Etihad Airways has joined the Sustainable Aviation Fuel Users Group (SAFUG), an airline-led industry working group established in 2008 to accelerate the commercialisation and availability of sustainable biofuels.
James Hogan, Etihad Airways’ chief executive, said: ““Etihad recognises the need for step-changes in aviation to reduce our reliance on fossil fuels and meet our industry’s carbon reduction goal. We also recognise that any fuel alternatives must be morally, socially and environmentally acceptable, while not compromising the future sustainability of the aviation industry.”
SAFUG members are bound by stringent criteria for the development of non fossil fuels, including the following:
The development of plant sources must be undertaken in a manner that is non-competitive with food, with biodiversity impacts minimised and without jeopardizing drinking water supplies. The total lifecycle greenhouse gas emissions from plant growth, harvesting, processing and end-use should be significantly less than that from fossil sources. In developing economies, development projects should include provisions or outcomes that improve socio-economic conditions for small-scale farmers and their families and that do not require the involuntary displacement of local populations. High conservation value areas and native eco-systems should not be cleared and converted for jet fuel plant source development.
Each SAFUG member has pledged to work through the Roundtable for Sustainable Biofuels (RSB), a global multi-stakeholder initiative consisting of leading environmental organizations, financiers, biofuel developers, biofuel-interested petroleum companies, the transportation sector, developing-world poverty alleviation associations, research entities, and governments.
“Abu Dhabi, our home base, has itself made a strong commitment towards sustainability and in the promotion of renewable energy through the establishment of Masdar City, which will the headquarters of the International Renewable Energy Agency,” Mr Hogan said.
About Etihad Airways
Etihad Airways is the national airline of the United Arab Emirates based in the UAE’s capital, Abu Dhabi. Currently Etihad offers flights to over 55 destinations in the Middle East, Europe, North America, Africa and Asia.
Tuesday, December 15, 2009
Saturday, November 21, 2009
Technical trends of livestock production in Asia
What’s next in Asian livestock production? A group of experts will share new findings, trends and future standards at the Pig, Poultry & Dairy Focus Asia 2010 - - Asia’s largest technical livestock conference. This will take place on March 1-3, 2010 in Bangkok, Thailand.
N.C.C. Exhibition Organizer Co., and Positive Action Publications, the co-organizer of ‘Pig, Poultry & Dairy Focus Asia 2010’, which will take place on March 1-3, 2010 at the Imperial Queen’s Park Hotel in Bangkok, Thailand, are confident that Asia’s largest international, technical livestock conference will prove to be a superb education forum for Asian professionals to learn trends in Asia’s livestock production industry.
“Although Asia’s livestock production has been negatively impacted by the global economic crisis, the setback is not as deep as Europe’s or America’s. The USDA is forecasting broiler meat production to recover in 2009. Sales prices may decline, but margins have been somewhat protected by declines in freight rates and grain prices which have offset losses. From a technical perspective, animal health and food safety issues will be top priorities as a result of growing concerns over food-borne illnesses and food security,” said Mr. Teerayuth Leelakajornkij, Senior Project Manager, N.C.C. Exhibition Organizer Co., Ltd.
“Pig, Poultry & Dairy Focus Asia 2010 is a perfect education forum for industry professionals to find answers and solutions in regard to technical trends for livestock production in Asia. Some 90 international speakers from Europe, the Americas and Asia will share their vision and knowledge and technical perspectives that will have definite influence on the Asian livestock industry,” said Mr. Leelakajornkij.
The conference will focus on coming trends in pig, poultry and dairy production. There will be a look into the entire supply chain: from superior genetics, to nutrition, to veterinary care, to housing, and to handling. “In addition to gaining technical knowledge, networking opportunities are available at a reception and gala dinner. There, participants can discuss issues with their peers and pick the brains of industry experts,” he said.
Registration for the Pig, Poultry & Dairy Focus Asia 2010 is now open. Any registrants who register and pay before January 15, 2010, will merit an ‘Early Bird’ discount special offer.
More information about special rates, booking details and other concerns can be sourced from www.positiveaction.co.uk or www.nccexhibition.com
N.C.C. Exhibition Organizer Co., and Positive Action Publications, the co-organizer of ‘Pig, Poultry & Dairy Focus Asia 2010’, which will take place on March 1-3, 2010 at the Imperial Queen’s Park Hotel in Bangkok, Thailand, are confident that Asia’s largest international, technical livestock conference will prove to be a superb education forum for Asian professionals to learn trends in Asia’s livestock production industry.
“Although Asia’s livestock production has been negatively impacted by the global economic crisis, the setback is not as deep as Europe’s or America’s. The USDA is forecasting broiler meat production to recover in 2009. Sales prices may decline, but margins have been somewhat protected by declines in freight rates and grain prices which have offset losses. From a technical perspective, animal health and food safety issues will be top priorities as a result of growing concerns over food-borne illnesses and food security,” said Mr. Teerayuth Leelakajornkij, Senior Project Manager, N.C.C. Exhibition Organizer Co., Ltd.
“Pig, Poultry & Dairy Focus Asia 2010 is a perfect education forum for industry professionals to find answers and solutions in regard to technical trends for livestock production in Asia. Some 90 international speakers from Europe, the Americas and Asia will share their vision and knowledge and technical perspectives that will have definite influence on the Asian livestock industry,” said Mr. Leelakajornkij.
The conference will focus on coming trends in pig, poultry and dairy production. There will be a look into the entire supply chain: from superior genetics, to nutrition, to veterinary care, to housing, and to handling. “In addition to gaining technical knowledge, networking opportunities are available at a reception and gala dinner. There, participants can discuss issues with their peers and pick the brains of industry experts,” he said.
Registration for the Pig, Poultry & Dairy Focus Asia 2010 is now open. Any registrants who register and pay before January 15, 2010, will merit an ‘Early Bird’ discount special offer.
More information about special rates, booking details and other concerns can be sourced from www.positiveaction.co.uk or www.nccexhibition.com
Wednesday, November 11, 2009
CPF LOOK TO BALANCE FEED, FOOD AND FARMS IN FIVE YEARS
Charoen Pokphand Foods hopes to balance its business portfolio evenly among feed, food and farms within five years as part of its long-term development plan to reduce operating risk while increasing profits and dividends.
"CPF's future is really focused on two core businesses - feed and food," Adirek Sripratak, president and CEO, said yesterday.
Today feed accounts for 34-35 per cent of CPF's sales, followed by food at 19 per cent, while farms control the lion's share of 47 per cent.
The company eyes sponsoring a leading soccer team in a European league in a few years when food hits 20 per cent of total revenue. The move would help CP become a global brand.
The five-year plan has been drawn to avoid business risks mainly from the farm sector, which would easily suffer damage from unexpected environmental events.
However, the company has to adopt outsourcing through contract farming to guarantee raw-material supplies.
The plan was also designed to generate steady earnings, with net profit margins improving to 5 per cent so the company can carry on with its policy of paying out 50 per cent of net profit as dividends.
"We don't want to focus on total sales growth anymore. The most important thing for us is to increase net profit for the good of our shareholders and business development," he said.
The company also reported that its net profit had skyrocketed 197 per cent year on year to Bt4.11 billion in the third quarter, while its operating profit set a new high of Bt8.08 billion and earnings per share reached Bt1.20.
Its total revenue is projected to increase 3-5 per cent to Bt160 billion this full year.
Adirek pointed to growing investments overseas as the major contributing factor to the record net profit. It realised revenue from its joint venture CP All, the operator of 7-Eleven - the country's biggest convenience-store chain - as well as CP Vietnam.
Domestic business accounts for 68 per cent, followed by business abroad (17 per cent) and exports (15 per cent).
To support continued growth, the company will focus on expanding abroad, particularly in Russia and the Philippines. It will invest US$30 million (Bt1 billion) on a pig farm in Russia and $65 million on shrimp- and fish-feed mills in Manila.
The company has set investment for next year at about Bt4 billion for both here and abroad.
The stronger baht has not hamstrung the company's operations, as it is offset by its foreign-exchange income.
Forex earnings have amounted to $800 million, while imports cost $600 million. The company has also purchased foreign exchange forward to avoid currency risk.
"We're not worried about the exchange rate, just the political turmoil," he said.
"CPF's future is really focused on two core businesses - feed and food," Adirek Sripratak, president and CEO, said yesterday.
Today feed accounts for 34-35 per cent of CPF's sales, followed by food at 19 per cent, while farms control the lion's share of 47 per cent.
The company eyes sponsoring a leading soccer team in a European league in a few years when food hits 20 per cent of total revenue. The move would help CP become a global brand.
The five-year plan has been drawn to avoid business risks mainly from the farm sector, which would easily suffer damage from unexpected environmental events.
However, the company has to adopt outsourcing through contract farming to guarantee raw-material supplies.
The plan was also designed to generate steady earnings, with net profit margins improving to 5 per cent so the company can carry on with its policy of paying out 50 per cent of net profit as dividends.
"We don't want to focus on total sales growth anymore. The most important thing for us is to increase net profit for the good of our shareholders and business development," he said.
The company also reported that its net profit had skyrocketed 197 per cent year on year to Bt4.11 billion in the third quarter, while its operating profit set a new high of Bt8.08 billion and earnings per share reached Bt1.20.
Its total revenue is projected to increase 3-5 per cent to Bt160 billion this full year.
Adirek pointed to growing investments overseas as the major contributing factor to the record net profit. It realised revenue from its joint venture CP All, the operator of 7-Eleven - the country's biggest convenience-store chain - as well as CP Vietnam.
Domestic business accounts for 68 per cent, followed by business abroad (17 per cent) and exports (15 per cent).
To support continued growth, the company will focus on expanding abroad, particularly in Russia and the Philippines. It will invest US$30 million (Bt1 billion) on a pig farm in Russia and $65 million on shrimp- and fish-feed mills in Manila.
The company has set investment for next year at about Bt4 billion for both here and abroad.
The stronger baht has not hamstrung the company's operations, as it is offset by its foreign-exchange income.
Forex earnings have amounted to $800 million, while imports cost $600 million. The company has also purchased foreign exchange forward to avoid currency risk.
"We're not worried about the exchange rate, just the political turmoil," he said.
Betagro adopts new system
Betagro Group, one of Thailand's leading integrated agribusiness enterprises, expects its new quality management system will lead to strong market expansion and drive sales to 55 billion baht next year.
Betagro Quality Management 24/7 (BQM 24/7) will not only ensure the group's entire supply and production chains from farming and processing to markets but also exceed international food safety standards, said Vasit Taepaisitphongse, chief operating officer.
"We developed a system that complies with new food safety regulations set by import countries and foreign big buyers and retailers, which normally outline tougher standards," he said.
Stringent standards from the British Retailers Consortium and Tesco Foods were fully complied with, enabling Betagro chicken products to be available at Tesco outlets in Britain this year.
Betagro implemented a trial version of BQM 24/7 for its poultry business starting in October 2008 and the programme had impressive export growth in the first half of this year. It led to sales of 4.5 billion baht, or 15% growth over the same period last year, he added.
He said the system would allow the group to expand to new export markets,particularly those with restricted food safety regulations. Revenue from exports contribute 20% of the group's total sales,which are estimated at 50 billion baht this year and 55 billion in 2010.
The system also allows Betagro to shift its focus to higher value or premium products, which he expects will account for 75% of shipments with the balance commodities."Premium products mean higher unit prices of about US$4,500 per tonne compared with $4,000 a tonne,drawing us to concentrate more on the segment," he added.
Betagro expects to export 46,000 tonnes of chicken this year from Thailand's total of 380,000 tonnes. This comprises 365,000 tonnes of processed meat, and 15,000 tonnes of frozen chicken products, said Sanon Liawpairoj, commercial director for the poultry business of Betagro.
The group plans to export 55,000 tonnes of chicken next year because of market expansion from its three subsidiaries: Better Food Co, Ajinomoto Betagro Frozen Foods (Thailand) Co,and BFI Broiler Farm.
The group has had success in the EU the past decade.
"Our highlighted export product is the Yakitori line, which is Thailand's largest in this area in the EU with an annual export volume of 2,000 tonnes,"said Mr Sanon.
The company will showcase the BQM 24/7 at the Anuga food and beverage trade event in Cologne, Germany, which runs from this weekend through Oct 14.
The system has also been applied to its swine business. Betagro controls about 60% of the country's processed pork exports.
Suthep Tirapipattanakul, executive vice-president of the group, said more effective management would reduce operating costs by about 100 million baht a year.
"In farming, the new quality management system helps reduce rejected chicks, increases the survival rate and ultimately lowers consumer complaints,"Mr Suthep said.
Betagro Quality Management 24/7 (BQM 24/7) will not only ensure the group's entire supply and production chains from farming and processing to markets but also exceed international food safety standards, said Vasit Taepaisitphongse, chief operating officer.
"We developed a system that complies with new food safety regulations set by import countries and foreign big buyers and retailers, which normally outline tougher standards," he said.
Stringent standards from the British Retailers Consortium and Tesco Foods were fully complied with, enabling Betagro chicken products to be available at Tesco outlets in Britain this year.
Betagro implemented a trial version of BQM 24/7 for its poultry business starting in October 2008 and the programme had impressive export growth in the first half of this year. It led to sales of 4.5 billion baht, or 15% growth over the same period last year, he added.
He said the system would allow the group to expand to new export markets,particularly those with restricted food safety regulations. Revenue from exports contribute 20% of the group's total sales,which are estimated at 50 billion baht this year and 55 billion in 2010.
The system also allows Betagro to shift its focus to higher value or premium products, which he expects will account for 75% of shipments with the balance commodities."Premium products mean higher unit prices of about US$4,500 per tonne compared with $4,000 a tonne,drawing us to concentrate more on the segment," he added.
Betagro expects to export 46,000 tonnes of chicken this year from Thailand's total of 380,000 tonnes. This comprises 365,000 tonnes of processed meat, and 15,000 tonnes of frozen chicken products, said Sanon Liawpairoj, commercial director for the poultry business of Betagro.
The group plans to export 55,000 tonnes of chicken next year because of market expansion from its three subsidiaries: Better Food Co, Ajinomoto Betagro Frozen Foods (Thailand) Co,and BFI Broiler Farm.
The group has had success in the EU the past decade.
"Our highlighted export product is the Yakitori line, which is Thailand's largest in this area in the EU with an annual export volume of 2,000 tonnes,"said Mr Sanon.
The company will showcase the BQM 24/7 at the Anuga food and beverage trade event in Cologne, Germany, which runs from this weekend through Oct 14.
The system has also been applied to its swine business. Betagro controls about 60% of the country's processed pork exports.
Suthep Tirapipattanakul, executive vice-president of the group, said more effective management would reduce operating costs by about 100 million baht a year.
"In farming, the new quality management system helps reduce rejected chicks, increases the survival rate and ultimately lowers consumer complaints,"Mr Suthep said.
CPF foresees 5-10% sales growth next year
Charoen Pokphand Foods (CPF) forecasts its sales will grow by 5-10% next year with operating profits stabilising in light of a business restructuring to focus more on ready-to-eat food and animal feed.
"We are still upbeat about maintaining the growth momentum next year, with sales growth of about 5-10%on par with this year's growth," said Adirek Sripratak, president and CEO of the SET-listed flagship of Charoen Pokphand Group (CP), the country's agribusiness conglomerate.
"We also project more stabilised profit in the year to come, as we have restructured our business model from heavily depending on commodities, particularly meat for which prices are volatile, to [ready-to-eat] food and animal feeds and CP brand development."
He said CPF expected a record profit this year as overseas sales and ready-to-eat food under the CP brand increase and raw material costs have been lower than last year.
Performance has also been helped by aggressive distribution unit expansion, mainly through CP Fresh Mart and Five Star Chicken.
Currently, there are more than 500 CP Fresh Mart outlets operating, with the figure expected to expand to at least 2,000 in the future.
CPF's sales are projected to expand by 5% to 10% this year from 156.23 billion baht in 2008.
According to Mr Adirek, the company expected profits in the third quarter would be higher than in previous quarters, with profit in the final quarter probably easing as production of aquatic business will by nature drop because of cold weather.
CPF earned a record-high net profit in the second quarter of 3.19 billion baht, a year-on-year gain of 224% and up from 770.5 million in the first quarter.Sales for the second quarter increased nearly 4% to 40.6 billion baht. Six-month net profit rose to nearly 4 billion baht on sales of 75.4 billion.
Mr Adirek said earlier that CPF was aiming for a net profit of about 8 billion baht this year, from 3.12 billion in 2008.
His projection matched research by Kim Eng Securities which has recently revised up CPF's 2009 and 2010 earnings forecasts by 26% and 16% to 8.04 billion and 5.71 billion baht respectively, to reflect higher margins fuelled by low raw material costs and strong growth of the high-margin food business.
The brokerage expects CPF's results in the third quarter should increase year-on-year and even better the second-quarter result, supported by lower costs of materials, favourable meat prices, the peak export season and the ongoing growth of overseas operations.
Raw material prices, especially for corn in the harvest season, have slipped to around 6.30 baht a kilogramme from 10 baht in the third quarter in 2008.Domestic meat prices remain favourable at broilers and eggs remain at favourable levels of 56 baht a kilogramme for swine,41 baht/kg for broilers and 2.60 baht per egg.
CPF shares closed down 10 satang yesterday on the Stock Exchange of Thailand at 8.70 baht, in trade worth 401.49 million baht.
"We are still upbeat about maintaining the growth momentum next year, with sales growth of about 5-10%on par with this year's growth," said Adirek Sripratak, president and CEO of the SET-listed flagship of Charoen Pokphand Group (CP), the country's agribusiness conglomerate.
"We also project more stabilised profit in the year to come, as we have restructured our business model from heavily depending on commodities, particularly meat for which prices are volatile, to [ready-to-eat] food and animal feeds and CP brand development."
He said CPF expected a record profit this year as overseas sales and ready-to-eat food under the CP brand increase and raw material costs have been lower than last year.
Performance has also been helped by aggressive distribution unit expansion, mainly through CP Fresh Mart and Five Star Chicken.
Currently, there are more than 500 CP Fresh Mart outlets operating, with the figure expected to expand to at least 2,000 in the future.
CPF's sales are projected to expand by 5% to 10% this year from 156.23 billion baht in 2008.
According to Mr Adirek, the company expected profits in the third quarter would be higher than in previous quarters, with profit in the final quarter probably easing as production of aquatic business will by nature drop because of cold weather.
CPF earned a record-high net profit in the second quarter of 3.19 billion baht, a year-on-year gain of 224% and up from 770.5 million in the first quarter.Sales for the second quarter increased nearly 4% to 40.6 billion baht. Six-month net profit rose to nearly 4 billion baht on sales of 75.4 billion.
Mr Adirek said earlier that CPF was aiming for a net profit of about 8 billion baht this year, from 3.12 billion in 2008.
His projection matched research by Kim Eng Securities which has recently revised up CPF's 2009 and 2010 earnings forecasts by 26% and 16% to 8.04 billion and 5.71 billion baht respectively, to reflect higher margins fuelled by low raw material costs and strong growth of the high-margin food business.
The brokerage expects CPF's results in the third quarter should increase year-on-year and even better the second-quarter result, supported by lower costs of materials, favourable meat prices, the peak export season and the ongoing growth of overseas operations.
Raw material prices, especially for corn in the harvest season, have slipped to around 6.30 baht a kilogramme from 10 baht in the third quarter in 2008.Domestic meat prices remain favourable at broilers and eggs remain at favourable levels of 56 baht a kilogramme for swine,41 baht/kg for broilers and 2.60 baht per egg.
CPF shares closed down 10 satang yesterday on the Stock Exchange of Thailand at 8.70 baht, in trade worth 401.49 million baht.
CPF looking to record profits in third quarter and full year
Charoen Pokphand Foods, Thailand's biggest producer of meat and animal feed, expects to post a record profit for the third quarter and the full year on lower costs and higher overseas sales.
"We will see historically high sales and profit this year," president Adirek Sripratak said yesterday, without providing details. The company will maintain its target for sales growth of between 5 and 10 per cent this year.
Sales and also forecast to increase between 5 and 10 per cent next year, Adirek said.
Charoen Pokphand plans to sell Bt8 billion of bonds in November, he said, with the debt likely to have maturities of between three and five years.
"We will see historically high sales and profit this year," president Adirek Sripratak said yesterday, without providing details. The company will maintain its target for sales growth of between 5 and 10 per cent this year.
Sales and also forecast to increase between 5 and 10 per cent next year, Adirek said.
Charoen Pokphand plans to sell Bt8 billion of bonds in November, he said, with the debt likely to have maturities of between three and five years.
Saturday, October 31, 2009
Tsunamis hit American Samoa's economic engine
The tsunami that killed nearly 200 people in the Samoas also dealt a vicious blow to the already sputtering engine of the American Samoa economy: tuna canneries.
The US territory has long been home to Chicken of the Sea and Starkist plants that make more than half the canned tuna consumed in the United States.
Even before three-metre waves roared ashore on Sept 29, the territory had been bracing for the closure of the Chicken of the Sea facility, which meant nearly 2,000 people would lose their jobs. Because of the tsunamis, the end effectively came a day earlier than scheduled.
Chicken of the Sea is owned by SETlisted Thai Union Frozen Plc (TUF),Thailand's biggest seafood exporter. TUF decided to shift operations from the Pacific island to a new $20-million plant that opened last week in the US state of Georgia.
Meanwhile, the cannery run by StarKist Co lost power in the tsunami and isn't expected to return to full production for another month or so.
The canneries directly and indirectly make up about 80% of all economic activity in American Samoa, which has a population of 65,000 people about a five-hour plane ride from Hawaii.
"It's like we've been hit by an earthquake, a tsunami, and a cyclone all at once," said Governor Togiola Tulafono,who added that the shutdowns would ripple through the economy as newly unemployed and idle workers won't have as much money to spend."When the cannery shuts down, a whole lot of other things shut down. We need to get that company back up and working," he said.
The industry was in trouble even before the disaster because of a 2007 US federal law mandating that the same minimum wage laws that apply to the 50 states be enforced in the Pacific territory. The law is gradually lifting the minimum wage for American Samoa by 50 cents a year until it reaches $7.25 (245 baht) an hour - the same standard as the rest of the country.
The law has increased labour costs for the canneries by more than 30%,even as they compete with canneries in Thailand and Vietnam where the hourly wage is less than $1.
Cannery workers in the territory now earn an average of $5.11 an hour.
StarKist laid off about 350 hourly and salaried workers but it has chosen to stay in Samoa and lobby for a new bill now before Congress that would provide US fishing fleets with incentives to sell their fish in American Samoa. The bill would also pay subsidies to processors,like StarKist, in the US territory.
"It allows American Samoa to be globally competitive again," said Don Binotto, president of StarKist Co."If that is passed, frankly, we see American Samoa as a place where we can continue to do business in the long term."
The two plants sit right next to each other in long, white rectangular buildings along a narrow waterfront in Pago Pago Harbor's small industrial zone.
The tsunamis largely spared both plants even though they destroyed dozens of buildings across the harbour.They did, however, drown the power plant that feeds electricity to StarKist,knocking the plant out of service.
To cope, StarKist is shipping 10 generators to Pago Pago from Los Angeles that will supply the plant with electricity until the local power plant is rebuilt.The plant should be fully operational by the sixth or seventh week after the tsunami, said Mr Binotto.
In the meantime, StarKist is storing 4,000 tonnes, or $13 million worth of tuna, in freezers run on generators.
The tsunami has meant a double disaster for StarKist employees like Fuauli Atisano'e. The tsunamis wrecked the 38-year-old's home, as well as his parents'home next door, in the small coastal village of Tula. Their concrete walls are standing, but their floors are caked with silt and their windows are blown out.
A waterlogged coconut, metal mattress frame and sewing machine are strewn around one of their rooms.
"See that car inside the trees," Atisano'e said,"that's my car."
The father of three hasn't heard yet when he'll be returning to work.
The governor last month proposed that the territorial government buy Chicken of the Sea's COS Samoa Packing plant to keep it open. A committee of territorial lawmakers was due to hold a hearing on the measure the day the tsunami hit, but had to postpone their deliberations because of the disaster.
Chicken of the Sea says it plans to use Samoa Packing as a cold-storage facility for fish caught in the Pacific.
On a recent morning, maintenance workers dismantling the tuna packing and sealing machines were among the few remaining employees on site. They were preparing the equipment for shipment to the new plant in Lyons, Georgia.
"We're still working for two or three more weeks," said Fotu Matola, a 38-yearold father of three."But after that, we're looking for another job [to] to earn some money for the kids and family."
The US territory has long been home to Chicken of the Sea and Starkist plants that make more than half the canned tuna consumed in the United States.
Even before three-metre waves roared ashore on Sept 29, the territory had been bracing for the closure of the Chicken of the Sea facility, which meant nearly 2,000 people would lose their jobs. Because of the tsunamis, the end effectively came a day earlier than scheduled.
Chicken of the Sea is owned by SETlisted Thai Union Frozen Plc (TUF),Thailand's biggest seafood exporter. TUF decided to shift operations from the Pacific island to a new $20-million plant that opened last week in the US state of Georgia.
Meanwhile, the cannery run by StarKist Co lost power in the tsunami and isn't expected to return to full production for another month or so.
The canneries directly and indirectly make up about 80% of all economic activity in American Samoa, which has a population of 65,000 people about a five-hour plane ride from Hawaii.
"It's like we've been hit by an earthquake, a tsunami, and a cyclone all at once," said Governor Togiola Tulafono,who added that the shutdowns would ripple through the economy as newly unemployed and idle workers won't have as much money to spend."When the cannery shuts down, a whole lot of other things shut down. We need to get that company back up and working," he said.
The industry was in trouble even before the disaster because of a 2007 US federal law mandating that the same minimum wage laws that apply to the 50 states be enforced in the Pacific territory. The law is gradually lifting the minimum wage for American Samoa by 50 cents a year until it reaches $7.25 (245 baht) an hour - the same standard as the rest of the country.
The law has increased labour costs for the canneries by more than 30%,even as they compete with canneries in Thailand and Vietnam where the hourly wage is less than $1.
Cannery workers in the territory now earn an average of $5.11 an hour.
StarKist laid off about 350 hourly and salaried workers but it has chosen to stay in Samoa and lobby for a new bill now before Congress that would provide US fishing fleets with incentives to sell their fish in American Samoa. The bill would also pay subsidies to processors,like StarKist, in the US territory.
"It allows American Samoa to be globally competitive again," said Don Binotto, president of StarKist Co."If that is passed, frankly, we see American Samoa as a place where we can continue to do business in the long term."
The two plants sit right next to each other in long, white rectangular buildings along a narrow waterfront in Pago Pago Harbor's small industrial zone.
The tsunamis largely spared both plants even though they destroyed dozens of buildings across the harbour.They did, however, drown the power plant that feeds electricity to StarKist,knocking the plant out of service.
To cope, StarKist is shipping 10 generators to Pago Pago from Los Angeles that will supply the plant with electricity until the local power plant is rebuilt.The plant should be fully operational by the sixth or seventh week after the tsunami, said Mr Binotto.
In the meantime, StarKist is storing 4,000 tonnes, or $13 million worth of tuna, in freezers run on generators.
The tsunami has meant a double disaster for StarKist employees like Fuauli Atisano'e. The tsunamis wrecked the 38-year-old's home, as well as his parents'home next door, in the small coastal village of Tula. Their concrete walls are standing, but their floors are caked with silt and their windows are blown out.
A waterlogged coconut, metal mattress frame and sewing machine are strewn around one of their rooms.
"See that car inside the trees," Atisano'e said,"that's my car."
The father of three hasn't heard yet when he'll be returning to work.
The governor last month proposed that the territorial government buy Chicken of the Sea's COS Samoa Packing plant to keep it open. A committee of territorial lawmakers was due to hold a hearing on the measure the day the tsunami hit, but had to postpone their deliberations because of the disaster.
Chicken of the Sea says it plans to use Samoa Packing as a cold-storage facility for fish caught in the Pacific.
On a recent morning, maintenance workers dismantling the tuna packing and sealing machines were among the few remaining employees on site. They were preparing the equipment for shipment to the new plant in Lyons, Georgia.
"We're still working for two or three more weeks," said Fotu Matola, a 38-yearold father of three."But after that, we're looking for another job [to] to earn some money for the kids and family."
CPF looking to record profits in third quarter and full year
Charoen Pokphand Foods, Thailand's biggest producer of meat and animal feed, expects to post a record profit for the third quarter and the full year on lower costs and higher overseas sales.
"We will see historically high sales and profit this year," president Adirek Sripratak said yesterday, without providing details. The company will maintain its target for sales growth of between 5 and 10 per cent this year.
Sales and also forecast to increase between 5 and 10 per cent next year, Adirek said.
Charoen Pokphand plans to sell Bt8 billion of bonds in November, he said, with the debt likely to have maturities of between three and five years.
"We will see historically high sales and profit this year," president Adirek Sripratak said yesterday, without providing details. The company will maintain its target for sales growth of between 5 and 10 per cent this year.
Sales and also forecast to increase between 5 and 10 per cent next year, Adirek said.
Charoen Pokphand plans to sell Bt8 billion of bonds in November, he said, with the debt likely to have maturities of between three and five years.
Wednesday, October 14, 2009
RESTRICTIONS ON FEED-MEAL IMPORT
The Commerce Ministry will propose the government maintain import restrictions on raw materials for feed mills next year, to ensure that the businesses can adequately plan in advance.
Acting permanent secretary Yanyong Phuangrach yesterday said the government would finalise its import policy for feed meal soon after Commerce Minister Porntiva Nakasai approved it.
The action came after private enterprises called on the government to set up a meeting of the Food Policy Committee to allocate an import quota for soybean meal, maize and powdered fish in advance of the new year, in order to plan next year's production.
Under the import policy, the government will freely allow soybean-meal imports at a tariff of 2 per cent. However, importers must also purchase an equal quantity of domestic soybean meal, which will help prevent the soybean price from dropping amid a flood of imports.
Feed-meal producers will be allowed unlimited imports of maize from March 1 to June 30 of next year. Imports of powdered fish will enjoy zero tariffs under the Asean Free Trade Agreement, against a tariff of 5 per cent now.
Acting permanent secretary Yanyong Phuangrach yesterday said the government would finalise its import policy for feed meal soon after Commerce Minister Porntiva Nakasai approved it.
The action came after private enterprises called on the government to set up a meeting of the Food Policy Committee to allocate an import quota for soybean meal, maize and powdered fish in advance of the new year, in order to plan next year's production.
Under the import policy, the government will freely allow soybean-meal imports at a tariff of 2 per cent. However, importers must also purchase an equal quantity of domestic soybean meal, which will help prevent the soybean price from dropping amid a flood of imports.
Feed-meal producers will be allowed unlimited imports of maize from March 1 to June 30 of next year. Imports of powdered fish will enjoy zero tariffs under the Asean Free Trade Agreement, against a tariff of 5 per cent now.
Monday, October 12, 2009
Tsunamis hit American Samoa's economic engine
The tsunami that killed nearly 200 people in the Samoas also dealt a vicious blow to the already sputtering engine of the American Samoa economy: tuna canneries.
The US territory has long been home to Chicken of the Sea and Starkist plants that make more than half the canned tuna consumed in the United States.
Even before three-metre waves roared ashore on Sept 29, the territory had been bracing for the closure of the Chicken of the Sea facility, which meant nearly 2,000 people would lose their jobs. Because of the tsunamis, the end effectively came a day earlier than scheduled.
Chicken of the Sea is owned by SETlisted Thai Union Frozen Plc (TUF),Thailand's biggest seafood exporter. TUF decided to shift operations from the Pacific island to a new $20-million plant that opened last week in the US state of Georgia.
Meanwhile, the cannery run by StarKist Co lost power in the tsunami and isn't expected to return to full production for another month or so.
The canneries directly and indirectly make up about 80% of all economic activity in American Samoa, which has a population of 65,000 people about a five-hour plane ride from Hawaii.
"It's like we've been hit by an earthquake, a tsunami, and a cyclone all at once," said Governor Togiola Tulafono,who added that the shutdowns would ripple through the economy as newly unemployed and idle workers won't have as much money to spend."When the cannery shuts down, a whole lot of other things shut down. We need to get that company back up and working," he said.
The industry was in trouble even before the disaster because of a 2007 US federal law mandating that the same minimum wage laws that apply to the 50 states be enforced in the Pacific territory. The law is gradually lifting the minimum wage for American Samoa by 50 cents a year until it reaches $7.25 (245 baht) an hour - the same standard as the rest of the country.
The law has increased labour costs for the canneries by more than 30%,even as they compete with canneries in Thailand and Vietnam where the hourly wage is less than $1.
Cannery workers in the territory now earn an average of $5.11 an hour.
StarKist laid off about 350 hourly and salaried workers but it has chosen to stay in Samoa and lobby for a new bill now before Congress that would provide US fishing fleets with incentives to sell their fish in American Samoa. The bill would also pay subsidies to processors,like StarKist, in the US territory.
"It allows American Samoa to be globally competitive again," said Don Binotto, president of StarKist Co."If that is passed, frankly, we see American Samoa as a place where we can continue to do business in the long term."
The two plants sit right next to each other in long, white rectangular buildings along a narrow waterfront in Pago Pago Harbor's small industrial zone.
The tsunamis largely spared both plants even though they destroyed dozens of buildings across the harbour.They did, however, drown the power plant that feeds electricity to StarKist,knocking the plant out of service.
To cope, StarKist is shipping 10 generators to Pago Pago from Los Angeles that will supply the plant with electricity until the local power plant is rebuilt.The plant should be fully operational by the sixth or seventh week after the tsunami, said Mr Binotto.
In the meantime, StarKist is storing 4,000 tonnes, or $13 million worth of tuna, in freezers run on generators.
The tsunami has meant a double disaster for StarKist employees like Fuauli Atisano'e. The tsunamis wrecked the 38-year-old's home, as well as his parents'home next door, in the small coastal village of Tula. Their concrete walls are standing, but their floors are caked with silt and their windows are blown out.
A waterlogged coconut, metal mattress frame and sewing machine are strewn around one of their rooms.
"See that car inside the trees," Atisano'e said,"that's my car."
The father of three hasn't heard yet when he'll be returning to work.
The governor last month proposed that the territorial government buy Chicken of the Sea's COS Samoa Packing plant to keep it open. A committee of territorial lawmakers was due to hold a hearing on the measure the day the tsunami hit, but had to postpone their deliberations because of the disaster.
Chicken of the Sea says it plans to use Samoa Packing as a cold-storage facility for fish caught in the Pacific.
On a recent morning, maintenance workers dismantling the tuna packing and sealing machines were among the few remaining employees on site. They were preparing the equipment for shipment to the new plant in Lyons, Georgia.
"We're still working for two or three more weeks," said Fotu Matola, a 38-yearold father of three."But after that, we're looking for another job [to] to earn some money for the kids and family."
The US territory has long been home to Chicken of the Sea and Starkist plants that make more than half the canned tuna consumed in the United States.
Even before three-metre waves roared ashore on Sept 29, the territory had been bracing for the closure of the Chicken of the Sea facility, which meant nearly 2,000 people would lose their jobs. Because of the tsunamis, the end effectively came a day earlier than scheduled.
Chicken of the Sea is owned by SETlisted Thai Union Frozen Plc (TUF),Thailand's biggest seafood exporter. TUF decided to shift operations from the Pacific island to a new $20-million plant that opened last week in the US state of Georgia.
Meanwhile, the cannery run by StarKist Co lost power in the tsunami and isn't expected to return to full production for another month or so.
The canneries directly and indirectly make up about 80% of all economic activity in American Samoa, which has a population of 65,000 people about a five-hour plane ride from Hawaii.
"It's like we've been hit by an earthquake, a tsunami, and a cyclone all at once," said Governor Togiola Tulafono,who added that the shutdowns would ripple through the economy as newly unemployed and idle workers won't have as much money to spend."When the cannery shuts down, a whole lot of other things shut down. We need to get that company back up and working," he said.
The industry was in trouble even before the disaster because of a 2007 US federal law mandating that the same minimum wage laws that apply to the 50 states be enforced in the Pacific territory. The law is gradually lifting the minimum wage for American Samoa by 50 cents a year until it reaches $7.25 (245 baht) an hour - the same standard as the rest of the country.
The law has increased labour costs for the canneries by more than 30%,even as they compete with canneries in Thailand and Vietnam where the hourly wage is less than $1.
Cannery workers in the territory now earn an average of $5.11 an hour.
StarKist laid off about 350 hourly and salaried workers but it has chosen to stay in Samoa and lobby for a new bill now before Congress that would provide US fishing fleets with incentives to sell their fish in American Samoa. The bill would also pay subsidies to processors,like StarKist, in the US territory.
"It allows American Samoa to be globally competitive again," said Don Binotto, president of StarKist Co."If that is passed, frankly, we see American Samoa as a place where we can continue to do business in the long term."
The two plants sit right next to each other in long, white rectangular buildings along a narrow waterfront in Pago Pago Harbor's small industrial zone.
The tsunamis largely spared both plants even though they destroyed dozens of buildings across the harbour.They did, however, drown the power plant that feeds electricity to StarKist,knocking the plant out of service.
To cope, StarKist is shipping 10 generators to Pago Pago from Los Angeles that will supply the plant with electricity until the local power plant is rebuilt.The plant should be fully operational by the sixth or seventh week after the tsunami, said Mr Binotto.
In the meantime, StarKist is storing 4,000 tonnes, or $13 million worth of tuna, in freezers run on generators.
The tsunami has meant a double disaster for StarKist employees like Fuauli Atisano'e. The tsunamis wrecked the 38-year-old's home, as well as his parents'home next door, in the small coastal village of Tula. Their concrete walls are standing, but their floors are caked with silt and their windows are blown out.
A waterlogged coconut, metal mattress frame and sewing machine are strewn around one of their rooms.
"See that car inside the trees," Atisano'e said,"that's my car."
The father of three hasn't heard yet when he'll be returning to work.
The governor last month proposed that the territorial government buy Chicken of the Sea's COS Samoa Packing plant to keep it open. A committee of territorial lawmakers was due to hold a hearing on the measure the day the tsunami hit, but had to postpone their deliberations because of the disaster.
Chicken of the Sea says it plans to use Samoa Packing as a cold-storage facility for fish caught in the Pacific.
On a recent morning, maintenance workers dismantling the tuna packing and sealing machines were among the few remaining employees on site. They were preparing the equipment for shipment to the new plant in Lyons, Georgia.
"We're still working for two or three more weeks," said Fotu Matola, a 38-yearold father of three."But after that, we're looking for another job [to] to earn some money for the kids and family."
Sunday, October 11, 2009
Trained, loved and eaten
With his big dark eyes,cuddly girth and gentle manner, he didn't look like a fighter. Except for his horns - curved like a scythe, they could inflict serious damage.
He was known only as buffalo No 18, one of 16 specially-trained beasts that made it through to the finals of an annual northern Vietnam buffalo fighting contest that took place recently.
Do Son's buffalo fighting tradition dates back centuries, organisers say, but its modern form has become a big money event with high-priced sponsorship, high-stakes gambling and millions of dong in prizemoney.
For the participants, though, it is most importantly for community pride in the coastal resort of fishermen and farmers near the northeastern port city of Hai Phong.
"I trained this buffalo like an athlete,"Luong Duy Hong,59, said the day before the fight. Mr Hong, a nephew of the buffalo's owner, likened the animal to a professional football team with a big following of fans.
"It's the pride of the whole club. This is Manchester [United]," he said as he walked the buffalo in the late afternoon sun.
Buffalo can still be seen labouring in Vietnam's fields, but the fighting buffalo are different. Like professional athletes, they are scouted and bought with only one thing in mind - to compete.
"I sent my nephews to try to find a proper buffalo," said No 18's owner, Luong Trac Ty,75.
After months of searching they settled on this one, which had no name and was known only by the number painted in white on its dark rump.
The farming family bought it in February for 60 million dong (112,000 baht) and spent another 40 million of their own money on training and upkeep, they said.
That is a large sum in a country whose average per capita income is about 17.8 million dong.
Tradition says Mr Ty's buffalo was brave because its thin hair twirled into small spiral formations above each shoulder and on each side of its rump.
"That's one of the reasons we chose this one," he said.
Bravery is one thing, but a fighting buffalo also needs training. Gesticulating and talking excitedly, Mr Hong said he had spent two hours every day swimming in a river and running with the buffalo, which made it through two preliminary rounds to reach the finals.
After spending so much time with each other, man and buffalo became close -"like brothers", Mr Hong said. But this was their last day together because, win or lose, every buffalo is slaughtered and its meat sold outside the stadium to people who believe it will bring them luck."When he is killed, I will not be there," Mr Hong said.
Owners can recoup some of their expenses from the meat, which sells at a premium, but winning the fight earns them a prize of 40 million dong.
But Mr Hong said buffalo fighting is not a business."We participate for our honour and for the traditions of our area."
The next morning, haze turned the newlyrisen sun into an orange disc before seven teams, each from a district in the Do Son area, paraded to the stadium.
In traditional dress they held altars aloft,carried Buddhist flags and banged drums with their buffalo following behind.
Several thousand people filled the stadium to overflowing. Mr Ty smiled and said his buffalo was ready.
The fights are between two buffalo at a time. Sometimes there is a dramatic charge and a cracking sound as horns smash together,and they push to and fro like wrestlers in a sumo match.
"It's like a martial art," said Nguyen Van Hung,29, a spectator from Haiphong.
"I feel sorry when I see the blood on their faces," said Nguyen Quynh Huong,28, who nonetheless cheered throughout.
The crowd shouted at the violent butting of heads, but was far more restrained than the area's notorious football fans.
At times there was little for them to get excited about; the animals simply stood there ignoring each other.
As soon as one of the beasts turns tail and begins heading toward the exit, he loses.
After months of preparation, Mr Ty's buffalo had its chance. It briefly touched horns with its opponent, which then gave chase. No 18 trotted off, a loser.
The final bout finished just as quickly.A buffalo owned by Hoang Gia Bon, which beat three challengers earlier that morning,rushed towards its last opponent, hooking into its horns and lifting its head high. In about 60 seconds it was over.
"This buffalo was born with the nature to win," Mr Bon said.
The wet-nosed animal's young handlers - among them Mr Bon's son Vu Duc Minh - crowded around, shouting in victory.
As a handler, Minh,17, was on the edge of the field during the fight.
"I was very scared, not for myself but for the buffalo, because he is the pride of the whole extended family and we invested so much energy in him," he said.
His sadness that the animal was to be killed was somewhat tempered by the knowledge that its meat would be offered to their ancestors and to the community's patron saint.
Local legend attributes the festival's origins to the 18th century, when two buffalo about to be sacrificed to the patron saint suddenly began fighting.
The Do Son festival is not the only buffalo fight in Vietnam, but it is one of the most renowned contests."There will be a winner and a loser," Mr Ty said, accepting his animal's defeat."It's a lot of fun."
He was known only as buffalo No 18, one of 16 specially-trained beasts that made it through to the finals of an annual northern Vietnam buffalo fighting contest that took place recently.
Do Son's buffalo fighting tradition dates back centuries, organisers say, but its modern form has become a big money event with high-priced sponsorship, high-stakes gambling and millions of dong in prizemoney.
For the participants, though, it is most importantly for community pride in the coastal resort of fishermen and farmers near the northeastern port city of Hai Phong.
"I trained this buffalo like an athlete,"Luong Duy Hong,59, said the day before the fight. Mr Hong, a nephew of the buffalo's owner, likened the animal to a professional football team with a big following of fans.
"It's the pride of the whole club. This is Manchester [United]," he said as he walked the buffalo in the late afternoon sun.
Buffalo can still be seen labouring in Vietnam's fields, but the fighting buffalo are different. Like professional athletes, they are scouted and bought with only one thing in mind - to compete.
"I sent my nephews to try to find a proper buffalo," said No 18's owner, Luong Trac Ty,75.
After months of searching they settled on this one, which had no name and was known only by the number painted in white on its dark rump.
The farming family bought it in February for 60 million dong (112,000 baht) and spent another 40 million of their own money on training and upkeep, they said.
That is a large sum in a country whose average per capita income is about 17.8 million dong.
Tradition says Mr Ty's buffalo was brave because its thin hair twirled into small spiral formations above each shoulder and on each side of its rump.
"That's one of the reasons we chose this one," he said.
Bravery is one thing, but a fighting buffalo also needs training. Gesticulating and talking excitedly, Mr Hong said he had spent two hours every day swimming in a river and running with the buffalo, which made it through two preliminary rounds to reach the finals.
After spending so much time with each other, man and buffalo became close -"like brothers", Mr Hong said. But this was their last day together because, win or lose, every buffalo is slaughtered and its meat sold outside the stadium to people who believe it will bring them luck."When he is killed, I will not be there," Mr Hong said.
Owners can recoup some of their expenses from the meat, which sells at a premium, but winning the fight earns them a prize of 40 million dong.
But Mr Hong said buffalo fighting is not a business."We participate for our honour and for the traditions of our area."
The next morning, haze turned the newlyrisen sun into an orange disc before seven teams, each from a district in the Do Son area, paraded to the stadium.
In traditional dress they held altars aloft,carried Buddhist flags and banged drums with their buffalo following behind.
Several thousand people filled the stadium to overflowing. Mr Ty smiled and said his buffalo was ready.
The fights are between two buffalo at a time. Sometimes there is a dramatic charge and a cracking sound as horns smash together,and they push to and fro like wrestlers in a sumo match.
"It's like a martial art," said Nguyen Van Hung,29, a spectator from Haiphong.
"I feel sorry when I see the blood on their faces," said Nguyen Quynh Huong,28, who nonetheless cheered throughout.
The crowd shouted at the violent butting of heads, but was far more restrained than the area's notorious football fans.
At times there was little for them to get excited about; the animals simply stood there ignoring each other.
As soon as one of the beasts turns tail and begins heading toward the exit, he loses.
After months of preparation, Mr Ty's buffalo had its chance. It briefly touched horns with its opponent, which then gave chase. No 18 trotted off, a loser.
The final bout finished just as quickly.A buffalo owned by Hoang Gia Bon, which beat three challengers earlier that morning,rushed towards its last opponent, hooking into its horns and lifting its head high. In about 60 seconds it was over.
"This buffalo was born with the nature to win," Mr Bon said.
The wet-nosed animal's young handlers - among them Mr Bon's son Vu Duc Minh - crowded around, shouting in victory.
As a handler, Minh,17, was on the edge of the field during the fight.
"I was very scared, not for myself but for the buffalo, because he is the pride of the whole extended family and we invested so much energy in him," he said.
His sadness that the animal was to be killed was somewhat tempered by the knowledge that its meat would be offered to their ancestors and to the community's patron saint.
Local legend attributes the festival's origins to the 18th century, when two buffalo about to be sacrificed to the patron saint suddenly began fighting.
The Do Son festival is not the only buffalo fight in Vietnam, but it is one of the most renowned contests."There will be a winner and a loser," Mr Ty said, accepting his animal's defeat."It's a lot of fun."
Sunday, October 4, 2009
CP invests in Jilin villages
Charoen Pokphand group has announced the launch of a 39.5-billionbaht project to develop farm villages in Jilin province in the central part of northeastern China.
The project, worth 7.9 billion yuan,has been approved by the Chinese government and involves investment in raising 3 million layers,2 million poultry and 1 million pigs per year.
CP chairman Dhanin Chearavanont made the announcement ahead of the 60th anniversary celebrations of the People's Republic of China on Oct 1.
"CP will offer a fully integrated farm project, or a farm-to-table process, and the finished products will be distributed under the CP brand. Selling price guarantees would assure the income of farmers in the project," said the head of Thailand's biggest agribusiness group and the largest foreign investor in China.
He said the investment conformed with China's policy to improve farm incomes by modernising agricultural villages and promoting more advanced technologies through co-operation among four parties: farmers, private companies, banks and the government.
The Jilin project is part of a CP programme, which has won Beijing authorities' approval, for implementing farm development projects in selected villages in several provinces including Jilin, with a total investment of about 100 billion yuan.
Mr Dhanin said the investments reflected CP's confidence in China's economy, which remains strong with an expected gross domestic growth of 7.1%this year.
CP was the first approved foreign investor in the People's Republic more than 30 years ago and China is its second-largest investment market after Thailand. The group employs 300,000 people worldwide.
"Because CP has seen no impact from the current global crisis, it's the right time to undertake business expansion," said Mr Dhanin.
The project, worth 7.9 billion yuan,has been approved by the Chinese government and involves investment in raising 3 million layers,2 million poultry and 1 million pigs per year.
CP chairman Dhanin Chearavanont made the announcement ahead of the 60th anniversary celebrations of the People's Republic of China on Oct 1.
"CP will offer a fully integrated farm project, or a farm-to-table process, and the finished products will be distributed under the CP brand. Selling price guarantees would assure the income of farmers in the project," said the head of Thailand's biggest agribusiness group and the largest foreign investor in China.
He said the investment conformed with China's policy to improve farm incomes by modernising agricultural villages and promoting more advanced technologies through co-operation among four parties: farmers, private companies, banks and the government.
The Jilin project is part of a CP programme, which has won Beijing authorities' approval, for implementing farm development projects in selected villages in several provinces including Jilin, with a total investment of about 100 billion yuan.
Mr Dhanin said the investments reflected CP's confidence in China's economy, which remains strong with an expected gross domestic growth of 7.1%this year.
CP was the first approved foreign investor in the People's Republic more than 30 years ago and China is its second-largest investment market after Thailand. The group employs 300,000 people worldwide.
"Because CP has seen no impact from the current global crisis, it's the right time to undertake business expansion," said Mr Dhanin.
CP brings village model to China
Charoen Pokphand Group plans to develop three integrated poultry layer farms in selected villages in China where it will likely apply its successful agricultural village management model, especially that of Nong Wah village in Thailand.
The Thai conglomerate entered into a contract with Beijing two years ago to help modernise China's farm sector and promote integrated farming businesses there.
CP Group chairman Dhanin Chearavanont said the group planned to raise about 3 million layers in each integrated egg-laying farm. Each site would also have a chicken-feed production plant and a processing plant for higher-value egg-based products such as powdered and liquid eggs for the food industry.Chicken manure would be used as fertiliser.
"Other necessary facilities will include conveyors to load eggs from farms to processing units to avoid human handling of the products," he said. He did not give specific locations and investment capital involved.
CP Group, Thailand's largest agribusiness group, was the first foreign investor in China. It has invested billions of dollars over three decades in several ventures including shopping malls, the poultry industry, animal feed and motorcycle plants.
Its successful farm operations attracted attention from Chinese officials, who are promoting a programme worth 100 billion renminbi involving four parties:farmers, CP, the China Development Bank and Chinese authorities, CP vicechairman Thanakorn Seriburi said recently.
The programme is to be carried out in some villages in Anhui, Shanxi, Henan,Hunan, Hubei, Jiangxi and Jilin provinces.
Over the past two years, a number of delegations of Chinese authorities have visited farm villages supported by CP,and the Nong Wah agricultural village in Chachoengsao has become an impressive prototype, according to another CP executive.
The Nong Wah project was initiated 30 years ago by Bangkok Bank, CP and the villagers. Each villager was allocated 24 rai, a house, pig breeders and proper facilities to raise pigs with guidance from the company, while bank staff helped train them to manage finances effectively.
After 30 years, villagers were able to repay debts and run the village on their own under the Nong Wah Agricultural Village Company.
According to Mr Dhanin, CP has no plan for further investments in poultry farms, especially layer operations in Thailand. But China continues to hold great business potential given its 1.3 billion population."Excessive investments [in Thailand] would create an oversupply and bring down egg prices, which would definitely affect farmers," he said at a recent seminar on the outlook for the livestock industry, held by the Alumni of the Faculty of Veterinary Science of the Chulalongkorn University Association, and the Animal Health Products Association.
He also encouraged Thai livestock companies to expand investment abroad to tap into growing meat demand.
While CP has a number of investments in livestock in several countries, production remains low when compared with domestic demands."Our operation in Russia has a capacity to raise as many as one million pigs a year but the volume is still far below domestic demand of 16 million pigs," he said.
CP's pig investment in China, while also sizeable, accounts for a mere 6% of the Chinese market, which produces about 46 million tonnes of pork per year.
Enlarged farm sizes, high-quality breeds and stronger marketing were the factors that would improve the Thai livestock business in the future, Mr Dhanin added.
The Thai conglomerate entered into a contract with Beijing two years ago to help modernise China's farm sector and promote integrated farming businesses there.
CP Group chairman Dhanin Chearavanont said the group planned to raise about 3 million layers in each integrated egg-laying farm. Each site would also have a chicken-feed production plant and a processing plant for higher-value egg-based products such as powdered and liquid eggs for the food industry.Chicken manure would be used as fertiliser.
"Other necessary facilities will include conveyors to load eggs from farms to processing units to avoid human handling of the products," he said. He did not give specific locations and investment capital involved.
CP Group, Thailand's largest agribusiness group, was the first foreign investor in China. It has invested billions of dollars over three decades in several ventures including shopping malls, the poultry industry, animal feed and motorcycle plants.
Its successful farm operations attracted attention from Chinese officials, who are promoting a programme worth 100 billion renminbi involving four parties:farmers, CP, the China Development Bank and Chinese authorities, CP vicechairman Thanakorn Seriburi said recently.
The programme is to be carried out in some villages in Anhui, Shanxi, Henan,Hunan, Hubei, Jiangxi and Jilin provinces.
Over the past two years, a number of delegations of Chinese authorities have visited farm villages supported by CP,and the Nong Wah agricultural village in Chachoengsao has become an impressive prototype, according to another CP executive.
The Nong Wah project was initiated 30 years ago by Bangkok Bank, CP and the villagers. Each villager was allocated 24 rai, a house, pig breeders and proper facilities to raise pigs with guidance from the company, while bank staff helped train them to manage finances effectively.
After 30 years, villagers were able to repay debts and run the village on their own under the Nong Wah Agricultural Village Company.
According to Mr Dhanin, CP has no plan for further investments in poultry farms, especially layer operations in Thailand. But China continues to hold great business potential given its 1.3 billion population."Excessive investments [in Thailand] would create an oversupply and bring down egg prices, which would definitely affect farmers," he said at a recent seminar on the outlook for the livestock industry, held by the Alumni of the Faculty of Veterinary Science of the Chulalongkorn University Association, and the Animal Health Products Association.
He also encouraged Thai livestock companies to expand investment abroad to tap into growing meat demand.
While CP has a number of investments in livestock in several countries, production remains low when compared with domestic demands."Our operation in Russia has a capacity to raise as many as one million pigs a year but the volume is still far below domestic demand of 16 million pigs," he said.
CP's pig investment in China, while also sizeable, accounts for a mere 6% of the Chinese market, which produces about 46 million tonnes of pork per year.
Enlarged farm sizes, high-quality breeds and stronger marketing were the factors that would improve the Thai livestock business in the future, Mr Dhanin added.
JIM THOMPSON CAMPAIGNS TO SAVE SILK FARMS
In a small village in Nong Sang district, middle aged women cultivate silkworms, once a prized industry in the Northeast.
"Thirty years ago, almost every home in the Northeast weave silk. Today, there are only a few thousand households that are actively producing it," says Thongchai Popaibul, a purchasing manager for Thai Silk Company, the maker of Jim Thompson silk products.
This proud culture is in danger of disappearing, he warned.
"Most young men and women here go to the cities to find work, leaving the elderly to tend the farms," Thongchai said.
"This trend is true of most provinces, including nearby Khon Kaen and Mukdahan."
There is none of the hustle and bustle of big cities in Nong Sang, only the barking of small terriers and other toy dogs, some of the few visible imports from Bangkok.
The farmers here cultivate rice, apparent by the vast fields of paddy that surround the small village.
But there are also patches of mulberry, the essential food of skillsworms, proof the cottage industry still has legs.
Thongchai, 48, is a veteran buyer of raw silk, which the company depends on for its Bt1-billion global business.
In a push to secure more farmers to cultivate the traditional crop, the Jim Thompson Group supports contract-farming schemes to provide additional incomes for farmers.
The programme enables increased earnings and serves as a safety net when price volatility disrupts the market.
"Silk is one of the more profitable industries in Thailand. Farmers do not need to spend a huge sum of money on machinery and other expensive equipment," Thongchai said.
There is also no need to bear the cost of high electricity bills. Much of the work is performed by manual labour.
"All they need is minimum 2-rai plot of land and hard work to make sure the silkworms are properly fed," Thongchai said.
Once the cocoons are ready, they are boileld for the silk or sold to the company to complete the process, which takes no more than 26 days.
Sirirat Rattanakajorn, another executive of the silk company, said the industry needed protection.
Dwindling supplies in recent years have forced the company to buy from foreign suppliers.
"Our silk programme in the Northeast is part of our corporate-social-responsibility initiative to promote and revive the industry," she says.
To ensure high-quality silk output, the firm assigns supervisors to visit the farms and assist the producers.
In Khon Kaen, a 90-minute drive away, another manager, Chatchai Puliwakin, 57, buys bales of silk at the company's branch.
"This may seem like a busy time for us, but its actually quite slow compared with the long queues we had 30 years ago."
The shop, located across from the main bus terminal, was chosen so that farmers coming in could trade conveniently without having to commute long distances.
The shop is known for its fairness in the purely cash business.
Originally from Bangkok, Chatchai said he preferred life in Khon Kaen.
"I was 27 when I came here. Its amazing how the years slip away so quickly," he said." "Khon Kaen was Jim Thompson's first upcountry branch. This is still the centre for silk traders. Even the best weaves from Surin come here for supplies."
Today, the company is buiding a replica of silk communities in neigh-bouring Nakhon Ratchasima as part of a cultural park for tourists.
"So much has changed in the last 15 years that most of the wooden homes of farmers are gone," Chatchai said.
"We had to search for these old homes and transport them to Nakohn Ratchasima to be reassembled. Most farmers now live in brick houses."
He said there was a need to preserve the romantic setting, in order to remind future generations of the rich heritage that was almost lost in our mad rush to modernise.
"Thirty years ago, almost every home in the Northeast weave silk. Today, there are only a few thousand households that are actively producing it," says Thongchai Popaibul, a purchasing manager for Thai Silk Company, the maker of Jim Thompson silk products.
This proud culture is in danger of disappearing, he warned.
"Most young men and women here go to the cities to find work, leaving the elderly to tend the farms," Thongchai said.
"This trend is true of most provinces, including nearby Khon Kaen and Mukdahan."
There is none of the hustle and bustle of big cities in Nong Sang, only the barking of small terriers and other toy dogs, some of the few visible imports from Bangkok.
The farmers here cultivate rice, apparent by the vast fields of paddy that surround the small village.
But there are also patches of mulberry, the essential food of skillsworms, proof the cottage industry still has legs.
Thongchai, 48, is a veteran buyer of raw silk, which the company depends on for its Bt1-billion global business.
In a push to secure more farmers to cultivate the traditional crop, the Jim Thompson Group supports contract-farming schemes to provide additional incomes for farmers.
The programme enables increased earnings and serves as a safety net when price volatility disrupts the market.
"Silk is one of the more profitable industries in Thailand. Farmers do not need to spend a huge sum of money on machinery and other expensive equipment," Thongchai said.
There is also no need to bear the cost of high electricity bills. Much of the work is performed by manual labour.
"All they need is minimum 2-rai plot of land and hard work to make sure the silkworms are properly fed," Thongchai said.
Once the cocoons are ready, they are boileld for the silk or sold to the company to complete the process, which takes no more than 26 days.
Sirirat Rattanakajorn, another executive of the silk company, said the industry needed protection.
Dwindling supplies in recent years have forced the company to buy from foreign suppliers.
"Our silk programme in the Northeast is part of our corporate-social-responsibility initiative to promote and revive the industry," she says.
To ensure high-quality silk output, the firm assigns supervisors to visit the farms and assist the producers.
In Khon Kaen, a 90-minute drive away, another manager, Chatchai Puliwakin, 57, buys bales of silk at the company's branch.
"This may seem like a busy time for us, but its actually quite slow compared with the long queues we had 30 years ago."
The shop, located across from the main bus terminal, was chosen so that farmers coming in could trade conveniently without having to commute long distances.
The shop is known for its fairness in the purely cash business.
Originally from Bangkok, Chatchai said he preferred life in Khon Kaen.
"I was 27 when I came here. Its amazing how the years slip away so quickly," he said." "Khon Kaen was Jim Thompson's first upcountry branch. This is still the centre for silk traders. Even the best weaves from Surin come here for supplies."
Today, the company is buiding a replica of silk communities in neigh-bouring Nakhon Ratchasima as part of a cultural park for tourists.
"So much has changed in the last 15 years that most of the wooden homes of farmers are gone," Chatchai said.
"We had to search for these old homes and transport them to Nakohn Ratchasima to be reassembled. Most farmers now live in brick houses."
He said there was a need to preserve the romantic setting, in order to remind future generations of the rich heritage that was almost lost in our mad rush to modernise.
Wednesday, September 23, 2009
All eyes on Dairy Milk and Milk Product Draft Act. Best solutions come from sincerity!!
Milk for Thai Club has proposed that Dairy Milk and Milk Product Act B.E. 2551 (2008) should be revised and amended. One of the most important calls is to establish the National Dairy Council as a full-function agency, which serves as "a foundation" to develop the dairy farm industry and to ensure that dairy farmers will sruvive.
In its latest move, the Department of Livestock Development under Ministry of Agriculture and Cooperatives drew up a "Draft Act for Dairy Milk and Milk Product B.E......." and conduct a public hearing on August 26, 2009.
The Milk for Thai Club was concerned with two main issues: the representative proportion and the structure of the Committee of the Dairy and Milk Product Fund; and the management of the Dairy and Milk Product Fund.
In the first issue regarding the structure of the committee, the new draft of the Dairy Milk and Milk Product Act makes it clear that the representation of the state in the committee is higher than the representation of dairy farmers and business operators. The Milk for Thai Club proposed equal representative proportion of the committee. The government sector should play a role as the supporter to coordinate stakeholders in solving problems such as milk oversupply and milk quality, for example.
In the second issue regarding the Daily and Milk Product Fund, which serves as a major source of funds for the sustainable development of the dairy farm industry by collecting income from stakeholders in the industry. However, in the draft act of the Dairy Milk and Milk Product Fund, the authority to manage payment is controlled by the government, not the fund committee which is appointed from stakeholders who will ensure that the Thai dairy farm industry to be sustainably developed, to be self-dependent, and to be stable in a long run.
More information, pelase visit www.milkforthai.org
In its latest move, the Department of Livestock Development under Ministry of Agriculture and Cooperatives drew up a "Draft Act for Dairy Milk and Milk Product B.E......." and conduct a public hearing on August 26, 2009.
The Milk for Thai Club was concerned with two main issues: the representative proportion and the structure of the Committee of the Dairy and Milk Product Fund; and the management of the Dairy and Milk Product Fund.
In the first issue regarding the structure of the committee, the new draft of the Dairy Milk and Milk Product Act makes it clear that the representation of the state in the committee is higher than the representation of dairy farmers and business operators. The Milk for Thai Club proposed equal representative proportion of the committee. The government sector should play a role as the supporter to coordinate stakeholders in solving problems such as milk oversupply and milk quality, for example.
In the second issue regarding the Daily and Milk Product Fund, which serves as a major source of funds for the sustainable development of the dairy farm industry by collecting income from stakeholders in the industry. However, in the draft act of the Dairy Milk and Milk Product Fund, the authority to manage payment is controlled by the government, not the fund committee which is appointed from stakeholders who will ensure that the Thai dairy farm industry to be sustainably developed, to be self-dependent, and to be stable in a long run.
More information, pelase visit www.milkforthai.org
Monday, September 21, 2009
JBS eyes top spot with twin deals
Brazil's JBS SA said on Wednesday that it would take over the bankrupt US chicken company Pilgrim's Pride Corp and Brazilian rival Bertin, in deals that would make it the world's largest meat company with $30 billion in annual revenue.
JBS, a huge beef producer with some pork operations, will buy a 64% stake in Pilgrim's Pride for $800 million in cash,pitting it against current No. 1 meat company Tyson Foods in the chicken business in addition to its pork and beef divisions.
"It's a good deal for both parties,"Morningstar analyst Ann Gilpin said."JBS is able to get a lot of scale in an industry where it doesn't have any presence for pennies on the dollar."
It also provides JBS with a share of the US chicken export market.
"In terms of benefits, it is a global story rather than a US story," said Jim Robb, economist with the Livestock Marketing Information Centre."They well understand the international focus. When is exported, they see some potential in that poultry complex from a global demand perspective."
JBS, which already is the world's largest beef processor, will take a controlling stake in Brazil's second-largest beef producer Bertin. The all-stock transaction has an estimated value of 5.2 million reais , based on Tuesday's JBS share price.
The deals are the latest in a string of acquisitions by JBS, which started as a butcher shop in 1953. In the United States, it bought beef and pork company Swift & Co in 2007 and a year later the US cattle feedlots and beef plants from Smithfield Foods.
JBS on Wednesday said it would postpone the $2 billion IPO it announced in July because it has to change the details on the filing due to the recent developments.
JBS expects US and Brazilian regulators to approve the deals.
"In Brazil, we don't see concentration existing since both companies export 50% of their own production and the local market is spread out," said Joesley Mendonca Batista, JBS chief executive.
While the Obama administration may closely scrutinise the Pilgrim's Pride deal,analysts expect it will be approved since there would be no change in the number of US chicken companies or their respective market shares.
"It will be an interesting test of the administration's view on consolidation,"said Michael Swanson, a Wells Fargo agricultural economist."I would not think it is going to be a slam dunk that it gets approved."
In the United States, the Brazilian company is already the third-largest beef producer, after Tyson and Cargill, and the third-largest pork producer, after Smithfield and Tyson.
JBS expects the deal to close in December when Pilgrim's Pride would emerge from Chapter 11 protection.
Pilgrim's Pride chief executive Don Jackson told Reuters that mostof Pilgrim's executive management would remain once the deal is approved and that company operations should largely be unchanged.
Pilgrim's Pride grew from a feed store opened 1946 to the largest US chicken company before high feed and fuel costs and large debt forced it into bankruptcy in December 2008. While in bankruptcy it sold and closed plants and reduced production.
Under the plan, all creditors will be paid in full and existing stockholders will get the same number of new common shares representing 36% of the reorganised company. The plan also calls for $1.75 billion to cover senior secured financing.
JBS, a huge beef producer with some pork operations, will buy a 64% stake in Pilgrim's Pride for $800 million in cash,pitting it against current No. 1 meat company Tyson Foods in the chicken business in addition to its pork and beef divisions.
"It's a good deal for both parties,"Morningstar analyst Ann Gilpin said."JBS is able to get a lot of scale in an industry where it doesn't have any presence for pennies on the dollar."
It also provides JBS with a share of the US chicken export market.
"In terms of benefits, it is a global story rather than a US story," said Jim Robb, economist with the Livestock Marketing Information Centre."They well understand the international focus. When is exported, they see some potential in that poultry complex from a global demand perspective."
JBS, which already is the world's largest beef processor, will take a controlling stake in Brazil's second-largest beef producer Bertin. The all-stock transaction has an estimated value of 5.2 million reais , based on Tuesday's JBS share price.
The deals are the latest in a string of acquisitions by JBS, which started as a butcher shop in 1953. In the United States, it bought beef and pork company Swift & Co in 2007 and a year later the US cattle feedlots and beef plants from Smithfield Foods.
JBS on Wednesday said it would postpone the $2 billion IPO it announced in July because it has to change the details on the filing due to the recent developments.
JBS expects US and Brazilian regulators to approve the deals.
"In Brazil, we don't see concentration existing since both companies export 50% of their own production and the local market is spread out," said Joesley Mendonca Batista, JBS chief executive.
While the Obama administration may closely scrutinise the Pilgrim's Pride deal,analysts expect it will be approved since there would be no change in the number of US chicken companies or their respective market shares.
"It will be an interesting test of the administration's view on consolidation,"said Michael Swanson, a Wells Fargo agricultural economist."I would not think it is going to be a slam dunk that it gets approved."
In the United States, the Brazilian company is already the third-largest beef producer, after Tyson and Cargill, and the third-largest pork producer, after Smithfield and Tyson.
JBS expects the deal to close in December when Pilgrim's Pride would emerge from Chapter 11 protection.
Pilgrim's Pride chief executive Don Jackson told Reuters that mostof Pilgrim's executive management would remain once the deal is approved and that company operations should largely be unchanged.
Pilgrim's Pride grew from a feed store opened 1946 to the largest US chicken company before high feed and fuel costs and large debt forced it into bankruptcy in December 2008. While in bankruptcy it sold and closed plants and reduced production.
Under the plan, all creditors will be paid in full and existing stockholders will get the same number of new common shares representing 36% of the reorganised company. The plan also calls for $1.75 billion to cover senior secured financing.
Friday, September 18, 2009
GPO seeks hygienic eggs to make flu jab
The Government Pharmaceutical Organisation is seeking the help of the Livestock Department to acquire hygienic local hen eggs to produce flu vaccines after limitations were found with imported eggs.
GPO deputy managing director Somchai Srichainak yesterday said the agency could produce up to 1,000 specific pathogen-free (SPF) eggs a day for vaccine development.
He said the GPO and the department were discussing the feasibility of in-creasing the production and supply of SPF eggs."We're seeking ways to find local hygienic egg suppliers to help in the manufacture of vaccines as the time it takes to ship supplies from overseas could affect the eggs and the vaccine production," Mr Somchai said.
SPF eggs are now being imported from Germany and the US.
Mr Somchai said the GPO at first planned to use hygienic eggs from local poultry producers such as CP and Saha Farm to cultivate the virus. But their technologies were not tailored for SPF egg production unlike those from the Livestock Department.
However, imported eggs were still needed for vaccine production as an average of 1,500 SPF eggs were used to manufacture each batch of vaccine.
GPO chairman Vichai Chokewiwat said a committee overseeing human vaccine trials would meet tomorrow to decide if the trials should be delayed.They were scheduled to start on Sept 24.
A report of a lung infection in one of 12 guinea pigs being used in pre-trial tests had raised concerns, although studies had shown the flu vaccine did not cause the problem.
Postponing the human trials would set back the availability of the vaccine which was scheduled for January.
The Public Health Ministry yesterday confirmed 11 new deaths from the typeA (H1N1) flu, bringing the country's death toll since the outbreak began to 153, deputy permanent secretary for health Paijit Varachit said.
H1N1 WATCH Deaths: As of Sept 12,compared to Sept 5 142 153 Sept 5Sept 12 Contact numbers: * Public Health Ministry hotline: 02-590-1994 (24 hours) or 1422 * Health Emergency Response Unit: 02-590-3333 * BMA disease control division: 02-245-8106
GPO deputy managing director Somchai Srichainak yesterday said the agency could produce up to 1,000 specific pathogen-free (SPF) eggs a day for vaccine development.
He said the GPO and the department were discussing the feasibility of in-creasing the production and supply of SPF eggs."We're seeking ways to find local hygienic egg suppliers to help in the manufacture of vaccines as the time it takes to ship supplies from overseas could affect the eggs and the vaccine production," Mr Somchai said.
SPF eggs are now being imported from Germany and the US.
Mr Somchai said the GPO at first planned to use hygienic eggs from local poultry producers such as CP and Saha Farm to cultivate the virus. But their technologies were not tailored for SPF egg production unlike those from the Livestock Department.
However, imported eggs were still needed for vaccine production as an average of 1,500 SPF eggs were used to manufacture each batch of vaccine.
GPO chairman Vichai Chokewiwat said a committee overseeing human vaccine trials would meet tomorrow to decide if the trials should be delayed.They were scheduled to start on Sept 24.
A report of a lung infection in one of 12 guinea pigs being used in pre-trial tests had raised concerns, although studies had shown the flu vaccine did not cause the problem.
Postponing the human trials would set back the availability of the vaccine which was scheduled for January.
The Public Health Ministry yesterday confirmed 11 new deaths from the typeA (H1N1) flu, bringing the country's death toll since the outbreak began to 153, deputy permanent secretary for health Paijit Varachit said.
H1N1 WATCH Deaths: As of Sept 12,compared to Sept 5 142 153 Sept 5Sept 12 Contact numbers: * Public Health Ministry hotline: 02-590-1994 (24 hours) or 1422 * Health Emergency Response Unit: 02-590-3333 * BMA disease control division: 02-245-8106
SICK GUINEA PIG MAY DELAY FLU VACCINE TEST
The Government Pharmaceutical Organisation (GPO) will decide next Wednesday whether to delay the first phase of clinical trials of a vaccine against a new strain of type-A (H1N1) influenza discovered after a test with guinea pigs found one had an infection in its lungs.
Meanwhile, the Public Health Ministry announced yesterday the type-A (H1N1) virus has killed 11 people during the past seven days, bringing total fatalities to 153. Most were suffering underlying diseases.
The GPO had planned to run its first clinical vaccine trial against the flu virus on September 21. However, after finding an infection during an animal trial, GPO decided to put off its human trials for another three days.
GPO board chairperson, Dr Wichai Chokwiwat said the board will meet on Friday to discuss results of the animal trial where one of ten guinea pigs was found to have developed pockmarks in its lung.
"We will have to study all information about the guinea pig tests carefully before we make a decision whether or not to begin testing the vaccine in 24 volunteers from September 24," he said.
"We will postpone the human trials if we find any problems in the first lot of vaccine against new flu virus," he said.
Wichai said he has consulted with experts about the marks in the guinea pig's lungs and been advised they might have been caused by an abnormality in the animal and not by the vaccine.
He said scientists had injected the vaccine into two guinea pigs with the same concentration planned for humans. One of the two guinea pigs developed an infection which might have been caused by a previous lesion.
GPO's deputy director, Somchai Srichainaka said they were negotiating with the Livestock Development Department to produce local specific pathogen free eggs for the production of vaccine.
GPO has faced problems importing these hen's eggs for vaccine development from Germany and the United States.The long distance transportation might be affecting specific eggs and causing the virus incubated in them to grow more slowly. However 3,000 eggs from the US will arrive today.
Somchai said Thailand would save expense in the long term if it could produce local specific free pathogen eggs, reducing costs from Bt180 to Bt120 an egg. GPO has asked the US Food and Drug Administration for help with production of the specific free pathogen.
World Health Organisation (WHO) representative to Thailand, Dr Maureen Birmingham, said WHO is negotiating with two leading vaccine makers,Sanofi Pasteur and GlaxoSmithKline, to contribute vaccine to the WHO for distribution to developing countries. Agreement is expected in the next two weeks.
Meanwhile, the Public Health Ministry announced yesterday the type-A (H1N1) virus has killed 11 people during the past seven days, bringing total fatalities to 153. Most were suffering underlying diseases.
The GPO had planned to run its first clinical vaccine trial against the flu virus on September 21. However, after finding an infection during an animal trial, GPO decided to put off its human trials for another three days.
GPO board chairperson, Dr Wichai Chokwiwat said the board will meet on Friday to discuss results of the animal trial where one of ten guinea pigs was found to have developed pockmarks in its lung.
"We will have to study all information about the guinea pig tests carefully before we make a decision whether or not to begin testing the vaccine in 24 volunteers from September 24," he said.
"We will postpone the human trials if we find any problems in the first lot of vaccine against new flu virus," he said.
Wichai said he has consulted with experts about the marks in the guinea pig's lungs and been advised they might have been caused by an abnormality in the animal and not by the vaccine.
He said scientists had injected the vaccine into two guinea pigs with the same concentration planned for humans. One of the two guinea pigs developed an infection which might have been caused by a previous lesion.
GPO's deputy director, Somchai Srichainaka said they were negotiating with the Livestock Development Department to produce local specific pathogen free eggs for the production of vaccine.
GPO has faced problems importing these hen's eggs for vaccine development from Germany and the United States.The long distance transportation might be affecting specific eggs and causing the virus incubated in them to grow more slowly. However 3,000 eggs from the US will arrive today.
Somchai said Thailand would save expense in the long term if it could produce local specific free pathogen eggs, reducing costs from Bt180 to Bt120 an egg. GPO has asked the US Food and Drug Administration for help with production of the specific free pathogen.
World Health Organisation (WHO) representative to Thailand, Dr Maureen Birmingham, said WHO is negotiating with two leading vaccine makers,Sanofi Pasteur and GlaxoSmithKline, to contribute vaccine to the WHO for distribution to developing countries. Agreement is expected in the next two weeks.
Tuesday, September 15, 2009
BUFFALO RESCUE SAVES FARMERS
Ten years ago, there were about 6 million water buffaloes in the Kingdom. Today there are less than a million," said Wanlop Chearavanont who heads the charity arm of Thailand's biggest farm conglomerate Charoen Pokphand.
"This is why since 2002, we have been involved with His Majesty the King's projects to save the buffaloes from extinction."
The sharp decline is a result of rapid industrialisation of the farms where tractors replaced the beast as the traditional way of ploughing the land for many centuries.
"Millions of buffalo were killed for meat, as farmers assumed they were no longer needed and were too costly to keep," he adds.
"But now, with the price of fuel shooting up and the cost of tractors [costing more than Bt700,000] jumping beyond the means of most farmers, the buffalo are again their only hope.
"It was HM the King who foresaw the danger of losing them, which puts farmers at the mercy of inflation and prolonged recessions.
"Many farmers now appreciate His Majesty's efforts and have gone back to using their natural partner."
"Each year, the group donates 200 buffalo to farmers under the Royal Water Buffalo Bank project, which buys buffalo destined for the slaughterhouse.
The initiative is conducted twice a year in Thailand: on Mother's Day and Father's Day.
Wanlop, 71, has spent the past three decades supporting more than 100 corporate-social-responsibility programmes, which includes presenting 150 scholarships to poor student a years.
He said the royal projects were of special importance because His Majesty's understanding of the problems of farmers went deeper than the superficial minds of some bureaucrats and politicians.
"I'm very frustrated by how slow the government works, even when issues such as energy and water shortages are clearly acute."
Water conservation, which should be easy to apply, is for several decades delayed because of slow action by state officials, he said.
"His Majesty had urged for the construction of irrigation canals like those built by King Chulalongkorn in Rangsit to prevent flooding, as well as the conservation fresh water supplies," Wanlop said.
The infrastructure, now a century old, has protected Bangkok and allowed it to prosper. But now, an increased populace and land subsidence demands building a second irrigation canal system.
"These canals cut across rivers, channelling water deep inland and prevent the wasteful discharge of vital fresh water supplies straight into the sea," he said.
"Whenever I ask bureaucrats why nothing is done, they say the World Bank does not fund canals, only dams.
"I'm constantly saddened bny corruption and inaptitude. The needs of the people should not be so shoddily ignored."
Wanlop is a close cousin of CP Group chairman Dhanin, who is ranked among Asia's wealthiest people by Forbes magazine.
"Our family members all share His Majesty's concerns and worthy causes," Wanlop said.
Wanlop and Dhanin are greatly influenced by the Christian schools they attended.
"I went to Assumption College, which was run by St Gabriel, and Sarasit Phittayalai, a boarding school run by the Salasian order.
"Both schools profoundly influenced me to make social contributions," he said.
Founded in 1921, CP employs more than 250,000 people worldwide.
"This is why since 2002, we have been involved with His Majesty the King's projects to save the buffaloes from extinction."
The sharp decline is a result of rapid industrialisation of the farms where tractors replaced the beast as the traditional way of ploughing the land for many centuries.
"Millions of buffalo were killed for meat, as farmers assumed they were no longer needed and were too costly to keep," he adds.
"But now, with the price of fuel shooting up and the cost of tractors [costing more than Bt700,000] jumping beyond the means of most farmers, the buffalo are again their only hope.
"It was HM the King who foresaw the danger of losing them, which puts farmers at the mercy of inflation and prolonged recessions.
"Many farmers now appreciate His Majesty's efforts and have gone back to using their natural partner."
"Each year, the group donates 200 buffalo to farmers under the Royal Water Buffalo Bank project, which buys buffalo destined for the slaughterhouse.
The initiative is conducted twice a year in Thailand: on Mother's Day and Father's Day.
Wanlop, 71, has spent the past three decades supporting more than 100 corporate-social-responsibility programmes, which includes presenting 150 scholarships to poor student a years.
He said the royal projects were of special importance because His Majesty's understanding of the problems of farmers went deeper than the superficial minds of some bureaucrats and politicians.
"I'm very frustrated by how slow the government works, even when issues such as energy and water shortages are clearly acute."
Water conservation, which should be easy to apply, is for several decades delayed because of slow action by state officials, he said.
"His Majesty had urged for the construction of irrigation canals like those built by King Chulalongkorn in Rangsit to prevent flooding, as well as the conservation fresh water supplies," Wanlop said.
The infrastructure, now a century old, has protected Bangkok and allowed it to prosper. But now, an increased populace and land subsidence demands building a second irrigation canal system.
"These canals cut across rivers, channelling water deep inland and prevent the wasteful discharge of vital fresh water supplies straight into the sea," he said.
"Whenever I ask bureaucrats why nothing is done, they say the World Bank does not fund canals, only dams.
"I'm constantly saddened bny corruption and inaptitude. The needs of the people should not be so shoddily ignored."
Wanlop is a close cousin of CP Group chairman Dhanin, who is ranked among Asia's wealthiest people by Forbes magazine.
"Our family members all share His Majesty's concerns and worthy causes," Wanlop said.
Wanlop and Dhanin are greatly influenced by the Christian schools they attended.
"I went to Assumption College, which was run by St Gabriel, and Sarasit Phittayalai, a boarding school run by the Salasian order.
"Both schools profoundly influenced me to make social contributions," he said.
Founded in 1921, CP employs more than 250,000 people worldwide.
Friday, September 11, 2009
China urged not to eat kangaroo meat
The father of dead Australian conservationist Steve Irwin urged China yesterday not to start importing kangaroo meat, warning it could wipe out huge stocks of the animal.
Bob Irwin made his plea after Australia's kangaroo industry began courting the giant Asian market in the wake of Russia's move to bar imports.
"We wouldn't eat your pandas, so please don't eat our kangaroos. Come and see them," Mr Irwin said.
Mr Irwin, whose "Crocodile Hunter"son was killed in a freak stingray accident in 2006, said kangaroos held more value as a tourist attraction than as meat with the country's stocks now "critical".
"The Chinese are one of our biggest visitors and kangaroos are one of their favourite attractions. If they were to start eating kangaroos, we predict that within a few years there won't be any left in the wild for them to see," he said.
Bob Irwin made his plea after Australia's kangaroo industry began courting the giant Asian market in the wake of Russia's move to bar imports.
"We wouldn't eat your pandas, so please don't eat our kangaroos. Come and see them," Mr Irwin said.
Mr Irwin, whose "Crocodile Hunter"son was killed in a freak stingray accident in 2006, said kangaroos held more value as a tourist attraction than as meat with the country's stocks now "critical".
"The Chinese are one of our biggest visitors and kangaroos are one of their favourite attractions. If they were to start eating kangaroos, we predict that within a few years there won't be any left in the wild for them to see," he said.
Friday, September 4, 2009
Millions of male chicks "ground up alive"
A US animal rights activists on Wednesday released a film in which thousands of discarded male chicks are shown being ground up while still alive - cruel treatment which they said is typical of the poultry industry.
"These young animals are sorted,discarded, and handled like mere cogs in a machine," said the animal activist group Mercy for Animals.
The group said it obtained the film during an undercover investigation at the Spencer, Iowa, hatchery, but said it shows the heartless treatment young chickens are subjected to across the poultry industry.
For its part, Hy-Line International said in a statement that its "number one priority is the care and safety of our birds and our employees".
"We have well-defined policies and procedures regarding poultry welfare and we are committed to meeting or exceeding all industry standards," the company said.
Hy-Line said it has launched an "immediate investigation of the entire situation"."If any violation of our animal welfare policies is found, the employee or employees involved will be disciplined per company policy, up to and including termination." Mercy for Animals said nearly 150,000 male chicks who hatch every 24 hours are separated from females, and, as they are unable to be raised for egg production, tossed into chutes which take them to their deaths.
"They are destined to die on day one because they cannot produce eggs and do not grow large or fast enough to be raised for meat," the group said."Their lives are cut short when they are dropped into a grinding machine" in which they are "torn to pieces"."Over 30 million male chicks meet their fate this way each year at this facility," Mercy for Animals said. The group called on US grocery chains to label eggs in their store with a label reading:"Warning - Male chicks are ground up alive."
"These young animals are sorted,discarded, and handled like mere cogs in a machine," said the animal activist group Mercy for Animals.
The group said it obtained the film during an undercover investigation at the Spencer, Iowa, hatchery, but said it shows the heartless treatment young chickens are subjected to across the poultry industry.
For its part, Hy-Line International said in a statement that its "number one priority is the care and safety of our birds and our employees".
"We have well-defined policies and procedures regarding poultry welfare and we are committed to meeting or exceeding all industry standards," the company said.
Hy-Line said it has launched an "immediate investigation of the entire situation"."If any violation of our animal welfare policies is found, the employee or employees involved will be disciplined per company policy, up to and including termination." Mercy for Animals said nearly 150,000 male chicks who hatch every 24 hours are separated from females, and, as they are unable to be raised for egg production, tossed into chutes which take them to their deaths.
"They are destined to die on day one because they cannot produce eggs and do not grow large or fast enough to be raised for meat," the group said."Their lives are cut short when they are dropped into a grinding machine" in which they are "torn to pieces"."Over 30 million male chicks meet their fate this way each year at this facility," Mercy for Animals said. The group called on US grocery chains to label eggs in their store with a label reading:"Warning - Male chicks are ground up alive."
CP pours Bt3 bn into Vietnam
The Charoen Pokphand Group has invested Bt3 billion for setting up a new integrated food production plant in Binh Doung, Vietnam, as part of its strategy to penetrate overseas markets. Sarasin Viraphol, the group's vice chairman, said the investment plan will include feed mill, integrated chicken business from farm to processed foods.
In the beginning, the production will cater to the domestic market. Exports will be considered later.
"Food production in the country has a bright future as CP Group has advanced technology for food safety standards compared with local investors," Sarasin said.
The company said the feed mill's production capacity will achieve 600,000 tonnes per year.
Meanwhile, pursuing its strategy of penetrating the Middle East market, the company has set up a special committee to study the possibility to increase exports to the region.
Sarasin said economies of countries in the Middle East will grow considerably as oil prices go up.
The market will have higher demand for food. The company aims to export fresh chicken, shrimp, and eggs to the market, he said.
It is expected that the feasibility study will be completed in a few months so that the firm can promptly start exporting many food products to the market.
So far, the company has signed a farming contract with Bahrain for supplying food products, he added.
Meanwhile, Charoen Pokphand Engineering will launch an innovative palm extraction dry-processed machine for farmers.
Nared Chin-Inmanu, assistant vice president of the company, said that it will be the first machine that has high efficiency to extract palm fruits with a lower percentage of crude palm-oil loss. The machine will be sold for Bt4.5 million with a production capacity of 1.5 tonnes of palm fruits per hour. The firm is expected to sell about 10 machines this year.
Nared said that the higher oil price will encourage farmers to grow more palm fruits next year. The plantation area for palm fruits will increase from 3 million rai to 3.5 million rai next year.
The new palm-oil extraction machinery will help promote the growth of the alternative fuel industry, he said.
In the beginning, the production will cater to the domestic market. Exports will be considered later.
"Food production in the country has a bright future as CP Group has advanced technology for food safety standards compared with local investors," Sarasin said.
The company said the feed mill's production capacity will achieve 600,000 tonnes per year.
Meanwhile, pursuing its strategy of penetrating the Middle East market, the company has set up a special committee to study the possibility to increase exports to the region.
Sarasin said economies of countries in the Middle East will grow considerably as oil prices go up.
The market will have higher demand for food. The company aims to export fresh chicken, shrimp, and eggs to the market, he said.
It is expected that the feasibility study will be completed in a few months so that the firm can promptly start exporting many food products to the market.
So far, the company has signed a farming contract with Bahrain for supplying food products, he added.
Meanwhile, Charoen Pokphand Engineering will launch an innovative palm extraction dry-processed machine for farmers.
Nared Chin-Inmanu, assistant vice president of the company, said that it will be the first machine that has high efficiency to extract palm fruits with a lower percentage of crude palm-oil loss. The machine will be sold for Bt4.5 million with a production capacity of 1.5 tonnes of palm fruits per hour. The firm is expected to sell about 10 machines this year.
Nared said that the higher oil price will encourage farmers to grow more palm fruits next year. The plantation area for palm fruits will increase from 3 million rai to 3.5 million rai next year.
The new palm-oil extraction machinery will help promote the growth of the alternative fuel industry, he said.
Tuesday, September 1, 2009
CPF WANTS TO SPONSOR PREMIER LEAGUE TEAM WITHIN THREE YEARS
Aiming to achieve global-brand status, Charoen Pokphand Foods (CPF) will adopt a sports-marketing strategy that includes plans to become a sponsor of an English Premier League football team within three years.
Asian representatives of Premier League club Liverpool have been in talks with a number of major Thai corporations including CPF, Singha and Central Group. The representatives presented a business proposal and outlined a range of potential benefits for the targeted partners.
Becoming a main sponsor of a Premier League team would give the CP brand global exposure, and the firm direct access to the football fans it has targeted.
Suphat Sritanatorn, CPF's senior vice president for marketing, said the firm is considering not only English teams but also clubs in Spain's La Liga and Italy's Calcio Serie-A. In England, CPF is interested in Liverpool, Manchester United, Arsenal, Manchester City and Everton.
The company must first consider many details, especially which team, league and division would create the maximum benefit for the company's CP brand, Suphat said.
Currently, the only Thai-owned brand to sponsor an English team is Chang beer, owned by the Sirivadhanabhakdi family, which has a deal with Everton. Chang last year extended the sponsorship deal for three years at a cost of ฃ8 million (Bt442.5 million).
"The company is in talks with interested football teams in the UK. We expect that the CP brand will become the main sponsor of a Premier League team within the next three years," said Suphat.
CPF is already a major sponsor of international boxing bouts and the Thai League football competition.
Suphat said CPF spends an average of Bt400 million to Bt450 million per year on marketing. Of the total, Bt180 million to Bt200 million is allocated to the domestic market and the remainder is for the export market.
The global economic crisis prompted the company to increase its marketing budget by 10 per cent to ensure sales targets are met. Total sales are set to reach Bt150 billion this year.
"During these tougher economic times, the company has had to increase its marketing budget to focus on brand-building. If we don't, our competitors will boost their market shares," Suphat said.
As part of the marketing plan, the company is expanding its CP Fresh Mart shops network. The company manages about 500 shops nationwide and plans to add 100 to 120 outlets next year. It aims to have 700 shops by 2011.
Due to the economic slowdown, CPF missed its first-half sales projection. However, it is hoped that the expected economic recovery will boost sales volume by 10 per cent and sales value by 8 to 10 per cent by the end of this year.
Suphat said CPF has had to reduce the retail price of CP brand products in the domestic market by 5 to 10 per cent due to fierce competition.
Asian representatives of Premier League club Liverpool have been in talks with a number of major Thai corporations including CPF, Singha and Central Group. The representatives presented a business proposal and outlined a range of potential benefits for the targeted partners.
Becoming a main sponsor of a Premier League team would give the CP brand global exposure, and the firm direct access to the football fans it has targeted.
Suphat Sritanatorn, CPF's senior vice president for marketing, said the firm is considering not only English teams but also clubs in Spain's La Liga and Italy's Calcio Serie-A. In England, CPF is interested in Liverpool, Manchester United, Arsenal, Manchester City and Everton.
The company must first consider many details, especially which team, league and division would create the maximum benefit for the company's CP brand, Suphat said.
Currently, the only Thai-owned brand to sponsor an English team is Chang beer, owned by the Sirivadhanabhakdi family, which has a deal with Everton. Chang last year extended the sponsorship deal for three years at a cost of ฃ8 million (Bt442.5 million).
"The company is in talks with interested football teams in the UK. We expect that the CP brand will become the main sponsor of a Premier League team within the next three years," said Suphat.
CPF is already a major sponsor of international boxing bouts and the Thai League football competition.
Suphat said CPF spends an average of Bt400 million to Bt450 million per year on marketing. Of the total, Bt180 million to Bt200 million is allocated to the domestic market and the remainder is for the export market.
The global economic crisis prompted the company to increase its marketing budget by 10 per cent to ensure sales targets are met. Total sales are set to reach Bt150 billion this year.
"During these tougher economic times, the company has had to increase its marketing budget to focus on brand-building. If we don't, our competitors will boost their market shares," Suphat said.
As part of the marketing plan, the company is expanding its CP Fresh Mart shops network. The company manages about 500 shops nationwide and plans to add 100 to 120 outlets next year. It aims to have 700 shops by 2011.
Due to the economic slowdown, CPF missed its first-half sales projection. However, it is hoped that the expected economic recovery will boost sales volume by 10 per cent and sales value by 8 to 10 per cent by the end of this year.
Suphat said CPF has had to reduce the retail price of CP brand products in the domestic market by 5 to 10 per cent due to fierce competition.
Friday, August 28, 2009
NEW CPF UNIT TO MANAGE BUSINESS IN PHILIPPINES
Charoen Pokphand Foods yesterday announced the establishment of CPF Philippines Corp to manage its aquaculture and pig-farming operations in the Asean country.
Adirek Sripratak, president and chief executive officer of CPF, said the company was investing about Bt1.52 billion in two business areas: Bt1.4 billion for marine feed mills and Bt125 million for pig farming.
"We decided to set up the company after operating our business in the Philippines for a while and enjoying a successful outcome," he said.
CPF's aquaculture business comprises a shrimp feed mill to be set up in Cebu, a promoted economic zone, with a production capacity of 30,000 tonnes per year.
In addition, a fish feed mill will be set up on Luzon, which is the biggest island in the country, with a capacity of 60,000 tonnes per year.
The company expects to complete both projects next year.
Adirek said a pig-farming operation would also be constructed on Luzon. The company will start by raising 1,200 pedigree animals, eventually leading to 10,400 breeding pigs.
The investment will serve the needs of 92 million people in the Philippines, which has an annual population growth rate of 2 per cent. The per-capita pork consumption is 15 kilograms per year, against Thailand's 13kg.
The overall investment plan will also boost CPF's income in the remainder of the year.
CPF has reported first-half revenue of Bt75.39 billion and net profit of Bt3.96 billion.
Adirek Sripratak, president and chief executive officer of CPF, said the company was investing about Bt1.52 billion in two business areas: Bt1.4 billion for marine feed mills and Bt125 million for pig farming.
"We decided to set up the company after operating our business in the Philippines for a while and enjoying a successful outcome," he said.
CPF's aquaculture business comprises a shrimp feed mill to be set up in Cebu, a promoted economic zone, with a production capacity of 30,000 tonnes per year.
In addition, a fish feed mill will be set up on Luzon, which is the biggest island in the country, with a capacity of 60,000 tonnes per year.
The company expects to complete both projects next year.
Adirek said a pig-farming operation would also be constructed on Luzon. The company will start by raising 1,200 pedigree animals, eventually leading to 10,400 breeding pigs.
The investment will serve the needs of 92 million people in the Philippines, which has an annual population growth rate of 2 per cent. The per-capita pork consumption is 15 kilograms per year, against Thailand's 13kg.
The overall investment plan will also boost CPF's income in the remainder of the year.
CPF has reported first-half revenue of Bt75.39 billion and net profit of Bt3.96 billion.
CPF to invest B1.5bn in Philippines
Charoen Pokphand Foods Plc (CPF), the SET-listed flagship of the Charoen Pokphand Group, plans to spend 1.53 billion baht to build aquatic feed plants and a pig farm in the Philippines.
The company will spend 1.4 billion baht to construct a shrimp-feed factory with a capacity of 30,000 tonnes per year in Cebu province and a fish-feed plant with a capacity of 60,000 tonnes per year on Luzon island.
It will also invest 125 million baht in a pig farm in Luzon, said Adirek Sripatak,CPF's president and CEO. Construction of the projects is expected to be completed next year.
"There is vast potential in the Philippines because of the country's large population," said Mr Adirek."The pig farm should be successful because of high pork consumption among the Philippine people."
Average pork consumption in the Philippines is about 15 kilogrammes per person per year, compared with 13 kg in Thailand.
CPF has also increased its overseas investments in countries such as Russia,Turkey and Vietnam to improve profit growth.
The company's net income rose to a quarterly record of 3.19 billion baht in the three months ended June 30, on improving earnings in its domestic and overseas aquaculture businesses, with six-month net profit rising to nearly 4 billion baht on sales of 75.4 billion.
CPF shares rose yesterday on the SET by 15 satang to 5.80 baht, in trade worth 143.658 million baht.
The company will spend 1.4 billion baht to construct a shrimp-feed factory with a capacity of 30,000 tonnes per year in Cebu province and a fish-feed plant with a capacity of 60,000 tonnes per year on Luzon island.
It will also invest 125 million baht in a pig farm in Luzon, said Adirek Sripatak,CPF's president and CEO. Construction of the projects is expected to be completed next year.
"There is vast potential in the Philippines because of the country's large population," said Mr Adirek."The pig farm should be successful because of high pork consumption among the Philippine people."
Average pork consumption in the Philippines is about 15 kilogrammes per person per year, compared with 13 kg in Thailand.
CPF has also increased its overseas investments in countries such as Russia,Turkey and Vietnam to improve profit growth.
The company's net income rose to a quarterly record of 3.19 billion baht in the three months ended June 30, on improving earnings in its domestic and overseas aquaculture businesses, with six-month net profit rising to nearly 4 billion baht on sales of 75.4 billion.
CPF shares rose yesterday on the SET by 15 satang to 5.80 baht, in trade worth 143.658 million baht.
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