| Regional Affairs
Nissin, Mitsubishi joining hands to sell more instant noodles Nikkei Asian Review 19th Feb 2015
Nissin Foods Holdings is teaming up with Mitsubishi Corp. to boost sales of instant noodles in Singapore, India, Thailand and Vietnam. Mitsubishi will take a 34% stake in each of Nissin's local subsidiaries in the four countries under a strategic alliance announced Wednesday. The deal's value was not disclosed, but the duo seeks to close the transaction within the year. The trading house is expected to offer expertise in raw materials procurement and retail relationship management, aiming to kick the noodle maker's branding and marketing into higher gear. Global consumption of instant noodles, which are sold in packs or cups, exceeded 100 billion blocks in 2012 and is on track for further growth.
Asian Rice Prices Under Pressure From Slowing Demand, Rising Supplies Jakarta Globe 12th Feb 2015
Asian rice prices are under pressure from thin buying demand and rising supplies in the world’s leading exporters of the grain, traders said on Wednesday. In Thailand, the top rice exporter, prices softened due to competition from Vietnam and rising supplies from government stock sales, traders said. “The market is quiet, and is not so good for us because Vietnam’s newer supply is coming in,” said Kiattisak Kanlayasirivat from Ascend Commodities in Bangkok. “It would be difficult for us to compete simply because their price is cheaper than ours.” The Thai benchmark 5-percent broken grade eased to between $405 and $412 a ton this week, free on board (FOB), from $413 a ton a week earlier, while the similar grade in Vietnam stood unchanged at between $355 and $360 a ton, FOB basis. The Thai government will finalize this week the results of a rice tender of 1 million tons from state warehouses, Commerce Minister Chatchai Sarikulya said on Tuesday.
Cambodia
Abbatoir set for May opening The Phnom Penh Post 17th Feb 2015
In a bid to provide cheaper meat for the local market, Cambodia’s first modern slaughterhouse plans to officially launch in May, managing director of SLN Meat Supply Hor Sim Leang said yesterday. Leang said that about 90 per cent of the slaughterhouse’s construction was finished. “We are waiting for the arrival of the machines, connecting to the electrical grid, and some other small works which all will be finished in two months,” Leang said, adding that the slaughterhouse had signed agreements with wholesale distributors in eight major provinces. The 30-hectare factory, located in Preah Sihanouk province’s Prek Toal village, is slated to slaughter 500 imported cattle per day.
Exporters eye big year in organic rice Phnom Penh Post 13th Feb 2015
Organic rice miller CEDAC is aiming to double its exports this year as competition in the niche organic rice market heats up. CEDAC, an acronym for Cambodian Center for Study and Development in Agriculture, shipped 540 tonnes of fragrant organic rice to international buyers in 2014, up 20 per cent compared to 2013, Sou Sarorn, the company’s organic rice export officer, said. CEDAC is one of just two organic rice exporters in Cambodia. “Cambodia has won the world’s best rice award for three years in a row.… It has developed a good reputation that impresses buyers. So we are aiming to export 1,000 tonnes this year to fill the demand that we see in the international market,” Sarorn said.
Rice Exporter, Chinese Firm Ink Major Rice Deal The Cambodia Daily 5th Feb 2015
Cambodian rice exporter QC Rice Co. Ltd. On Wednesday signed a memorandum of understanding (MoU) with China’s Rui Energy International Co. Ltd. to export 250,000 tons of rice over the next two years, according to QC Rice CEO Tharo Ichiro. “We signed a deal today with the Chinese company to export our Cambodian rice to China,” he said. “This is an amount that we alone cannot respond to, so we need to cooperate with other local companies. In this regard, I will talk with the president of the [Cambodian] Rice Federation.” Cambodian Rice Federation vice president Kim Savuth said the federation would help QC Rice meet the 250,000-ton mark.
Palm oil exports up, while profits dip The Phnom Penh Post 5th Feb 2015
Exports of crude palm oil from the Mong Reththy company – the Kingdom’s sole producer of the product – increased 16 per cent last year, although prices were down about $200 per tonne from 2013. While the company exported 19,000 tonnes of crude palm oil in 2013, the figure rose to 22,000 in 2014. But average prices dropped from about $800 per tonne in 2013 to $610 last year, cutting significantly into revenue. Mong Reththa, vice chairman of the board of directors at Mong Reththy Investment Cambodia Palm Oil and son of Mong Reththy, said that while his company managed to turn a small profit, this year may prove difficult.
Indonesia
After Japan poultry deal, Indonesia sets sights on more Asian buyers Reuters 18th Feb 2015
Indonesian poultry suppliers are weeks away from making their first exports of processed chicken to Japan in a decade, an endorsement of quality that will boost the Southeast Asian nation's push into a regional market dominated by Thailand. That is good news for global commodities giant Cargill Inc and Indonesian food group PT. Indofood Sukses Makmur Tbk, which have announced plans to invest several hundred million dollars in Indonesia's poultry sector, aiming to tap a chunk of Asia's export potential, as well as strong domestic growth. Currently worth more than US$4 billion annually, Indonesia's domestic poultry sector also has plenty of potential to grow as the world's biggest Muslim population eats more meat as the economy expands. Annual per capita consumption currently stands at just 7 kg, way behind neighbours Malaysia at 39 kg and Brunei at 48 kg. Japan cut off Indonesian imports around 10 years ago over avian-flu concerns, but agreed to a resumption after a visit by trade delegates to updated facilities on Java island last summer.
Cooperatives key in attaining food security The Jakarta Post 17th Feb 2015
The Indonesian Chamber of Commerce and Industry is calling for the empowerment of cooperatives dealing with the agricultural sector to help attain food security in the country. The call emerged on Friday from discussions during the two-day Jakarta Food Security Summit at the Jakarta Convention Center. According to the chamber’s deputy chairman for agribusiness, Franky O. Widjaja, the empowerment of cooperatives was one of the five main ideas from the summit. “The chamber is pushing for the empowerment of the cooperatives model of partnership in the agriculture and plantation sectors in order to boost productivity of food crops,” Franky said during his closing remarks.
Indofood to see steady increase in wheat imports Jakarta Post 17th Feb 2015
A senior member of consumer goods giant Indofood Sukses Makmur has said he expects to see a 5 percent increase in wheat grain imports — a large component in the firm’s export-oriented consumer products line — on the back of a wildly fluctuating rupiah. Franky Welirang, a company commissioner, said that he was worried about the trend of a steady increase in imports as the country’s demand for the commodity kept growing. “A 5 percent hike in imports this year is enough to scare me. Last year we imported 7.2 to 7.4 million tons,” Franky told reporters on the sidelines of the third annual Jakarta Food Security Summit at the Jakarta Convention Center on Thursday.
OJK to overhaul funding access for small-time farmers The Jakarta Post 16th Feb 2015
The government has promised to overhaul the limited access to funding for farmers and other small-time actors in the agriculture, livestock and fisheries sectors, all of whom are key to achieving food security in the country. The Financial Services Authority (OJK) promised to nominate the most appropriate funding scheme for the micro businesses, starting with the fisheries sector next month, according to OJK chairman Muliaman D. Hadad. Previously, Maritime Affairs and Fisheries Minister Susi Pudjiastuti reached out to the OJK to find a lending scheme that would allow fishermen easier access to funding from financial institutions.
Indonesia to Boost Agricultural-Based Exports in 2015 Jakarta Globe 13th Feb 2015
The Indonesian government aims to boost exports of its agriculture-based products such as furniture, pulp and paper, and those from the processed food and beverage industry t0 $40 billion this year, up 29 percent from $31 billion last year, in an attempt to close the country’s trade deficit. Panggah Susanto, the director-general of agro-industry at the Industry Ministry, said on Thursday that furniture exports could reach $2.6 billion this year while processed food and drink are expected to increase to as much as $6 billion from $4 billion last year. The country’s trade deficit narrowed by half to $1.89 billion in 2014 from $4.08 billion the year before.
Jokowi: Indonesia Can Attain Food Self-Sufficiency in Next Four Years Jakarta Globe 13th Feb 2015
President Joko Widodo says he is optimistic Indonesia will reach self-sufficiency in food production in the next four years as the country has the resources to do so. “The more I learn of the field conditions of our country, the more I’m convinced that in the next four or five years, we’ll be able to achieve the so-called food self-sufficiency, food security and food sovereignty,” Joko said in his opening speech for the Jakarta Food Security Summit 2015 at the Jakarta Convention Center on Thursday. According to Joko, his confidence grew after many exchanges with Indonesian farmers and fishermen, who reported to him that their production or catches had been steadily increasing over the years. “Some of the farmers said they used to produce only two [metric] tons [of farming products],” Joko said. “And then it became four tons, six tons and now eight tons. Some others said their production was only one-and-a-half tons, and now it has become three tons.”
Indonesia's 2015 soybean imports seen flat on govt output drive Reuters 13th Feb 2015
Soybean shipments into Indonesia, Southeast Asia's biggest importer, are forecast to stay unchanged this year, an industry official said, following a government push to boost domestic output. Indonesia is expected to import about 2 million tonnes in 2015, Ali Basry, director of the Indonesian representative office of the American Soybean Association, told Reuters. Indonesia's new president Joko Widodo has mirrored his predecessor by setting hugely ambitious food self-sufficiency goals for his first term, including a three-year target for rice, corn and soybeans. "Usually the first year it will happen," said Basry on the impact of the new food policies, adding that a 2019 government target of 2.6 million tonnes would be extremely difficult to achieve.
Jakarta Food Security Summit kicks off The Jakarta Post 12th Feb 2015
President Joko “Jokowi” Widodo and First Lady Iriana officially opened the Jakarta Food Security Summit (JFSS) at the Jakarta Convention Center in South Jakarta on Thursday. The event aims to discuss the pressing issue of food sustainability. Head of the Indonesian Chamber of Commerce and Industry (Kadin)’s food committee, Franciscus Welirang, said that the summit would be held once every two years and that it would guide the efforts of companies in that field, nationally and internationally. He added that the increase in the global population from 7 billion people to 9 billion by 2045 was a factor generating more awareness regarding the importance of boosting food production and sustainability.
Japanese pioneer develops 'unagi' empire in Indonesia Nikkei 9th Feb 2015
This small fishing town on Java's southwest coast is best known for the legendary sea queen Nyi Roro Kidul, a spurned princess turned mermaid who is said to snatch whatever man takes her fancy from the kilometers of beach that form the town's frontier with the Indian Ocean. But the predatory queen is not the only marine enigma swimming through the turbulent undertow off the rain-swept coast. For Japanese entrepreneur Hisayasu Ishitani, a chain smoking 72-year-old now in his fifth decade in Indonesia, the local waters mean a plentiful supply of eel -- and the opportunity to fill a growing market gap in his homeland.
Rice output to decline, surplus will remain Jakarta Post 6th Feb 2015
Despite the government’s massive efforts to boost productivity, rice production is expected to decline this year because of a forecast long dry season. The country’s unhusked rice output would dip by 0.95 percent to 71.28 million tons this year, from 70.6 million tons in 2014, according to the Agriculture Ministry’s director general for food crops, Hasil Sembiring. “We will have a long dry season this year, which will result in lower output, in contrast to a wetter season that contributes to higher output,” he said on the sidelines of a hearing at the House of Representatives.
Ministry to improve farmland in NTB The Jakarta Post 5th Feb 2015
Agriculture Minister Amran Sulaiman says his institution will improve 100,000 hectares of land in West Nusa Tenggara (NTB) province to help support the government’s food-security programs. Amran said the ministry would provide free seedlings and fertilizer to farmers across the province. He said the efforts were projected to boost crop production by 25 to 30 percent annually. “I have told the NTB agriculture office head that we need to carry out this program immediately,” he said in Lombok on Wednesday as quoted by Antara news agency.
Laos
Korea to support Laos on integrated rural development Vientiane Times 10th Feb 2015
Korea International Cooperation Agency (KOICA) has provided a grant of US$14 million (more than 1 13 billion kip) for the integrated rural development project in Laos, which is set to start this year and run until 2019. The project is based in villages in Vientiane and Savannakhet provinces and in the capital Vientiane, according to KOICA. KOICA has dispatched 11 Korean experts to Vientiane from February 3-14 for the commencement meeting of the project with Saemaul Und ong Participatory Approach in Laos. Dr Phet said “We will do our best in implementing this project in Laos, so that rural areas of the country will be able to graduate from the poverty list in the years ahead.” During their visit, the Korean experts will visit project sites and rice production villages in Savannakhet province, hold discussions with farmers and EDCF project beneficiaries and also visit areas related to project implementation.
Eyes on food prices as inflation rate heads higher in Laos Global Post 5th Feb 2015
The rising prices of food items are among the largest factors fueling the inflation in Laos, state- run media Vientiane Times reported Thursday. Senior economist from Laos' National Economic Research Institute Leeber Leebuapao said inflation rates were trending higher despite government efforts to keep a lid on prices of goods in the domestic market. Leeber said the current situation was less to do with external factors as fluctuating fuel prices than movements in supply and demand for products consumed locally, notably in the food category. With Lao, Chinese and Vietnamese lunar new year celebrations not far away, demand for food is expected to strengthen.
Malaysia
Agriculture sector suffers RM299mil loss due to floods The Star Online 18th Feb 2015
Malaysia’s agriculture and agro-based industry suffered a loss of RM299mil due to the recent floods in several states. Agriculture and Agro-Based Industry Minister Datuk Seri Ismail Sabri Yaakob said RM194mil was lost due to damage to agriculture produce, RM99.5mil due to infrastructure damage and RM5.5mil due to damage to assets. “In Pahang alone, the losses amounted to RM68.28mil. Of this, RM54.4mil was losses to agriculture produce, RM790,000 asset damage and RM13.04mil infrastructure damage. “At the same time, 15,403 farmers, livestock breeders and fishermen were affected by the floods, involving 16,342 hectares of agriculture land,” he told reporters after presenting financial aid to 937 families affected by floods in the Bera district here yesterday. Ismail Sabri, who is also Bera MP, said Kelantan recorded the highest number of livestock breeders, fishermen and farmers who were affected by the floods, numbering 7,119, while Pahang had 4,972, Terengganu 1,694 and Perak 1,617. He said the government, through the National Security Council (MKN), would provide compensation to the three groups of people whose agriculture produce were affected by the recent floods.
MOH Launches 'MyNutriDiari' App To Monitor Daily Food Intake Bernama 17th Feb 2015
The Ministry of Health has released a health application called 'MyNutriDiari' to help users monitor their daily food intake based on recommended daily nutrition values. Its minister, Datuk Seri Dr S.Subramaniam said the application could be downloaded from the Google Play Store, and it would help users monitor their weight and find out the types of physical activities they could do."This approach is more interactive and informative, now at the fingertips of users. Although we can download various applications relating to healthy food intake, MyNutriDiary is focused more towards Malaysians," he told reporters after launching the application here. Dr Subramaniam also advised the public to practice healthy eating habits during the Chinese New Year festive period, although they may be challenged by the temptations of various delicacies.
Malaysia extends zero duty on crude palm oil exports The Jakarta Post 17th Feb 2015
Malaysia is extending the zero duty on crude palm oil (CPO) exports for March based on the newly released CPO gazetted price at 2,232.88 ringgit (US$623.22) per tonne yesterday, which is still below the 2,250 ringgit per tonne price threshold that will trigger the export duty. The exemption on CPO export duty has taken many by surprise especially after the government announced last week on the possibility of resuming the export duty regime that had been suspended since September last year.
Myanmar
Findings of contaminated foods increase Eleven Myanmar 16th Feb 2015
Contaminated foods are found increasingly in Myanmar and most of them are frozen meat, instant food and medicine imported from China, according to the Food and Drug Administration (FDA). Colouring agents that are banned are mostly found in contaminated foods while many have expired and unregistered. Investigations have been made at retail and wholesale markets in many states and regions and foods imported through borders are used as samples. Contaminated foods mostly imported from China should not be eaten. According to the mobile investigation teams, the value of contaminated foods was US$274,006 in the fiscal year 2012-2013 and the value rose to US$391,855 in the fiscal 2013-2014.
List of rice exporters approved for China trade draws industry criticism Myanmar Times 15th Feb 2015
A list of nine Myanmar companies legally allowed to export rice to China has come under fire from rivals, who say it has missed out on some of the most capable firms. The list is an outcome of negotiations between the two countries as part of efforts to legalise the trade. While China is the large destination for rice exports, from Beijing’s point of view the trade has not been legal due to a lack of formal agreements. A first step was taken to legalise the trade in September 2014 with a memorandum of understanding. Over 100 companies have applied to take part in the trade, but Chinese authorities requested less than ten. The Myanmar Rice Federation has now chosen nine companies that will be able to begin legal exports.
SABMiller Eyes Stake in Burma Brewer: Sources The Irrawaddy 13th Feb 2015
SABMiller is exploring the possibility of snapping up a stake in Burma’s biggest brewer, a deal that would make it the partner of a conglomerate with ties to the former ruling military, sources familiar with the matter say. Any such deal involving Myanmar Brewery would likely be seen as a vote of confidence in the country’s nascent consumer sector, which is emerging after decades of military dictatorship. The conglomerate, Union of Myanmar Economic Holdings Limited (UMEHL), was cleared to buy the stake, thought to be worth around US$500 million (327 million pounds), in October when it won an arbitration case against Singapore’s Fraser and Neave. A Singaporean tribunal ruled that UMEHL was entitled to buy out F&N’s 55 percent stake in Myanmar Brewery, taking full control of the brewer, because F&N had defaulted on a term in their joint venture agreement. F&N said at the time it was disappointed at the ruling and was reviewing its options.
Investors eye Myanmar's rich potential for rice growing The Nation 9th Feb 2015
MYANMAR may go back to being one of the world's major rice exporters in five to 10 years, as many Thai and foreign investors are looking to expand in rice mills and farms in the country. Thai traders and experts all believe that Myanmar has great potential to become a major rice producer in the near future because it has plenty of land with good quality soil for raising rice, abundant water and a strategic location for distributing rice. Vichai Sriprasert, honorary president of the Thai Rice Exporters Association, said last week that some rice millers and exporters have started exploring Myanmar to establish mills and parboiled rice processing plants after realising the country's potential to produce large quantities of the commodity for export. "Thai investors are studying Myanmar's investment laws and regulations. Once all issues are clarified, they can start investing in a few years," he said.
Traction tough for beans and pulses Myanmar Times 9th Feb 2015
The low quality of domestic beans and pulses is holding back export potential in the market, according to experts. Myanmar is routinely one of the world’s two or three largest beans and pulses exporters, competing with industry leader Canada, as well as countries like Australia and Tanzania. While Myanmar exports can reach 1.4 million tonnes worth US$1 billion, there is more space in the market for the country’s produce, according to Sunil Seth, chair of the Overseas Agro Traders Association of Myanmar (OATAM) as well as country head of TATA International. About 80 percent of the industry’s current exports heads to India. Additional markets could be opened if there was domestic capacity to produce finished products, as it could then export to other markets, such as the Middle East.
China to help build rice mills Eleven Myanmar 9th Feb 2015
Under a contract signed between Myanmar and China, 200-tonne advanced rice mills will be built in Nyaungdone, Ayeyarwady Region, according to the Myanmar Rice Millers Association (MRMA). “Myanmar Rice Miller Company is formed under the MRMA. The company has signed an agreement with the China CAMC Engineering Co (CAMCE). Under the agreement, both sides will cooperate on the construction of the international-standard rice mills. Afterwards, we will carry out rice grinding and then export quality rice to China as well as to other international markets,” said Nay Lin Zin, joint secretary from the MRMA. The construction will start this year and is due to be completed by 2017.
Philippines
DA to focus on rural infrastructure in 2015 Business Mirror 6th Feb 2015
THE Department of Agriculture (DA) said it will “vigorously” pursue rural infrastructure and technology buildup in its bid to boost farm growth this year and modernize the local agriculture sector. Agriculture Secretary Proceso J. Alcala said the rollout of various rural infrastructure projects this year would help the local farm sector sustain its growth momentum in 2015. “The noteworthy performance of Philippine agriculture in 2014, notably the 4.8-percent increase in output in the fourth quarter of 2014 from the 0.9-percent growth in the same period in 2013 is indicative that the industry is firmly on the path of sustained expansion,” Alcala said in a statement.
Filipino food safety Act given more teeth and oversight Food Navigator Asia 23rd Feb 2015
Ministers in the Philippines have signed off the regulatory side of their country’s Food Safety Act 2013, bringing new levels of oversight to the industry and placing greater responsibility onto companies to ensure greater traceability. Under the Act, a food safety regulatory co-ordination board will be chaired by government’s health secretary and co-chaired by its agriculture secretary. The finalised Act aims to protect the consumer from food-borne and water-borne illnesses and unsanitary, unwholesome, misbranded or adulterated foods, said Janette Loreto-Garin, the health secretary. “[It will also] enhance industry and consumer confidence in the food regulatory system and achieve economic growth and development by promoting fair trade practices and sound regulatory foundation for domestic and international trade,” she said.
PHL to import 500,000 MT of rice to beef up buffer Business Mirror 18th Feb 2015
The Philippine government said on Tuesday it will import 500,000 metric tons (MT) of rice to beef up its buffer stock for the lean months, which will start in July. “The National Food Authority [NFA] Council met last February 13 [of this year] and agreed to import a maximum of 500,000 MT of rice,” the NFA said in a statement. The Philippines would purchase the volume via a government-to-government deal, which requires an existing executive agreement for a country to participate in the bidding. Currently, only Vietnam, Thailand and Cambodia have a rice-purchase agreement with the Philippines. Under the terms of reference, the state-run food agency will buy 250,000 MT of 25 percent brokens and 250,000 MT of 15 percent brokens, well-milled long grain white rice, with minimum volume to be offered at 50,000 MT for each variety.
PHL coffee output to decline by 12 percent in 2015–PCBI Business Mirror 16th Feb 2015
The country’s coffee production could go down by 12 percent, to 22,000 metric tons (MT) this year from 25,000 MT recorded in 2014, nonprofit group Philippine Coffee Board Inc. (PCBI) said on Monday. PCBI said it based its forecast on the possibility that weather-related factors would pull down coffee output this year. Production is expected to recover in 2016, but local output will still not be enough to meet the country’s annual requirement pegged at 100,000 MT. “The local domestic demand is still at 100,000 MT and is predicted to grow by 3 percent to 5 percent annually. Imports plug the shortfall in local coffee output,” PCBI President Pacita Juan said.
Philippines offers soft loans to farmers Philippine Star 16th Feb 2015
The Land Bank of the Philippines has announced the offer of coffee production loans at the interest rate of 9.5 percent to farmers. In a continuing effort since 2010, the Philippine Coffee Board Inc. and the Peace and Equity Foundation have also been offering P100 million ($2.26 million) in soft Loans to coffee farmers, but few have availed. "The more we need to arm our coffee farmers with all the help they need. We're just producing about a fifth of our total consumption. If we cannot compete in terms of volume, we might as well compete in terms of quality," said Philippine Coffee Board, Inc. Chairman Nicholas Matti.
DA bans poultry products from US due to avian influenza Philippine Star 16th Feb 2015
The Department of Agriculture (DA) has temporarily banned the importation of domestic and wild birds and their products from Oregon, US after highly pathogenic avian influenza (HPAI) was monitored in backyard country flock. Poultry products from Oregon including poultry meat, day old chicks, eggs and semen will not be allowed to enter the country. With the exception of heat-treated products, all such shipments will be confiscated by DA quarantine officers upon arrival. The processing of Sanitary and Phytosanitary (SPS) import clearance for these products were also suspended.
‘Confusion over tax rules imperils local sugar supply’ Business Monitor 15th Feb 2015
Confusion over the tax rules for the local sugar industry being implemented by the Bureau of Internal Revenue (BIR) could threaten the stability of domestic sugar supply, millers and the Sugar Regulatory Administration (SRA) warned on Friday. SRA Administrator Ma. Regina Bautista-Martin said the agency was alarmed by the increasing number of millers in Negros who are unable to sell their sugar due to the confusion regarding the implementation of BIR Revenue Regulation 11-2014, which slaps a 1-percent withholding tax upon withdrawal raw sugar and molasses. “I was bombarded with so many texts, which seemed so alarming. Planters associations in the largest sugar mill and refinery in Negros, Victorias Milling Co., are complaining that no bidders are buying their sugar,” Martin said in a telephone interview.
Rains cause fall in sugar output – SRA Philippine Star 14th Feb 2015
Rains at the start of the sugar crop year and shortage of cane cutters and haulers are causing cane harvest and sugar recovery in the Visayas—mostly in Negros—to fall, the Sugar Regulatory Administration (SRA) confirmed yesterday. SRA administrator Ma. Regina Martin said rains at the start of the sugar milling season in September affected the maturity of canes in the Visayas region, that supplies more than half of the country’s annual sugar production. She noted that sugarcane cultivation areas in Visayas also lack cane cutters and cane haulers. Listed sugar miller Roxas Holdings Inc., disclosed last week that it delayed its milling operations in Batangas because of slower cane maturity in its cultivation areas. At the same time, it noted a shortage of cane supply in Negros.
Two large farm owners turn to ‘pili’ production Business Monitor 13th Feb 2015
Two large farm owners have joined the growing number of land owners who have realized the advantage of converting their otherwise idle lands into pili plantations. Lawyer Victor de la Cruz and Nestor Llamas of Barangay Del Socorro, Minalabac, Camarines Sur, decided to devote 4 hectares each of their vast lands for the massive production of pili trees in support to “PILIpinas,” a joint project of the Department of Agriculture (DA) Regional Field Office 5 and J. Emmanuel Pastries. Joseph and Lydia Lomibao, J. Emmanuel Pastries owners, have been linking up with interested land owners throughout the region for a pili contract-growing scheme dubbed as “PILIpinas” to ensure the sustainability of the pili production processing industry.
DOST spearheads establishment of Bicol’s food innovation hub U.S. News Agency 9th Feb 2015
A food innovation and commercialization center for Bicol will soon rise inside the vast compound of the Bicol University (BU) here through an initiative being spearheaded by the Department of Science and Technology (DOST). This initiative comes as a collaborative undertaking between BU and the DOST regional office based in this city, which primarily envisions to transform concepts into products to promote production innovation and maximize value addition to resource-based agricultural and marine resources in the region. DOST Regional Director Tomas Briñas and BU president Dr. Fay Lea Patria Lauraya recently signed a memorandum of agreement (MOA) formalizing the implementation of the project wherein the expertise and resources of the two institutions are pooled in the establishment of the first “Bicol Food Innovation and Commercialization Center.”
WB adopts cassava project in South Cotabato as pilot initiative under PRDP Business Mirror 9th Feb 2015
The World Bank (WB) has adopted the P39.3-million cassava granules production and marketing project in South Cotabato as pilot enterprise-development initiative under the Philippine Rural Development Project (PRDP). Justina Navarrete, acting head of the South Cotabato Office of Provincial Agriculturist, said on Monday WB representatives were earlier impressed with the project’s business enterprise plan during a recent presentation made by the proponents. Navarrete said the business plan’s presentation was joined by representatives from the WB, led by its lead rural development specialist Carol Figueroa-Geron. The bank is funding the P27.5-billion project through a loan grant to the national government and regularly monitors its implementation on the ground.
North Cotabato organic black rice breaks into US market Business Mirror 8th Feb 2015
Organic black rice produced by the Don Bosco Multipurpose Cooperative (MPC) based in M’lang, North Cotabato, has broken into the US market, according to an official of the cooperative. Don Bosco MPC General Manager Romano Laurilla said two tons of organic black rice will be shipped to Los Angeles, California, by the second week of February. “The shipment in February will comprise the second batch of black rice exported to the US. The maiden delivery of 1 ton was made in November 2014,” Laurilla said in a statement. Parceled in 1-pound and 5-pound packages, Don Bosco’s black rice are placed in especially designed box in accordance with their partner’s efforts to sell the organic cereal as a premium product.
Why Philip Morris is bullish on PH business landscape ABS CBN News 6th Feb 2015
Tobacco manufacturing firm Philip Morris International (PMI) is confident that the Philippines' business environment will improve this year due to the narrowing price gaps between its brands and local competitor. PMI chief executive Andre Calantzopoulos said its local unit Philip Morris Fortune Tobacco Corp. (PMFTC) Inc. is expected to benefit from price movements at the lower end of the market.
PH among world’s top GM crop growers Philippine Daily Inquirer 6th Feb 2015
The Philippines remains among the top countries where genetically modified (GM) crops are being cultivated as biotech produce continue to be the “fastest-adopted crop technology” in the world, according to the International Service for the Acquisition of Agri-Biotech Applications (ISAAA). The ISAAA said the size of land planted to biotech crops globally continued to grow throughout the 19 years since the first commercial planting in 1996 in the United States. According to the group, the Philippines kept the 12th rank among the 28 countries that have so far adopted GM crops. As of the end of 2014, there were 73.1 million hectares planted to GM crops in the US. In the Philippines, 800,000 hectares are planted to biotech corn. This makes the Philippines part of the list of 19 “mega-countries” or those with more than 50,000 hectares devoted to biotech crops.
Thailand
FDA to issue new food nutrition labels NNT 21st Feb 2015
The Food and Drug Administration (FDA) has planned to issue a new nutrition fact label in a latest bid to enhance food safety for consumers. According to the Food and Drug Administration, the new label would be issued in the form of label for products which have passed nutritional standards set by the FDA. Mahidol University will be tasked with establishing nutrition criteria for each type of food, which will be used as the reference for the release of new nutrition labels. The task would take up to six years to be completed. The move is expected to push food producers to improve the quality of their goods to be on par with the FDA’s standards, so that they could get the quality assurance label. At the same time, consumers will also be able to pick a product that is suitable for them.
Thai ex-PM Yingluck indicted for negligence over rice subsidy scheme BBC News 19th Feb 2015
Thailand's attorney-general has filed criminal charges against former Prime Minister Yingluck Shinawatra over a controversial rice subsidy scheme. If found guilty on the charge of negligence, she could be jailed for up to 10 years. The anti-corruption agency has also called for her to be personally liable for losses to state coffers. Ms Yingluck was removed by a court in May 2014, shortly before the military ousted her elected government. She was later impeached over the rice subsidy scheme and banned from politics for five years. Thailand, meanwhile, remains under martial law in the wake of the coup.
PM: Strong investment and farmers are keys to success Bangkok Post 6th Feb 2015
Increased investment, especially in research and development, and a secure life for farmers are the keys to sustainable development of the country, Prime Minister Prayut Chan-o-cha said on Friday. In his weekly broadcast address to the country, Gen Prayut said his government had recently approved more incentives to encourage companies to increase research and development (R&D) spending. With new tax breaks the government was aiming to increase the ratio of private-sector research and development to 70% of the total from 30% now, he said.
Finance Ministry to take rice pledging debt from BAAC Bangkok Post 5th Feb 2015
The Finance Ministry is about to issue laws to take over debt incurred from the Yingluck Shinawatra government's rice-pledging schemes to make the balance sheet of the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) more flexible for business expansion. Taking debt from the rice-pledging scheme off the BAAC's balance sheet will allow the farm bank to run without worries over the massive debt, a Finance Ministry source said yesterday. The subcommittee overseeing accounting of all rice-subsidy schemes earlier estimated losses from buying 84 million tonnes of milled rice in the 15 schemes from 2004-14 amounted to 682 billion baht, with the Yingluck Shinawatra government alone accounting for 518 billion. The combined loss will be higher if depreciation, missing milled rice from warehouses, interest costs and warehouse rental fees are included.
Minister plays blame game over delayed tobacco bill The Nation 5th Feb 2015
Public Health Minister Rajata Rajatanavin yesterday blamed the Finance and Agriculture ministries for delaying the process to activate a new, stricter law aimed at controlling the consumption of tobacco and cigarettes in Thailand. The minister said the ministries have until next week to come up with their stance on the much-awaited bill or it would be forwarded to the Cabinet for approval and implemented in four to six months.
McDonald's outlets set to double in Kingdom by 2020 The Nation 5th Feb 2015
McThai Co, the local operator of McDonald's quick-service restaurants, plans to double the number of its stores to more than 400 by 2020, and to become one of the top three operators of McDonald's restaurants in Asean in terms of store count. The expansion reflects the company's strong belief in the growth of Thailand's economy in the next five to 10 years, said Hester Chew, chairman of the executive committee and chief executive of McThai.
Vietnam
Pangasius producer Hung Vuong looking for foreign partners as Vietnam expands trade agreements Undercurrent News 13th Feb 2015
Vietnamese pangasius supplier Hung Vuong Corp. is planning to sell as much as a fifth of itself to a foreign strategic partner and spend $100 million in 2015 on production expansions, Bloomberg reported. The exporter, which supplies Wal-Mart Stores and Mercadona, is planning a $30 million pollock processing plant in Russia, chairman Duong Ngoc Minh told the news agency. It is also looking for an Indonesian partner for a $15 million investment in a new feed plant or an ownership stake in an existing plant, he said.
Vietnam targets $300m in tilapia exports by 2020 Undercurrent News 12th Feb 2015
Vietnam’s tilapia exports to foreign markets have enjoyed strong growth over recent years, steadily increasing from an export volume of just $1.95 million in 2004 to more than $32.2m in 2014, reports the Voice of Vietnam. Last year, the total area of tilapia aquaculture at ponds and lakes nationwide spanned 15,992 hectares, with total output spiking up over 25% to 125,000 metric tons compared against the prior year.
Banana price rise cuts losses of farmers Viet Nam News 19th Feb 2015
Banana prices in the Central region have suddenly increased ahead of Tet (Lunar New Year), saving farmers and traders from facing heavy losses. Banana is the key fruit used in the worship of ancestors during Tet. A couple of days ago, the banana market in the central Quang Tri Province, which serves as the main supplier of bananas for the neighbouring provinces of Quang Binh, Thua Thien–Hue and Da Nang, had witnessed very low sales. The situation changed abruptly on February 15, four days ahead of Tet. The prices went up by almost seven times, from VND70,000 to VND500,000 (US$24) for a branch with about 15 fruits on it. The sales have been increasing as well. According to a report by Tuoi Tre (Youth) newspaper, several large trucks have been entering and leaving the province's Tan Long banana market, carrying supplies for the other provinces.
Toxic 'Tet' kumquats highlight Vietnam's pesticide problem Thanh Nien News 19th Feb 2015
At Lunar New Year, most Vietnamese families buy a kumquat tree -- a symbol of prosperity -- but where once its fruits were candied and enjoyed as a delicacy, now they are left uneaten as food safety scandals batter consumer confidence in local produce. While Vietnam may not make as many global headlines for safety lapses as neighbouring China, the problems facing its consumers are similar -- and many of the harmful pesticides they fear most come from over the border. "Every plant is covered in pesticides now. Even the vegetables I buy in the market everyday," retired teacher Mac Thi Hoa told AFP. Like many Vietnamese who buy kumquat trees to welcome the new year, Hoa used to cook the small orange fruits with sugar to make a sweet treat. Now she has stopped, fearing for her health. "The sellers claim they don't use chemicals on the tree but I don't believe it," the 65-year-old said, adding she now uses the fruit tree only for decoration.
Vietnam banks on macadamia nuts VietNamNet 17th Feb 2015
A workshop on the macadamia development strategy was held on February 7 in the Central Highlands. This was one of a series of events organized recently relating to the macadamia, which shows Vietnam’s strong determination to develop a growing area for the nut in Vietnam. Top-ranking General Tran Dai Quang, head of the Central Highlands Development Steering Committee, said the land has all the necessary conditions for growing macadamia, while macadamia could be the goose that lays the golden eggs, helping foster the local economy. “In the long term, macadamia nuts will be a Vietnamese national product,” Quang said. “Vietnam will appear in the world’s macadamia map and be listed among the top macadamia producers.”
Vietnam may stockpile 1 million tons of rice to stabilize prices Thanh Nien News 17th Feb 2015
Vietnam may stockpile around 1 million tons of rice through the mid of April in an attempt to keep prices stable and secure profits for farmers. Under a new proposal from the agriculture ministry, local rice companies will be allowed to take out loans at subsidized interest rates to buy rice from farmers in the Mekong Delta, the country’s biggest rice producer, news website Thoi Bao Kinh Te Saigon Online recently reported. Purchases are expected to be made from March 1 to April 15. Harvesting of the country's winter-spring crop has begun. Prices are likely to fall once the new supply hits the market. A report released by the ministry showed that Vietnam's rice supply is likely to surpass demand soon, which will cause prices to fall remarkably. The ministry was quoted as saying that the Mekong Delta’s output for February and March will total 3.65 million tons.
Vietnamese consumers preferring domestic confectionary to imported ones Viet Nam News 16th Feb 2015
Vietnamese confectioners have gained the trust and love of local customers again during recent years, gradually controlling the market in spite of fierce competition from imported foreign confectionary. Confectionary products imported from other countries, such as Denmark, France and New Zealand, which used to be a favourite among many local customers earlier, have now been replaced by local-made products. Domestic products from prestigious confectioners, such as the Kinh Do, BiBica, Hai Ha and Huu Nghi corporations, now make up for a major portion of products on sale at many supermarkets and confectionary shops. Nguyen Thanh Huong, a resident of Hai Ba Trung District, said she will also opt for domestic confectionary as gifts for relatives and friends during this Tet (Lunar New Year) festival.
Grape growers hopeful Vietnam trade ban will be resolved by May ABC 16th Feb 2015
The Table Grape Association says it's hopeful a Vietnamese ban on Australian fruit and vegetable imports could be lifted from May. Australian Agriculture Department officials and industry representatives attended meetings in Hanoi last week, to try to resolve the ban that has been in place since January 1. Vietnam had expressed concern about Mediterranean fruit fly, and also the length of time Australia was taking to assess Vietnam's application to export mangoes and lychees. The Australian Table Grape Association chief executive Jeff Scott said the productive meeting held both positive and negative news for growers. "The Vietnamese believe that the documentation should satisfy their concerns in terms of how we deal with Med fly," he said. "The result of this should be that the Vietnamese Government, we're hoping, will recognise that there are no Med fly in the eastern states, and therefore we should be able to resume exporting from May onwards."
Turning 1 in Vietnam, McDonald’s Sees Mixed Performance in Asia Voice of America 13th Feb 2015
McDonald’s marked its first birthday in Vietnam with a fourth restaurant earlier this month, reflecting a mixed year in Asia even as the company struggles to compete at home in the United States. When the golden arches rose over Vietnam for the first time last year, there was international buzz for the new, long-awaited market, but the excitement was tempered by cultural and demographic challenges. Could consumers afford a value meal that costs as much as four bowls of pho? Would Vietnamese tastes give way to beef patties and fries? Sean Ngo, CEO of VF Franchise Consulting, said companies focus on emerging countries like Vietnam as a strategy to “counter-balance” weak sales in industrialized countries.
Viet Nam suspends peanut imports from India Viet Nam News 13th Feb 2015
The Ministry of Agriculture and Rural Development suspended peanut imports from India after detecting the Caryedon Serratus Olivier insect in some shipments. The official suspension became valid on February 6. The insect, found in groundnuts, can cause serious damage to plants. It has not been found in Viet Nam. Earlier in January, Vu Van Huong, director of the Department of Plant Quarantine I, said his staff found nearly 700 tonnes of peanuts with live serratus insects at Hai Phong Port. The Ministry promptly asked the Plant Protection Department to more closely supervise peanut imports.
Mekong Delta predicts seafood export surge Viet Nam News 11th Feb 2015
The Cuu Long (Mekong) Delta provinces expect to export seafood and rice worth US$10.2 billion this year, according to the Can Tho Statistics Office. The provinces reported $850 million worth of exports for seafood and rice in January alone. The office estimates that to achieve this target, the region will have to produce 3.7 million tonnes of seafood to meet demand for raw material from 198 seafood processing factories in the region. These provinces will also have to grow rice on a total land area of 4.2 million hectares, including 80 per cent of the total area growing high-quality rice products for export processing. Meanwhile, the provinces will work to improve the quality of trade promotion programmes by lending support to enterprises for a market study, as well as conduct marketing and advertising activities in many export markets in Asia, Africa, Australia, the European Union (EU) and North America.
Indonesian firm to acquire Vietnamese food company Vietnam Investment Review 10th Feb 2015
Indonesian food firm PT Tiga Pilar Sejahtera Food Tbk (AISA) plans to pour US$80 million into Viet Nam and Malaysia to purchase stakes in two food companies this year. AISA's move aims to help the firm become a regional player in the industry. According to The Jakarta Post, AISA Finance Director Sjambiri Lioe said that they had set a target of acquiring a 90 to 100 per cent stake in a Vietnamese food company and a majority stake in a Malaysian food company. He added that his firm's negotiation with the Vietnamese partner will be completed soon, and that the negotiations with the Malaysian firm were still at an early stage.
Coffee Sales Curbed by Growers in Vietnam as Harvest Drops Bloomberg 8th Feb 2015
Coffee farmers in Vietnam, the world’s top supplier of robusta beans used by Nestle SA, are restricting sales before the Lunar New Year holiday to secure higher prices from a smaller harvest. Growers probably sold 29 percent of the crop by end-January, compared with 36 percent a year earlier and a five-year average of 40 percent, according to the median of 12 trader estimates compiled by Bloomberg last week. Output in the 12 months started Oct. 1 will drop 7 percent to 1.6 million metric tons from a record the previous year, the survey shows...“Farmers are very persistent in holding back sales because they expect prices to rise after Tet,” said Phan Hung Anh, deputy director of Dak Lak-based Anh Minh Co., referring to the Feb. 16-23 holiday. “They’re better supported by banks, which are offering more access to loans and lower interest rates.” Anh Minh is the largest private exporter by volume.
HAGL's first Australian beef products introduced to HCM City market Vietnam Investment Review 6th Feb 2015
Vissan Company Ltd, a domestic meat processor and supplier, and Hoang Anh Gia Lai Joint Stock Company (HAGL) will sell 2,000 Australian cows to the local market to serve the Tet (Lunar New Year) holiday. These are the first products to be marketed locally under the cooperation of the two companies, the company said on Wednesday in HCM City. Doan Nguyen Duc, chairman of HAGL, said the cows, which were imported from Australia, are 18 months old and over, weighing 200-250kg each. They have been fed at HAGL's farms in Viet Nam, Laos and Cambodia. Each will weight about 500-550 kg when they are sold to the market. At the ceremony to introduce the first product to the market, a representative of Vissan said the demand for beef in Viet Nam was about 3,000-4,000 cows per day.
Vietnam may commercialize GM crops late this year The Saigon Times 5th Feb 2015
Vietnam is expected to widely recognize genetically modified (GM) crops with the commercialization of some crops hopefully at the end of this year. Le Huy Ham, rector of the Agricultural Genetics Institute, shared the expectation at a conference on GM crops held by the Vietnam Academy of Agricultural Sciences (VAAS) and the International Service for the Acquisition of Agri-biotech Applications (ISAAA) in Hanoi on Tuesday. According to ISAAA Emeritus Chair Clive James, Vietnam has taken prudent steps in evaluating, researching and experimenting GM crops over the years. The recognition of four GM corn varieties meeting requirements for food and animal feed production last year made the country the 29th to approve GM crops.
Thai drink makers crave part in Vietnam’s largest brewery: WSJ Tuoi Tre News 5th Feb 2015
Saigon Beer Alcohol Beverage Corporation, Vietnam’s largest brewery, appears attractive to two leading Thai drink makers, the Wall Street Journal reported on Wednesday. Thai Beverage and Singha Corp. are interested in buying a stake in the Ho Chi Minh City-based firm, also known as Sabeco, because they are “attracted by growing beer consumption in Vietnam,” whereas sales in Thailand have declined, the U.S. newspaper said, citing people with knowledge of the matter. Thai Beverage, better known as ThaiBev, is willing to pay VND80,000 (US$3.76) per share for Sabeco, while the state-run company’s over-the-counter price is only VND45,000 a share, the Wall Street Journal quoted a senior government official in the Vietnamese Ministry of Trade and Industry as saying. With the maker of Chang beer seeking to acquire about 40 percent of Sabeco, the deal could be as huge as $1 billion. The same official also revealed to the newspaper that Singha Corp. wants to buy the government’s stake in Sabeco, but did not elaborate on the offer.
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