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Chinese Farm Produce Prices Pick Up

According to the data provided by China Department of Commerce, the prices of major farm products picked up slightly in the first full week of May according to a survey of prices in 36 large and medium-sized cities by the Ministry of Commerce.

During the week, the average price of meat saw ups and downs, with the price of pork up 4.5 per cent from the previous week and the prices of beef and mutton down 0.2 per cent. The retail prices of poultry and eggs rose slightly, with the price of chicken and eggs up 0.2 per cent and 1.1 per cent respectively. The average wholesale price of aquatic products rose 0.9 per cent, with the prices of carp, grass carp and chub up 3.1 per cent, 2.4 per cent and 0.9 per cent respectively. The retail prices of grain and edible oil were stable with slight changes, with the prices of rice, soy-bean oil and peanut oil remaining the same as those of the previous week. The price of flour rose 0.2 per cent and rapeseed oil went down 0.1 per cent. Fruits and vegetables went on the market in bulk, with the average wholesale prices of 18 vegetables going down 2.3 per cent compared with those of the previous week. The prices of white gourd, cucumber and eggplant decreased 12.4 per cent, 8.1 per cent and 6.6 per cent respectively week on week.

Source from:  http://www.ap88.com/info/detail.jsp?id=104729


COFCO Meat to expand with investment partnership

COFCO Meat of China and a consortium of investors composed of KKR, Baring Private Equity Asia, HOPU, and Boyu have formed a strategic partnership aimed at investing in COFCO Meat alongside existing shareholders to build and manage large-scale industrialized hog farms and meat processing plants in China. COFCO Meat is now one of the largest hog producers in China. The company markets its fresh meat and processed meat products under the brands Joycome and Maverick.

source: http://finance.qq.com/a/20140606/019293.htm


Vietnam exports over 2 mln tons of rice, over 40 pct to China

Vietnam has earned some $899 million from selling 2.061 million tons of rice to world market as of May 22 in 2014, with over 40 percent sold to China, said Vietnam Food Association (VFA) on Tuesday.

In the first three weeks of May, Vietnam has exported 309,000 tons of rice, worth $133 million, Vietnam Industry and Trade Information Center under the Ministry of Industry and Trade quoted VFA as saying. According to a recent report by the Vietnam's Ministry of Agriculture and Rural Development (MARD), Vietnam's rice exports in May are expected to dip 10.2 percent in volume and 7.3 percent in value year-on-year. However, the country's rice enjoyed a positive signal as the average export price of the product in the first four months of 2014 stood at 456.19 U.S. dollars per ton, up 4.4 percent year-on- year, said MARD. The Philippines was the market that saw remarkable growth in January-April period with an increase of 5.26 times in volume and 5.79 times in value year-on-year. The report said the Philippines ranked the second among Vietnam' s large rice importers in four-month period with 18.66 percent of market shares while China maintained Vietnam's biggest rice importer, accounting for 41.75 percent of the market shares.

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  michael@boddingtonconsulting.com

 

Source from:  http://www.cifnews.com/Article/9192


COFCO takes a bite out of nation's food insecurity

After spending the past decade and more than $200 billion acquiring mines and oilfields from Australia to Argentina, China's attention is turning to food. The world's most populous nation is confronting a harsh reality: For every additional bushel of wheat or pound of beef the world produces, China will need almost half of that to keep its citizens fed.

In acknowledgment that it can't produce enough grain and meat domestically, mainland Chinese and Hong Kong-listed firms spent $12.3 billion abroad on takeovers and investments in food, drink or agriculture last year, the most in at least a decade, data compiled by Bloomberg show.

Those purchases included the largest Chinese takeover of a US company when Shuanghui International Holdings Ltd. bought Smithfield Foods Inc for $7 billion including debt. They are likely to be followed by overseas forays into beef, mutton and grain assets, according to the National Australia Bank Ltd.

"These deals have been bound to happen, and I'm actually surprised it didn't happen sooner," said Paul Conway, vice-chairman of Cargill Inc, one of the four companies that now dominate world food trade. "China will be more integrated into the global commodities system on the agriculture side than they have ever been."

During the country's explosive economic growth in recent decades, it's been a pattern of the government to use State-owned enterprises as national champions to lead a charge into strategic industries. This is what happened with energy security when PetroChina Co went on a global, decade-long $40 billion-plus spending spree to acquire oil assets. China's emerging champion in food security is Cofco Corp, which controls 90 percent of China's wheat imports and has made two acquisitions this year. It bought controlling stakes in Dutch trader Nidera Holdings BV and Noble Group Ltd's agribusiness in the space of two months, paying about $2.8 billion in total. With Noble's agribusiness, Cofco gained grain elevators in Argentina and sugar mills in Brazil, as well as oilseed-crushing plants in China, Ukraine and South Africa. The Nidera purchase gives Cofco a strong platform to produce grain in Brazil, Argentina and central Europe, the Chinese firm said in February.

Cofco's role

 

Cofco will be "a powerful global agricultural trader and able to procure directly around the world," Fitch Ratings Ltd said in an April 3 report. The numbers show why. China has 21 percent of the world's population with just 9 percent of its arable land, and an even smaller percentage of fresh water, according to Jefferies Group LLC. Rising incomes are driving demand for more protein-rich food, while domestic output is close to its limits, Abhijit Attavar, an analyst with Jefferies in Singapore, said in an April 15 report. In the task of feeding China, Cofco will have plenty of competition.

Archer-Daniels-Midland Co, Bunge Ltd and Cargill of the US, as well as France's Louis Dreyfus Holding BV - known collectively as the A-B-C-Ds - control more than 70 percent of global grain trade, according to Tokyo-based Continental Rice Corp. Others sensing big opportunities in food include Japan's Mitsui & Co. The trading house has built a farming and trading network almost from scratch since 2007 and can tap assets on five continents. Japan's trading houses have ventured into assets as diverse as Brazil soybean plantations to Thai shrimp farms and US corn silos. The world's biggest oil trader Vitol Group last year expanded into grains trading by setting up a Singapore desk. "We're seeing that driven by SOEs, private enterprises and trading companies from other countries are looking to create supply chains that go from Australia into China and, indeed, from the Americas," said Patrick Vizzone, regional head of food and agribusiness at National Australia Bank. Vizzone, who also sits on the board of Cofco unit China Agri-Industries Holdings Ltd, said he sees the potential for Chinese ventures and acquisitions in the grain, oilseed, mutton and beef industries. There also may be bigger options.

Preparing for the future

Margarita Louis-Dreyfus, chairman of her namesake company, has said the commodities unit will be reorganized to prepare itself for a possible stake sale or an initial public offering. That won't happen in the immediate future, but the company wants to be ready, she said in April. Cofco had no comment on acquisitions, a woman in the company's media relations office, who asked not to be identified citing company policy, said by phone. Yin Jianhao, Cofco's official spokesman, didn't answer numerous calls to his mobile phone. "Food security must include imports, and without that, the global food system doesn't work," said Franz Fischler, former EU commissioner of agriculture. "The idea of self-sufficiency is almost an archaic fear, and China is realizing this." Cofco was formed through a series of mergers of State food and animal husbandry companies in the 1950s and is now China's biggest food company with 60,000 employees. Chairman Ning Gaoning holds an MBA from the University of Pittsburgh and also serves as Cofco's Communist Party Secretary.

Today, the company operates China's biggest grain storage facilities and owns ports that can process 100 million tons of grain a year. Outside food, Cofco runs commercial and residential property units, tourist resorts and financial services that include a commodity futures brokerage, a regional bank and an insurance venture with London-based Aviva Plc. It has seven listed units.

Source from:  http://www.ecns.cn/business/2014/06-03/117113.shtml


China Baby formula bar raised

China has raised the market entry threshold for both domestic producers and importers of baby formula, a move aimed at ensuring safer products for babies in the country, experts noted on Monday.

So far only 82 out of the total 133 baby formula producers in the country have passed the review of the China Food and Drug Administration (CFDA), the agency announced on Friday. Companies that have passed the review include a Tianjin branch of Inner Mongolia Yili Industrial Group Co, a Hebei branch of Sanyuan Group and Beingmate Baby & Child Food Co. Among the 51 companies that did not pass the review before the deadline, 23 have applied for an extension of the review deadline and 14 have chosen to produce raw materials for the sector instead. Five companies that failed to get the approval will have to halt production of baby formula and the remaining nine have applied to annul their production permit, the CFDA said.

In December 2013, the CFDA released a set of rules that had posed stricter standards for domestic infant formula production. According to the rules, domestic producers needed to pass a review by May 31 - otherwise they will have to quit the business. "The quality of domestically produced baby formula is expected to be raised as companies are applying higher standards," Song Liang, a dairy analyst at Distribution Productivity Promotion Center of China Commerce, told the Global Times Monday. Song said that competition in the sector is fierce and another 20 companies among the 82 that have passed the review are expected to get weeded out due to a tough market.

China is expected to see the number of domestic baby formula producers to shrink to around 50 by 2018 and the top 10 companies are expected to account for around 80 percent of the market share, according to a plan from the Ministry of Industry and Information Technology in August 2013. Experts said that the government's move to raise standards for producers and to consolidate the industry will help restore consumer confidence. Many parents have chosen to buy overseas produced baby formula after a contaminated milk powder scandal in 2008 that led to the deaths of six infants.

Jiao Huijiao, a 29-year-old woman in North China's Shanxi Province who is expecting a baby in September, told the Global Times that she would consider using domestic products when the baby comes, as "some domestic firms are also making quality products now." "The government's move [of raising standards for the sector] will help a bit, but it will take prolonged efforts before consumers could regain faith in domestic products," Wang Dingmian, former director of the Dairy Association of China, told the Global Times Monday.

The entry bar for baby formula imports was also raised. China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) on Thursday announced a list of 94 baby formula brands that are qualified for imports. Previously, the market had around 1,000 imported baby formula brands, according to experts. Despite a drastic decline in suppliers, "we will not see major fluctuations in prices as the market still has excess supply and companies that are phased out only account for a very small market share," Wang noted. The list of qualified brands for imports includes brands like Dumex, Abbott and Wyeth. The AQSIQ said in a statement that the list will be updated in the future to include newly approved companies. The 94 brands also include Newbaybay, which is using a contract manufacturer in New Zealand but actually is operated by a Chinese company.

A China Central Television report in May 2013 said Newbaybay claims to be a New Zealand brand but its products are not available in the local markets , and it uses a car repair shop as its address in New Zealand. Some Chinese companies have been using foreign contractors for production, but it does not necessarily mean that they are selling substandard products, according to Song. "To be included in the list means that the company has met the standards after corrections were made," Song noted. China now allows 49 overseas contractors, which often produce for multiple brands, to supply baby formula. Prices for imported baby formula are likely to further drop due to the fierce competition from domestic producers with quality milk source and advanced technology, Song said.

Source from:  http://www.chinairn.com/news/20140603/084641645.shtml


Dong Nai province provides over 2.4 million pigs/year

According the Ministry of Agriculture in Dong Nai, this province provides about over 2.4 million pig/year to market. In which, the households provide over 1.9 million pig, state farms provide about 60.000 pig and the rest is provided by foreign-owned companies. Currently, Dong Nai province has the largest pig herd in Vietnam. About two last years, many foreign companies have developed network pig farms in Dong Nai.

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 livestock 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  michael@boddingtonconsulting.com

 http://heo.com.vn/?x/=newsdetail&n=4574&/c/=48&/g/=1&/17/4/2014/dong-nai--cung-cap-hon-2-4-trieu-con-heo-nam--dong-nai--providing-over-2-4-million-pigs-year-.html


The prices of live pig and chicken increase strongly

Currently, the price of live pig is about VND 55,000 per kg, an increase of VND 2,000-3,000 per kg from the beginning of April. According to information from the farms, the price of chicken is also increasing strongly. In particular, the price of feathers chicken has reach VND 40,000 per kg, up VND 6,000 per kg compared to the beginning of this month.

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 livestock 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  michael@boddingtonconsulting.com

 http://www.thanhnien.com.vn/pages/20140420/gia-cam-gia-suc-tang-gia.aspx


Investing the biggest cow herd of Vietnam

Hoang Anh Gia Lai Group plans to develop the cow herd with 100,000 cows in Laos, with ambitious revenue VND 4,000 billion per year.

Currently, Hong Anh Gia Lai is investing to agriculture, so that they are always available feed materials source like palm oil residue, 50,000 tons of molasses in the sugar mills and over 100,000 tons of corn, corn stalks, etc. Currently, the group is promoting to import 40,000 first cows from Australia. The whole of them were pregnant cows and will give the first calves after 3 months.

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 livestock 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  michael@boddingtonconsulting.com

 http://dbv.vn/kinh-te/gia-lai/nhung-bi-mat-ve-dan-bo-so-1-vn-cua-bau-duc-478615.html


Tra catfish farming situation at Mekong Delta

In April 2014, the price of Tra catfish has increased at VND 24,000-25,000 per kg, with this price, the farmers can get VND 2,000-3,000 per kg of profit. The raw catfish source in locally is stabilized.

Pangasius farming area of the Mekong Delta in 4 first months of this year was estimated at 5,300 hectares with 243,000 tonnes of production.

According to the report of the Department of Agriculture of Mekong Delta, the area and production of catfish in Tien Giang and Ben Tre increased, namely: Tien Giang area of 104 hectares (+18%), production of 10,900 tonnes (+17%), Ben Tre area of 608 hectares (+10.5%), production of 40,000 tonnes (+5.3%).

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  michael@boddingtonconsulting.com

 http://www.vietlinh.vn/library/news/2014/aquaculture_news_show_2014.asp?ID=721


Developing dairy project in Hà Nam province

Ha Noi capital is bounded by Ha Nam province in the south, Ha Nam be a part of the red river delta. Therefore, the province has favorable conditions for the development of dairy farming

To present, after more 10 years of development, total dairy herd of Ha Nam province is 546 cows in 113 households. The average milk yield is 18 kg/cow/day. Ha Nam has developed dairy farming project with the goal that the total number of dairy herds will reach 3000 cows by 2015  and 7,000 cows by 2020, the milk production will be about 25,000 - 30,000 tonnes per year, equivalent VND 4 billion, accounting for 5% of the value of agricultural 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 dairy 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  michael@boddingtonconsulting.com

   http://www.vietlinh.vn/library/news/2014/agriculture_livestock_news_show_2014.asp?ID=450


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At Asian Agribusiness Consulting our mission is the promotion and development of agribusiness across Asia. We provide specialist research and consulting services for our clients who have intentions of ratcheting up their presence in Asia be they start-ups companies to blue-chip companies.

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