futurefeed www.primarymedia.com.au
A magazine for the feed and milling industries in Australia & New Zealand
Rivalea’s Albury feed mill open for business ABARES Outlook Conference 2014 BEC Feed Solutions set to taste New Zealand market
PrintPost Approved PP10003090 ISSN 1032 3759
May/June 2014
Meat & Carcass
Environment Sustainability
Higher Bioavailable Chelated Trace Minerals Enhanced immunity Reduced oxidative stress Improved progeny bone development
Improved bone development strength Improved tissue integrity Reduced mineral excretion
O 2 HMTBa to 1 metal coordinate covalent bonds
O
S
C
C O
C
C C
O C
C
O
O
C
S C
C Only MINTREX can supply producers with a source of organic trace minerals and methionine activity in one package. After delivering its trace mineral to the point of absorption, the HMTBa ligand contained within MINTREX becomes available for conversion to L-Methionine, representing an important added value. ®MINTREX and are trademarks of Novus International, Inc., and are registered in the United States and other countries. ©2010 Novus International, Inc. All rights reserved. 2001-10-14057 EI Novus Nutrition Pty Ltd Top Floor, 103 Victoria Rd, Drummoyne, NSW 2047 Tel: 02 9719 1466 • Fax: 02 9719 1463 www.novusint.com • infoasia@novusint.com
futurefeed www.primarymedia.com.au
A magazine for the feed and milling industries in Australia & New Zealand
Mountains of raw feed materials exposed to the elements in the US
EDITOR:
May/June 2014
EDITORIAL & DESIGN
JOURNALIST/PHOTOGRAPHER PRODUCTION EDITOR
Peter Bedwell Alex Bedwell
Rosemary Embery
GRAPHIC & WEB DESIGNER
Alex Bedwell
ADVERTISING ADVERTISING SALES Peter Bedwell Phone: (02) 4323 0005 Mob: 0419 235 288 Email: primarymedia@bigpond.com Rates are available at www.primarymedia.com.au
SUBSCRIPTIONS AUSTRALIA One Year - $66.00* NEW ZEALAND One Year - NZ$80 OTHER COUNTRIES One Year: Airmail - $A90 Please send payment in Australian dollars. Send payment and full details to: 22 George Street, East Gosford NSW, 2250
FEATURES Page 8: Rivalea’s Albury feed mill open for business The Rivalea feed mill at Corowa is a well known landmark in the town and has been supplying Rivalea’s pig rearing enterprise for more than 40 years and has now expanded its capacity to supply other booming livestock industries like dairy and other commercial livestock species.
NEWS Page 4: ABARES Outlook 2014 Conference Page 6: Skiold &Vacuum and Milling Solutions expands and opens new premises Page 13: Alltech President contrasts China of 20 years ago to today Page 14: BEC Feed Solutions set to taste NZ market
*Australian subscription rate includes GST
ENQUIRIES OFFICE ADDRESS: 22 George Street, East Gosford NSW, 2250 Phone: (02) 4323 0005 Mob: 0419 235 288 Production: 0409 944 472 Email: primarymedia@bigpond.com Future Feed consists of a bi-monthly management magazine and an annual industry review, The Feed Industry Yearbook. Published by C D Supplies Pty Ltd trading as Primary Media (ACN 091 560 557) All material copyright (editorial and advertisements) and may not be reproduced without the written consent of the publishers. Whilst every care is taken to ensure the accuracy of the contents of PORK JOURNAL, the publishers do not accept any responsibility or liability for the material herein.
3
NEWS ABARES Outlook 2014 Conference The Australian Bureau of Agricultural and Resources Economics and Sciences (ABARES) 2014 Outlook Conference was held at the Canberra Conference Center on March 4-5 2014 and Agriculture Minister Barnaby Joyce opened the proceedings on March 4. “Australian agriculture received the second lowest levels of support when compared with other OECD nations,” Mr Joyce said. “Agriculture has become a highly regulated industry, regulated largely to suit urban consciousness,’ he added. “It was the aim of the coalition government to reduce the ‘red and green’ tape that hindered the potential of Australian agriculture to grow to its full potential. On the topic of the $100 million spent on R&D in agriculture, Mr Joyce pointed out, “that for every $1 spent by government on R&D the return was $11.” “Agriculture in Australia, apart from generating exports of more than $50 billion employs far more people than our car industry,” Mr Joyce concluded. In the first session (Economic Overview) Karen Schneider from ABARES in her paper ‘Realizing the opportunities’, spoke about ‘the burden of regulation,’ and the clear need for infrastructure investment within Australia. “Contribution for food growth from 2007 to 2050 would be dominated by Asia with 71% growth, and of that growth China alone would account for 60%,” she revealed. “Global growth was recovering,” she stated and would probably run at around 3.6% to 2019. “Livestock exports would be up and China would account for 50% increase in food production to 2050. “Airfreight was likely to become an important factor in Australia’s export growth,” she added. Yiping Huang from Peking University in speaking about the ‘Economic outlook for China,’ reported that, “the new government had taken a more favourable attitude to unilateral free trade arrangements which previous administration had regarded merely as a tool the US had used to dominate global trade,” he said. Alan Oster, National Australia Bank, the final speaker in this session, predicted an exchange rate falling to US 84cents in 2014 and down to US 80 in 2015 – and obviously this situation
4
would improve the competitiveness of our exports. In the following session, ‘Future of Agriculture’ Jamie Penm spoke on the critical topic of ‘Opportunities in Asia’ “They vary,” he stated. In our traditional markets of Japan and Korea opportunities are limited through declining populations low income growth and high levels of competition for a market with relatively high income levels. “India will grow by 93% 2007/2050, ASEAN nations by 128% but China alone will account for 50% of any increases over the same period,” he predicted. “In China the key driver of meat consumption will be a migration from rural to urban areas resulting in the amount of meat, mostly pork and poultry increasing by 75%. “Local livestock production will be significant but as import barriers are removed there will be opportunities: fast foods or convenience foods will also have a significant effect on consumption patterns,” he added. Matt Linnegar’s from the National Farmers Federation first major point made in his address ‘Profitability and competitiveness for the Australian farmer’ was that we don’t do as well as New Zealand in branding ourselves overseas (despite the fact that we think our clean green products deliver advantage in many markets). He suggested a ‘brand Australia’ would be particularly useful as more free trade agreements currently under negotiation deliver better access to key markets. The first speaker in the ‘Global Focus’ session March 5 was Berry Martin from Rabobank, a farmer, banker, and resident of Brazil though of Dutch family origin and his paper ‘Investment and development in global food markets’ was possibly of most interest for those looking into the true potential for Australian agriculture. “The next global crisis following the 2008 Global Financial Crisis may well be ‘The global food crisis,” Berry predicted. “China’s doubling of GDP per capita will have 21x the significance of Britain’s Industrial Revolution at 100x the scale.” Every month the world population grows by a city the size of Hong Kong. “From 2010-2050 income will increase by close to 200% and consumption will increase by between 60% to double what it is now and most w
1
2
3
4 1. Agricultrue Minister Barnaby Joyce opened proceedings. 2. Karen Schneider from ABARES. 3. Yiping Huang from Peking University spoke about the Economic outlook for China. 4. Alan Oster from the National Australia Bank.
NEWS v
of these changes will occur in Asia,” he said. “China and India, while having 40% of global population, only have 20% of the world’s arable land but our own region, Oceania is one of the areas that has the most arable land in relation to its population: the world’s arable land will decline to .05 hectares per person by 2050,” he warned. “At the same time mega cities will drive the challenge to produce more with less: water availability will become more critical so we need to create more crop per drop,” he said. “Currently yield gains are lagging behind annual productivity which is around 1.4% pa but needs to be 1.752% pa to keep pace with food demand. “Profitability at the farm gate is critical: no cash, no crop and it won’t be the best soils and climate but social enabling factors that will be the key to yield,” he said. Speaking in the questions and answers after delivering his paper Berry stated that consistently, “the best returns came from family owned farms and that we have to show he next generation how they can benefit from involvement with farming.” “Farming is exciting, technologically advanced and a very complex business: though we need entrepreneurs we have to have farmers involved. “He concluded by asking a
question that resonated throughout the conference from government ministers to statisticians, “are we paying too much attention to environmentalists and not to enough to production issues?” he asked. In the well attended ‘Responding to Society Session’ on March 5, Jackie Healing, General Manager responsible for sourcing, quality and product technology at Coles supermarkets, spoke on ‘Responsible sourcing through the food chain – a retail perspective. “Trust, quality, value and the fresh food offer largely determine the store of choice,” she stated. “Consumers believe that supermarkets are responsible for an ethical offer and they want to support local farmers with a regionally provided product but they expect value. Customers don’t always trust supermarkets or regulators but they are influenced by celebrity chefs,” she revealed. “In identifying customer hierarchy of needs, being kind to others (the RSPCA approved meat and poultry products, for example), back to nature, good for me and my family, and being legal and safe, are the key concerns. In the questions and answers at the end of the session Jackie commented that,” Over 95% of our produce is Australian sourced but one of concerns
1
2 1. Berry Martin from Rabobank. 2. Jackie Healing from Coles. remain over the care and attention producers need to pay to maintaining consistent best achievable quality. On the subject of outside influences she commented that, “lobby groups and NGO’s make a lot of noise but are not really capable of fermenting real change in the long run,” she said.
Skiold & Vacuum and Milling Solutions expands and opens new premises Skiold’s Australian and New Zealand distributor, Skiold & Vac Milling Solutions, has recently opened its new premises at Jimboomba Queensland in mid March 2014. “Our business in both Australia and New Zealand has increased dramatically in recent years and we needed more space to accommodate products and more staff,” Martin Liese, Skiold & VMS Managing Director explained. “That Australia and New Zealand is expanding its livestock industries through exports to Asia and around the world is no secret, and we have been the beneficiary of this growth as we provide feed milling equipment to businesses big and small. “Our business started in Australia supplying feed milling equipment to the dairy and beef sector and has expanded
6
into pork and poultry industries is also a growing and important part of our business. “In Australia we have seen a growth in interest for the Skiold range of equipment and for the disc mill from the pork industry,” Martin said. “Having the capacity to produce their own on-farm feed is vital for the rapid expansion of pig rearing
enterprises. “Being able to efficiently mill feed gives farmers greater independence in both ability to formulate specific diets 3 and chose the most cost effective raw materials. Our experience in providing feed milling and automation solutions in a variety of markets is of a great benefit to Australian and NZ growers,” Martin concluded.
State of the art control system monitors multiple batches
Rivalea’s Albury feed mill open for business
By PETER BEDWELL
T
he Rivalea (previously Bunge then QAF) feed mill at Corowa, is a well known landmark in the town and has been supplying Rivalea’s pig rearing enterprise for more than 40 years and now has expanded its capacity to supply other booming livestock industries like dairy and other commercial livestock species. The external wall and infrastructure may have been around for a long time but the mill has been constantly upgraded and today boasts state of
8
the art control functions and the critical ability to supply complex diets to suit the requirements of not only growers but consumer conscious retailers and regulators. The mill has the highest levels of quality and feed safety controls and expert staff who have long experience of addressing the needs of clients and their animals. The Rivalea Feedmill and Stockfeed business is Feedsafe accredited – the Stock Feed Manufacturers’ Council of Australia quality assurance program. FeedSafe is based on HACCP principles and provides a comprehensive Code of Good Manufacturing Practice (GMP), which has a focus on key parts of the business unit including: premises, training, equipment, raw materials, storage, formulations and manufacturing and delivery to clients. The quality aspects of the Rivalea feed products are strengthened through the highly trained committed workforce, expert nutritionists and an experienced procurement team. On May 7, 2014 Rivalea held a seminar and feed mill tour for some of their most valued existing clients and potential customers.
As Australia’s largest pig rearing enterprise, Rivalea and its experienced staff have amassed considerable experience in both pig genetics and optimal animal nutrition. The company host many industry researchers who are able to conduct complex trials in a real industry situation. Over the years this research has contributed massive benefits to the whole of an industry exposed to complex consumer requirements, global competition through imports, and frequent droughts. Despite these impediments the Rivalea business in pork production, quality genetics and feed thrives and grows through both domestic and export sales. It has grown from a stable Australian producer to a globally recognized enterprise. Spiraling raw material costs have encouraged Rivalea to lead the charge in either finding alternative raw materials or combining available crops with advanced additives, to keep itself and now its feed mill customers in business. Dr Cherie Collins, Research and Development Manager at Rivalea, spoke at the seminar session, outlining the overall operations of her company. The primary role of her department she said, “was to initiate, operate and deliver leading research programs to improves Rivalea’s profitability and operation of sustainable production systems”. “This includes a multidisciplinary approach by improving efficiency to reduce production costs: meet food
w
Feed costs too high? This is just one of the challenges that Danisco Animal Nutrition can help you solve. When the pressure's on, turn to us. As leaders in delivering the greatest value from Axtra XB, Avizyme, Porzyme and Phyzyme XP feed enzymes and Betafin feed betaine, we are able to offer both the ingredients and expert knowledge to help keep your feed costs to a minimum.
Danisco Animal Nutrition - more profit from lower feed costs
To find out more please contact your local distributor Feedworks, Australia mal.mottram@feedworks.com.au Tel: 03 5429 2411 david.cadogan@feedworks.com.au www.feedworks.com.au
Danisco Animal Nutrition www.danisco.com/animalnutrition
9
v
safety, environmental and welfare responsibilities also develop new pork products. “Critical research platforms include health, nutrition, growth and physiology, reproduction, genetics, meat science, and finally new product development. Revealing details of diet specifications at Rivalea, Cherie spoke about their specialized starter diets designed to maximise survival post weaning involving multiple changes in nutrient specifications ingredient composition and the use of additives. “We conduct investigation on groups of 800-1000 pigs at a time, recording weights, feed consumption, and mortality levels. “Mortality in the first 10 days post weaning halved with the introduction of our new diet formulation,” she revealed. Cherie then spoke about research conducted on Isoleucine requirement from 5-8 weeks of age and resulting average daily gain. “We continually evaluate current and emerging feed additives for improving growth and survival,” she said. “Rivalea diets are formulated to maximize performance and survival of Rivalea’s PrimeGro Genotype,” Cherie concluded. Chris Brewster, Rivalea’s Sales Manager for monogastrics, a man with more than 25 years experience in the feed industry, addressed visitors by stressing key benefits of using his company’s services. ”Because Rivalea generates large volumes of feed our purchasing power for raw materials and flexibility with grain and protein meal contracts delivers competitive pricing for customers,” Chris said. “Further we can deliver consistent feed quality from our large scale and modern feed mill and our customers get the same levels of reporting and QA efficiency that a large integrator like Rivalea requires,” he said. “There is storage for over 30,000 tonnes of raw material on site and a further 60,000 tonne capacity elsewhere available to us. “Our two 21 inch hammer mills can grind at over 50 tonnes per hour and our sophisticated computer control system means we can produce specific feed batches simultaneously. “Quality control is greatly assisted by the use of NIRS testing of incoming raw materials for protein content, amino acids, fat, DE, ME, starch, fibre and other traits,” Chris revealed. “NIRS helps us identify protein, fat and moisture in finished feeds, also durability before our delivery truck leaves the mill. Rejected loads can be remade if the end product does not meet required specification, he added. w After introducing customers to
10
1
2
3 5
4 1. LtoR: Matt Tull, Primegro Genetics, Alexandra McCorquodale, Marketing and Geroge Wilkes, National Sales Manager, Stockfeed. 2. All batches of feed samples are NIR analysed and given a bar code for future indentification. 3. Precise addition of feed additives to each product. 4. Bar code machine. 5. Old familiar exterior of Rivalea feed mill but now modernised inside.
Above: The novel Electronic Sow Feeding system by Roxell at the Beel farm. Above right: Fresh air is brought to lactating sow snouts as it is released through the slats in the aisle. Right: The Balance Frame system helps to avoid the crushing of young piglets.
LEADING THE WAY IN FEED PRESERVATION, SAFETY AND PERFORMANCE Discovering new ways to improve quality of life... We strive to improve the quality of life by touching half the people of the world everyday with our products and services...
. Learn more at www.kemin.com
Certain statements may not be applicable in all geographic regions. Product labelling and associated claims may differ based upon regulatory requirements.
4
v
the technicalities of feed production at Rivalea’s head office, Chris and other Rivalea feed mill staff – including Nutrition Manager Dr David Henman, took guests on a tour of the mill itself. Though the basic engineering of milling and livestock feed production has been consistent over many years the advances delivered by computer technology and sophisticated quality control aids like NIRS were plain to see. The level of concentration on testing, ensuring traceability as well as quality control is impressive. Chris pointed out the vast array of additives available to the 21st Century nutritionist and how a modern feed mill can use these additives in combination with quality raw materials to achieve more efficient livestock production. The final step of the feed production line was a sampling and testing of every single batch created by the mill. “These samples are not only tested for efficacy and food safety requirement but identified by bar coding and stored for a period should further investigation prove necessary. “This process along with many others are all part of the rigorous FeedSafe quality control programs that Rivalea uses in its feed production process,” Chris explained. Though the Rivalea Corowa feed mill was originally constructed to serve a growing pork producing operation, it has now developed into a key resource for a number of livestock industries in the Riverina region and beyond. While the pig industry may have been challenged by imports and ever increasing feed costs the dairy
1. Dr Cherie Collins, R&D Manager Rivalea. 2. Chris Brewster, Sales Manager Monogastrics, Rivalea. 3. The business end of the mill. 4. Lyndal Hackett looks after the dairy industry at Rivalea Stockfeeds. 5. Raw materials samples.
BIOMIN Research & Development Turning science into sustainable solutions Our strong in-house research and development, and global cooperation with leading institutions and organisations form the basis by which innovative solutions are developed for our customers. BIOMIN Australia Pty Ltd PO Box 2344, Carlingford NSW 2118 Tel: 02-9872 6324, Email: office.australia@biomin.net
research.biomin.net Naturally ahead
12
industry, particularly in areas of Victoria in reasonable proximity to Corowa, is booming. Lyndal Hackett, who looks after a growing number of dairy industry clients, is getting busier by the day. Now with increasing dairy exports, and in particular the prospects of increasing business in the growing Chinese market the future for the Rivalea Corowa mill looks bright. Much has been said by both economists and politicians about the prospects for Australian agriculture as the global population grows and vast numbers in Asia join the middle classes with an appetite for more meat and dairy products. That is happening right now and Rivalea’s enterprise in all its aspects, pork production, genetic supply and feed, looks set for significant expansion of its overall business.
News Alltech President contrasts China of 20 years ago to today The last twenty years have brought unprecedented development to Chinese agriculture, but it also brought challenges that shook the whole food chain in recent years and undermined consumer confidence. Companies that dare to make changes while sticking to their core survived. The ones that are using the latest technologies will have a great future in the world’s largest swine, aqua and feed producing country. Alltech Founder and President Dr Pearse Lyons shared his vision with Chinese industry professionals on the Alltech China 20 Year Celebratory Summit. The event was organized both to celebrate the global animal nutrition company’s twenty years of successful presence and to look into where the Chinese feed and food industries are going. “China must be able to feed itself,” said Dr Lyons to more than 700 attendees at the Summit. The Middle Kingdom has 7% of the world’s arable land and 20% of the world’s population. Yet, the country, is depending heavily on grain or milk imports. Although over 50% of the worlds’s pig production takes place in China, the country is a net importer of pork meat. The agriculture sector in China has gone through tremendous changes, but recent year’s food safety scandals have clearly shown the areas where significant developments need to be made. Lyons believes that the last twenty years were the time of consolidation moving from backyard farming to large, modern integrations.
PRIMARY MEDIA
is set to launch an exciting new magazine for the feed and milling industries in Australia and New Zealand. The is a promotional copy of the
FUTURE FEED magazine
and is designed to show you what it will look like and the kind of articles and advertising opportunities we will be bringing to you. This magazine represents the first magazine produced in Australia and New Zealand specifically for the feed and milling industries. This is an exciting opportunity for all those involved as the team at Primary Media, who also produce POULTRY DIGEST AND PORK JOURNAL, believe this is an industry that will grow hugely over the coming years. For more information and rates please contact Peter Bedwell on 0419 235 288 or primarymedia@pigpond.com
The next two decades will be more of how companies will be able to increase their production efficiency in a sustainable way without damaging the environment and maintaining their profitability. Chinese companies have the capability to quickly adapt technologies and learn from other markets. The latest technologies are available for producers to significantly reduce the risk of diseases and sustainably grow their business. It will soon be critical that Chinese companies use alternative raw material sources. Dr Lyons predicts that such systems as Solid State Fermentation (SSF) will soon allow the production of customized enzyme cocktails for improving digestion, animal performance and health. Algae has already began to play an increasing role in animal production as a source of sustainable vegetable protein or oils (DHA). “Alltech today is a $1billion dollar company. We were one of the very first ones who came to China twenty years ago. “China has become one of the top three key markets for Alltech over the years and will be a strong contributor to our global goal of $4billion in sales in the near future. “We have never been as excited as we are today about the opportunities in China and we look forward to closely supporting the industry in the next twenty years as well,” Dr Lyons said.
FARMERS and FEED MILLERS
FOR ALL YOUR REQUIRMENTS OF:
FULL FAT SOYA BEAN MEAL EXTRUDED EXTRUDED WHEAT CORN SOYA MEAL
Soya beans used in our meals are NOT genetically modified! CONTACT:
SOYA FEEDS
PTY LTD
Ph (07) 4662 4333 A/Hrs (07) 4663 5534
We buy whole soya beans, not gradings, to supply you with a quality meal 13
NEWS BEC Feed Solutions set to taste New Zealand market BEC Feed Solutions Australia has cemented its commitment to the New Zealand agricultural market with the opening of a New Zealand trading arm, BEC Feed Solutions NZ. The move was prompted by New Zealand’s rapidly developing animal production market and thriving dairy industry, which has seen a 70% growth in dairy production over the past 20 years. This, coupled with the dairy industry’s growing preference for supplementary feeding over a solely pasture-based system, provides a sound platform for BEC – Australia’s largest independent animal pre-mix manufacturer - to officially enter the New Zealand market. Specialising in high quality, innovative animal nutrition products, including premixes, feed additives, supplements and feed commodities, BEC Feed Solutions NZ will service the dairy industry plus New Zealand’s calf rearing, horse breeding, pig, poultry, dry-stock and companion animal sectors. Trina Parker, Country Manager and Jennifer McCarty, Technical Services Officer from BEC Feed Solutions NZ.
For all your livestock needs Vegetable Protein Meals, Animal Protein Meals, Vitamins and Mineral Premixes, Feed additives and Supplements, Custom and Standard Millpacks, Animal Health and Husbandry.
Ph: (02) 9609 7922 Fax: (02) 9609 7923 Kym: 0439066054 Luke: 0439066006 kym@nationalfeedsolutions.com.au luke@nationalfeedsolutions.com.au
Suppliers of Elite nutrition and solutions 14
Until now, BEC Feed Solutions Australia has been supplying nutritional products to key manufacturers in the New Zealand market. Growing these existing partnerships and finding new supply relationships is an important part of BEC’s strategy. Brett Antonio, Managing Director of BEC Feed Solutions Australia says the company is well-placed to supply the needs of modern agricultural production in New Zealand. “New Zealand’s animal production industry is growing rapidly, with over 953,000 tonnes of compound feed produced in 2012 and 35-40% of owner-operated dairy farms now opting for a supplementary-feed system. With two dedicated full-time manufacturing plants, sound distribution capacity, leading quality assurance and over 25 years’ industry experience, we are perfectly positioned to service the New Zealand market,� says Mr Antonio. Mr Antonio adds that producing optimum quality ingredients is at the core of BEC’s business philosophy. “Our business is guided by a healthy respect for our relationship to the human food chain and as such we are committed to manufacturing and supplying safe, quality feed products. “This is now more crucial than ever considering New Zealand’s increasing consumer demand, stringent regulations, increasing exports, animal welfare, and the need to maintain competitive quality advantage. “We want to contribute to further growing the country’s animal production market by working closely with New Zealand companies to optimise nutritional health� explained Mr Antonio. BEC Feed Solutions NZ will be managed by a dedicated New Zealand-based technical team, with a collective 20 years’ experience in animal nutrition and health, ingredient procurement and related regulatory controls. BEC Feed Solutions Pty Ltd is an independent familyowned company located in Brisbane. Its mission is to become the leader in the supply of nutritional advice, premixes, feed ingredients and feed commodities to the Australian, New Zealand and international agricultural markets. With the addition of its New Zealand trading arm, BEC Feed Solutions now operates in three countries; Australia, New Zealand and Indonesia. For further information see www.becfeedsolutions.co.nz
15