Farm produce quality improves in China
Farm produce quality has improved consistently in China thanks to stringent oversight, official data showed Thursday.
Farm produce quality has improved steadily over the past five years as more than 96 percent of the output passed a quality check. In the first half of this year, the number reached 97.6 percent, said Guang Defu, director of the Bureau of Quality and Safety Supervision for Agro-products of the Ministry of Agriculture.
The ministry has laid out comprehensive safety standards including more than 6,000 quality standards in pesticide and veterinary residue and more than 5,000 other industry standards. Green and organic food standards have been applied in a greater scope, he told a press briefing on farm produce safety.
A national safety monitoring network has been established with 117,000 superintendents on duty, and they have intensified the crackdown on illegal use of ractopamine and other restricted pesticides.
"It is safe to say China's farm produce is safe and reliable," said Guang Defu, adding that problems still exist and supervision remains a daunting task.
He emphasized the importance of establishing a quality traceable system and vowed to deal with heavy metal pollution to improve food safety.
Source: Ministry of Agriculture China. Date: 2017-08-18
China corn output forecast to fall slightly
Policy shifts, adverse weather conditions and logistical bottlenecks are factors contributing to an expected downtick in forecast corn production in China during the 2017-18 marketing year, according to an Aug. 3 Global Agricultural Information Network report from the Foreign Agricultural Service of the U.S. Department of Agriculture.In its report, the USDA forecast 2017-18 corn production in China at 210 million tonnes, down 5 million tonnes from the agency’s forecast in July and down 4% from the 2016-17 marketing year. According to the USDA, high temperatures have negatively affected yield potential for the 2017-18 crop.
Meanwhile, corn harvested area for the 2017-18 marketing year was forecast at 35 million hectares, down 5% from 2017-17, led lower by policy-driven issues, the USDA noted.
“China’s corn growers typically plant starting on May 1,” the USDA noted. “Lower planted area in Heilongjiang province alone accounts for more than one-third of the decline in national harvested area. MOA promotes corn growers to switch from planting corn for grain to soybeans (nearly half of the total change in area), wheat, sweet corn, silage corn, millet, and forage. Nearly all of the MY 2017-18 estimated harvested area has been sown. Across most of North East China, early crop development in parts of North East China was supported by irrigated land and existing soil moisture.”
Corn consumption in China for the 2017-18 marketing year was left unchanged from the July forecast of 238 million tonnes. The 2017-18 marketing year will be the first full marketing year since China announced supply side structural reforms.
“Freight bottlenecks for truck, rail, and vessels are driving local prices higher than domestic internal trade,” the USDA noted in its report. “Current local market tightness is partly attributed to China’s State Administration of Grain requirements that auction buyers arrange and execute their own transportation. Major state-owned enterprises accounted for the majority of auction buyers at the start of the auction period. However, as the harvest draws closer, small and medium-sized auction buyers are at a significant transportation disadvantage, impacting logistics across North China. Industry sources report that high-quality corn supplies remain tight in North China.”
Source: World Grain. Date: 2017-08-18
Japan, South Korea Counter Weaker Chinese Pork Imports
JAPAN, SOUTH KOREA & CHINA - Both Japan and South Korea have reported year-on-year increases in fresh/frozen pork imports during the first half of 2017, according to Bethan Wilkins, AHDB Pork analyst.
With Chinese import demand slowing in the second quarter, these destinations have become increasingly important outlets for the global pork market.
During the first six months of 2017, Japan imported 459,000 tonnes of pork, 7 per cent more than in the same period last year. Shipments from Canada in particular were 19 per cent higher year-on-year.
Meanwhile, the other key suppliers, the EU and US, saw more modest increases of 3 per cent and 4 per cent respectively.
The expansion in EU shipments was largely driven by increasing imports from Spain in the second quarter. Conversely, US shipments actually fell 1 per cent on the year in Q2.
For South Korea, fresh/frozen pork imports increased 12 per cent on 2016 during the first half of the year, reaching 257,000 tonnes.
Disease outbreaks in both the beef and poultry sectors have reportedly boosted demand for pig meat this year.
EU shipments, which were up 25 per cent year-on-year and now provide over half of import requirements, drove the overall expansion.
Within this, volumes from Germany and the Netherlands were up 46 per cent and 58 per cent respectively.
The sharp increase in German shipments in particular is likely related to the temporary suspension of exports to China from a number of key plants earlier this year.
The UK also supplies pig meat to South Korea, albeit in small volumes (1,600 tonnes), but shipments were nonetheless 50 per cent higher than a year earlier.
Looking forwards, Chinese import demand is could remain behind 2016 levels in the latter half of the year.
Reports suggest there are expectations extensive farm closures could occur during Q3 under environmental regulations, leading to a temporary oversupply of pork on the market.
As such, how Japanese and South Korean import demand develops throughout the rest of 2017 could be key to global market balance.
Nonetheless, the outlook for South Korean demand at least seems positive, with pork likely to continue benefitting from disease pressures in the other protein sectors.
Source: The Pig Site. Date: 2017-08-17
Chinese authorities to visit Irish beef plants in the coming weeks
A group of Chinese inspectors is set to visit a number of Irish beef plants later this month.
Members of the Chinese Certification and Accreditation Administration (CNCA) are due to arrive in Ireland during the last week of August to inspect a number Irish beef processing facilities.
This visit is a step in the right direction for Irish beef exporters’ hopes of accessing the lucrative Chinese market. And, a successful outcome would further advance the process of opening the market to Irish beef.
This is particularly important as China was the second-largest importer of beef on the global stage in 2016. In addition, Chinese beef imports are expected to reach 1.2 million tonnes by 2025.
Back in April, the Minister for Agriculture, Michael Creed said it’s “a case of when, rather than if” when it comes to accessing the Chinese market with Irish beef.
He made the comments following a meeting with the the Chinese AQSIQ Minister Zhi Shuping, who has responsibility for the Chinese Quarantine and Inspection Service.
At the time, both minsters signed a formal protocol on beef exports to China. The protocol specifically focused on frozen beef under 30-months-of-age.
US Beef Moves A Step Closer To Accessing China
American beef exports to China are set to resume again after a 14-year absence, the US Department of Agriculture (USDA) announced in June.
The US has reached an agreement with Chinese officials on export protocols, which will allow for shipments to begin.
China’s beef imports have increased from $275 million in 2012 to $2.5 billion in 2016, according to the USDA. China was the second-largest importer of beef in the world last year, taking in 825,000t.
However, the US has been banned from China’s market since 2003. China implemented the ban on US beef amid concerns about BSE.
Following negotiations, it has been agreed that US beef exports to China must meet specified requirements under the USDA Export Verification (EV) Programme.
Source: Agriland. Date: 2017-08-17
In India, an Uber for farm machinery aims to make a difference in rural areas
Uber has inspired countless businesses to adopt its asset-light and on-demand approach to their industries. The examples are countless. Food delivery, dry cleaning, jet planes, home services rental bikes, or even phone chargers to name but a few — but how about farming equipment?
That’s the case in India, where a startup called EM3 AgriServices is helping rural farmers literally get their hands on specialist (and expensive) equipment and machines that would ordinarily be out of their reach. The goal is to help them earn their livelihood with cutting-edge tech without breaking the bank.
The concept is actually quite straightforward. EM3 works with farmers who own equipment like tractors, harvesters and other mechanical implements by allowing them to ‘rent’ out their assets to help pay off the purchase or generate additional revenue. Farmers, typically those in remote regional with small holdings and limited capital, then get access to quality implements and machines on a pay-as-you-use basis on either an hourly or acreage pricing.
That’s important when most farms in India are smaller than three acres. Tight economics, and a reliance on loans to make big-ticket purchases, are thought to be a key factor responsible for a high level of suicides among farmers over the past twenty years.
“The average Indian farm holding is just one percent of what you’d find in U.S., so farmers aren’t able to afford technology, even basic mechanization, because the capital load is too high,” EM3 founder and managing director Rohtash Mal (pictured above) told TechCrunch in an interview.
And he should know. Mal, a 63-year-old self-confessed “corporate world veteran,” started EM3 with his son Adwitiya Mal (CEO) in 2013 after a spell in charge of agriculture machinery manufacturer Escorts gave him a glimpse into the struggles of Indian farmers.
“In the farm equipment business one thing became clear, we did everything we could to help customers buy our products, but the fact is that the small farm could not afford the rate of technology,” Mal senior said.
“We’re inspired by what happens in tech world, but this hasn’t been done in agriculture before. The need wasn’t there in a lot of markets, such as the U.S., which were the foundation heads of technology, but the need is here in India,” he added.
The company calls its business farming-as-a-service — or Faas.
Unlike Uber, which has pioneered an online business model, EM3 is ‘tech-enabled’ rather than ‘tech.’ That’s to say that while it uses common on-demand tech to manage supply-demand, customer data and more, the majority of its business is offline. That’s because, quite simply, its customer base remains disconnected from the internet.
“The majority of farmers are not on smartphones,” Mal junior said. “The smartphone penetration is increasing but it isn’t at critical mass yet so we have a physical on the ground presence.”
So where there are apps for those ahead of the curve, EM3 operates call centers for handling requests from farmers — both inventory owners and prospective renters — and it deploys local representatives in the villages that it serves. But even the select farmers who are online and own smartphones find something comforting and secure about talking to a person on the other end of the phone when it comes to business matters that impact their life, the EM3 execs said.
To date, EM3 has focused on central parts of India where it claims to have worked with 8,000 farms through its 10 service centers. Mal senior explained that its platform covers machinery and services that span all seasons, but customer activity levels do vary during different parts of the farming calendar and based on location, crop type, etc.
The startup recently partnered with the local government of Rajasthan, India’s largest province by size and a major agriculture producer, to make a push into helping thousands more farmers. It is planning further forays, too, after raising significant funding from investors.
EM3 closed a $10 million in Series B financing led by Global Innovation Fund and VC firm Aspada which will be put to work expanding into more regions, increasing its inventory and developing tech. EM3 previously raised a $3.3 million Series A round led by Aspada in 2015.
Further down the line, Mal senior said he can envisage its business moving into other areas of a farmer’s business where it believes it can add value.
“There’s no other company [offering this service yet, but I’m sure there will be me-toos,” he said.
“We are still significantly ahead, but will have to add more and more to the menu of services to keep our lead. We want to become more dedicated to the farmer and look for more opportunities in farming and adjacent spaces.”
Already there is competition with Gold Farm and Trringo, a subsidiary of automotive conglomerate Mahindra & Mahindra, opening similar services over the past year.
Interest in agritech in India has heated up in recent years. Earlier in 2017, Accel backed AgroStar, a startup that offers a range of guidance and e-commerce services targeted at rural farmers, in its first deal in the sector. Plenty of other VCs in the country have expressed their interest about getting into the space, which has the potential to harness the power of technology to help many farmers in a profound way.
Source: Techcrunch. Date: 2017-08-17
Asia at risk from intensive farming
A range of health and environmental risks associated with Asian meat production has the potential to significantly impact businesses and threaten investor returns in the region, a new report has warned.
Asia’s meat, seafood and dairy industries face a range of badly managed sustainability risks, from deforestation and greenhouse gas emissions to food fraud and the misuse of antibiotics, according to a new report by the Farm Animal Investment Risk and Return (FAIRR) initiative.
The report reviews risks around five issues that it says could result in greater regulatory controls, price volatility, weaker consumer demand and continuity problems in supply chains, all of which could impair businesses and jeopardise investor returns.
The issues highlighted are food safety and nutrition; public health risks due to antibiotic resistance and the outbreak of livestock viruses; the high environmental footprint of meat production; changing consumer views on animal welfare standards; and labour standards.
Asian meat demand is predicted to grow 19% from 2013 to 2025 to 144m tonnes.
FAIRR noted that a shift towards more intensive farming practices in China in particular is driving up antibiotic use, just as there is a global push to reduce usage in the face of antibiotic resistance. China already consumes almost half of the world’s antibiotics, and due to increased intensive farming, Asia is estimated to increase antibiotic usage in chicken and pigs by 129% and 124% respectively by 2030.
The report stated that threats in Asia also affect the global supply chain. In 2016, China’s demand for animal feed saw it import 35% of Brazil’s total soybean production – encouraging further deforestation in South America – with potentially enormous consequences for global carbon budgets.
Despite the focus on risk, the report said there are also excellent opportunities in Asian markets for more sustainable production. It highlighted that consumer concerns, particularly over health and safety, are resulting in increased demand for differentiated products such as organic meat, vegetarian and plant-based foods or higher welfare meats. Between 2012 and 2016, new product launches with vegetarian claims increased by 140% and new product launches with vegan claims increased by 440% in Southeast Asia.
Source: Footprint. Date: 2017-08-17
Philippines beef imports from UK expected to be worth over US$44mn
The UK and the Philippines have struck an export deal worth GDP£34mn (US$44.21mn) to put British steak on Philippine plates over the next five years.
In addition to the wider agreement signed on 9 August, Northern Irish beef worth GDP£5.5mn (US$7.5mn) will be exported to the Philippines after the World Organisation for Animal Health formally endorsed Northern Ireland as an area of neglible risk for cattle disease BSE.
The announcement by the Department of Environment, Food and Rural Affairs (DEFRA) and the Agriculture and Horticulture Development Board (AHDB) of the UK was welcomed by Northern Ireland’s Chief Veterinary Officer, Robert Huey, who commented; “I am delighted that the Philippines has granted approval for Northern Ireland plants to export beef to their markets."
“This welcome step follows concerted efforts by DAERA’s Veterinary Service Animal Health Group over the past few years, working closely with DEFRA colleagues in London and Manila to negotiate approval, and with the industry in Northern Ireland – which hosted inward inspection visits by Filipino veterinary officials.”
Dr Phil Hadley, AHDB’s International Market Development Director, said: “We are delighted the Philippines has approved UK beef exports, a market we already export pork to. The decision indicates future expansion for UK agriculture and our growing export markets globally.”
Farming UK reported on the event, stating that the Philippines is the largest food and drink market in south east Asia with meat consumption expected to grow by ten per cent over the next five years.
Source: Far Eastern Agriculture. Date: 2017-08-16
India selling more shrimp to US at Indonesia’s expense
US shrimp imports rose 15.6% in June year-on-year with major increases coming from India and China as imports from Indonesia, Ecuador, Thailand and Vietnam slid, recently released statistics show.
The US imported 53,394 metric tons of shrimp in June 2017, compared to 46,187t, a year earlier, according to data from the National Oceanic and Atmospheric Administration (NOAA). By value, June 2017 imports totaled $513.5m, a 22.5% rise over the $419.3m seen in June 2016.
For the first six months of 2017, imports -- which include all shrimp species and product forms and include value-added products like breaded shrimp -- totaled 286,769t worth $2.75 billion. That marks a 8.5% increase by volume and a 14.6% rise in value over the same period in 2016.
Prices are rising too. In June 2017, the average price of shrimp imports was $9.61 per kilogram. In June 2016 that same kilo only cost $9.06.
Exporters relative share of the market has shifted. By volume, seven countries made up over 90% of US shrimp imports during the first six months of 2017.
These are India (30%), Indonesia (20%), Ecuador (13%), Thailand (10%), Vietnam (8%), China (7%) and Mexico (3%).
During the first six months of 2016, Indonesia had the largest market share (22%), followed by India (20%), Ecuador (14%), Thailand (13%), Vietnam (10%), China (6%) and Mexico (4%).
This comes as Indian farmers are seeing farmgate prices so low that some are struggling to break even.
Source: Undercurrent News. Date: 2017-08-16
Sino Agro secures more financing for shrimp mega farm, but Q2 revenues down
Chinese agricultural investment company Sino Agro Food said its shrimp 'mega farm' received more financing during the second quarter of 2017, which will help towards the completion of Aquafarm 4 and Aquafarm 5.
Based in Guangzhou, Guangdong Province, Sino Agro said it secured a CNY 100 million ($15m) credit facility from the Agricultural Bank of China, and was assigned the strongest credit rating, 5A-1, from Dun & Bradstreet, a business services company headquartered in the US, during the period.
"These milestones confirm Tri-way’s credit worthiness, clean balance sheet, and its risk averse approach, all of which support our confidence in Tri-way’s ability to secure additional financing to complete the build out of Aquafarm 4 and to commence the construction of Aquafarm 5," said the company.
The firm said that during the quarter it also implemented several initiatives aimed at improving financial discipline across the business to support a sustainable and cost-efficient business model, "such as concentrating on increasing free cash flow at Tri-way by optimizing operations at each aquafarm in terms of product mix and [A Power Recirculating Aquaculture System] performance."
Earlier this month Sino Agro said it is now farming pearl grouper, a tropical marine species, and empurau, a fish native to Malaysia, at Aquafarm 1 and Aquafarm 2 respectively.
According to the firm, Tri-way intends to exploit pearl grouper's fast growth-rates to cash in on strong demand from Chinese restaurants, and use the super-premium market price for empurau to raise the profile of Tri-way's brand.
Sino Agro spun off its shrimp 'mega farm' in March of this year in a sale worth $340.6m, although it remains the largest shareholder with a 36.6% stake.
At the time, it said separating into two groups -- one focused on the aquaculture industry and the other focused on investing in technology-based agriculture initiatives with substantial growth potential -- would generate "significant value for shareholders".
However, with revenues from the farm stripped out, overall Q2 revenues at the firm were down 17% to $47m, compared with the corresponding period last year, according to the firm's financial statement. Gross profit was $6.5m, down 35% year-on-year, while gross profit margin was 13.6%, down 3.8 percentage points.
The fall was driven largely by a weak performance in its engineering and beef trading segments.
“We experienced a decline in sales this quarter due to a shift in market demand toward newer sources of imported beef. We adapted to the influx of Australian beef by importing it to the Shanghai Distribution Center, and in Xining for value added processing.
"Now, new imports offer a further competition, offering us the same opportunities, after a transitional period," said the firm.
Seafood sales strong
Once fully completed the Zhongshan farm will be the world's largest shrimp production facility in the world, with production rising up to 200,000 metric tons of shrimp per year.
Sales at Sino Agro's separate seafood trade business were up by $2.3m, while gross profits increased by $180,000. This made it one of only two business segments which saw revenues rise during the period.
The firm said that it would aim to increase seafood imports in Q3, exploiting China's shortfall in supply.
"In the interim, China is short in seafood supply with demand increasing each year. The current shortfall is running at some 6-7m metric tons per year."
"In this respect, the locally grown seafood and imported seafood trade has strong potential to increase the company’s sales revenue and profits, such that the plan is to increase import seafood trading starting in Q3," said the firm.
Source: Undercurrent News. Date: 2017-08-16
High-tech farming development sluggish
The development of high-tech agriculture in Vietnam remains sluggish due to unplanned and small-scale production, and is not commensurate with the country’s comparative advantages and efforts.
So far, only 28 enterprises nationwide have been recognised by the Ministry of Agriculture and Rural Development (MARD) as high-tech businesses.
At a conference held on August 14 by the MARD in the Central Highlands province of Lam Dong’s Da Lat city, participants agreed that development of technology-based agriculture is essential for Vietnam’s agriculture sector to achieve greater value-added for export products, global competitiveness and consistently high quality.
Speaking at the event, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said over the past three decades of renovation, Vietnam has become self-sufficient in food with an annual export of 30 billion USD, providing livelihoods for 10 million rural households and contributing nearly 22 percent of the gross domestic product and 23-35 percent of exports.
However, the agricultural sector tends to grow slowly due to spontaneous and small-scale production, limited technological application in agro-forestry-fisheries enterprises, and impacts of climate change, environmental pollution and food hygiene, he said.
The Government has adopted various policies to promote the development of high-tech agriculture. In 2012, for example, the Prime Minister issued Decision 1895 approving implementation of an agricultural development programme using high-tech applications.
The programme aims to promote the development and effective application of high technology in the agricultural sector, contributing to the development of a large-scale, modern, and highly competitive and comprehensive agriculture model.
It also targets an annual growth rate of over 3.5 percent in the agricultural sector while ensuring national food security.
In 2015, the PM signed another decision approving the master plan to build 10 high-tech agricultural zones by 2020.
But in fact, by mid-2017, the whole country has only two high-tech agriculture zones, established in the southern provinces of Hau Giang and Phú Yên.
During the conference, participants hailed Lam Dong province for being on the way to becoming a model of high-tech farming.
The province has tremendous potential to attract more foreign investment in high-tech agriculture due to its climate, land and proximity to the southern economic region.
By applying technology in cultivation, the average value of hydroponic vegetables grown in the province has reached 500 million VND per hectare per year, and the value of flowers touches 1.2 billion VND per hectare per year. The figures for tea and coffee are respectively 250 million VND and 240 million VND per hectare per year.
Many farm produce of the province have been exported.
However, according to Nguyen Van Son, Director of the provincial Department of Agriculture and Rural Development, farmers and businesses engaged in high-tech agriculture in the province still face many difficulties relating to land funds, shortage of investment, and access to investment capital.
A representative from the Ministry of Natural Resources and Environment’s General Department of Land Management underscored the need to refine regulations on the rights of land users and issue policies to encourage the rent of land use rights.
According to the State Bank of Vietnam (SBV), outstanding loans for high-tech farming amount to 177.4 billion VND (7.71 million USD), but farmers are hard pressed to pay them back due to lack of information about domestic and foreign consumption markets. The SBV directed commercial banks to offer more loans and pledged all possible support throughout the process.
At the conference, the MARD presented certificates recognising DaLat Hasfarm and An Phu companies operating in Lam Dong as high-tech agricultural firms, and recognised Thai Phien high-tech agricultural zone in the province.
Source: VNA. Date: 2017-08-16