price is forecast at $12.10 to $13.10 per cwt, up $1.80 per cwt on both ends of the range compared to $14.00 per cwt for 2009/10. The long-grain season-average price range is projected at $10.50 to $11.50 per cwt, up $2.00 per cwt on each end of the range compared to $12.80 per cwt for last year. The combined medium- and short-grain price range is projected at $17.30 to $18.30 per cwt, up $1.30 per cwt on each end compared to $17.70 per cwt for 2009/10. The price increase is due to a smaller US crop, higher global prices, and a weaker dollar.

Projected global 2010/11 rice production and consumption are lowered from a month ago, and trade and stocks are little changed. World rice production is forecast at a record 452.5 million tons, down 2.1 million from a month ago mostly owing to decreases in the United States, Burma, and India. India’s 2010/11 rice crop is lowered 2.0 million tons to 97.0 million due mostly to below normal monsoon rains in the east. Global consumption is lowered 1.7 million tons owing to a reduction in India. Global 2010/11 ending stocks are projected at 94.3 million tons, down 0.3 million from last month, and nearly the same as 2009/10.

OILSEEDS: US oilseed production for 2010/11 is projected at 102.8 million tons, down 2 million from last month. Soybean production is forecast at 3.408 billion bushels, down 75 million based on both lower harvested area and yield. Harvested area is reduced 1.2 million acres to 76.8 million. The soybean yield is projected at 44.4 bushels per acre, down 0.3 bushels. Sunflowerseed and peanut production are also projected lower this month while canola and cottonseed production are projected higher.

US soybean exports are increased 35 million bushels to 1.520 billion reflecting strong export sales and reduced export prospects for Argentina resulting from lower beginning stocks. Soybean crush is raised 15 million bushels to 1.665 billion due to improved prospects for domestic soybean meal disappearance and to a small reduction in the projected soybean meal extraction rate. The September 1 soybean stocks estimate confirmed a third consecutive marketing year of relatively low residual use. For 2010/11 residual use is reduced to 32 million bushels, down 38 million from the previous estimate. Soybean ending stocks are projected at 265 million bushels, down 85 million from last month.

Prices for soybeans and products are all raised this month, supported by strong prices for corn. The US season-average soybean price range for 2010/11 is projected at $10.00 to $11.50 per bushel, up 85 cents on both ends of the range. The soybean meal price is projected at $290 to $330 per short ton, up $20 on both ends of the range. The soybean oil price range is projected at 39.5 to 43.5 cents per pound, up 2 cents on both ends.

Global oilseed production for 2010/11 is projected at 440.6 million tons, unchanged from last month. Global soybean production is projected at 255.3 million tons, up 0.4 million. Brazil soybean production is raised to 67 million tons, up 2 million due to increased area. India soybean production is raised 0.4 million tons to 9.2 million, also due to increased harvested area. Global sunflowerseed production is reduced this month as lower production for Russia is only partly offset by an increase for Ukraine. Other changes include increased cottonseed production for Australia and India. Global oilseed stocks for 2010/11 are reduced 1.7 million tons to 71.4 million. Soybeans account for most of the change, with a reduction for the United States partly offset by projected increases for Brazil and China.

SUGAR: Projected US sugar supply for fiscal year 2010/11 is increased 63,000 short tons, raw value, from last month, due to higher beginning stocks more than offsetting lower production. Florida cane sugar production is reduced 65,000 tons to match processor production projections, while Hawaii is increased 35,000 tons to be in line with the previous year=s estimate. Sugar use is increased 100,000 tons, in line with the increase for 2009/10.

For 2009/10, US supplies are increased 208,000 tons, due to higher production and imports. Production is increased 98,000 tons to account for larger-than-expected September output of US beet sugar and Hawaii cane sugar. Imports are increased 110,000 tons, mainly due to higher imports from Mexico. Total use is increased 115,000 tons to reflect the strong demand for imported sugar and minor changes in sugar exports and deliveries for re-export products. Ending stocks are increased 93,000 tons, to 1.6 million tons or 14.4 per cent of total use.

[mikey]

Russian Federation - Livestock and Products Semi-Annual Report 2010
Feed shortages resulting from this year's drought have accelerate the slaughter of cattle and pigs, according to Morgan Haas and Mikhail Maksimenko in the latest GAIN report from the USDA Foreign Agricultural Service.


Report Highlights
Slaughter rates have and will continue to increase in 2010 and 2011 as widespread drought throughout Russia sharply decreased current and future feed supplies. As a result, red meat supply will be larger than earlier expectations but adversely impact supply potential in 2011. Red meat imports to date are revised upward, reflecting year-to-date trade and have similar market access potential in 2011.

Summary
Changes in USDA Moscow's forecast for swine and pork reflect the shortage in feed supplies that will mostly impact 2010 and 2011 inventories, realised imports through the first six months of 2010, as well as revised expectations of live hog trade. Although kills increased in 2010, slaughter weights were adversely impacted as hogs were marketed earlier than expected and incurred reduced weight gain from the historically hot summer.

Swine Inventory
Total swine inventory increased 1.8 per cent to 16.6 million, while agricultural enterprises increased swine inventory 8.0 per cent. Private households account for 36.6 per cent of swine herd at the end of June 2010 (39.7 in June 2009).

Imports of live swine for slaughter are down sharply in 2010, as the tariff was raised from five per cent to 40 per cent but not <0.50 €/kg. The domestic pork industry continues to push for full closure of the market but slaughter houses will continue to require imported hogs until the domestic industry can fill capacity.

Russia imports pedigree swine to improve domestic breeding stock from the European Union and Canada.

Production
Russian livestock production represented 46 to 52 per cent total agricultural production value during 2000-2008.

Russia produced 4.4 million metric tons (MMT) of meat and poultry meat (live weight) in the first half of 2010, 8.3 per cent more than the first half of 2009. Agricultural enterprises increased meat and poultry production 14.7 per cent (live weight) in the first half of 2010 compared to 2009 (in 2009 – 10.1 per cent over 2008).

The Ministry of Agriculture plans that Russia will produce 82 per cent of total meat and poultry supply to the Russian market in 2012. According to Ministry figures, Russia currently supplies 69 per cent of its beef, 75 per cent of its pork and 75 per cent of its poultry.

Feed Supply
Russia will experience problems with feed supplies for the remaining part of 2010 and in 2011 due to the 2010 drought in the Central, Volga and Ural districts of Russia. In total, 27 regions were declared emergency drought situations in 2010. The grain harvest in 2010 will be lowest since 2003 when 67MMT of grain was harvested. The drought adversely impacts not only the 2010 feed supply but also the seeding of winter crops for next year's feed supply, as well as presents a new threat to Russia's developing pork and beef industries.

The government of Russia (GOR) has taken several measures to soften the drought's impact. The GOR postponed state grain purchases, instituted a grain export ban and decided instead to release 3MMT of grain from the state reserves for drought-stricken regions. Grain is being distributed on the basis of a quota system to enterprises in the processing and milling industry. The shares for each region are based on meat and milk production volume. The regions themselves will be responsible for distributing the grain internally. Furthermore, Prime Minister Vladimir Putin said the GOR will provide 35 billion rubles (RUB; US$1.2 billion) in financial aid to drought-stricken farmers, including RUB10 ($300 million) billion in direct payments and RUB25 billion ($830 million) for three-year discounted federal loans. The money is being disbursed in two stages, the first in August and the second in October-November.

Pork Production
Higher feed prices and therefore higher slaughter rates in the second half of 2010 will increase pork production 8.8 per cent in 2010 but only 4.9 per cent in 2011. The larger slaughter numbers will slow the pace of herd expansion from 3.4 per cent in January 2010 to 2.4 per cent in January 2011.

Pork producers
The major producers of pork are large agricultural enterprises. They increased pork production 14 per cent in 2008 and 21 per cent in 2009. Agricultural enterprises produced 24.4 per cent more pork in the first half of 2010 compared to the first half of 2009. Club-100 swine enterprises increased from 18.9 per cent to 59 per cent at the same time.

According to Rosstat, the 11 largest pork producers (>100,000 head) produced 23.9 per cent of Russia's pork in 2006-2008. These enterprises featured the lowest production costs while average daily weight gain was highest at enterprises between 50,000 to 60,000 head. According to the Intesco Research Group study, Pork Market: the Results of 2009 and Forecast for 2010 – 2011, the three largest Russian pork producers are Prodo, Agro-Belogorie and Miratorg. They account for 15 per cent of the Russian pork production (live weight). Cherkizovo, Siberian Agrarian Meat Processing Group, SV-Volga and Agrifarm Ariant represent the second tier at 10 per cent of the market. Krasnodar region produces 9.3 per cent of the Russian meat, Belgorod region – 8.5 per cent, Rostov region – 6.5 per cent, Omsk region – 4.3 per cent, the Republic of Tatarstan – 3.8 per cent.

The Ministry of Agriculture subsidised the modernisation of 422 pig farms during the last three years. These farms produced 200,000MT (live weight) in 2009 and will add 160,000MT after they are fully operational. The average feed conversion rate was 3.6 on renovated farms and 3.0 on newly built pig farms in 2009.

In particular, the Belgorod region continues to invest in pork production. The agro-industrial holding Miratorg, one of the largest meat producers and suppliers of the Russian market, is investing RUB13.5 billion ($450 million) into the construction of nine hog complexes. The first of the facilities will be started in 2011. Each complex will have an annual capacity of 112,000 hogs. The herd will be slaughtered at an establishment that processes three million animals annually, producing 165,000MT of meat.

The Russian Union of Pork Producers reports producers are experiencing problems with marketing. The Union underlines the reason is that only five per cent of pigs are subject to initial processing at the enterprise, while the rest are traded live. The Union expects this number to grow to 50 per cent by 2012. At this time, the Union believes 90 per cent of pork will be produced by large agricultural enterprises.

Policy
Supply Control (Import Substitution)
Government support for domestic meat production in Russia has and continues to be primarily provided through methods of supply control. In addition to the introduction of the TRQ regime in 2003, trade outside the quota is subject to largely prohibitively high tariffs. Furthermore, trade within the quota is hindered by highly prescriptive, non-science-based Russian technical and veterinary-sanitary requirements that can at times result in country-specific allocations not being accessible.

Agricultural Development Programs
Federal development programs have served as an additional tool of planned support for Russian poultry production. On 21 December 2005, ‘Development of the Agro-industrial Complex’ was issued as one of four priorities for national development, with a focus on revitalizing Russian livestock and poultry production. To further stimulate domestic agricultural production, the federal law ‘On Development of Agriculture’ was approved in 2006 and came into force on 11 January 2007. Later, the GOR approved the ‘Program for Development of Agriculture, Regulation of Agricultural Commodity Markets, and Rural Development for the period 2008-2012’ which called for RUB1.1 trillion ($37 billion) to be spent over five years, with funding being split between federal and provincial budgets.
In line with these programmes, subsidising interest rates for investment projects has been Russia's primary tool of direct support to the producer. However, these benefits are not universal to all producers, as they service only the largest investors and must be in line with the Ministry of Agriculture's vision of the development programme.
In an effort to maintain a positive rate of development in 2009 in the wake of the global financial and economic crisis, the Ministry of Agriculture allocated RUB165.1 billion ($5.5 billion) for the implementation of the State Agricultural Development programme 2009-2012. The Ministry spent RUB45.0 billion ($1.5 billion) from this sum to increase the authorised capital of JSC Russian Agricultural Bank and RUB17.0 billion ($570 million) to subsidize interest payments. Additionally, Russia extended short-term loans for six months, investment loans for three years, and maximum-term eight-year investment loans to 11 years. The subsidy level for investment loans also increased from two-thirds of the central bank rate to 100 per cent for dairy and beef cattle (and to 80 per cent for poultry). The Ministry of Agriculture also noted the single agricultural tax as well as fixed prices for fuel and fertiliser amounted to RUB30 billion ($1 billion) in indirect subsidies to the producer in 2009. These programs continued in 2010, and they will continue for the foreseeable future.
The Ministry of Agriculture reported that 2010 investments will not meet the State programme due to lower-than-expected profits in the industry.

Government Purchases
President Medvedev has tasked Minister Elena Skrynnik to investigate the state purchases of beef in Rosrezerv, as well as to clarify the feasibility of increasing the production of canned white chicken meat. As noted by the President of Cherkizovo, there is a need consider changes of the state reserve purchases since domestic beef supplies are shrinking while poultry is ‘oversupplied’.

Development of the Feed Industry
Also in the planning is a draft development project to improve this component of the supply chain through the construction and modernization of feed mills, with the aim of increasing the production of plant-origin protein feeds. Most recently, the GOR has taken action to support producers impacted by the short feed supplies.

Trade
Russia maintains a TRQ regime for raw pork (HS-0203) and beef (HS-0201, 0202) products with country specific allocation to the United States, European Union, and “other countries”. The pork and beef quotas for 2011 remain unchanged from 2010.

Pork
Russia imported 315,537 MT of pork during January – June 2010, 15 per cent above 2009. The major exporters of pork to Russia are the European Union, Brazil, United States, and Canada. The European Union is the dominant supplier of fresh/chilled and processed pork. The US share of the frozen pork market has fallen steeply for three main reasons: competitive prices in other markets, the virtual ban on US pork through the first five months of 2010, and a reduced quota (from 100,000 MT in 2009 to 57,000 MT in 2010). Russia's recent closure of several US pork facilities on the grounds of tetracycline-group antibiotics will continue to threaten the US's ability to fulfill its quota allocation for the remainder of the year.

There are mixed opinions on decreasing the pork TRQ quantity further before the end of 2012, but focus will remain on preventing growth of out-of-quota pork and live hog imports as well as using sanitary and technical barriers to further regulate in-quota and quota-exempt pork products.

Customs Union
Kazakhstan and Belarus, as well as other CIS countries, have duty-free, quota-free access to Russia for domestically produced meat.

Customs Union members recognise equivalency of each other's veterinary service. Kazakhstan?s Ministry of Agriculture has expressed its intent to utilise this advantage to export 4,000MT of meat (specifically, beef) to Russia in 2010, compared to 400MT in 2009.

Belarus increased meat and poultry exports to Russia by one-third to 72,000MT during January-June 2010. The Government of St Petersburg earlier reached an agreement with Belarus to import 41,100MT of beef, 11,100MT of pork and 8,200MT of poultry meat in 2010.

Consumption
Development of livestock primary processing for 2010-2012
The Ministry of Agriculture has developed a programme for livestock primary processing to support the modernisation of the Russian meat processing industry. The programme envisages the allocation of state subsidies for meat processors from the federal budget. Subsidies will be spent to compensate interest rates from loans taken for construction and modernisation of processing facilities and cold storages as well as for purchasing meat for primary and industrial processing. Planned implementation of the program will allow Russia to increase the collection and processing of the animal to 90 per cent of its live weight.

The Ministry believes that fulfillment of the programme will also increase per-capita consumption of meat and meat products to from 65.9kg in 2008 to 66.1kg in 2012.

[mikey]

Productivity growth must increase 25% by 2050
[18 October 2010] An agricultural productivity report said that for food productivity to double by 2050 in a sustainable way with the same amount of land, less water and reduced inputs, it will require an annual average growth of at least 1.75% in “total factor productivity”. This is defined as the increase in output per unit of total resources employed in production. Between 2000 and 2007, USDA’s Economic Research Service estimates global agricultural total factor productivity growth averaged at 1.4% per year. To close the gap without additional land and resources, we must increase the rate of productivity growth at an average of 25% per year over the next 40 years.

[mikey]

 Jollibee acquires 70% of Mang Inasal restaurant chain
[20 October 2010] Philippine fast food giant Jollibee has added another brand to its roster with the acquisition of Mang Inasal Philippines, which own Mang Inasal restaurant, for a reported PHP 3 billion (USD 69.12 million). In a disclosure to the Philippine Stock Exchange, Jollibee said that the company's offer to buy 70% of Mang Inasal Philippines has been “unconditionally and irrevocably accepted by Injap Investments, Inc, parent company of Mang Inasal Philippines.” The sale is expected to be finalised in 30 days following complete due diligence. The purchase will expand Jollibee's store network in the Philippines by 19% and on a worldwide basis by 16%. Mang Inasal, a barbeque fastfood chain anchored on its chicken product, was earlier reported to be eyeing an initial public offering. 
 
 
 

[nemo]

this is what you call  "if you can't beat them, buy them...."

although jollibee is still the  number one fastfood chain,  mang inasal is eating up  some customer especially those who loves chicken... to prevent future treat jollibee just bought it... 

Same principle that san miguel do and other big company....

[mikey]

NMIS seeks funds for slaughterhouse upgrade
[21 October 2010] The National Meat Inspection Service (NMIS) of the Philippine Department of Agriculture is seeking PHP 24 million (USD 522,677) to upgrade 12 slaugtherhouse facilities in the country. NMIS Executive Director Jane Bacayo said that the existing slaughterhouses to be rehabilitated  are yet to be identified, however, these would be those established by local government units. Also, these would have to be located in strategic areas where livetock population is high. He said there are more than 1,150 slaughterhouses in the country, many of which need to be upgraded. So far this year, the agency has upgraded four slaughterhouses in four provinces.
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RFM to raise PHP 1.5b from floating rate notes
[21 October 2010] Philippine food and beverage conglomerate RFM Corp will raise PHP 1.5 billion (USD 34.55 million) by issuing floating rate notes. In a disclosure to the Philippine Stock Exchange, the company said it has reached a Floating Rate Notes Facility Agreement with several local banks and financial institutions.  The proceeds will be used to refinance the company’s debt and fund its capital expenditure. Earlier, RFM said it will spend some PHP 1 billion (USD 23.03 million) for its expansion and capital expenditure next year to prepare for the expected increase in consumer demand. 

[mikey]

Agri department pushes for Philippine halal food standards
[22 October 2010] The Philippines is stepping up the development of halal standards for food commodities to enable the country to tap the multi-million dollar global market for halal products. Mr Sani Macabalang, Head of the Department of Agriculture (DA)-Halal Food Industry Development Committee (HFIDC) and DA halal coordinator stressed the need for these standards, warning that failure to have them in place will prevent the country from competing globally. To develop the local halal industry, the HFIDC recommended the harmonisation of halal protocols and procedures by various government agencies, development of halal certification and accreditation competencies and capability-building of certifying bodies and government halal food inspectors, auditors and the like in close coordination with the National Commission on Muslim Filipinos.

[mikey]

Asian Agribusiness sets dates for 2011 conferences
[25 October 2010] Asian Agribusiness Media has confirmed four conferences and a vocational training course for Asia’s livestock industries in 2011.The highly successful Poultry Feed Quality Conference will be held for the fourth time and return to Bangkok on 12-13 September 2011. The Pig Feed Quality Conference will move to Cebu on 9-10 May 2011 following its successful inauguration this year in Ho Chi Minh City. The Asian AgriFood Conference, last held at the Banyan Tree in Bangkok in 2009, will move to Singapore on 4-5 July 2011. A new two-day conference is planned for Asian Poultry Veterinarians on 7-8 November in Bangkok. The company also plans to launch a vocational training course on sausage manufacture in Bangkok in August 2011.



 
Asia leads in global economic recovery
[25 October 2010] The latest International Monetary Fund’s Economic Outlook (October 2010) has highlighted Asia as the leading region in the global economic recovery. The developing Asian countries (China, ASEAN and India) are projected to continue leading the region with an average growth of 9.4% and 8.4% in 2010 and 2011, respectively. China's economic growth is mainly driven by strong domestic demand while ASEAN countries have also experienced a broad-based export rebound. The strong economic rebound in developing Asian economies is expected to give consumers in these markets the buying power to lift red meat consumption in the future. 

[mikey]

India has potential to be world’s No 1 food producer
[25 October 2010] The world’s second largest food producer after China, India has the potential to be the biggest within the food and agriculture sector. Total food production in India is likely to double in the next 10 years. With this in mind, the country is in the process of enhancing total food production to 20% within five years.

[mikey]

Philippine food, farm exports down
[2 November 2010] Earnings from Philippine food and farm exports declined nearly 3.8% during the first eight months of the year, registering only USD 1.35 billion, said Philippine Chamber of Commerce and Industry Vice President for Agriculture Roberto Amores, who said the drop is due to increasing production costs. Exports of fruits and vegetables during the period fell by almost 19.4% to USD 399.9 million, however, marine and seafood exports posted gains of 1.3% to USD 335.8 million. Mr Amores said however, that food production next year will likely be affected by Typhoon Megi, which has wrought almost USD 250 million in damage to the farm sector.