2016 dairy industry suffered heavy losses and will be reorganized
This year is an unusual year for dairy.
The leading dairy enterprises suffered heavy losses, the upstream breeding enterprises got more than 50% loss,The performance of infant formula milk business appeared decline, loss and other phenomena in the high inventory pressure.With the milk powder New Deal "registration" in-depth implementation, the domestic milk market will usher in a new restructuring.
How to survive the in the competition of milk prices? It will have to face the problem of milk prices.The domestic dairy industry of competition will be heating up.Rising milk prices brings positive to the farming enterprises,it will increase the cost of dairy processing enterprises. Cross-border purchase, imports of large packets of milk and liquid milk are still full of the domestic market, The overall dairy industry in general 2017 is expected better than 2016, but difficulties still exist, and infant formula industry with the industry reshuffle intensified will usher in the turning point.
More than 50% loss upstream dairy farming
By the international milk prices in the doldrums, the domestic "milk left" continued the first two years of downturn-like in the impact of China's dairy farming industry in 2016.As we all know, in 2013, the "milk shortage" background for dairy farmers had a good year, but from 2014, Chinese raw milk prices was leading to large losses of domestic dairy farming enterprises, To this end, the dairy industry is got on the "high-risk" industry list of bank.
Source：http://news.xinhuanet.com/food/2016-12/21/c_1120156737.htm
HCMC gears towards high-tech agriculture with $114 million plan
It's a big price to ask for a sector that has previously failed to attract major investment.
Ho Chi Minh City is calling for investment in a high-tech agricultural development program that is expected to cost VND2,6 trillion ($114 million) as the city aims to boost its agricultural output.
Authorities are hoping to draw 53 percent of the investment from the state budget and 47 percent from the private sector for the five-year plan.
In the first year, the city plans to spend VND2,1 trillion ($92 million) on building a high-tech agricultural zone and a biotechnology center, in addition to staff training.
The city will send staff overseas to countries with developed agriculture sectors such as Israel, the Netherlands, the U.S., Japan, Thailand and South Korea for short and long-term training. This part of the project is expected to cost VND28.5 billion ($1.2 million).
The city expects agricultural products cultivated using hi-tech methods to account for at least 60 percent of the southern hub's total agricultural output value by 2020.
Under the plan, up to 50 to 60 percent of farmers and 70 to 80 percent of enterprises are expected to adopt new cultivation techniques and post-harvest technology, along with mechanized and automated livestock breeding and waste treatment methods.
HCMC has already completed the first phase of a high-tech agricultural zone with an 88-hectare park in Pham Van Coi Commune, Cu Chi District.
The city is aiming to expand the area to 570 hectares by 2020 while offering preferential policies to attract investors to the zone’s new facilities.
State leaders and experts have been calling for the application of science and technology in agriculture to tackle low quality, productivity and efficiency to steady the unstable sector, which relies heavily on the Chinese market.
At the same time, the sector is facing the impacts of climate change, especially saltwater intrusion and landslides that have led to the loss of farmland.
Development experts said moving towards a high-tech growth model will improve productivity, quality and competitiveness.
Vietnam’s agriculture sector is dictated by natural conditions and there is a lack of cooperation between local producers as well as the infrastructure to develop, especially in urban areas.
Current investment in science and technology research is VND25,000 (around $1.1) per hectare on average, according to reports from the Ministry of Agriculture. This figure is far lower than other regional countries, highlighting the need for more policies to encourage cooperation models to develop value chains that link production, processing and ultimately sales.
Vietnam's agricultural sector also appears unappealing to foreign investors with the proportion of investment in agriculture remaining modest, though it has increased over the last few years. Data from the Foreign Investment Department show that only 1 percent of foreign funds pouring into the country go towards cultivating its agriculture sector.
As of September this year, there were 518 FDI projects involved in the field, accounting for just 2.4 percent of the total number of projects. Each agricultural project costs $6.7 million on average, while the average investment capital for FDI projects stands at $14.7 million.
Last year, one percent of total FDI was spent on agriculture, up 0.4 percent against 2012.
Source: http://e.vnexpress.net/news/business/hcmc-gears-towards-high-tech-agriculture-with-114-mln-plan-3504480.html
China sees huge potential in agriculture investment
China's agriculture sector is attracting growing investment amid government efforts to push integrated development in rural areas, official data showed on Thursday.
In the first three quarters, China's agriculture investment surged 21.8 percent year on year, outperforming the 8.2-percent gain in overall fixed asset investment, according to the National Development and Reform Commission (NDRC).
Most of the investment is from private investors.
NDRC official Wu Xiao attributed the rapid growth to government efforts to drive new types of agriculture-related businesses in rural regions.
China released a set of guidelines last week encouraging people to explore business opportunities in the countryside.
By rolling out a number of new support policies, the government expects them to inject new energy into the rural economy and increase farmers' incomes by introducing modern technology, systems and management.
New agribusinesses, including large-scale farming, farm produce processing, leisure agriculture, rural tourism, as well as producer and consumer services, are priorities of the policy support measures.
SOURCE:China.org.cn
11M agro-forestry export turnover at $29.1 billion
Photo: Duc Anh
A 5.9% increase in the value of export products announced by Ministry of Agriculture and Rural Development.
Agro-forestry and fishery export turnover in November is estimated to be $2.69 billion, contributing to an eleven-month total of $29.1 billion, an increase of 5.9 per cent year-on-year, the Ministry of Agriculture and Rural Development has announced.
Over the first eleven months of the year the value of main export goods was $13.7 billion, up 7.2 per cent. Fishery exports are estimated to be $6.4 billion, up 6.9 per cent. The export value of forestry products is about 6.5 billion, a 0.8 per cent increase.
Coffee and pepper are two sectors seeing the strongest growth in both export quantity and value. Coffee exports in November were about 101,000 tonnes with a value of $218 million, contributing to a coffee export total over the eleven months of 1.6 million tonnes with a value of $2.98 billion. Compared to the first eleven months of 2015, coffee exports have increased 36.1 per cent in quantity and 24.3 per cent in value.
Pepper exports in November are estimated at 10,000 tonnes with a value of $78 million. In the first eleven months they stood at 170,000 tonnes with a value of $1.37 billion, equal to an increase of 36.7 per cent and 15.1 per cent, respectively.
Fisheries has made the largest contribution in export turnover, with an export value in November of $661 million, bringing the eleven-month figure to $6.4 billion, an increase of 6.9 per cent year-on-year. The US, Japan, China and South Korea were the four largest markets for the sector in the first ten months, accounting for 54.1 per cent of total export value.
Cashew, rubber, tea, wood and wooden products all achieved increases in quantity and quality compared to the first eleven months of 2015. The increase for cashews was 6.2 per cent and 18.3 per cent, rubber 12.3 per cent and 4.6 per cent, and tea 7.1 per cent and 4.3 per cent. Wood export value was up 0.7 per cent.
Meanwhile, rice has continued the downward trend in recent months. Exports decreased 25 per cent in quantity and 20.3 per cent in value. Cassava and cassava products fell 12.3 per cent in quantity and 24.9 per cent in value. In the first ten months, rice declined 21.2 per cent in quantity and 16.9 per cent in value. October rice exports were estimated at 368,000 tonnes worth $164 million, for a ten-month figure of 4.2 million tonnes and $1.9 billion.
Export turnover in agriculture, forestry and fisheries in October was $2.75 billion, bringing the ten-month figure to $26.4 billion, an increase of 6.3 per cent year-on-year. In the first ten months, agricultural export turnover reached $12.5 billion, up 7.8 per cent year-on-year, while fisheries totaled $5.7 billion, up 5.9 per cent, and forestry $5.8 billion, a slender 0.1 per cent increase.
Coffee exports saw the highest increase, of 40.2 per cent in quantity and 25.4 per cent in value. October coffee exports were 121,000 tonnes worth $246 million, bringing the quantity exported in the first ten months to 1.5 million tonnes worth $2.76 billion.
In the first ten months, products such as rubber, tea and cashew nuts all recorded increases in both in quantity and value.
Source: http://vneconomictimes.com.vn/article/business/
Conference seeks to foster PPP in agriculture
Illustrative image (Source: VNA)
A conference held in Hanoi on November 30 discussed promoting links in agricultural development under private-public partnership (PPP) in Vietnam.
As an annual meeting of the “Partnership for Sustainable Agriculture in Vietnam (PSAV) member partners hosted by the Ministry of Agriculture and Rural Development (MARD), the event reviewed PSAV partners in 2010-2016 and discussed plans for agricultural partnership development with the involvement of Vietnam’s private sector.
Grahame Dixie, Executive Director of Grow Asia in Vietnam, said the meeting offered an opportunity for participants to propose new initiatives and effective methods, opening a new chapter of PPP development in Vietnam.
Grow Asia wants to provide support to Vietnamese partners, he stressed, adding that the firm hopes to cooperate with Vietnam to help the country further expand markets for its agricultural products.
Experts at the meeting mentioned difficulties facing Vietnam in promoting links between domestic agricultural enterprises and those abroad because the PPP model for agriculture is only a pilot in Vietnam.
According to MARD Minister Nguyen Xuan Cuong, agricultural restructuring targeting high-added value must be based on science, technology, administration, and assistance from big groups and financial institutions.
The forum provided a venue to listen to investors from PSAV’s consultation groups on the implementation of the PPP model and relevant policies, thus improving the MARD’s management and Vietnam’s policies in PPP.
Formed in 2010 by the MARD and Nestle Vietnam, the PSAV comprises over 60 partners from global and local companies, provincial authorities, and Vietnam’s research institutes, and international and non-governmental organisations. It focuses on six crops, agri-finance and agrochemicals.
Source: http://en.vietnamplus.vn/conference-seeks-to-foster-ppp-in-agriculture/103526.vnp
SCIC sets Vinamilk share price
Vinamilk employee working at the company’s plant in HCM City (Photo: tuoitrenews.vn)
The State Capital Investment Corporation (SCIC) announced its final price for 9 percent of shares in the Vietnam Dairy Products Joint Stock Company (Vinamilk) at 144,000 VND per share (6.32 USD).
Starting December 12, the SCIC will put 130.6 million shares of Vinamilk on sale, amounting to 9 percent of Vinamilk’s charter capital.
These shares will be sold at a tick price of 100 VND and a tick size of 10 shares. Individual investors or legal entities can purchase a minimum of 20,000 shares and a maximum of 39,189,150 shares, which equals to 2.7 percent of the charter capital, in order to qualify for exchanges in accordance with the Ho Chi Minh Stock Exchange’s (HOSE) regulations.
Investors must deposit 10 percent of the value of their registered shares at the initial opening price. Investors can start depositing and registering on November 28, until 16:00 hrs on December 9.
The transaction period begins on December 12 and ends on December 21. If successful, the SCIC could get 18.81 trillion VND (840 million USD) from the deal. At its road show on November 2, Nguyen Duc Chi, chairman of SCIC, said it planned to sell another 36 percent of its share in Vinamilk, depending on market response to the initial offering of 9 percent.
Earlier, in October, the SCIC chose Morgan Stanley Asia Limited, Saigon Securities Inc and VinaCapital Corporate Finance Vietnam as advisors for the sale of Vinamilk shares.
Source: http://en.vietnamplus.vn/scic-sets-vinamilk-share-price/103530.vnp
China likely becomes Vietnam’s biggest tra fish market
Illustrative image (Source: VNA)
China (including Hong Kong) is more likely to become Vietnam’s largest tra fish market in 2017, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Tra fish exports to mainland China and Hong Kong in the first ten months of this year reached 235.5 million USD, up 76 percent against the same period last year, said VASEP, adding that tra fish export to this market has grown constantly in the past two years.
China has surpassed the EU to become Vietnam’s second largest tra fish market as of September 2016.
The Chinese customers’ demand for tra fish import increased due to reasonable price, said the Vietnam Trade Promotion Office in Chongquing (China).
Although the US is the Vietnam’s largest tra fish market, high anti-dumping taxes and the catfish investigation programme of the US Department of Agriculture are barriers for Vietnamese tra fish exporters.
Therefore, the association forecasted that tra fish export to the US market in 2017 will be not as high as that in 2016.
It is also the reason for China to possibly become the largest market for Vietnamese tra fish in 2017, said the VASEP.
Tra fish material markets in Mekong Delta provinces are now sluggish in terms of purchasing power and price, as tra fish processing plants were buying and producing moderately after collecting sufficient goods to export to the EU, the US and China on Christmas and New Year occasions.
Source: http://en.vietnamplus.vn/china-likely-becomes-vietnams-biggest-tra-fish-market/103339.vnp
Origin of Ho Chi Minh City pork to be traceable via mobile app
People in Ho Chi Minh City will soon be able to trace the origin of pork by scanning the package label with a smartphone app, according to a recent plan by the local Department of Industry and Trade.
The plan, to be implemented by the Department of Industry and Trade, Veterinary Department, and High Technology Association, looks to track pigs from farms to slaughterhouses and markets or supermarkets.
Customers will be able to check the origin and journey of their pork by installing the free Te-food mobile application and use the app to scan a QR-coded label on the pork’s package.
Such information as where the pig was raised, when and where it was slaughtered, or from which wholesale market its meat was distributed will be made available to buyers via a simple scan.
Fifteen pig-breeding firms and facilities, which can meet 100 percent of the city’s pork demand with their nearly 1,000 pig farms, have agreed to the plan, according to Nguyen Ngoc Hoa, deputy director of the Department of Industry and Trade.
Eleven slaughterhouses and two wholesale markets, Binh Dien and Hoc Mon, which cover over 80 percent of the city’s pork supply, will be part of the program.
Customers will also be able to buy tracked pork at the four markets of Ben Thanh, An Dong, Hoa Binh, and Thai Binh, while 59 outlets owned by Co.opmart, Satramart, Big C, Aeon, and Aeon Citimart are also featured in the program.
Four convenient store franchises Co.op Food, Satra Foods, Sagrifood, and Vissan with over 200 locations in the city have also signed up as distributors of the tracked pork.
The application will be available for download from December 10, and the program will be officially launched citywide on January 1, 2017.
Source: http://tuoitrenews.vn/business/38122/
New policy of breeding industry
Caishen Zhao, the chief designer of Agriculture Cooperation Forum, thought that miscellaneous grains industry and livestock breeding industry will develop rapidly in next few years. The nation was overly focused on the production of wheat, rice and corn before. But now there is an encouragement of planting all kinds of miscellaneous grains and breeding flocks and herds. So we can forecast that the subsidies of miscellaneous grains and livestock breeding will increase in 2017.
The main strategies are as follows:
1.Grain reduction and feed increase, expand grass industry.
Reduce the production of grain corn, and develop the whole plant silage corn. Use existing farmland to develop artificial grass and grassland rotation, to expand planting area of alfalfa, oat grass and other high-quality forage, to make efforts to construct the scale and specialize production base for high-quality forage to promote forage industrialization.
Subsidies for alfalfa plant
Cooperatives have existed for more than 1 year. The registered capital of forage production and proceeding enterprises is 2 million yuan(inclusive) or more. The inventory of dairy breeding enterprises or farms is more than 300 heads.
Subsidy standard: 1.8 million yuan for 3,000 mu(inclusive) or more.
Subsidy usage: implementation of improved varieties of alfalfa, application of standard production technology, improvement of production conditions and enhancement of alfalfa quality management, etc.
2.Expand cattle industry and stabilize sheep industry to make herbivorous animal husbandry stronger.
Develop dairy industry to stabilize beef cattle and mutton sheep.
Focus on the development of dairy breeding, dairy processing, enhancement dairy industry and integration of the development of dairy industry.
Support development of moderate-scale farming of beef cattle and mutton sheep and construction of standard-scale breeding farms.
Construction project of dairy standard-scale breeding area(field)-Animal Husbandry Bureau, Development and Reform Commission
Declaration condition: dairy inventory is 300 heads(inclusive) or more
Subsidy standard:
0.8 million yuan for 300-499 heads
1.3 million yuan for 500-999heads
1.7 million yuan for 1,000heads
Construction project of dairy standard-scale breeding area(field)-Animal Husbandry Bureau, Development and Reform Commission
Subsidy standard:
Mutton sheep: 150 thousand yuan for 300-499 heads, 250 thousand yuan for 500-699 heads, 350 thousand yuan for 700-999heads, 500 thousand yuan for 1,000heads.
Beef cattle: 300 thousand yuan for 100-299 heads, 500 thousand yuan for 300 heads.
3.Develop characteristic industry
Focus on middle or high-end products, develop characteristic brand agriculture.
Develop production of miscellaneous grain and beans actively, implement grading and intensive processing of miscellaneous grain, develop nutritional, healthy, medicinal and edible homologous and functional products.
Subsidies for agriculture technology implementation
The subsidy is 0.5-1 million yuan for miscellaneous plant technology, or introducing technology such as new variety introduction, agriculture storage, preservation, evaporation, package, etc.
Declaration subject: Farmer professional cooperative organization, big-specialized households of crop and animal production, family farms, agriculture industrialize enterprises and other new agriculture production and operation entity.
Declaration project of breeding base for miscellaneous grain varieties development, the subsidy is approximately 1 million yuan.
The declaration project: peasant cooperatives, big-specialized households of crop and animal production, family farms, agriculture enterprises, seed business.
Source:http://www.chinabreed.com/
Vice premier stresses food safety
2017-11-29 20:38:33|Editor: Liangyu
Chinese Vice Premier Wang Yang (C), also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, and the deputy head of the State Council's food safety commission, attends a meeting on improving food safety in Beijing, capital of China, on Nov. 28 and 29, 2017. (Xinhua/Liu Weibing)
BEIJING, Nov. 29 (Xinhua) -- Chinese Vice Premier Wang Yang has called for more efforts to improve food safety.
"Food safety is a basic requirement," Wang said at a meeting on the issue held in Beijing on Tuesday and Wednesday.
Despite improvements, there are still many problems in the industry, he noted, with some local authorities still lagging in agricultural standardization and food safety in the catering sector.
Mechanisms and supervision methods should improve the ability to manage food safety, the vice premier said.
Wang, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, is the deputy head of the State Council's food safety commission.
According to a guideline released last month, a product quality traceability system will be complete by 2020, targeting food, medicine, special equipment, dangerous materials and rare earth.
The system will provide information regarding sources, destinations and accountable persons to reinforce product quality and safety, the guideline said.