Alltech presents latest innovations at CLA

Between 2002 and 2011, the consumption of poultry meat increased globally by 39 percent. Today poultry is the second most consumed animal protein after seafood and the trend indicates that consumers will continue to demand healthier, enriched and differentiated foods. With improved opportunities, greater challenges to the producer and an increasingly competitive market, the Latin American poultry industry is critical to the global challenge of raising enough protein to feed a world population of nine billion people by 2050.
Focusing on opportunities, Alltech contributed as a “Gold Participant” at the 24^th Latin American Congress of the Poultry Industry (CLA2015) Sept. 8-11 in Guayaquil, Ecuador. The Congress gathered the region’s top producers, scientists and business managers in the poultry industry to discuss health, nutrition, genetics production and environmental management topics.
To familiarize the Latin American industry with the latest advances and trends in nutrition, Alltech presented technical and business lectures including “The layer of the future” by Baltazar Jasso Morán, manager of poultry products production of El Calvario, Mexico, and “Leadership, attitude and service” by Alejandro Romero, marketing manager for Alltech Latin America.
Alltech also hosted a workshop on eggshell quality under the leadership of Dr. Bianca Martins, technical manager for Alltech Latin America, to show the current market quality of eggs and nutrition improvements that could advance eggshell quality. Martins, an expert in poultry production and nutrition, emphasized that feeding organic trace minerals enhances bioavailability and in turn, improves eggshell quality.
In the framework of the Latin American Poultry Congress, Guilherme Minozzo, Alltech vice president for Latin America, hosted the fifth edition of the Alltech CLUB SUMMIT, a special meeting to discuss, share ideas and consider effective solutions to the current challenges of the poultry industry. The summit took place at the Bankers Club, Ecuador’s most exclusive private club, with the participation of more than 230 distinguished business executives and leaders in the sector.
“In an industry such as the poultry industry, where almost everyone produces similarly, differentiation is the key. The challenge to be different includes sustainability and taking care of the environment. Increased production means that nutrition must go hand-in-hand with genetics,” said Minozzo.
Steve Elliott, Alltech’s global director for the Mineral Management division, addressed Total Replacement Technology in the poultry business. “Mineral nutrition is no longer responding to deficiencies; it is addressing the scientific challenges affecting the efficiency and profitability of poultry operations. To address those challenges, mineral nutrition in the future must be different,” said Elliott.
Paulo Rigolin, Alltech’s global director for poultry, discussed the power of DHA and the future of food. “More than ever before, consumers are now concerned about their health, and they have evidence of DHA omega-3’s efficacy. Even the international organizations are recommending a daily intake of DHA. This offers a great opportunity for the poultry sector, including DHA-enriched eggs or chicken, that meets customer expectations, and improves animal performance,” Rigolín said.
Finally, Alejandro Romero, Alltech’s marketing manager for Latin America, addressed the topic of consumer demands, emphasizing the major opportunities available in Latin America as a result of the increasing demand for healthier food. He stressed that the industry’s vision should follow the market trends to prevent being left behind.
“Food self-sufficiency is a topic that has become increasingly relevant as a result of issues generated by the ongoing price increases and food shortages. How will we feed the world in 2050, as the population continues to grow and demand… or rather forcefully demand healthy, enriched and sustainable products? The market is already reacting and we should not miss any opportunities,” Romero said.

Mexico consumes 3 million turkeys on Christmas, New Year’s Day

For Christmas and New Year’s Day dinners, it is estimated that Mexicans will consume a total of 3 million turkeys, 34 percent of which came from domestic production with the remaining 66 percent coming from the U.S. and Chile. Ninety-five percent of those imports came from U.S., while the remaining five percent came from Chile.
Marco Parson, president of the Turkey Producers Section of the National Poultry Producers Association (UNA) of Mexico, told the newspaper El Universal that "imports of most concern to the domestic industry are whole turkey, fresh or frozen, accounting for 8 percent of total imports, which are the main competition."
As mentioned in the cited source, of the 155,325 metric tons that have entered Mexico this year, 63 percent were of fresh turkey meat and 19 percent of frozen product. Most imports, 92 percent, are products and raw materials, while only 8 percent is whole turkey. The domestic industry cannot compete, because of the low price of these products and raw materials.
Despite the impact of imports, Parson noted that there has been a 9 percent growth in 2014, and in 2015 the domestic turkey market is expected to grow another 10 percent. Parson also told El Universal that they have grown and are trying to catch up. Both the devaluation of the Mexican peso and the rising international price of this bird have helped the Mexican turkey recover.
While the U.S. produces 350 million turkeys annually, in Mexico only 1.1 million are produced.

Brazilian, US chicken satisfies growing South Korean appetite

"A record high was recorded on chicken imports due to the popularity of fried chicken with beer," reads the headline of the news item published by the South Korean Yonhap News Agency. It expands on that by saying "South Korea chicken imports registered a record high mainly due to the popularity of the dish of fried chicken with beer, commonly called ‘chimaek,’ and to the increased consumption of different parts of this bird."
Quoting the South Korean Animal, Plant and Fisheries Quarantine and Inspection Agency (QIA), Yonhap reported that chicken imports of this nation reached 107,000 metric tons during the first ten months of this year, exceeding 85,000 metric tons recorded during the same period last year and 103,000 metric tons during all of 2013.
According to the South Korean Rural Economics Institute, it is estimated that by the end of 2014, total imports will be of 125,000 metric tons.
"After 2005, chicken imports had remained between 30,000 to 60,000 metric tons per year, approximately. But in 2010, this amount reached 98,000 metric tons and since 2011 the figure has remained above 100,000 metric tons for the fourth consecutive year."
Among the main countries that chicken is imported from are Brazil and the United States, due to low prices. The main reasons are attributed to the restaurant industry that has launched new chicken dishes and especially the dish "chimaek," which has a great popularity among young South Koreans.

$124 million poultry plant planned by Qatar’s Widam Food

Widam Food, a Qatar company known for importing live lambs for slaughter and sale on the domestic market, plans to diversify and venture into the poultry industry. The company will seek funding for a $124 million project to raise poultry as the company ventures into new foods.
Ahmad Nasser Sariya Al-Kaabi, managing director of  Widam Food, told Bloomberg News the company is awaiting a government license to build a plant that will produce 22 million chickens a year for sale on the domestic market. The licensing process has been delayed because the amount of land and water required needs more study, he said. If the license is granted, the company will consider funding methods including a capital increase, sharia-compliant bank loans or the issuance of Islamic bonds, he said.
Widam also plans to enter other animal agriculture sectors. It intends to expand into fish farming and will build a new $12.4 million plant for making processed meats, including hamburger and sausage, said Al-Kaabi. 

Avian influenza scare further hinders KFC’s sales in China

The outbreak of avian influenza in China is hurting KFC sales there, parent company Yum! Brands stated. The company is already suffering from an image problem in China, from an earlier controversy over its chicken suppliers.
The Kentucky-based company said in a regulatory filing on April 17 that the new avian influenza cases have had a "significant, negative impact" on KFC. The news comes at an already sensitive time for the company, which has been working to rebuild trust with customers following a television report that its suppliers were giving chickens unapproved levels of antibiotics.
That report already hurt sales for Yum!, which has about 5,300 locations in China. For March, Yum! said sales at restaurants in China open at least a year fell 13 percent, including a 16 percent drop at KFC. The decline follows a 20 percent drop for January and February.
The impact from the bird flu cases would be reflected in April's sales results, which will be reported May 10. Yum! Brands also operates Taco Bell and Pizza Hut. 

Delaware poultry industry looks to increase exports to South Korea, Panama and Colombia

The free trade agreements Congress recently passed with South Korea, Panama and Colombia will eliminate tariffs on most U.S. exports, allowing for Delaware's poultry producers to increase exports, according to a report.
"It's not a lead-pipe cinch that automatically [poultry] products will be flowing to those countries, but it does set the stage for the export business to go forward to those markets," Delaware Agriculture Secretary Ed Kee said.
Delaware’s poultry industry has been hindered in the past by restrictive tariffs, but the tariffs will be eliminated or significantly reduced over time due to the FTAs, creating a market for the legs, gizzards and knees that U.S. poultry consumers aren't as likely to eat.
The American Farm Bureau estimates Delaware's poultry export sales to South Korea, Panama and Colombia will increase by $1,623,300 annually. 

Pakistan poultry meat consumption up 239% from 2000

Pakistan's poultry meat consumption has grown by 239% since 1999/2000, from 322 million tons to 767 million tons in 2010/2011, according to experts.
These numbers equate to just 0.7% of global poultry production, but represent an infrastructure exceeding Rs300 billion (US$3.41 billion) and an annual commercial turnover of Rs40 billion (US$454.5 million). Pakistan has a total of 105 hatcheries that produce 820 million broiler chicks annually, as well as the capacity for the production of 8.69 billion commercial eggs and 3.74 million rural eggs.
Numbers are growing, but according to Pakistan Poultry Association former chairman Abdul Basit, there is a need to increase poultry production further to become more competitive in the global market.

South Korea poultry consumption to grow through 2015

South Korea's poultry consumption is forecast to grow by 28.4% through 2015, according to Research and Markets' latest report.
The country's numbers will reach 952,600 metric tons even as its domestic stocks remain diminished after recent food safety scares connected to foot-and-mouth disease, according to the report. A key factor in the growth will be a continued increase in health consciousness. Changes to labeling in restaurants could also promote consumption of high-quality imported poultry, particularly from the U.S., and South Korea will continue to rely on imports to make up the difference and meet demand, according to Research and Markets.

New Delhi poultry prices rise on short supply

The wholesale price of live weight chicken in New Delhi has gone up from INR 72 (US$1.53) per kilogram to INR 93 (US$1.98) per kilogram in just over a month on short supplies, an increase of over 29%, according to the data released by the poultry federation of India.
Correspondingly, the retail price of dressed chicken has jumped by 50%, from INR 120 (US$2.56) per kilogram to INR 180 (US$3.83) per kilogram. A rise in humidity and a corresponding hike in power rates have also contributed to the gain in prices, according to the industry. Even wholesale egg prices have gone up, from INR 2.45 (US$0.05) per piece to INR 2.60 (US$0.06).
Wholesale broiler prices have remained relatively stable at between INR 62 (US$1.32) and INR 70 (US$1.49) per kilogram, depending on the area. Poultry feed prices have held steady at INR 19,600 (US$417.57) per metric ton. 

India may be net poultry importer by 2015

India's poultry consumption is expected to grow 30% by 2014-2015, making the country a net poultry importer by that time, according to Research and Markets' "India Agribusiness Report Q2 2011."
A growing middle class and rising incomes will lead to 34.4 million metric tons of poultry consumed by 2015, according to the report. Connected to this growth, corn consumption is also expected to increase by 30% by 2014-2015, driven by the increase in animal feed demand.

US poultry producers holding off on cutbacks, waiting for improved demand

Poultry producers are focusing on a predicted increase in demand and low debts to avoid cutbacks.

Poultry producers are avoiding production cutbacks in spite of stagnant demand and high animal feed costs, focusing on low debt and a predicted rise in demand to carry them through, according to reports.
The industry's largest companies hope to hold off the possibility of decreasing production for as long as possible. Sanderson Farms said it is counting on the company's low-debt balance sheet to remain steady during the down period, while Tyson Foods Inc. is focusing on an eventual rise in demand coupled with higher chicken prices as consumers switch from the more expensive beef and pork. However, the current situation lends itself to oversupply, according to analysts, who said that chicken eggs are up 0.5% over the same time in 2010 in spite of lower-than-expected consumer demand. Chicken production in the first quarter of 2011 rose 6.4%, and broiler prices dropped in response to supplies, reaching 77.9 cents per pound compared to 2010's 82.2 cents per pound. 
Tyson and Pilgrim's Pride are hedged on grain costs for the next several months, but feed prices are expected to remain high through 2012. If the desired conditions of a rise in demand and an accompanying rise in poultry prices don't materialize, the industry expects to see supplies begin declining this summer.

Nicaragua poultry industry rejects reducing import tariffs

Nicaragua's poultry sector has rejected the idea of reducing poultry prices through the elimination of import tariffs, an idea suggested by the U.S. government in late April, according to Nicaragua Minister of Commerce Orlando Solórzano.
Alfonso Valerio, president of the Association of Small and Medium Poultry Producers of Nicaragua, said it is necessary to find a way to increase poultry in the international market without affecting Nicaraguan producers. He has requested a negotiation between the government and the poultry industry leaders to find a way to avoid the importation of poultry products. "The massive importation of chicken is not going to solve the problem, because production costs are increased for the poultry industry," said Valerio, referring to the rising international prices of raw materials for animal feed.
Nicaragua's poultry industry contributes 3% to the country’s GDP.

India poultry industry suffering from low prices, high production costs

Indian farmers are currently losing about 65 paise (US$0.01) per egg produced and up to Rs 8–10 (US$0.18–$0.23) per kilogram per live bird.

A three-month trend of falling prices and rising production costs for poultry products is causing problems for India, as farmers lose about 65 paise (US$0.01) per egg produced and up to Rs 8–10 (US$0.18–$0.23) per kilogram per live bird.
Typically, about 180.3 million eggs are produced every day across the country, according to records. The selling price now is about 60 paise less than the cost of production of Rs 2.50 (US$0.06) per egg. “The poultry industry is losing about Rs 90 million (US$2.03 million) a day due to under recovery,” said Kohinoor Hatcheries’ Dr. Raghava Rao.
The cost of production of broilers is also up, to about Rs 58 (US$1.31) per kilogram live body weight, and farmers on average get prices of Rs 50 (US$1.13) per kilogram. About 7 million broilers are produced in the country, and the industry is currently losing about Rs 700,000 (US$15,770) per day from broilers. “Chicken prices have crashed to nearly half from Rs 84 (US$1.89) per kilogram of live bird on March 24 to Rs 43 (US$0.97) per kilogram on April 14,” said Rao, adding that the price fall in summer is cyclical but the fall is steep this year.
Increased feed costs, mainly of maize, are pushing up the cost of poultry production, according to the industry. Maize is now selling for about Rs 1,350 (US$30.41) per quintal (100 pounds) compared with Rs 700 (US$15.77) to 800 (US$18.02) per quintal two years ago. Another ingredient, soya, which was Rs 900 (US$20.28) per quintal, is now priced between Rs 2,400 (US$54.07) and Rs 2,600 (US$58.57) per quintal.
India's poultry industry needs 14 million metric tons of maize per year and is growing by 20% annually. The maize production in 2010–11 is estimated to be 20.23 million metric tons across the country. High domestic demand, reduced acreage due to drought, farmers shifting to cotton and a good export market are keeping the prices of maize high, said Dr. G. Ranjith of SR Hatcheries. India's Andhra Pradesh Poultry Federation is calling for the government to relax the 15% duty on maize imports while panning maize and soya exports to help reduce feed and production costs.