Australia, China ink meat deal worth USD 1 bln
An Australian meat processor and a giant Chinese import company have signed a deal worth almost one billion US dollars, local media reported on Tuesday.
Grand Farm, China's biggest importer of red meat from Australia and New Zealand, will join forces with V&V Walsh to process an extra 500,000 lambs and 30,000 cattle a year for China, the West Australian reported. The joint venture includes $187.7 million of investment in Australia, and 750 million US dollars in China to develop mega farms in China's Inner Mongolia. Peter Walsh, from V&V Walsh, said the China deal will create a boom for Australian farmers. "Agriculture is going to get back to the position of strength it had in the 1950s and 60s," he said. "It is going to be mining and agriculture. The boom is here. Supply is our biggest concern. Farmers will only increase production when it becomes financially attractive and it is going to happen now." Walsh said his company will share its expertise with his Chinese partners in developing world class farms. "They regard us as one of the best agricultural countries in the world, so they want to learn from us and get their farms up and running," he said. "And they will import lots and lots of meat. "
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Source: http://www.ecns.cn/business/2014/06-17/119434.shtml
Top 10 feed companies in China in 2013
The total feed production of the top 10 feed companies produced 66.18 MMT feed in 2013, which accounts approximately 35% of China’s total feed production. In 2012, the top 10 feed producers account approximately 33% of China’s total feed production, which shows China’s feed industry is becoming more and more consolidation
|
Companies |
Sales Volume 2013 (MMT) |
Sales Volume 2012 (MMT) |
Growth Rate (%) |
|
New Hope(Liuhe) |
15.41 |
16.85 |
-8.6 |
|
CP |
8.8 |
8.97 |
-1.9 |
|
Shuangbaotai |
8.6 |
7 |
22 |
|
Wens |
8.49 |
7.45 |
14 |
|
Haida |
4.79 |
4.35 |
10 |
|
Zhengbang |
4.42 |
4.23 |
4.4 |
|
East Hope |
4.34 |
6.2 |
-42% |
|
Tongwei |
3.95 |
3.73 |
6 |
|
Dabeinong |
3.87 |
2.43 |
59% |
|
Chinwhiz |
3.51 |
3.51 |
0 |
|
Sub-Total |
66.18 (35%) |
64.72 (33%) |
2 |
|
Total |
191 |
194 |
-1.5 |
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Source: http://news.wugu.com.cn/article/20140613/214504.html
Netherlands will double dairy products export value to China
Netherlands dairy products export to China was EUR 800 million(USD 1.08 billion) in 2013, it is predict that Netherlands will double dairy products export value to China in near future.
It’s reported that EU will terminate the quota restriction of dairy production in 2015. Netherlands will increase milk production of 2.5 million tonnes.
According to data from China Dairy Association, China raw milk annual production was approximately 37 million tonnes, with consumption of 40 million tonnes. The gap between demand and supply was around 3.5 million tonnes. Experts believe that Netherlands milk production increasing will alleviate China milk supply shortage.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Source: http://www.boyar.cn/article/2014/06/12/561042.shtml
China encourages baby formula mergers
Chinese authorities on Friday (6th, June, 2014) released a work plan to encourage merging and corporate reorganization among domestic baby-formula producers to ensure the healthy development of the troubled dairy industry.
The quality and safety of infant-formula milk powder is a key issue concerning people's livelihood, as well as a major economic and social issue, according to the plan, released by the State Council and jointly formulated by several government organs including the National Development and Reform Commission and the China Food and Drug Administration (CFDA). The work plan says that companies will be encouraged to reorganize through mergers and acquisitions (M&A). By 2015, China will aim to have formed around 10 large baby-formula conglomerates, each with an annual sales revenue of more than RMB 2 billion (USD 325 million). By that time, the top 10 domestic brands of baby-formula are expected to account for a total market share of at least 65 percent.
The plan also sets a further goal of forming three to five baby-formula heavyweights with annual sales revenue exceeding RMB 5 billion each by 2018. The top 10 domestic industry players are then expected to nab more than 80 percent of the entire market. To realize such goals, the plan stipulates several policy measures, including strict rules and regulation for industry access and production. On the other hand, administrative approval process for M&A in the sector will be simplified. Authorities will strengthen fiscal and taxation support and financial support for relevant M&A.
Policy measures concerning land allocation will also be carried out, according to the plan. The Chinese baby formula industry has been embroiled in a series of safety scandals since 2008, when milk powder containing melamine left at least six infants dead and many others suffering kidney problems. As a result, an increasing number of Chinese parents have opted for foreign-branded dairy products for their children in recent years. About three-fifths of all baby formula sold on the Chinese market, worth around RMB 60 billion in total, is from foreign-branded. To restore consumer confidence and revamp the domestic dairy sector, the CFDA has unveiled a series of moves, highlighted by a revised regulation in December 2013 to step up standards for domestic infant formula producers. Following the half-year campaign, the administration said on May 30 it had renewed production permits for 82 baby formula producers. A total of 51 producers failed to obtain renewed production permits or asked to delay applications for renewals.
Meanwhile, stricter regulation is likely to force companies to merge or switch to manufacture other products, while some might be shut down, according to Gao Fu, an official from the Ministry of Industry and Information Technology. Gao said by the end of 2013, the ten largest infant formula makers in China accounted for 45 percent of the entire market, making the goal to increase the percentage to 65 percent by 2015 attainable. But the ministry official also stressed that companies should act on their own accord in M&A, as there will be no "forced marriage" or government imperatives. "The work of the government should be focused on fostering an environment for development, improving policies and regulations by removing unfit rules hampering corporate M&A, as well as strengthening fiscal, financial and land policies," Gao said. According to Gao, Friday's plan applies only to dairy producers in China that have legally acquired baby formula production permits. Companies can only be eligible for M&A as long as they have high standards in a number of areas, including milk sourcing, processing technology and business performance.
http://www.cnfood.cn/n/2014/0614/22102.html
US hay feeds Chinese demand
Mainland's rising number of dairy herds need forage, and high-protein crop fits the bill
As China continues to seek feed supplies for its growing dairy market, the practicality of importing hay feed from the United States continues to improve, according to two California-based exporters. US farmers and exporters of alfalfa hay in particular are starting to reap the benefits. "I think the growth in China has been anticipated," said Greg DeWitt, manager of marketing and communications for Acx Pacific Northwest Inc, a California-based hay exporter. "Alfalfa is the very beginning of so many products, not just milk but also cheese, ice cream, yogurt," DeWitt said. "A lot of people may not realize that alfalfa is just a base for that." Over the past decade, DeWitt said exports "grew exponentially" from Acx's operations in the US to China, due in part to the "interest and awareness around alfalfa". There has been a steady increase in demand for hay products around the world, "not just in China", DeWitt said. "China has little choice but to turn to US farmers to help supply feed for the country's growing herd of dairy cows," the Los Angeles Times said in a recent report. "Packed with fiber and protein, alfalfa hay is considered the gold standard for forage, and … since 2009, US alfalfa exports to China grew nearly eightfold to a record 575,000 tons."
China is now Asia's biggest buyer of US alfalfa, as well as the biggest global destination for US food and agricultural products, according to the US Department of Agriculture. China, which accounts for nearly 20 percent of all US farm exports, with a value of $144 billion in 2013, is already a large buyer of corn, cotton, soybeans and wheat from the US. Agricultural exports from the US to China reached $26.7 billion in 2013. "The (Chinese) government policy is to increase milk production, and in order to do that, they need high-quality forage," said Dan Undersander, a forage agronomist at the University of Wisconsin. "Our advantage has been consistent, high-quality hay, but the other advantage is it's very inexpensive to ship hay to China." Undersander, who has worked in China, said he's "not surprised at all" by China's interest in US forage. "To the extent that the policy is to continue to encourage dairy production in China, there will be asignificant need for alfalfa," he said. "China seems to be on this growth approach, growing each year steadily, which really helps the industry evolve and develop at a much stronger pace," said Adam Lyerly, an export sales manager with El Toro Export LLC in El Centro, California. "Our goal is to have our brand come across as something people can rely on, and we continue to take that approach in our business in China," Lyerly said.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.xinnong.com/niu/news/1040977.shtml
China Reports Increase in Meat, Poultry Prices
CHINA - China's Consumer Price Index (CPI), a main gauge of inflation, increased 2.5 per cent year on year in May, up from 1.8 per cent in the previous month, according to the National Bureau of Statistics (NBS).
Accelerated increases in food prices were the main contributor to the higher CPI figure. Food prices increased 4.1 per cent year on year, nearly double the 2.3 per cent in April, lifting the CPI figure by 1.35 per centage points.
While prices of pork, a staple of the Chinese diet, dipped 0.6 per cent, those for the meat and poultry category in general increased 3.2 per cent, pushing up the CPI by 0.23 per centage points. Prices of grain went up 3 per cent, lifting the CPI by 0.09 per centage points, while fresh vegetable prices went down 2.5 per cent, pulling down the CPI figure by 0.08 per centage points, the NBS said.
On a monthly basis, the CPI edged up 0.1 per cent in May, with the prices for eggs, pork and fresh fruits jumping 9.5 per cent, 5.6 per cent and 2.1 per cent from April respectively and those for fresh vegetables and aquatic products declining 8.7 per cent and 0.1 per cent respectively. The NBS attributed the higher CPI mainly to the "carry-over effect" resulting from a low comparison basis last year, which contributed 1.6 per centage points to the figure. However, real price increases still contributed 0.9 percentage points to the higher CPI figure, widely seen as a boon to the world's second largest economy, which grew at its weakest pace in 18 months during the first quarter. The higher CPI came as China's economy shows tentative signs of stabilizing. Official data showed earlier this month that growth in China's manufacturing sector continued to accelerate in May, hitting a five-month high.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Source from: http://www.thepoultrysite.com/poultrynews/32437/china-reports-increase-in-meat-poultry-prices
Tangrenshen Group plans to strengthen cooperation with American company Whiteshire Hamroc, LLC
On a investors interactive relationship forum last Friday, Tangrenshen Group said will enhance their partnership with American company Whiteshire Hamroc, LLC on improving breeding pig genetic and the performance testing systems, etc.
As early as year 2013, they have signed a joint venture agreement to build a 1,200 sow technology center in Kimmell, Ind. Construction is set to begin on the Meishen Whiteshire International Swine Breeding Company LLC’s USA technology center in Spring 2014.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Source from: http://www.feedtrade.com.cn/news/enterprise/2014-06-06/2017597.html
Live pig price soared in May
Live pig price was CNY13.4/kg, a 24.6% increase from the previous month. Pig price had nearly a threefold increase in the first three weeks, and then showed a downtrend in the last week in May.
Experts believe there are five factors to promote the live pig prices.
- Sow inventory declined continuously. According to data from MOA, sow inventory was 46.72 million heads which is lower than the normal quantity.
- May Day Holiday stimulate a big demand of pork.
- Live pig farmers started to hold back suppliers in May Day holiday, so slaughterhouse have no choice but to passively increase price.
- In south region, government enforces a trial of selling iced fresh chicken. Customers started to switch their purchase willing to pork rather than chicken.
- There are rumors that the government interference live pig market via require the slaughterhouse to increase price.
But experts believe that the live pig price will keep increasing only in a short term, because soar of the live pig price is attributable to the temporary effects of government policy and holiday demand. Oversupply in live pig market will inhibit the rising live pig price.
Source: http://www.feedtrade.com.cn/livestock/pigforecast/2014-06-04/2073473.html
America's Got Milk and China Wants It
Increased demand for dairy products around the world, particularly in China, is doing for U.S. farmers what decades of farm policy could not: sell off all the milk their cows can produce at record-high prices.
The good fortune of U.S. dairy farmers is due to exploding demand from an emerging global middle class, but also to misfortunes elsewhere. In China, domestic dairy has been hampered by production problems and lingering distrust among consumers about safety. In New Zealand, the global leader in dairy exports, a 2013 drought reduced the country’s ability to meet foreign customers’ needs. In the first quarter of 2014, the value of U.S. dairy exports grew 39 percent.
“China buying has been through the roof,” says Alan Levitt, spokesman for the U.S. Dairy Export Council. “We shifted from a period of structural oversupply to structural undersupply.” Exports have been rising steadily during the past decade, but they surged in the past year—evidence that the U.S. can be a viable player in the global dairy market.
STORY: Beijing's New Mission: Engineering Better Baby Formula
“We were principally focused on the domestic industry and tended to fear globalization rather than relish the opportunity,” says Richard Smith, chief executive and president of the Dairy Farmers of America, the largest such cooperative in the U.S. “In a short period of time, the industry did a 180.” Smith’s group opened a plant in Nevada in April designed to turn out whole-milk powder for foreign markets, the first of its kind in the U.S. American dairy plants typically produce nonfat-milk powder, which is not popular overseas.
Global demand has, at least for now, freed American dairy farmers from a decades-long cycle of sluggish U.S. sales, reliance on government support, and shuttered farms. There have been price crashes—most recently in 2009—and consolidation. As of 2012, the U.S. had 64,098 farms with milk cows, less than a quarter the number it had in 1982. Small farms have been replaced by much larger ones, some with thousands of cows.
For the farmers who have survived, the recent payoff has been substantial. The average price for raw milk in April was $25.30 per 100 pounds, an all-time high, even as feed prices have remained low. By comparison, the price was $13.15 in April 2009, in inflation-adjusted dollars. “This is a very nice turn of events,” says Ken Nobis, who runs a dairy farm in St. John’s, Mich., with his brother, Larry. “The outlook for dairy is very rosy right now.” Jay Waldvogel, senior vice president of strategy and international development at the Dairy Farmers of America, says an industry driven by market forces, not government support, will unleash growth and innovation: “Without export markets to create an outlet, the only way you could grow was if your neighbor disappeared.”
STORY: Cheerios and Milk Join the Protein Popularity Contest
That foreign customers have revived U.S. dairy is no small irony. Since the 1930s, the federal government has deployed expensive, protectionist, and arguably self-defeating policies to prop up farmers, whose incomes were periodically depressed by milk surpluses.
The government’s solution was a price-support program. It purchased excess cheese, butter, and nonfat dry milk when prices fell to a certain level, and stored the cache in caves near Kansas City, Mo. The overproduction would eventually be sold, donated to government food programs, or in some instances left to rot. The program, costing as much as $2 billion a year, got too expensive in the 1980s, so the government started paying farmers to kill dairy cows to reduce the supply. It also imposed import quotas and tariffs to keep cheaper foreign products out of the U.S. One result was that American dairy became too expensive to compete in world markets. New Zealand and the European Union dominated global trade.
In the past decade, American dairy products have become more competitive, in part because those price supports were curbed and eventually eliminated. A 2009 study, prepared by the Innovation Center for U.S. Dairy, an industry group, recommended that farmers seize opportunities in emerging markets, in part because New Zealand and the EU couldn’t keep up with demand. “What that study showed us is we could really compete,” says Indiana-based Michael McCloskey, who runs one of the largest dairy operations in the U.S.
STORY: China's Growing Hunger for Yogurt Hits Global Supplies
Most dairy farmers know that prices will not remain consistently high. In recent months, the pace of new business in China has slowed, and future dips in demand are inevitable. Farmers will surely increase production to take advantage of current prices, Nobis says.
What is good for American dairy farmers isn’t good news for the U.S. companies they do business with. Dean Foods (DF), the largest U.S. dairy processor, has been getting clobbered by sky-high costs for raw milk. Last month, it lowered its earnings forecast for the year, to reflect, in part, “historically high raw milk costs.” U.S. consumers are also hurting. The average price for a gallon of whole milk was $3.69 in April, up from $3.43 a year earlier, federal data show.
There’s some nostalgia for the subsidies. At the Interstate Underground Warehouse—one of the famous dairy caves in Kansas City—Wayne Reeder, who oversees the facility, says he misses the days when the coolers were stacked with 500-pound cubes of cheddar cheese. “We hated to lose that government business,” Reeder says, noting the government paid him as much as $800,000 a year to store the surplus. “With the USDA, you know you are going to get your money.”
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Source: http://www.businessweek.com/articles/2014-06-05/china-wants-americas-milk-and-u-dot-s-dot-dairy-exports-benefit
Muyang launches new brand – FAMSUN
Chinese feed machinery manufacturers Muyang launched their new brand, "FAMSUN" at CAHE Expo held in Qingdao. At the exhibition President of Muyang, Fan Tianming, revealed the newly designed logo on a sign in front of the viewing audience. The new brand name FAMSUN encompasses the terms - famous, farm, family, sun and union, and seeks to represent an extension from Muyang which has been come recognised as a leading feed machinery brand. The new brand aims to extend the product line beyond feed machinery and instead to represent the company as a complete integrated solutions product supplier.
In the 21st Century the Chinese feed industry has progressed in leaps and bounds, and has seen big industry consolidation. With companies such as New Hope Group, Tangrenshen Group completing mergers and acquisitions it has seen a move to vertically integrated production where the companies are in control of all areas of production from feed to food. FAMSUN was created by Muyang to specifically to address the increase in vertical integration in animal and food production. "Famous is our goal: to build a world-class brand," said Fan Tianming. Although starting later the Chinese feed industry has recently surpassed the United States in production numbers, becoming the world's top feed producer. However the country's technology application level and independent innovation is still lacking in areas.
Over the years, Muyang has worked closely and cooperated with leading feed research and development institutes, both within China and abroad. The company also has established R&D institutes in Denmark and the United States, developing a program of technical innovation at a total cost of CNY 1.25 billion. Muyang currently has nearly 700 domestic patents, including a successful new multi-fibre puffed slowly sinking feed produced with ultra-fine grinding technology. Muyang has invested greatly in research, development and exploring new technology and production methods to stay at the forefront of machinery production.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Source: http://finance.ifeng.com/a/20140522/12390740_0.shtml