Think Grain Think Feed June issue 2018

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Volume 4 | Issue 8 June-2018

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EDITORIAL Monthly Magazine for Feed Technology Published by BENISON Media SCO 17, 2nd Floor, Mugal Canal Market Karnal - 132001 (Haryana) Tel: +91 184 4047817 info@thinkgrainthinkfeed.co.in

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Need to halt the use of antimicrobial medicines to promote growth in farm animals FAO advocates that antibiotics and other antimicrobials should only be used to cure diseases and to safeguard the health of humans

Publisher & Editor

and animals. Director-General of FAO, JosĂŠ Graziano da Silva said this at a high-level UN coordination meeting of the Interagency Coordinating

Prachi Arora prachi.a@thinkgrainthinkfeed.co.in

Group on Antimicrobial Resistance in France, which included FAO, the

Managing Editor

Animal Health (OIE), while discussing the current burning issue like,

Dr. T.K. Walli Former Head, Dairy Cattle Nutrition, NDRI

“Anti-Microbial Resistance (AMR). Noting that antimicrobials are still

World Health Organization (WHO) and the World Organization for

being used as growth promoters, especially in livestock and aquaculture, the FAO Director-General said such practices "should be

Marketing & Designing Ashwani Verma info@thinkgrainthinkfeed.co.in

phased out immediately." The increased use and abuse of antimicrobial medicines in both human and animal healthcare has contributed to an increase in the number of disease-causing microbes that are resistant to antimicrobial

Subscription Head Ramesh Kumar Singh info@thinkgrainthinkfeed.co.in

medicines used to treat them, like antibiotics. This makes AMR a growing threat that could lead to as many as 10 million deaths a year and over USD 100 trillion in losses to the global economy by 2050, according to some studies. And in addition to public health risks, AMR

Circulation & Subscription Head

has implications for food safety as well as the economic wellbeing of

Rahul Bhardwaj info@thinkgrainthinkfeed.co.in

millions of farming households across the globe. Graziano da Silva noted that to date only 89 countries have indicated that they have a system in place to collect data on the use of antimicrobials in farm

EDITORIAL COMMITTEE

animals and that "AMR will not be solved in a few years. It will need continuous attention and guidance". Only by working together, the

Dr. Dinesh T. Bhosale Former Chairman, CLFMA of India Mr. Amit Sachdev Indian Representative, US Grain Council Dr. P.E. Vijay Anand US Soybean Export Council Dr. Suhas Amrutkar Subject Matter Specialist, Animal Nutrition, MAFSU, Parbhani Dr. SN Mohanty Former Principal Scientist, CIFA Dr. Meeta Punjabi Mehta Agricultural Economist Dr. Swamy Haladi Feed Additive Expert

international community will be able to address the challenges that antimicrobial resistance poses to sustainable development," he said, underscoring the important role not just of governments but also of civil society and the private sector. An FAO AMR Action Plan seeks to improve awareness on AMR and related threats; develop capacity for surveillance and monitoring; strengthen governance; and promote good practices and the prudent use of antimicrobials. As part of efforts to implement the action plan, FAO is supporting countries and rural communities. FAO, WHO and OIE have decided to intensify their partnership through a Memorandum of Understanding including increase collaboration on AMR. Feed Additives Asia concluded its first conference in Bangkok Recently concluded the three-day Feed Conference witnessed the presence of senior representatives of the specialty feed ingredients sector who came together to discuss trends in the current market and the strategies required for success in the future. The Editor-in-Chief of

Dr. R Gnana Sekar Lead Consultant, GS Dairy Farm Consulting

Feedinfo News Service said that all signs indicate that horizontal consolidation and vertical integrationin the feed additive industry is

Dr. Suraj Amrutkar Assistant Professor, Dept. of ILFC, SKUAST-J, Jammu

expected to continue in 2018. This issue also carries the more details of the conference and its outcome. TK Walli

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Monthly Magazine for Feed & Feed Technology

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Vollume 1 | Issue 10 | August 2015

Contents RESEARCH & DEVELOPMENT

EVENT COVERAGE

05 Seaweed supplementation may reduce methane emission in dairy cattle ARTICLE

26 Feed Additives Asia 2018 discussed the changing trends in Asian Feed Industry INDUSTRY NEWS

08 Impact of Mycotoxins on Poultry Gut

06 Argentina to buy US soybeans 16 China Reopens for US Sorghum

18 Importance of early calf nutrition on its health, production and reproduction

17 De Heus further expands in Mayanmar with USD 16M feed plant 23 Evonik Opens New NIR Lab for Animal Nutrition in Nairobi

INTERVIEW

12 Feed Market Insights by Trouw Nutrition team

24 BioMar expansion plans remains unaffected from low shrimp prices

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Printed by: Jaiswal Printing Press | Published by: Prachi Arora | On behalf of: BENISON Media | Printed at: Chaura Bazar, Karnal-132001, Haryana | Published at: SCO-17, 2nd Floor, Mugal Canal Market, Karnal-132001, Haryana | Editor: Prachi Arora Think Grain Think Feed is a monthly magazine published by BENISON Media at its office in Karnal. Editorial policy is independent. Views expressed by authors are not necessarily those held by the editors. The data/information provided in the magazine is sourced through various sources and the publisher considers its sources reliable and verifies as much data as possible. However, the publisher accepts no liability for the material herein and consequently readers using this information do so at their own risk. Although persons and companies mentioned herein are believed to be reputable, neither BENISON Media, nor any of its employees or contributors accept any responsibility whatsoever for such persons’ and companies’ activities. All legal matters are subjected to Karnal Jurisdiction. Disclaimer : The published material and images are sourced from various websites and newspapers, and used for information purpose only, if you have any issue, please inform us at info@thinkgrainthinkfeed.co.in. BENISON Media or Think Grain Think Feed is not liable for any claim prior to written information.


R&D

Image Source: CNBC

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Seaweed supplementation may reduce methane emission in dairy cattle Seaweed may be the super food dairy

methane-emission standards and sustainably produce

cattle need to reduce the amount of

the dairy products we need to feed the world.”

methane they burp into the

Kebreab's project is the first to test seaweed on live

atmosphere. Early results from

dairy cattle anywhere in the world. His team will

research at the University of California,

publish preliminary findings in late June and begin

Davis, indicate that just a touch of the

further tests with additional cattle later this summer.

dramatically cut greenhouse gas emissions from California's 1.8 million dairy cows. “This is a very surprising and promising development,” said animal science professor and Sesnon Endowed Chair Ermias Kebreab inside the UC Davis dairy barn where he is testing seaweed efficacy with 12 Holstein cows. “Results are not final, but so far we are seeing substantial emission reductions. This could help California's dairy farmers meet new

Methane Reduction Testing supplements in cattle feed is not new. Kebreab and his colleagues at UC Davis and beyond are finding varying degrees of success with a wide range of feed additives. Some compounds work in the lab with simulated cattle digestive systems, but not with live animals. During lab tests last year, researchers in Australia found that just 2 percent seaweed in cattle feed could reduce methane emissions by 99 percent. The seaweed apparently inhibits an enzyme that contributes to methane production. “The molasses masks the smell,” Kebreab said. To test

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ocean algae in cattle feed could

05


INDUSTRY NEWS

R&D

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

seaweed efficacy, Kebreab and animal

to help improve sustainable livestock production in

nutrition graduate student Breanne

Ethiopia and Burkina Faso, where dairy cattle produce

Roque have separated 12 cows into

5 to 10 liters of milk per day compared to the 45 liters

three groups. Two groups are fed with

that cows in California can produce. He is working

different doses of seaweed, and one

with researchers and funding from the University of

group's feed has no seaweed at all.

Florida with support from the Bill and Melinda Gates

They rotate through the two-week

Foundation.

feeding regimens with a week long

“By improving the quality and quantity of dairy

seaweed fast in between.

production in developing countries, we help families

Four times a day, cows get a snack

rise from poverty and malnutrition, and also reduce

from an open-air contraption that

the carbon footprint of cattle worldwide,” Kebreab said.

measures the methane in their breath

If seaweed proves to be a climate-smart supplement,

as they eat the treat.

producing it could be environmentally friendly, too. As

“The numbers we're seeing are

Kebreab notes, “Growing seaweed doesn't require

amazing — well beyond the target

land, fresh water or fertilizer.”

that farmers will need to reach,”

But there is still a lot to learn before farmers should

Kebreab said.

consider feeding cattle seaweed.

Throughout the seaweed diet, the

“We have much more research to do to determine if

cows' milk is tested for qualities like

seaweed supplements could provide a viable, long-

yield, flavor and nutritional content.

term solution,” Kebreab said. “But we are very

Among his many projects, Kebreab

encouraged by these early results.”

recently received a USD 500,000 grant

Source: University of California

Argentina to buy US soybeans The surprise move pushed Chicago soybean futures to a one-month high, in the latest development to upend global soy trading after top buyer China last week proposed tariffs on US imports amid an intensifying Washington-Beijing trade dispute.

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Argentina, the world's third biggest soy producer, booked its largest purchase of US soybeans in 20 years in April after drought cut its harvest, forcing crushers there to turn to imports.

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The US Department of Agriculture (USDA) reported that 120,000 tons of US soybeans were sold to Argentina for delivery during the 2018-19 marketing season that begins September 1. This transaction marks US Soy's largest sale to Argentina since 1997.

Baize said Argentina could import 500,000 to 1 million tons of US soybeans this year. Bulk imports of US soybeans are rare, although Argentina typically brings in some soybeans from neighboring Paraguay. Argentina will need soybeans by October, a time when crushers in the South American country usually lack sufficient domestic supplies, and crushers want to ensure they have enough after this year's drought. European buyers have also purchased large amounts of US soybeans in recent days. US soybeans have been a relative bargain due to surging prices in Brazil. China, which buys about two-thirds of global soy exports, was favoring Brazilian supplies and has proposed tariffs on US soybean imports.

Consistent supply is a key element of the US Soy Advantage. The US Soy supply chain meets and exceeds its customers' needs – regardless of shipment size, product type, location, or even time of year. The US transportation infrastructure is reliable and efficient, which allows its customers to generally experience The USDA separately forecast shorter delivery times when they purchase US Soy Argentina's soybean harvest at 40 versus soy from other sources. With its diverse climate million tonnes, the smallest since 2009's and growing areas, the United States has the ability to crop of 32 million tonnes. produce a consistent, reliable, and sustainable supply of “We're very rapidly seeing a high quality soybeans, rich in protein, oil, and amino realignment in soybean trading,” said acid content. analyst John Baize, president of John C. Source: US Soy Baize and Associates.



ARTICLE

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Impact of Mycotoxins on Poultry Gut Eileen Seung Eun HAN, Biomin Mycotoxins, Silent killers Mycotoxins, secondary toxic metabolites produced from fungi, are present in poultry feed all the time. Even when analysis results show that mycotoxin contamination is below guideline levels suggested by major agriculture countries, there can still be cause for concern. So what does it mean if mycotoxins are present in feed at low levels? Any mycotoxins present in feed are delivered straight to the gastrointestinal tract (GIT) of the birds, the organ most affected by mycotoxins. The GIT is the most important organ for converting feed into energy, and its ability to function properly is directly linked to poultry productivity. The GIT is the biggest immune organ in the body system. Among the major mycotoxins, DON (deoxynivalenol), ZEN (zearalenone) and FUM (fumonisins) are often overlooked when considering their impact on poultry health and productivity since their clinical symptoms are not usually obvious or visible. However, there have been a number of scientific and commercial trials that prove these Fusarium mycotoxins are closely related to some important poultry diseases. Mycotoxin Contamination Situation in South Asia BIOMIN has conducted the Mycotoxin Survey Program

Figure 1. Mycotoxin contamination throughout Asia

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ASIA

08

AFLA 38% ZEN

49&

DON

77%

T-2

3%

FUM

45%

OTA

27% Species risk assessment & percentage positive samples

annually since 2004. The accumulated number of samples is already over 75,000, which makes the program the largest worldwide data pool for mycotoxin analyses. In 2017, the analysed number of samples hit a record high. Overall, 2017 was another high-risk year for mycotoxins in Asia, similar to 2016. The infographic (Figure 1) shows where the major mycotoxins were found throughout Asia in 2017. Taking a closer look at the results from South Asia or India, Aflatoxin (Afla) is still the biggest threat if we also consider the percentage contamination above the risk threshold. The prevalence of FUM and Ochratoxin A (OTA) in South Asia was the highest of all the Asian sub regions (Figure 2). However, Afla has been always the centre of attention that it is relatively well counteracted. Impact of DON and FUM on the poultry gut More problematic mycotoxins are rather FUM and DON. Unfortunately, in India the awareness of these Fusarium mycotoxins is low. DON is a known protein synthesis inhibitor and can interfere with the metabolism of high turn-over cells such as skin cells (epithelial cells), hepatic cells, immune cells and intestinal epithelial cells. Some of the most frequent sub-clinical symptoms of DON contamination in feed are the reduction in feed intake, wet-droppings and a reduction in vaccine efficacy. On the other hand, FUM blocks the synthesis of complex sphingolipids that play a pivotal role in protecting nerves, muscles and membranes. Several poultry feeding trials clearly show that Fusarium mycotoxins such as DON and FUM lead to an up-regulation of pro-inflammatory cytokines in the gut. Seventy percent of immune system is located in the gut, promoting a rapid


Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

mucosal inflammatory response, even when mycotoxins are present at low concentrations in feed. Tight junction proteins in the intestinal epithelium are also regulated by such cytokines. Loosened tight junctions can cause “leaky gut syndrome� resulting in pathogens and toxins entering the blood stream and moving to target

Percent of samples

100%

Figure 2. Mycotoxin Occurrence in India in 2017 Mycotoxin

Afla ZEN

DON T-2

FUM

OTA

Number of samples tested

234

234

234

234

234

234

% with mycotoxin detected

79% 12%

17%

1%

86%

79%

% above health risk threshold

64% 1%

1%

0%

18%

21%

Average of positive (ppb)

25

22

76

18

362

9

Maximum (ppb)

212

79

872

21

3394

134

Recommended max threshold (ppb)

2

50

150

50

500

10

96%

96%

80%

96%

100% 80%

60%

60% 46%

40%

40%

20%

20%

12%

0% Alfa

0% ZEN

DON

organs. As a result, the permeability of intestine is increased and the frequency of intestinal disorders and disease outbreaks can consequently increase as well (Figure 4). Impaired immunity at low mycotoxin contamination levels DON and its co-occurrence with FUM

0% T2

FUM

OTA

0%

0% <LOD

4% 1

>1 mtx

titres against vaccine programs in poultry. Several research results have shown that DON and FUM reduce antibody response to Newcastle Disease (ND) and Infectious Bronchitis Virus (IBV). In one experiment conducted in Austria, the feeding of a DON-contaminated diet decreased serum antibody titres against the IBV vaccine (Figure 4) compared to the control diet. However, the antibody titres for IBV

are known to modulate the immune

improved when the DON-contaminated diet group

function. One good example is the

was fed with Mycofix Select (MSE), a mycotoxin

reduction in the number of antibody

deactivator that includes the DON-biodegrading

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Figure 3. Effects of mycotoxins in poultry

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ARTICLE

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Source: AgWeb contamination on gut condition Figure 4. Consequences Image of mycotoxin

bacteria, BBSH 797.

strategy. It provides reliable protection for birds

Mycotoxin risk management in

against Fusarium mycotoxins by biodegrading

poultry

mycotoxins into non-toxic metabolites. The

When it comes to counteracting

transformation is fast, specific and irreversible.

mycotoxins, the poultry industry

In addition to biotransformation, a bioprotection

tends to think of “toxin-binders� first.

strategy is also important. Variety of feed additives is

However, clay mineral binders are not available that contains plant and algae extracts to provide a hepato-protective effect and to overcome the an effective answer to all major mycotoxins. Especially not against Fusarium mycotoxins since their structures are not suitable for adsorbing by binders. Biotransformation using microbes and enzymes is the most effective

immune suppression caused by mycotoxins. A combination of different strategies can counteract the negative effects of mycotoxins in poultry more completely, especially in cases of multi-mycotoxin contamination with the poorly absorbed Fusarium mycotoxins in poultry feed. Feed additive refers to Mycofix Select, to know further about the product or technology, the author can be contacted at eileen.han@biomin.net

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Figure 5. Effect of DON and Mycofix Select on IBV antibody titres in broiler chickens

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Tel :+74952871354


INTERVIEW

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Feed Market Insights

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Trouw Nutrition – A Nutreco company, is the global leader in innovative feed specialties, premixes and nutritional services in the animal nutrition industry. With total of 11 research units and more than 50 years of dedicated R&D knowledge and experience, the company has large relevant database to support the animal nutrition industry. Additionally, it is also collaborated with more than 60 Universities for research across the globe.

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With its well-established team of subject matter specialists in India, the company only plans to grow further. In an e-interview with Think Grain Think Feed, the core team of Trouw Nutrition share its thoughts about the industry challenges, their expertise, important tips for feed millers and farmers, and much more. Below are the excerpts from the interview.

Dr. Saurabh, India, having one of largest livestock populations, has its own set of constraints. Your comment. As far as poultry production is concerned, the major challenge being faced is high cost of production. If the industry focuses on more effective and efficient solutions, the profitability and productivity will certainly go up. In dairy production, despite being the largest producers of milk, we still face the challenge of reaching economies of scale primarily because of low production. Inefficiencies in production system lead to a hike in price of animal protein which ultimately leads to a lower consumption. Having said that, we believe that there is huge opportunity to increase the basket size of customer. Combining innovation and their practical application is a solution to this problem. Dr. Sabiha, please tell us the kind of role you play in Trouw Nutrition. What are the major changes that you have observed during your 12-year career? I basically, provide nutritional technical services/solutions to customers as per their need and requirement. This in turn helps the customers to trouble shoot their challenges in a more effective manner. There have been many changes but the major ones include use of technology that has improved the efficiency & profitability of the industry, customer knowledge which has gone up largely and with the next generation of customers taking incharge of their organizations are technologically advanced and so is the response to the customers. It also includes the use of automation, NIR technology for quicker nutrient profile of raw materials and even the breed that has undergone genetic improvements and hence the bird performances drastically going up. Dr. Swamy, you have vast experience in Indian as well as global animal industry. Please provide your thoughts on latest trends in Asian feed and feed additive industry. World's feed production is now estimated to be around 1.07 billion metric tons. In 2017, India's feed production has increased by 9%. In that both dairy and layer feed


Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Dr. Saurabh Shekhar

Dr. Suyash Vardhan

Dr. Sabiha Kadari

Dr. Swamy Haladi

With 19 years of experience in animal health and retail industry, Dr. Shekhar started his career with Pfizer and then worked with MARS for 14 years undertaking diversified roles. He joined Trouw Nutrition India in June 2017 as Managing Director and is responsible to drive the growth of Trouw Nutrition India business.

An Animal Nutrition Professional with specialization in Livestock Feed Mill management and technology. Dr. Vardhan has over 15 years’ experience in Animal Nutrition Industry and served different organizations like Vetcare, B V Bio Corp Ltd, Provimi India; subsequently Cargill premix and Nutrition. Currently he is serving Trouw Nutrition as Ruminant Species ManagerAsia Pacific.

Dr. Sabiha Kadari is a

Dr. Swamy Haladi is a Veterinarian with PhD on mycotoxins from University of Guelph, Canada. He has published many peerreviewed papers, book chapters and industry magazine articles. He has assisted the farming community in more than 30 countries in managing their raw material selection, feed quality and feed mill hygiene. Currently responsible for establishing “Feed Safety Program” for Trouw Nutrition in South Asia and manage business in Eastern and Western region of India.

’’

sectors increased by 5% while broiler feed production grew by 12%. While aqua feed production decreased slightly in Asia-Pacific Region, in India it increased by 8%. Today India produces shrimp, prawns, carp and catfish for both domestic consumption and export.

Institute of Veterinary Research, Izatnagar. Dr. Kadari is a recognized poultry nutritionist in India and has provided technical support to most of the key accounts. She has played a pivotal role in popularizing the concept of NIR in India. Currently she is responsible for establishing “NutriOpt Program” for Trouw Nutrition in South Asia and manage business in Southern region of India.

chains and favorable demographics attract various players across the globe while augmenting the market growth. Indian feed additive market is expected to grow at the fastest rate followed by China owing to high population base coupled with rising meat consumption.

Asia Pacific feed additives market is projected to reach US$ 9.263 billion in 2022, increasing from US$ 6.528 Asia Pacific is expected to be the fastest billion in 2016, growing at a CAGR of 6.01% during this growing feed additive market because of period. In 2017, feed additive business for swine, dairy and broilers increased by 9%, 2%, and 1% respectively rising population combined with the increase in per-capita meat consumption while the same decreased by 6% in beef and 3% in layers. Subsidies on meat exports in countries like India are with respect to growth in middle-class spending capacity, especially in South driving manufacturers to increase meat production, Korea, China, and India. thereby fueling the growth of the feed additives market. The amino acid segment accounts for the largest share of The outbreak of disease coupled with the market, whereas the antioxidant and acidifier rising health concern pressurizes segments are projected to witness the fastest growth. regional governments to form regulation Other feed additives include enzymes, vitamins, minerals, in order to standardize animal products probiotics etc. which, in turn, create ample opportunities for future market growth. In today's world, it is hard to imagine poultry and In addition to this, factors like the livestock feeds without the addition of feed additives. modernization of retail trends, an Increased concern over the use of antibiotic growth increase in the number of fast food promoters in animal production has pushed the industry

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Feed economics likely to go down in the near future with the ample supply of major raw materials and with more imports of raw materials

Veterinarian with PhD on organic acids from Indian

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INTERVIEW

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

to come up with innovative alternate feed additives. Dr. Suyash, can you please throw some light on the opportunities and challenges in South Asian dairy sector? Dairying practices by and large in South Asia are somewhat similar. Farmer's low animal holding per dairy farm and fragmented dairying sector is a common feature in South Asia. If we compare, there is a difference between Indian dairy sector and rest of South Asian countries specially Bangladesh and Sri Lanka about their off late serious efforts to develop dairy industry and looking at the possibility to give pace and incentives to local dairy industry to flourish. Few private investors-initiated imports of the live dairy heifers and cows from Oceania specially Australia to initiate modern infrastructure dairy farm with modern technology. In Bangladesh though, dairy industry is still in the process of learning ways of modern dairying but certain private investments are trying to put themselves on faster pace.

huge scope of its development. Challenges in all South Asian countries for dairying are low genetics of dairy animals, low per animal productivity viz-a-viz to global per animal yield, highly fragmented dairy farms, shortage of green fodder and lack of modern know how of dairying. Indian dairy sector, if wants to contribute to the other SAARC markets, it needs to work further on quality milk production and similar efforts at milk processing as it needs to compete with other developed counties as milk powder and other processed milk products are being imported by SAARC counties from Europe, Australia or New Zealand. Dr. Sabiha, feed economics plays a vital role in poultry & livestock industry, how does it change in last 5 years and what are your predictions for near future? Feed economics has been highly volatile – sometimes going down and sometimes rocketing, nevertheless, in general has gone up compared to the last 5 years. The feed economics is likely to go down in the near future with the ample supply of major raw materials and with more imports of raw materials with comparatively better quality and lower prices. Dr. Suyash, having specialization in Livestock Feed Mill management, would you please share some tips on livestock feed mill management to achieve better efficiency and profitability? Feed Milling is a vast subject and directly related to any animal feed production. Few basic considerations in feed millings can be viewed as:

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Similarly, NLDB (National Livestock Development Board), Sri Lanka started ! high tech dairy farming by importing live dairy animals from Australia and creating model dairy farming infrastructure.

14

Other than these countries, India and ! Pakistan are on the same page where still major contribution of milk is through buffaloes. Both the countries identified and initiated efforts in late 60's and got benefitted in terms of consistent growth ! in contribution of Dairy sector in livestock GDP which again is a major contributor to national agriculture GDP. Opportunities for both Sri Lanka and Bangladesh are to grow their dairy sector ! fast as both the countries are heavily dependent on import of powder milk. In order to get self-sufficiency, there could be need of building knowledge base for dairy farming as well milk processing. Dairying in rest of South Asian Countries (SAARC) like Nepal, Bhutan, Maldives and Afghanistan are in early stage of development but at the same time have

!

Stringent quality check on inward material, it is the core and soul of the feed to be produced. Critical ingredients nutrient profile can lead to feed mill profitability. Proper warehousing of ingredients is another critical area in feed mill, which determines the quality of the feed produced by the feed mills. Any spill over of the ingredients over each other will certainly influence end product. Proper understanding of the operators about the machines they have been assigned to manage. Feed mill's efficient life always remain in the hands of its operators, who can increase of reduce expected performing life of the machine. A detailed dynamic overview of machine efficiencies must be on the dash board of the Feed Mill manager. Like Ingredients can vary the formula if nutrients are not being estimated, likewise machine can also alter the formula if proper scheduled maintenance is not achieved to draw maximum efficiencies out of it. Quality control of Feed Produced and its correlation with its performance in the market should be the ultimate result of the feed mill efficiency.


Dr. Haladi, you have been an expert on mycotoxin management, please share present scenario of Indian feed industry. What tips you would like to share for mycotoxin management? India is self-sufficient on the raw materials required for producing livestock and poultry feed. This has an advantage when it comes to mycotoxin management as we don't have to worry about different types of mycotoxins coming through importing raw materials. The kind of mycotoxins found in Indian raw materials differs from those

Trouw Nutrition team at their new facility in Hyderabad

imported from countries like USA,

effective mycotoxin management as some of the

Argentina, and Ukraine.

mycotoxins like aflatoxins can end up in animal products

Mycotoxin management is an integrated

such as milk.

approach. It should start from the field

Dr Saurabh, could you please tell us what are strengths of Trouw Nutrition that makes it stand the farms where feed was fed to animals. ahead of its competition in the market? In India, grains and protein sources are The strength of Trouw Nutrition is that we believe in where crops are grown and continue till

procured from many small farmers and

solution-based approach, combining innovation and practical application. We believe in “customer-first� and formation in the field. However, understand that the need of the hour is a complete preventive measures can be taken during package consisting of products, know-how and services. storage of raw materials and feeds and Our understanding of this fact results in a consultative transportation. approach and not transactive which is also appreciated by the customers. Spraying liquid organic acids onto raw Further, we strongly believe in our values of being materials before storage is one of the innovative, capable, caring and collaborative. proven method of limiting mold growth hence difficult to control mycotoxin

and mycotoxin contamination. This is not Can you also share a brief of Trouw Nutrition product practiced heavily in India and the use of portfolio in India? How important is India on Nutreco's radar? this technique can prevent the spoilage of raw materials to a greater extent. The powder form of organic acids can also be added to the feed to prevent mold growth. The dose of organic acids depends on the length of storage, moisture content of raw materials and

We believe that research and innovation are the key to sustainable development. All our products and services are aligned with this concept. Realizing the need of animal nutrition industry, the key focus areas for innovation are Life start, Health & welfare, and Precision Nutrition.

Further in line with the current need of industry we have developed programs which combine products, services Once mycotoxins are produced in raw materials or feed, they can't be killed by and technical know-how to support customers overcome the challenges of production. The following programs heat treatment or the use of organic have been optimised for our customers: Antimicrobial acids. However, their entry into blood Resistance Programme, Feed Safety Programme, circulation can be reduced by the use of Mycotoxin Risk Management Programme and Trace proven mycotoxin binders. Good quality Mineral Programme. India is a key priority market and is a clay binders are effective for binding focus for Nutreco and Trouw. This is also reflected in the aflatoxins while other mycotoxins may recent investment by Nutreco in a company called have to be managed by the combination Eruvaka. Eruvaka is an India-based Internet of Things (IoT) of technologies such as enhancement of that develops connected devices and mobile-based gut health and immunity. HACCP-like decision tools to help aquaculture farmers reduce risk and approach needs to be applied for increase productivity.

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humidity in the atmosphere.

15


INDUSTRY NEWS Image Source: The Australian

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

China Reopens for US Sorghum In an unexpected sign of goodwill ahead of trade talks with the United States, China announced in May that its Ministry of Commerce had terminated its anti-dumping and countervailing duty cases related to US sorghum and revoked preliminary duties on imports of the grain. This critical good news for US sorghum producers and exporters – and US agriculture as a whole – has led to increased prices for sorghum farmers nearing harvest and caused at least some shipments of US sorghum on the water to turn back to China.

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Still, the episode highlights the risk trade policy poses to the grains marketplace, particularly but not exclusively as it relates to China.

16

pending cases. Urged by the industry and the Council, the White House, US Department of Agriculture and the Office of the US Trade Representative also intervened with the Chinese on sorghum's behalf. The Council, working with USDA's Foreign Agricultural Service (FAS), rapidly ramped up marketing programs for US sorghum in countries with the potential for new purchases or purchases of the product for the first time. “We are confident that markets that already know US sorghum, like Japan, Mexico and Morocco, will continue to look at it, while others that haven't bought it frequently, like Saudi Arabia, countries in South America and more, will look at it now,” Sleight said. “Sorghum has many attributes, and one upside of the issues with China could be that more buyers become aware of the product.”

That diversification is important as there remains an outstanding threat of a 25 percent tariff from China on sorghum, corn and other products, in retaliation for “The re-opening of the sorghum market in China, with removal of the potential US tariffs. US feed grains and their related 178.6 percent duties initially imposed, is products also face a plethora of other concerns in China: US corn exports have been challenged by undoubtedly good for sorghum systemic issues with biotech trait approvals; US distiller's farmers, and all grain market participants,” said US Grains Council dried grains with solubles (DDGS) face duties from antidumping and countervailing duty investigations; and US President and CEO Tom Sleight. ethanol is limited by a 45 percent tariff. The shift in China's approach to sorghum came following significant efforts by the US sorghum industry to respond to the investigations China brought earlier this year. The Chinese announcement indicated that a review of the evidence in the cases showed the duties would harm the Chinese feed industry and consumers, an argument made by the US sorghum industry in its extensive defense as part of the

The quick application and removal of preliminary duties on sorghum also has caused significant issues for grain traders who had sorghum en route as well as buyers of the grain in China. “The development from China on US sorghum is a step in the right direction for US-China trade relations, and we hope it is a platform for further lessening of tensions and challenges facing US grains exports to China,” Sleight said. Source: USGC


Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

De Heus further expands in Mayanmar with USD 16M feed plant Animal feed firm De Heus recently announced the launch of its second production site in Myanmar. This feed plant in Mandalay, combined with the Yangon facility, will enable the Netherlands-based company to tap into the growing demand in both upper and lower Myanmar markets.

“I am particularly proud that by investing in a 516kW rooftop-based solar energy system, which is able to produce 663MWh of renewable energy per year, we will save 1.5MT of CO2 emission. Thereby, we have established the most sustainable feed mill in Myanmar.

The Myotha factory involves USD 16 million, while the overall investment in the country has now exceeded USD 30 million, according to Johan van den Ban, managing director of De Heus Myanmar.

(FDI), while reliable and secure power supply as well as improved infrastructure for river and land logistics as well as a seaport are key factors.

He also highlighted a few areas where the country should work on in order for the sector to flourish. First of all, strict policies to prevent for illegal imports of animal protein Located on 26,000 square metres in products, including live animals, from Thailand and China Myotha Industrial Park near Mandalay, should be in place and enforced. Nay Pyi Taw has to the factory has an annual production protect the domestic livestock farmers, as in the current capacity of 280,000 MT and is supported condition it's challenging for them to be competitive. by a rooftop solar installation, making it Secondly, access to finance for livestock farmers, both among the Myanmar's most sustainable working capital and loans to invest, should be enhanced. feed production site. The sector has to modernise, which requires capital. Royal de Heus, a family-owned company Currently, farmers are generally not able to get a loan, because banks only offer simple collateral-based loans. headquartered in the Netherlands, was founded in 1911. In Asia, it is present in Other than that, a clear legal framework, including land China, India, Vietnam and Myanmar. law, could attract much more foreign direct investments

He expected an annual growth of around 15-20 percent for the livestock drug market in the coming years, as consumption of animal proteins through meat, milk, eggs and fish is increasing rapidly. “Since our arrival in Myanmar, the livestock sector has gradually developed. De Heus Myanmar has now become the leading supplier of animal nutrition solutions to independent farmers nationwide,” Mr Van den Ban remarked, adding that the technical know-how and quality feed will help scale up Myanmar's production of animal protein and facilitate the professionalization of the livestock sector.

www.benisonmedia.com

Mr Van den Ban told The Myanmar Times that building a plant in Myotha will allow De Heus to meet the growing demand and increase the sales volumes in upper Myanmar “significantly”. With production capacity at the Yangon site having already reached its limit and monthly sales figures still rising fast, a second production site was required.

17


ARTICLE

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Importance of early calf nutrition on its health, production and reproduction

www.thinkgrainthinkfeed.co.in

Suyash Vardhan, Jeanne Boekhorst and Erik Rensink

18

A new born calf, being away from the

essential fatty acids and amino acids) and also non-

protection of its mother's womb,

nutrients (Biologically active substances).Colostrum is

immediately faces the environmental as

also known to be rich in a variety of molecules. The ratio

well as feeding challenges. Early Calf

of colostrum composition to mature milk composition

nutrition is one of the important areas

with respect to these molecules is relaxin (>19:1 pig),

of recent research work in Animal

prolactin (18:1 cow), insulin (65:1Cow), IGF-1 (155:1

Sciences, which is now being evaluated

cow), IGF-2 (7:1 cow), and leptin (90:1 humans).

not only for the growth parameters of

As per recent research, Colostrum has been shown to

the calf as per its breed standards, but

have a major effect on the development of the

also the impact of early nutrition on

gastrointestinal tract for a long period, though the exact

animal's productivity, reproductive

mechanism is still not known. Some studies have

potential i.e. fertility and longevity for

demonstrated differences between animals fed

rest of its life.

colostrum, rich in growth factors, versus those fed milk,

The life of a dairy calf is largely

with comparable energy values, though some studies

dependent on the proper amount of

are not in agreement with their findings.

Colostrumit consumes in first 3 days of

Colostrum is particularly considered to be important for

life. Colostrum contains all the

the passive immunization of the newborn Dairy Calf as it

necessary nutrients, immunoglobulins

is a combination of various specific (immunoglobulins,

and essential growth factors which are

Ig) and non-specific (humoral and cellular) antibacterial

much required to protect the new born

factors which passes to the calf and largely supports its

calf from external environmental

protection against any infections during the first days

challenges. Colostrum contains both

after birth. Faber et al. (2005)demonstrated that the

nutrients (Protein, Fats, Lactose,

amount of colostrum provided to calves at birth


Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

In the same line, whole milk feeding has positive impact on the future milk production as long-term effect of a calf which was compared with the calf raised on milk replacers, but others suggest that the long-term effect is related to nutrient intake and pre-weaning growth rates and not some milk-born factor. Feeding medium fat Calf milk replacers have its own certain benefits such as maintaining the consistent nutrient quality of the calf milk on regular basis, minimizing the chances of disease/antibiotic transmission from infected mother post-partum, as it contains high levels of vitamin and trace mineral more adequate for calf requirement. Some studies suggest that in calves the effects of suckling, controlled intakes and ad-libitum feeding from birth up to 56 days of life increases the nutrient intake prior to 56 days of life from milk. It resulted in increased milk yield during first lactation ranging from 450 to 1300 kg compared to the milk yield of restricted fed calves during the same period. Recent recommendations for early offering of good growth rate and showed a significant effect on the milk yield for first and second lactation. In both lactation, animals fed 4L colostrum produced significantly more 305-d computed ME milk compared to heifers fed 2L of colostrum at birth. In the first lactation, animals in the 2 L group had 955 kg less (P <0.01) 305-d ME milk compared with those in the 4 L group. This difference escalated in second lactation more, being9907 ± 335 and 11294 ±

quality calf starter is also considered to be one of the important factor for higher average daily gains of young calf as well smooth weaning. Milk feeding program affects calf starter intake based on the amount being fed and the percentage of protein and fat in the milk or milk replacers. Water is an essential nutrient for the calf and its availability affects weight gain to an extent. Proceedings 50thFlorida Dairy Production Conference, Gainesville has clearly defined as a summary approach in order to build a calf into a good performing dairy cow which is as follows: 1.

The pre-weaning period is a period of life where the

335 vs 8952 ± 341 and 9642 ± 341 kg

calf is undergoing significant developmental

at first and second lactation

changes and this development is directly linked to

respectively. This clearly indicated that

future productivity in the first and subsequent

greater volume of Colosturm fed to the

lactations.

Calves at birth led to superior milking

2.

Pre-weaning growth rate and primarily protein

performance as an adult.

accretion appears to be a key factor in signaling the

Once Calf enters in 4th day of birth,

tissue or communication process that enhances life-

there is a switch over to either milk or

time milk yield.

Calf milk replacers (CMR). The

3.

Anything that detracts from feed intake and

superiority of whole milk over medium

subsequent pre-weaning growth rate reduces the

fat content Calf milk replacers is largely

opportunity for enhanced milk yield as an adult.

associated with the high amount of fat,

4.

Nutrient supply, both energy and protein are

which may be available in whole milk.

important and protein quality and digestibility are

Though high fat content may not

essential.

promote lean tissue deposition and

5.

There are no substitutes for liquid feed prior to

that modest fat content actually may

weaning that will enhance the effect on long term

result in greater growth of the lean

productivity.

www.benisonmedia.com

significantly influences pre-pubertal

tissue in young calves.

19


ARTICLE

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

6.

7.

Factors other than

but also effectively support the proper development

immunoglobulins in colostrum

of the Foetus developing in the uterus. Nutritionally

modify feed intake, feed efficiency

balanced diet is also important for the dry pregnant

and growth of calves and can

cow in order to avoid the metabolic disorders at or

enhance the effect of early life

post-partum like milk fever, ketosis or hypo

nutrient status.

magnesemic tetany etc. These metabolic disorders

As an industry and as nutritionists

are quite common in South Asia where still

we need to talk about

awareness and adoption of transition diets is not

metabolizable energy and protein

quite common

intake and status relative to

8.

about liters, kilograms and grams

lower performance of the cow or heifer after

of dry matter, milk, milk replacer

calving. Adequate minerals and vitamins are

etc. The calf has discrete nutrient

important to the dry cow and the calf developing

requirements not related to dry

inside her. They are also necessary for the dam to

matter and liquid volume

minimize health problems around freshening time,

measurements.

such as preventing retained placentas, and to

The effect of nurture is many times

improve the immune system so that the cow can

greater than nature and the pre-

fight off a disease challenge, such as mastitis

weaning period is a phase of

infection, just before or after calving. 5.

Post-partum; as nutrient demand for milk

productivity of the calf can be

production increases in fresh period which if not

modified to enhance the animal's

supported by compensatory intake of the nutrients

genetic potential.

as per the recently calved cow requirement, one of

An effective calf's early nutrition and

the main casualty of the resultant deficit will be

rearing program does not start with the

reproductive system of the cow. This deficit will

birth of the new born instead it should

adversely impact the synthesis and secretion of the

be built when calf is in the uterus of the

hormones. As a result of it, this will influence milk

mother cow. Certain factors should be

let down, quality and quantity of the milk as well

considered as MUST in terms of feeding

subsequent follicular development, thereby delayed

the pregnant dry cow so the early

estrus and further conception. The quality of milk

nutrition starts for calf; when it is still

will be having detrimental effect on the intakes of

not born. It can be viewed as follows,

the calf during its early development.

1.

www.thinkgrainthinkfeed.co.in

Under feeding dry cows and springing heifers does not result in a smaller calf but instead results in

development where the

20

4.

maintenance and stop talking

2.

Robust and sound feeding and proper management program of

months of pregnancy, the care of the cow must

Dry Cow at least 2 months prior to

continue even after the birth of new born cal. It is

the expected time of delivery or

important to adopt the good management and health

freshening of the pregnant dry

care practices in order to provide hygienic and aseptic

Cow.

environment to the new born calf. Calf needs to be fed

All scheduled vaccination of the dry Cow to be given so the colostrum post-partum must not lack the requisite antibodies or protective factors to provide effective shield to the new born calf.

3.

While taking care of pregnant cow in the last two

Dry Cow diet needs to be balanced as per the nutrient need both in far off and close up period. This not only maintains good body condition of the pregnant mother

Colosturm ad lib within one hour of birth, not later than 3 hours of birth. This is quite important as Calf takes birth without any immunity. Colostrum is the best source of passive immunity to the new born calf as there is no antibody transfer from mother to Calves through placenta. The early feeding of colostrum to calf is important as its intestine is most receptive to absorb immunoglobulins as well growth factors in early hours of its life. Further, Calf diets should also be reviewed for its proper intake in order to grow better as well maintains breeds specific ADG (Average Daily Gains). Certain such



ARTICLE

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

guidelines can be viewed in context of

Colostrum, whole milk and reconstituted Calf Milk

composition and characteristics of

Replacer.

Table -1 Composition and Characteristics of Colostrum, whole milk and reconstituted Calf Milk Replacer (1lb CMR powder +7 lbs. water) =454 g +3.3 Ltr. Item

First Milking Second Milking Second Day

Third Day

Whole Milk Calf Milk Replacer

Specific Gravity, g/ml

1.056

1.04

1.034

1.033

1.032

Total Solids, %

23.9

17.9

14

13.6

12.9

12.5

Fat %

6.7

5.4

4.1

4.3

4

2.5

Non-Fat Solids, SNF %

16.7

12.2

9.6

9.5

8.8

11.25

Proteins, %

14

8.4

4.6

4.1

3.1

2.8

Lactose %

2.7

3.9

4.5

4.7

5

variable

Immunoglobulins %

6

4.2

1

Source: Feeding the dairy herd, Feeding Guide; Mike Hutjens, 2008

Once Calf starts Calf Milk Replacers or Whole milk, following feeding schedule can be maintained in order to maximize its intake which may reflect in terms of ADG/day. Feeding calves in their early life without restricting their feed, provokes major

Table -2 Nutrient recommendation of diet for Calf and heifer on Dry matter basis. Age in Months

changes in metabolic profiles related with cell proliferation pathways,

Item

Calf Milk Replacer Calf Starter 3-6

6--12

12-24

protein/energy metabolism and

Body Wt. Kg,

45

alterations of immune response.

68

200

300

450

Dry Matter Intake, Kg 0.68

2

5

7.2

11.4

ME , Mcal/kg)

4.75

3.28

2.05

2.27

1.8

TDN % of DM

95

80

67

65

65

implications in calves, which could

Crude Protein %

22

20

16

14

12

potentially be carried into adulthood.

Met. Protein %

NA

NA

7.7

7

5.3

Dr Michael Steele from the University of

ADF %

NA

11.6

20

22

23

Alberta, Canada believes research in

NDF %

NA

12.8

30

32

33

this area marks a huge step forward for

Ether Extract %

15

3

2

2

2

Calcium %

1

0.7

0.41

0.41

0.37

Phosphorus %

0.7

0.45

0.28

0.23

0.18

However, the novel revolutionary

Magnesium %

0.07

0.1

0.11

0.11

0.08

thinking is that optimizing calf rearing

Chloride %

0.25

0.2

0.11

0.12

0.1

and feeding in those first few weeks of

Sodium %

0.4

0.15

0.08

0.08

0.07

life offers a huge opportunity to

Potassium %

0.65

0.65

0.47

0.48

0.46

Sulphur %

0.29

0.2

0.2

0.2

0.2

Vitamin A, IU

4000

8000

24000 24000 36000

Vitamin D, IU

270

1200

6000 9000

13500

Vitamin E , IU

100

100

240

240

360

Cobalt, ppm

0.11

0.1

0.11

0.11

0.11

Copper, ppm

10

10

10

10

9

Iodine, ppm

0.5

0.25

0.27

0.3

0.3

Iron,ppm

100

50

43

31

13

Manganese, ppm

40

40

22

20

14

Selenium,ppm

0.3

0.3

0.3

0.3

0.3

Zinc,ppm

40

40

32

27

18

Furthermore, the pre-weaning nutrient supply has clear short-term developmental and metabolic

the industry. “Traditionally we have restricted feeding for calves based on a misconception that this is cost effective.

improve long-term cow health, welfare

www.thinkgrainthinkfeed.co.in

and performance,� he commented.

22

Source: Adapted from feeding the dairy herd, Feeding Guide; Mike Hutjens, 2008; NRC 2001 and NRC 1989.


INDUSTRY NEWS

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Evonik Opens New NIR Lab for Animal Nutrition in Nairobi exact science over the past decades. To formulate feed according to a certain specification requires knowledge about the nutrient contents of all relevant raw materials. Since these vary considerably, it is important to analyse the raw materials on an ongoing basis with latest NIR technology. This ensures high feed quality and keeps feed costs under control. “At Evonik, we see great potentials in the East African market coming from the double-digit growth of the poultry industry in recent years,” commented Cuthbert

The new Evonik laboratory brings vital technical support to the local and regional feed markets. “We hope to extend the best levels of support to our partners not only in Kenya but in the entire East African region including countries like Tanzania, Uganda, Ethiopia and Rwanda”, said John Owaga, Technical Service Manager for Animal Nutrition in East Africa at Evonik.

decision taken to bring technology closer to the clients

Animal nutrition has become a more

and better understand their needs.

Mamabolo, Regional Business Director for Animal Nutrition at Evonik. Five years ago, Evonik established a direct presence in East Africa with a representative office in Kenya. However, the German speciality chemicals producer was active in this region for decades through external distributors. Today, Evonik caters to the feed industry for poultry, dairy, pigs and fish with key products. Opening a laboratory in Kenya is a key strategic

www.benisonmedia.com

In May Evonik inaugurated its first laboratory for its animal nutrition business in Nairobi (Kenya). Equipped with state-of-the-art NIR technology, the facility helps feed producers evaluate their raw materials through accurate analysis of a very wide range of nutrients. Furthermore, analysis of poultry feeds is also covered by this unique service.

23


INDUSTRY NEWS

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

BioMar expansion plans remains unaffected from low shrimp prices Feed producer BioMar Group is steaming ahead with its investments in greater production capacity after its recent acquisition in Ecuador despite low prices for shrimp globally. The Danish firm said in a press release that it is adding a fifth production line at shrimp feed producer Alimentsa in Ecuador, which it bought last year.

www.thinkgrainthinkfeed.co.in

"It is a relatively small investment as the new line fits into our present facilities, and thereby we expect it to be ready already early next year," Danny Velaz, Alimentsa's general manager said. "Our new feed trial and development facility announced in November, is also progressing according to schedule and will be operational later this year."

24

Roberto Bolona, Alimentsa's former executive, added that the firm was setting up a new research and development centre, which would allow to develop its portfolio of balanced feed products with BioMar “unconditional support”. In the recent press release, Velaz said that the company won't waver from its plans as Ecuador remains well positioned, despite the recent price drop for shrimp.

"Overall global shrimp consumption continues to increase, and in terms of quality and sustainability Ecuador has the upper hand. China is the largest market for shrimp, but the local production in China is facing new tough environmental restrictions and this will limit the supply," he said. Alimentsa revenue The Alimentsa acquisition brought BioMar's revenue up 12% in 2017. "The financial results for the year reveal a significant increase in revenue as well as solid EBIT [earnings before interest and tax] exceeding expectations," it noted in its annual earnings report. "Driving factors have been expansions into new markets and an increased focus oninnovation and sustainability," it also said. The company delivered increased revenue of DKK 9.96 billion ($1.65bn) compared to 2016, while EBIT reached DKK 559 million. “I believe that our strategic decision to safeguard local agility has proven to be a strong competitive advantage across our markets," said Carlos Diaz, CEO of BioMar. Diaz noted 2017 saw the first full year with operations in Turkey and China, as well as the completed acquisition of Alimentsa "to complement our presence in the shrimp segment, together with our factory in Costa Rica." On top of this the firm initiated its factory project in Australia; started the biggest fish feed line in the world and began operations of its new liquefied natural gas vessel in Norway. Source: undercurrent news



EVENT COVERAGE

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

Image Source: Institute of Aquaculture

Feed Additives Asia 2018 discussed the changing trends in Asian Feed Industry

www.thinkgrainthinkfeed.co.in

On 16-18 May 2018 over 200 senior representatives of the specialty feed ingredients sector came together at the Millennium Hilton Hotel in Bangkok, Thailand to discuss trends in the current market and the strategies required for success in the future.

26

R&D knowhow," he commented. CHINA

Mr Duke also detailed how foreign firms consider China a "low-cost production hub." Examples of toll manufacturing agreements include Evonik's and Fufeng's threonine manufacturing cooperation in Northern China, as well as Ajinomoto's sub-contracting of lysine and threonine production to Meihua, as part of the Japanese firm's During the three-day conference, strategy to accelerate a shift to specialty feed additives. founders, CEOs and business leaders from To demonstrate the current importance of China in the global feed additives producers and global amino acid and vitamin production map, he cited buyers heard from academics, expert advisors and their own peers in a series of Professor Qi Guang-Hai, of the Chinese Academy of Agricultural Sciences (CAAS), who spoke at Feed Additives presentations and groups discussions. Global 2017 in Frankfurt in September last year. The CAAS MARKET INSIGHT professor has estimated that China produces 70% of feed In an overview of the ongoing grade vitamins in the world, and the nation also produces consolidation in the global animal 41% of feed grade amino acids. nutrition sector, Simon Duke, Editor-inDuke, however, warned that Chinese vitamin production Chief of Feedinfo News Service, pointed can be expected to become more expensive as China's out that diversification continues to be many vitamin factories can be affected to various degrees "the name of the game." by the enforcement of environmental protection measures. Giving the inaugural presentation, Duke said all signs indicate that consolidation in the feed additive industry is expected to continue in 2018 and can be described in two forms: horizontal consolidation and vertical integration. The vertical trend is driven by the industry's ambition to bring to market solutions that address key issues like antibiotic reduction.

“It is necessary for China to invest to bridge the gap and they will also need to focus on improving their breeding strategies,� Mr. Kennes said.

"Providing strong global brands will remain key as the market is eager to invest in reliable products with proven

In terms of antibiotic growth promoters (AGP), he said that companies in the region need to apply better farm management practices to be able to move away from AGPs.

Continuing the discussions on the Chinese market, the second speaker of the day Dirk Jan Kennes, Global Sector Strategist, Farm Inputs at Rabobank believes China will need to invest in its livestock industry to upgrade it to bridge the gap between its sector and that of the rest of the developed world.



EVENT COVERAGE The farmers need to be educated so that they can enable themselves to improve their practices.

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

(General Manager, Trouw Nutrition) taking on the challenge of describing the shape of the industry in 2050.

Liu, Redman, and Nayak were in agreement that among the biggest challenges for feed additive companies in Asia are Following presentations from Charoen limited raw material resources, animal diseases Pokphand Foods (CP Foods) and the Food management, regulatory barriers, optimal farm and Agriculture Organization of the management and lack of institutional support. United Nations (FAO), Feedinfo News Limited resources and using them in an optimal way can be Service Lead Analyst, Martijn de Cocq quite a task. presented attendees with a pricing update “There is such a variety of raw materials that it is important for the major vitamins and amino acids to have the right feed additives to maximize digestibility as covered by Feedinfo. well as consider the health of the animals,” Nayak said. He “It has been a roller-coaster ride in the also argued that optimization of feed management to past year for nearly all vitamins, and it is ensure food safety will gain more and more importance in still ongoing as we speak.” the region. “Although fundamentals (e.g. increased Liu, meanwhile, pointed out that the APAC region lacks cost price due to new environmental adequate assessment testing facilities to measure the regulations in China) - exacerbated to efficacy of feed additives. “How do you judge the accuracy some extent by BASF's Citral force of feed additives?” he said, “This is still an issue in the area.” majeure are obvious, it was almost unbelievable to see how much sentiment The impact of animal diseases is also very consequential in the Asia-Pacific region. For instance, in 2004 when avian was involved and how much insecurity influenza rocked Thailand, there was hardly any chicken there was at end-user level about the available, Redman commented. fulfilment of their supply chain and “And the big challenge is the management of diseases,” he pipeline,” he added. added, especially now that AGPs are being phased out in “By now a lot of vitamin prices have some countries of the region. stabilized at a high level and/or are PRICING

coming down again,” de Cocq said. “More than with amino acids we do on the one hand expect to see volatile markets going forward, but we also expect prices to come down.”In the near-term Feedinfo remains bearish for the biggest part of the vitamin group, with good examples being Vitamin E and D-Calpan at the moment. “But longer term 2018-2020, though fundamentals should indicate a steadier and somewhat bearish market, we expect that the main drivers for the trend will be for example sudden supply chain interruptions, shortage of intermediates and market sentiment,” he commented.

www.thinkgrainthinkfeed.co.in

OVERCOMING LOCAL CHALLENGES

28

In addition to presentations from industry veterans and experts from around the world, Feed Additives Asia featured several panel discussions with leaders of the Asian industry talking candidly and honestly about the issues facing the region. The second day of the conference began with Kevin Liu (Vice President – Technical Services & Business Development Asia Pacific, Adisseo), Robert Redman (General Manager, DSM) and Ramakanta Nayak

“There is above all a need for farm management strategy to help with disease management,” he went on to say. “Good biosecurity first, then we can support the growth with feed additives.” Looking at the case of fish farming, Nayak said genetic breeding lines are also a challenge. “Fast growing fish creates more disease risk,” he said. Changes in government policy in Thailand and Indonesia or in other countries without industry involvement can be quite damaging too. The panelists also believe regulatory barriers are tough and cost to register feed additives products in Asia-Pacific markets can be enormous. “It can sometimes take years and millions of dollars in investment,” Liu commented. “The best innovative products are in danger of not getting on the market in time.” “The registration processes are very time-consuming and sometimes you're missing the innovation. It's then too late to respond to the current needs,” Redman added before saying that banning AGPs without having first trained the farmers or consulted with the industry can be fatal. Additionally, the industry should not underestimate the negative publicity it receives. The panelists agreed that this will continue to haunt the sector in the coming years. And social media will only help accentuate the issue. Feed Additives Asia concluded with technical seminars covering aquaculture, gut health, and regulation.



2018

CALENDAR OF EVENTS

Think Grain Think Feed - Volume 4 | Issue 8 | June 2018

JUNE

AUGUST

AquaVision Date: 11-13 June 2018 Venue: Stavanger, Norway Email: info@aquavision.org Web: www.aquavision.org

25th Annual Practical Short Course on Aquaculture Feed Extrusion, Nutrition and Feed Management Date: 26-31 August 2018 Venue: Texas A&M University, USA Email: mnriaz@tamu.edu Web: https://perdc.tamu.edu/extrusion/

International Feeds & Nutrition Course improved Schothorst Feed Research Date: 11-15 June 2018 Venue: the Inntel Hotels in Zaandam, near Amsterdam Email: mdwitte@schothorst.nl Web: www.schothorst.nl

VIV Europe Date: 20-22 June 2018 Venue: Jaarbeurs Utreach, the Netherlands Email: karlienke.smitt@vnuexhibitions.com Web: www.viveurope.nl

Dairy, Livestock and Poultry Technology Exhibition Africa Date: 20-22 June 2018 Venue: Kenyatta International Convention Center, Nairobi, Kenya Email: africa@dlpexpo.com Web: www.dlpexpo.com

JULY

SEPTEMBER SPACE Date: 11-14 Sep 2018 Venue: Parc-Expo of Rennes, France Email: am.quemener@space.fr Web: http://uk.space.fr/

Feed Additives Global 2018 Date: 26-28 Sep 2018 Venue: Okura Hotel, Amsterdam Email: ben.cronin@agribriefing.com Web: www.feedadditives-global.com

OCTOBER Dairy Industry Expo Date: 12-14 October 2018 Venue: Auto Cluster Exhibition Centre, Pune Email: dairyindustryexpo@gmail.com Web: www.dairyindustryexpo.com

www.thinkgrainthinkfeed.co.in

Indo Livestock 2018 Expo & Forum Date: 04-06 July 2018 Venue: Jakarta Convention Centre, Jakarta-Indonesia Email: info@indolivestock.com Web: www.indolivestock.com

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Annual Practical short course in Extruded Pet Foods and Treats Date: 09-12 July 2018 Venue: Texas A&M University, USA Email: mnriaz@tamu.edu Web: https://perdc.tamu.edu/extrusion/

To list any industry event related to Grain & Feed industry please write us at info@thinkgrainthinkfeed.co.in




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