Food & Agriculture Update: Food Import Restrictions Pave a Rocky Road to Indonesian Self-Sufficiency

• March 23: Coffee Discussion on ASEAN Agricultural Attaché Engagement

• Save the Date: The ASEAN Agricultural Attaché Roundtable will be held on Wednesday, June 3, 2015 in Washington, D.C.  Official invitation and registration details to follow. If you are interested in attending, have questions or topics in mind, please contact Hai Pham at hpham@usasean.org

• On March 5, the Council submitted consolidated input on a draft Joint Position Paper on Implementation of the Halal Law being developed and co-signed by international chambers of commerce in Indonesia. The latest draft, incorporating edits and additions that were received before the deadline, is available here. If you have any additional input in the Food & Agricultural space, we advise sending this as soon as possible. Please convey additional input to Fatimah Alsagoff at falsagoff@usasean.org to be sent to the task force for consideration.

• President Joko Widodo’s aim to achieve self-sufficiency in staple products and food supply is driving up prices and provoking industry-wide criticism. In line with President Jokowi’s campaign promise to reduce reliance on food imports, the government introduced a law banning imports of offal and secondary beef cuts in January and will allow only state-owned enterprises to import the products during shortages.  Since the imposition of the beef import restrictions, the Indonesian Meat Importers Association (ASPIDI) reports that domestic beef prices have escalated by over 20 percent as demand exceeds domestic production capabilities.  ASPIDI warns that prices are likely to continue to rise ahead of Ramadan when beef demand typically skyrockets.  Besides beef, President Jokowi’s Administration has also refused to allow rice imports, despite 30 percent year-on-year increases in the prices for the grain in February. According to academics, self-sufficiency is unlikely because Indonesia, the world’s biggest archipelagic nation with more than 17,000 islands, does not have enough land to grow all its own crops and animal feed or graze cattle, or the infrastructure to transport food quickly and efficiently. Despite this lack of domestic capacity to achieve self-sufficiency in food supply, President Jokowi appears committed to pursuing this nationalist based approach to a food self-sufficiency policy, which in some ways reflects a continuation of the protectionist oriented policies of President Yudhoyono’s last term. As the Government of Indonesia sustains the import restrictions, many political analysts warn that it risks repeating the mistakes of his predecessor. Such protectionist policies also risk undermining a drive to revitalize Southeast Asia’s biggest economy, where growth has fallen behind Malaysia, the Philippines and Vietnam. Indonesia is the largest market in the region for U.S. agricultural exports, which totaled $3 billion in fiscal year 2014, and ranks as the United States' eighth-largest market worldwide, with top U.S. agricultural exports including soybeans, wheat, cotton, dairy, and feeds and fodder.

Benchmarking Australia-ASEAN food and agriculture trade Business Inquirer 10th Mar 2015
Australia is well known as an efficient agricultural producer. It is strong in cattle, beef, dairy, sugar, wheat, fruits and wine. The growing Asean middle class augurs well for Australian food exporters. Australia is also an important market with a population of 24 million and a high income per capita of US$65,000—among the highest in the world. Among full-time workers, the median wage is about $4,000 a month. The country is one of the largest agri-trade partners of Asean. In agri-food products, total two-way trade in 2013 was $9.6 billion—$6.1 billion of exports and $3.4 billion of imports—with Australia seeing a trade surplus of $2.7 billion. This article benchmarks the trade performance of six Asean countries with Australia in terms of growth in exports as well as trade balances between 2003 and 2013. It also identifies the major exports and imports.

Asia’s Balance Sheet of Food Facts Food Industry Asia 10th Mar 2015
In his closing speech at this year’s Global Food Safety Conference, Pradeep Pant highlighted that Asia is poised to become the global leader in the food industry. He reflected that the actions taken by industry leaders in Asia will determine the course of the food industry worldwide. “Asia is moving fast, and the food industry remains a crucial component in its economic growth”, Pant said, presenting a ‘Balance Sheet’ of Asia food facts.

The cappuccino kings changing the way Cambodians drink coffee FT 10th Mar 2015
Starbucks has not launched in Cambodia yet. But Chang Bunleang, co-founder of Phnom Penh-based Brown Coffee, is ready if it does.“I think [we could] give Starbucks a hard time, if they come in,” says the 29-year-old entrepreneur, stressing the need for Brown to be ready. “We’ll educate customers a lot on coffee — what is good, what is not good.”

Poor Nutrition Costing Cambodia Hundreds of Millions of Dollars VOA Khmer 4th Mar 2015
Despite a decline in stunted growth and poor nourishment for children, malnutrition costs the Cambodian economy $400 million a year, health authorities say. In a two-day conference held this week by the World Food Program, Unicef and the Cambodian government, officials discussed the costs of malnutrition, stunted growth, anemia and other maladies for Cambodian children. Both mental and physical health are affected by these, officials said at the conference. Maternal and child malnutrition cost the country nearly $90 million a year. Stunted growth and anemia cost the country nearly $130 million. Ngy Chanphal, vice chairman of the Council for Agricultural and Rural Development, said these and other malnutrition woes damage Cambodia’s economy. “This is a very serious issue,” he said. “If we don’t do anything, our national income loses 2.5 percent of the GDP.” It affects some 6,000 children per year, children who are the future of the labor force 10 or 20 years from now, he said. Studies from the council show the rate of stunted growth declining over the past decades, but acute malnutrition and rates of anemia have remained unchanged.

CRF calls to tighten code of conduct PPP 3rd Mar 2015
The Cambodian Rice Federation has pushed for the full implementation of a code of conduct which bars Cambodian firms from exporting cheap rice from neighbouring countries under its own name. The code of conduct sought to reassure the European Union that Cambodia was not flouting the Everything But Arms agreement, under which the Kingdom exports goods duty-free due to its status as a low-income country. But some rice exporters say the code of conduct, which was signed in February 2014, has not been followed as stringently as was originally intentioned. “For me, the code is good, but the implementation is not that effective,” said Khan Kuthy, general manager of newly-established rice miller Brico. “As far as I know, no one has been punished.” A statement from the CRF said a “laissez-faire” environment and consequent lack of investigation has led to price declines and blows to the rice’s international reputation. Although it remains to be determined which procedures will be established to tackle the problem, David Van, senior advisor to the CRF, urged the creation of a disciplinary committee to investigate potential flouting of the code. “When you look at the market, some people have been selling way, way below the price, and you have to wonder where the heck the rice is coming from,” he said. Under the code of conduct, existing penalties include revoking an exporter’s certification of origin, effectively barring it from exporting.

CP Foods to acquire local subsidiary for $88 million The Phnom Penh Post 2nd Mar 2015
Charoen Pokphand Foods Public Company Limited will acquire the remaining 75 per cent shares of CP Cambodia for $88 million, strengthening its position as an agro-business operator in the ASEAN region. After completing the transaction, CP Cambodia will become a wholly owned subsidiary of CPF, which previously owned a 25 per cent stake. “Most of CP Cambodia’s revenues were derived from swine and poultry business,” said Adirek Sripratak, CEO of CP Cambodia, in the press release. CPF’s board of directors has approved the acquisition and will put forth the proposal to the annual general meeting with shareholders in April. CP Cambodia, a major stakeholder in Cambodia’s agro-business sector, reported total revenues of $256 million last year and net profit close to $23 million.

Wine Imports to Flow Freely Under New Policy Irrawaddy 10th Mar 2015
Burma’s Ministry of Commerce said limited foreign wine imports will be legalized at the start of the 2015-16 fiscal year in April, in the first stretch of phasing out a decades-long ban on alcohol imports. Import restrictions on other varieties of foreign alcohol will be eased later on, according to Yan Naing Tun, deputy director general of the ministry, speaking to The Irrawaddy on Tuesday. “We’re now finalizing the import policy for foreign wines, and we will make a public announcement soon,” he said, adding that the specifics of the new rules have not yet been determined, such as company criteria for licensing.

Just another tax raising bill PhilStar 27th Feb 2015
A proposed legislation dubbed as “sweet tax” was initiated last year at the 16th Congress that wants the State “to curb the consumption of soft drinks and carbonated beverages” in the Philippines. Nueva Ecija Rep. Estrellita “Ging” B. Suansing filed House Bill 3365 which will impose a 10 percent valorem tax on soft drinks which are currently subjected to value added tax. Suansing justified the new tax on the soft drinks industry as urgent and necessary, saying that amounts to be collected will be earmarked as rehabilitation fund and disbursed to calamity-stricken areas for livelihood development, mass housing, road construction and other infrastructure projects.

Indonesia self-sufficiency push will drive up beef prices Reuters 10th Mar 2015
Plans by Indonesia's new president to make the nation self-sufficient in foods such as beef are showing signs of backfiring, with a major industry group warning prices for the meat could soar 50 percent in the next few months. Climbing meat prices as the government clamps down on imports could exacerbate a rise in inflation that would likely come if oil prices make a strong recovery from their recent lows, hitting efforts to boost Southeast Asia's largest economy. Reduced imports would also hurt shipments from world No.3 beef exporter Australia, whose farmers last year supplied around 40 percent of the beef consumed in Indonesia.

Indonesia's Tiga Pilar eyes rice unit IPO in 2018-finance director Reuters 10th Mar 2015
Indonesian food company PT Tiga Pilar Sejahtera Food Tbk may spin off its rice unit in an initial public offering in 2018, after the business' revenue is expected to reach $1 billion, its finance director said.

Food import curbs a rocky road to Indonesian self-sufficiency Malaysian Mail 4th Mar 2015
Shoppers at butcher Aji Seno’s stall in east Jakarta care more about the price of his beef lungs, livers and intestines than where the offal comes from. Not so the country’s new president. Indonesian leader Joko Widodo, who pledged to make Indonesia less reliant on food imports in last year’s presidential campaign, has banned imports of most secondary cuts of meat and will allow only state-owned enterprises to bring in the products in times of shortages. Businesses predict a supply crunch, higher prices and the risk of monopolies and a black market. The measure reinforces Widodo’s import-substitution strategy as he seeks to promote home-grown commodities, industries and technologies. Such protectionist policies risk undermining a drive to be more business friendly and revitalize Southeast Asia’s biggest economy, where growth has fallen behind those of Malaysia, the Philippines and Vietnam.

Fall in rice output tests Jokowi’s food vision Jakarta Post 3rd Mar 2015
Farmers reported declining rice production throughout last year, indicating a challenging test for President Joko “Jokowi” Widodo’s goal to secure the domestic rice supply without imports. The Central Statistics Agency (BPS) reported on Monday that total output estimates, harvest area and farmers’ productivity in the rice sector all declined in 2014 from the previous year. Latest BPS data show that total rice-production estimates declined 450,000 tons year-on-year to 70.8 million tons in 2014, a sharp turnaround from a 2.2 million ton increase posted the previous year.

Govt may impose salt import ban to back farmers The Jakarta Post 11th Mar 2015
The government has issued an ultimatum to salt traders and import-reliant industries, saying it will not grant any import permits unless there is a show of “good will” to support efforts to achieve self-sufficiency in industrial-grade salt by 2016. State officials are urging the business community to commit to purchasing a portion of their consumption needs from local salt farmers, as the government aims to empower the latter to meet at least 50 percent of industry demand this year, with the remaining 50 percent to be achieved next year.

Policies create tuna scarcity, drive up prices The Jakarta Post 9th Mar 2015
Indonesia’s tuna industry is reaping the rewards of the government’s recent efforts to crack down on illegal, unreported and unregulated (IUU) fishing practices, as buyers sought Indonesian tuna and local prices climbed 12.8 percent on the back of global shortages. Tuna scarcity — and its ensuing price hike — has been attributed to the government’s firm stance on IUU fishing, especially through its moratorium on license renewals for foreign-built fishing vessels and the open-sea transshipment ban.

Joko’s Self-Sufficiency Push Will Drive Up Beef Prices The Jakarta Globe 4th Mar 2015
Plans by President Joko Widodo to make the nation self-sufficient in foods such as beef are showing signs of backfiring, with a major industry group warning prices for the meat could soar 50 percent in the next few months. Climbing meat prices as the government clamps down on imports could exacerbate a rise in inflation that would likely come if oil prices make a strong recovery from their recent lows, hitting efforts to boost Indonesia’s economy. Reduced imports would also hurt shipments from world number three beef exporter Australia, whose farmers last year supplied around 40 percent of the beef consumed in Indonesia. “The government is too obsessed about self-sufficiency,” Thomas Sembiring, executive director of the Indonesian Meat Importers Association (Aspidi) told Reuters.

Jokowi holds meeting discussing rice prices, inflation rate The Jakarta Post 4th Mar 2015
President Joko "Jokowi" Widodo held a plenary Cabinet meeting on Wednesday morning to discuss the inflation rate and the increasing prices of rice, the main staple food for Indonesia’s citizens. "I ask [all of you] to monitor day by day the prices of staple foods because whether the inflation rate goes up or down, it starts there [with those foods]," said Jokowi, who wants to achieve a degree of food sovereignty during his presidency. He later pointed out the rising prices of rice, saying that it actually could have been predicted December last year, even though bad weather contributed to declining rice production.

Tiga Pilar Food to Take Its Rice Unit Public in 2018 Jakarta Globe 4th Mar 2015
Tiga Pilar Sejahtera Food, a listed processed food and rice producer, says its revenue is expected to grow 40 percent this year as it gears up to expand its rice business. “We aim to see up to Rp 7.3 trillion [$561 million] in revenue this year, with Rp 4.5 trillion from our rice business. That’s roughly 60 percent of our total revenue,” TPS Food finance director Sjambiri Lioe said in Jakarta on Wednesday. “Seeing the demand in Indonesia, we’re sure that the rice business can grow by at least 45 percent this year,” he added. TPS Food has booked approximately Rp 5.06 trillion in revenue last year, which was dominated by its rice business, the finance director said. The company has not yet disclosed its official full-year figures. Joko Mogoginta, the company’s president director, said TPS Food was allocating as much as Rp 682 billion to expand its rice business this year — nearly 70 percent of its budgeted capital expenditure. The Jakarta-based company signed a contract for two lines of rice processing machines and one line of rice milling with engineering firm Buhler Indonesia on Wednesday.

Indonesia May Miss Biofuel Target The Jakarta Globe 2nd Mar 2015
Indonesia’s goal of boosting use of biodiesel made from palm oil by more than doubling subsidies is being threatened by the slump in crude prices. Consumption of subsidized palm biodiesel may miss the 1.7 million kiloliter target for 2015, according to Derom Bangun, chairman of the Indonesian Palm Oil Board. The biggest producer of palm oil would need 1.5 million metric tons to meet that goal, he said. That compares with 800,000 tons used last year, Mandiri Sekuritas, a broker in Jakarta, estimates. The collapse of crude oil amid a global surplus has led a decline in fossil-fuel costs that’s cut the appeal of producing energy from plants.

Beef prices in Indonesia rising sharply as supply dwindles in the lead up to Ramadan Australian Broadcasting Corporation 2nd Mar 2015
The reduction of import permits for live cattle and the ban on importing secondary beef cuts and offal could prove disastrous moves by the new Indonesian Government. The price of beef across Indonesia's traditional and modern markets is on the rise, surging beyond the 100,000 rupiah a kilogram ($9.90/kg) mark in many regions. According to local media, the Beef Cattle Feedlotters Association is lobbying government to issue 250,000 import permits for Australian cattle in the second quarter and to allocate the permits as soon as possible, so cattle can get into the feedlotting system and be ready for Ramadan, which starts on June 18.

‘Incompetent’ Ruling Threatens to Leave Indonesia Without Bottled Water The Jakarta Globe 26th Feb 2015
Indonesia’s second-largest Muslim organization, Muhammadiyah, has called on private firms to stop selling bottled water after the Constitutional Court revoked in its entirety the 2004 Water Resources Law, which regulates such sales. “We welcome this decision and are grateful that our judicial review was accepted [by the court],” Muhammadiyah chairman Din Syamsuddin said. Muhammadiyah was one of the plaintiffs in the suit alongside another group and a number of individuals. “This law has been challenged three times before. This is why we were ecstatic with the recent Constitutional Court ruling which repealed the law in its entirety,” another plaintiff, Syaiful Basri, said at the same press conference.

In Palm-Oil Market, Optimism Over Biodiesel Subsidy Fades Wall Street Journal 25th Feb 2015
Indonesia’s renewed push this month to increase the use of biofuels made from palm oil initially helped pump up prices of the commodity. But that optimism is already fading, as traders reckon with an overall weak backdrop in demand for palm oil, which is used in products ranging from lipstick to biscuits and detergents. The global benchmark palm-oil futures price traded on the Bursa Malaysia Derivatives exchange jumped nearly 10% in early February after the Jakarta government said it will more than double the subsidy for biodiesels to 4,000 rupiah a liter (31 U.S. cents), from 1,500 a liter now. The increase, announced Feb. 2, is expected to take effect as soon as next month. Biofuels in Indonesia are made primarily from a palm-oil feedstock.

Oil palm industry concerned over unabated increase of production costs The Star Online 10th Mar 2015
The Malaysian Palm Oil Association (MPOA) is concerned about the disturbing trends in the industry, which has been saddled with labour issues, increasing cost-incurring regulations and a slew of taxes and CESS duties that is eroding its competitiveness in the global markets. In addition, the industry is affected by the costly compliance to the certification on sustainability on palm oil, said the association’s chief executive officer Datuk Dr Makhzdir Mardan.

No increase in goods prices despite higher fuel cost Sin Chew Daily 3rd Mar 2015
Despite an increase of 25 sen per liter in fuel prices with effect from March 1, many business operators maintain that they will leave their prices unchanged for the time being. Domestic Trade, Co-operatives and Consumerism secretary-general Datuk Seri Alias Hj Ahmad said al business operators should respond to the government's call to lower goods prices. "Despite higher petrol and diesel prices, businesses can still afford to keep the prices low as they have enjoyed low fuel prices for two months. "When fuel prices were low, they said their prices were not much affected by the fuel cost, and therefore they have no reasons to bring up their prices now."

Measures Taken To Ensure Agriculture Sector Ready To Face Dry Spell Bermana 3rd Mar 2015
The Agriculture and Agro-Based Industry Ministry has taken measures to ensure the agricultural sector is able to withstand the current dry spell, said its Minister Datuk Seri Ismail Sabri Yaakob. "We have dealt with hot weather before, in 2014, we faced a drought ... but this year, even though the weather is hot, it still rains," he told reporters after opening the Agrotourism Seminar 2015 on March 5. He said irrigated rice fields operated by the Kemubu Agricultural Development Authority (KADA) and Muda Agricultural Development Authority (MADA) still have sufficient water supply.

World Halal Summit 2015 To Merge Trade Fair, Conferences Bernama 10th Mar 2015
The Ministry of International Trade and Industry (MITI) will host a trade fair and six halal industry conferences under one roof this year, offering the largest ever and well-integrated expositions to unite the global halal marketplace. Known as the World Halal Summit (WHS), the event will be held at the Kuala Lumpur Convention Centre on March 30 to April 4. The six-day summit is a joint effort between Malaysia External Trade Development Corporation (Matrade), Halal Industry Development Corporation (HDC) and Department of Islamic Development Malaysia (Jakim). MITI Minister Datuk Seri Mustapa Mohamed when announcing the summit said the confluence of the exposition and forums was done with a single aim, that is to harness the full potential of 'halal' within a globalised environment. "WHS's vision is to be a unified global halal marketplace," Mustapa said at a media briefing on the new summit here today. The minister said the coalescence of a halal trade show and related halal forums under one entity aimed to integrate all coordinated efforts in the development and promotion of the global halal industry. Reflecting Malaysia's mission in identifying the untapped potential of the halal industry, the inaugural WHS 2015 is themed "Energising the Halal Ecosystem" to explore common terms uniting halal certification bodies and the proper market positioning of halal products and services.

FDI ignoring agro-industry: MP Eleven Myanmar 10th Mar 2015
Only one per cent of foreign direct investment (FDI) goes to Myanmar's agricultural sector due to farmland grabs, land price manipulation and weak laws, MP Thura Aung Ko told Parliament on Thursday. Foreign companies had invested more than Ks 50.6 billion in 828 of the country's businesses to the end of November last year, mostly in mining, oil and natural gas exploration, he said. However, 70 per cent of the country's population comprises farmers living in rural areas, he pointed out.

Government reveals $928m plan to develop agriculture industry Myanmar Times 10th Mar 2015
Nearly a billion US dollars is being invested in projects to support agricultural development, parliament heard yesterday. Deputy Minister for Agriculture U Ohn Than told MPs that US$927.786 million would be spent on 16 agricultural projects. Foreign financial aid would fund 12 of the projects, and the remaining four would be funded by loans, he said.The 2012 Farmland Law allowed foreign investment flow into the agricultural sector, on which more than 70 percent of Myanmar’s population depends. But investment has been limited because of the loss of farmland tenure, high land prices driven by speculation and the weakness of the rule of law, said Pyithu Hluttaw representative Thura U Aung Ko from Chin State’s Kanpetlet township.

No rice firms join latest race for China exports Myanmar Times 2nd Mar 2015
The Myanmar Rice Federation’s second deadline of February 27 has passed for companies aiming for permission to export rice to China – but unlike in the first round, no bids were submitted, according to federation joint secretary U Soe Tun. The second round was launched after the federation’s previous list of nine chosen companies were criticised as inexperienced, with China asking for more choices. China has quickly grown from being a marginal market for rice exports half a decade ago to today being Myanmar’s most important rice buyer. However, the trade has been illegal from Beijing’s point of view, and negotiations are ongoing to legalise it. The decision to pre-select a handful of Myanmar rice traders will allow Chinese authorities to more easily make sure the export rice meets their health standards. After legalising the trade, rice will be exported by the selected firms using ships to China’s eastern seaboard along with the current method of shipping overland through Muse in northern Shan State.

The Philippines agriculture sector boosted by initiatives The Borneo Post 10th Mar 2015
After enduring several challenging years marked by damaging typhoons, the Philippines’ agricultural industry made a spirited recovery in 2014, setting the scene for further growth this year across a host of segments. Smallholder farmers, who are responsible for the bulk of the Philippines’ agricultural production, are set to benefit from a raft of initiatives, which are being rolled out by both the government and industry players. Take-up of weather-based index crop insurance schemes is also picking up as more products are coming to market, while national funding for improving infrastructure and food security will serve a twofold purpose of strengthening protection and boosting output.

Pricey food, typhoon worsen Philippine poverty Bangkok Post 6th Mar 2015
Poverty worsened in the Philippines in the first half of 2014 due to government restrictions on rice imports and the lingering effects of a killer typhoon, an official said on March 6. Socio-economic Planning Secretary Arsenio Balisacan said poverty incidence among Filipinos rose 1.2 percentage points to 25.8% in the first half of last year from the same period in 2013. Higher food prices, particularly of the staple rice, and effects of typhoon Haiyan that devastated the central Philippines in 2013, wiped out gains in per capita income, he said.

PHL bans California poultry on avian flu outbreak GMA 5th Mar 2015
The Department of Agriculture (DA) on March 5 said it ordered a temporary ban on imported poultry from California in the United States, citing the need to protect the local livestock population. The bank comes on the heels of an avian flu outbreak in California's Stanislaus County. Agriculture Secretary Proceso Alcala said the temporary ban covers eggs, semen, poultry meat, and day-old chicks of wild and domesticated birds. The ban was enforced to "protect the health of the local livestock population in the country from the Highly Pathogenic Avian Influenza (HPAI)."

Lack of business sense, other problems bug PH coffee industry Minda News 5th Mar 2015
Lack of good business sense, among other problems, has bugged the growth of the country’s coffee industry, a former agriculture official said on March 5. In a forum on Philippine international trade strategy here organized by the Department of Trade and Industry, Robert Ansaldo, agriculture undersecretary during the Cory Aquino administration, said the Philippines has “very good science but weak business” in coffee. “We know how to grow [coffee] but don’t know how to package [it]… We have no processing and we import 80 percent of our coffee requirements, and this is increasing,” he said.

Mindanao seen as major production base for export halal products Minda News 4th Mar 2015
Mindanao could become a major production base for export-quality halal products once the proposed “Philippine Halal Act of 2015” is eventually passed. Senator Cynthia Villar raised such scenario as she rallied for support from stakeholders of Region 12 for Senate Bill (SB) No. 312, which mainly sets the institutionalization of regulatory policies and accreditation standards for halal products in the country. She is scheduled to formally endorse or sponsor the bill’s passage next week before the Senate’s plenary. “Once passed, (this proposed law) will enable Mindanao to produce halal-certified products and eventually become the production center of halal products for exports,” she said in a gathering of farmers and local government leaders in Tupi, Suth Cotabato on March 5.

Typhoon victims assured of $74m food aid Manila Standard Today 3rd Mar 2015
The Philippines will receive $74 million in food and humanitarian assistance from the World Food Program to help feed millions of poor Filipinos, particularly those affected by the recent calamities. The Department of Foreign Affairs said that the WFP Executive Board unanimously approved the Protracted Relief and Recovery Operation for the Philippines during the First Regular Executive Board Session on February 10 at the WFP Headquarters in Rome. The food grant is good for three years and cover 408,000 beneficiaries, the WFP said.

Seafood canner readies takeover of smaller rival Business World 10th Mar 2015
Millenium Global Holdings, Inc. has firmed up a plan to take over a Cebu-based seafood canner after subscribing to the latter’s new shares and securing fresh capital from an investor. Millennium Global told the stock exchange it executed subscription agreements with Cebu Canning Corp. (C3) covering 67,000 primary common shares at par value of P100 per share for a total consideration of P6.7 million. Of the total shares, 30,000 shares will be taken from an increase in authorized capital stock, subject to approval of the Securities and Exchange Commission (SEC).

Disease-resistant banana seedlings ready for small-farmer beneficiaries Business World 10th Mar 2015
A new variety of banana seedlings resistant to Panama disease is ready for distribution to Davao Region’s small farmers, the Department of Agriculture’s (DA) regional head announced. Called the Giant Cavendish Tissue-Culture Variant (GCTCV) 219, the new type was developed in Taiwan by DA’s partners and has been successfully reproduced at the Bureau of Plant Industry research center here, said DA Region 10 Director Remelyn R. Recoter.

Philippines suspends importation of poultry products from US PhilStar 10th Mar 2015
The Philippine government has issued an order temporarily prohibiting the importation of domesticated and wild birds and their products from Idaho and Washington in the United States, the Department of Agriculture said today. A report of an outbreak of the Highly Pathogenic Avian Influenza (HPAI) virus in Canyon County, Idaho; and Clallam County, Washington from the U.S. Department of Agriculture (USDA) to the Office of International des Epizooties (OIE) has prompted Agriculture Secretary Proceso Alcala to order the temporary ban.

Philippines’ solar push could hit food security, lawmaker says Gulf News 6th Mar 2015
The government has been called on to study the impact of its solar energy push in light of claims that the country’s food security could be compromised by the construction of solar fields. The Philippines has jumped onto the solar energy bandwagon with vigour but according to Congressman Agapito Guanlao, studies and impact assessments must be first conducted to ensure that any such push does not imperil food security. The country’s cost of on-grid electricity supplies is among the highest across Asia, especially in Metro Manila. This has forced both the government and the private sector to seek cheaper alternatives, such as harnessing the sun’s energy.

Davao town switches to organic rice farming PhilStar 4th Mar 2015
Rice farmers here have strengthened the goal of rice self-sufficiency in the Davao region as most of them have converted to organic rice farming. In 2013, the town was granted a P2 million special project dubbed Organic Rice Production Enhancement Program (ORPEP) by the Department of Agriculture (DA) under the Grassroots Participatory Budgeting Process (GPBP).

Monsanto bares 4 new Bt corn seed varieties PhilStar 4th Mar 2015
Agriculture biotechnology firm Monsanto Philippines is introducing four new high-yielding and disease-resistant BT corn seed varieties in the next three years as it produces most of its seeds locally. In a recent briefing, Monsanto executives said the company would remodel its new facilities and would engage more farmers in key production areas to cultivate BT corn seeds. Between this year and 2017, Monsanto Philippines would introduce to the market 6999S, a high-yielding variety most applicable for cultivation in Luzon that prevents the occurrence of vivipary, or premature sprouting of corn kernels; 86395S, a high-yielding variety suitable for cultivation in Mindanao and Visayas that is resistant to bacterial infection; as well as two other still unnamed high-yielding varieties suitable for cultivation in Luzon and Mindanao that promises even higher yield of seven to eight metric tons (MT) per hectare.

Thailand and Vietnam Set to Win Philippines Rice Deals Jakarta Globe 27th Feb 2015
The world’s biggest rice sellers, Thailand and Vietnam, are likely to win government-to-government deals to supply a total 500,000 tonnes of the grain to the Philippines, which is seeking to build its buffer stock ahead of a lean harvest season. Thailand offered on Friday to sell 100,000 tonnes each of 15 percent and 25 percent broken long grain white rice at $369 per metric ton and $421 a metric ton, respectively, to the Philippine state grain agency National Food Authority (NFA). The prices were lower than Vietnam’s offers, but Vietnam agreed to match Thailand’s bid and will likely be allowed to ship the remaining 150,000 metric tons each of the two varieties, the NFA said. Cambodia was qualified to submit an offer but did not. All shipments should arrive in the Philippines by April 30, the NFA said, adding it expects to sign contracts for the rice deals on or before March 10.

Fish deaths: Growing concern over future of fish farms amid recurring plankton blooms Straits Times 10th Mar 2015
The plankton bloom which wiped out more than 500 tonnes of fish along the East Johor Strait last week, and seems to have now affected farms in the western side, has raised concerns on the industry's future here. Affected farmers told The Straits Times that despite earlier warnings given by the Agri-Food and Veterinary Authority (AVA), they were shocked at how sudden and severe the latest bloom was.

National cassava body in the works PPP 3rd Mar 2015
A year after establishing the Cambodia Rice Federation, the Ministry of Commerce is planning to set up a cassava organisation to boost production of the root vegetable in the Kingdom. Ministry spokesman Ken Ratha said yesterday that the National Cassava Federation would be completed soon, under the auspices of the ministry’s Department of Private Sector Development. “The cassava sector comes second to the rice sector, as many Cambodians are working in this field too,” he said. According to Ratha, the federation will work similarly to the Cambodia Rice Federation and will try to identify and deal with challenges in the cassava sector. The association is to comprise relevant partners such as farmers, traders, exporters, and government agencies. Pang Vannaseth, director of Battambang’s Agricultural Department, said Battambang province has about 62,000 hectares of cassava plantations. He added that while cultivation has been increasing yearly, the sector still faces many challenges such as unstable prices, a shortage of warehouses, and a lack of capital among farmers. “Having a federation with one voice will be good. I hope it will solve some issues we face,” he said. “I wish to have the federation as soon as possible.”

Thai Beverage sets up venture in East Timor Bangkok Post 10th Mar 2015
Thai Beverage Plc, the food and beverage company owned by tycoon Charoen Sirivadhanabhakdi, is expanding its business empire to cover East Timor. ThaiBev recently set up a new company, InterBev Timor with a registered capital of US$10,000, which will distribute Thai beverages including fruit juice, beer and drinking water in East Timor. The expansion is part of the 5-billion baht investment that ThaiBev will use to broaden its food and beverage lines this year in an attempt boost sales by 12-15% from the 162 billion baht that it earned.

Thai tuna firm faces Australian probe Bangkok Post 10th Mar 2015
Thailand's fishing industry is on the hook again after Australian authorities reportedly held for inspection products made by a tuna cannery in Nakhon Pathom province for a possible link with food poisoning that affected four people in Sydney on Feb 26. The Daily Telegraph reported on Monday tuna and mackerel from the cannery was being held and tested by Australia's Agriculture Department.

Profits jump 79% with acquisition spree Nikkei Asian Review 27th Feb 2015
Thai Union Frozen Products (TUF), the world's largest canned tuna company, has posted a net profit growth of 79% in 2014 thanks to recovery in its core tuna business and rapid expansion through acquisitions. TUF's net profit was 5.09 billion baht ($157 million), echoing the record high posted in 2011, on sales of 121.4 billion baht, a year-on-year increase of 8%. Sales growth was driven by the acquisitions in Europe of Meralliance and King Oscar in November, and these contributed to TUF's best ever quarterly sales in the last three months of 2014.

Rice Shipments From Vietnam Climbing on Lower Prices, China Bloomberg 10th Mar 2015
Rice exports from Vietnam, the world’s third-largest shipper, will probably rebound this year as lower prices boost demand, while competition with Thailand keeps the gain to single digits, according to the government. “The Chinese market will definitely become active again after quiet periods late 2014 and early this year,” said Tran Tuan Anh, deputy minister of industry and trade. Competitive prices, suitable varieties, and geographic proximity in particular to China, are Vietnam’s advantages over Thailand, the top shipper. Exports may rise “less than 10 percent” in 2015, he said in an interview in Hanoi on March 4.

Central region braces for acute drought VietNamNet 3rd Mar 2015
The central region is likely to face a severe drought this year and regional localities have been carrying out several measures to mitigate the impact. Drought will likely occur in the region at the end of the winter-spring crop and at the beginning of the summer-autumn crop, according to provincial centres for hydro-meteorological forecasting. El Nino is expected to appear early and continue in the first months of this year with an average intensity compared to the past 50 years, said Nham Xuan Sy, director of the Quang Ngai Centre for Hydro-Meteorological Forecasting.

Monsanto Collaborates With Farmers In Vietnam For Sustainable Agriculture Just Means 25th Feb 2015
Sustainable agriculture lies at the core of global food security. It involves the creation of a healthy and sustainable food system that ensures physical and economic access to adequate amounts of nutritious food for all. It is equally important to ensure that the food within this system is produced in an environmentally sustainable and socially just manner. Sustainable agriculture has become increasingly important in the view of rapid population growth and climate change. By 2050, there will be an additional two billion people on the planet, increasing the global population to nine billion and leading to an increased need for food. Monsanto is focused on helping farmers worldwide solve challenges in sustainable agriculture. At a seminar with students this month at Ho Chi Minh City Students’ Cultural Palace in Vietnam, experts from Monsanto discussed the question of how the world can produce enough food in 2050 using only the currently available arable land.

Largest shrimp exporter to delist from City bourse Viet Nam News 7th Mar 2015
Minh Phu Seafood Group Corporation (MPC), Viet Nam's largest shrimp exporter by revenue in 2014, will officially delist from the HCM City Stock Exchange (HoSE) from March 31 onwards. The delisting of the company's 70 million shares is aimed at seeking strategic partners and restructuring the company, MPC stated. MPC was listed on HoSE in 2007 at VND70,000 (US$3.28) per share. On March 5 this year, each MPC share was closed at VND110,000 ($5.16) on the exchange. It was equivalent of an 86.44 per cent increase in value from the listing date. The prospect of delisting was mentioned in early 2013 for the first time, when foreign partners sought to buy stakes in the company, but were faced with limitations in Viet Nam.

Anti-dumping tariffs on shrimp sent to US see huge reduction Viet Nam News 6th Mar 2015
Anti dumping tariffs imposed on Vietnamese warm water shrimp products exported to the U.S. market have been cut sharply during the 9th period of review (POR 9). This was revealed by the Viet Nam Association of Seafood Exporters and Producers (VASEP). Under the preliminary results of the POR 9 released by the U.S. Department of Commerce on March 3, the average tariff had dropped to 0.93 per cent from 6.37 per cent imposed in the POR 8, VASEP reported on its website yesterday. Those rates were imposed on Vietnamese shrimp exporting to the US in the period from February 1, 2013 to January 31, 2014. Of this, Fimex VN will enjoy a zero tariff rate, while the Minh Phu Seafood Corp will bear the highest rate at 1.5 per cent, followed by Thuan Phuoc Corp at 1.06 per cent.

VN’s shrimp industry faces 9th anti-dumping review VietNamNet 3rd Mar 2015
While Vietnamese shrimp exporters have not agreed with the POR8 (period of review) results of the eighth dumping inspection, the US Department of Commerce has announced it will carry out the POR9. "From Feb 1, 2012 to Jan 31, 2013, the shrimp industry of Ca Mau Province lost about $12.3 million due to the US Department of Commerce’s (DOC) imposing anti-dumping imports on Vietnam’s frozen shrimp," said Ly Van Thuan, general secretary of the Ca Mau Seafood Processing Association (Casep). In 2012, Ca Mau’s exports of shrimp to the US market reached about $193 million, $231 million in 2013, and $163 million in the first eight months of 2014. Thus, Ca Mau lost about $12.3 million, according to Casep. The seafood exporters in Ca Mau said the unjustified high taxes imposed by DOC had caused difficulties for Vietnamese businesses and American consumers.

Domestic coffee companies concede home market to foreign firms VietNamNet 3rd Mar 2015
More and more foreign coffee companies are coming to Vietnam to make money from processing, while Vietnamese companies are content with modest profits from selling raw materials. Massimo Zanetti Beverage, a large Italian-based international company, has opened a roasting plant in the southern province of Binh Duong, the first in Vietnam. All the “big names” in the coffee industry attended the plant’s inauguration ceremony. The participants at the event drank wine the host had brought from Italy and talked about coffee. The investment license shows that the company roasts coffee and makes 3-in-1 coffee, black coffee, milk coffee, compressed pellets, coffee packets and other products. Massimo Zanetti chose Vietnam to set up its coffee plant, according to the group’s president, because the robusta bean, which is prevalent in Vietnam, is an indispensable ingredient in the group’s coffee formula.

Sugar sector urged to make radical reforms for int’l integration Voice of Vietnam 1st Mar 2015
Deputy Minister of Industry and Trade Nguyen Cam Tu, who is also chairman of the Steering Committee for International Economic Integration, has granted an extensive elaboration on the real situation and solutions for the sugar sector in the country in response to media regarding the recent imports of sugar produced by Vietnamese Hoang Anh Gia Lai group's factory in Laos's Attapeu Province in the 2013-14 crop.