News: Animal Utilization
USSEC and Virginia Tech’s dairy science department cooperated to conduct a technical dairy training session, “Concentrating on New Technologies to Increase Efficiencies” from October 2 – 9.
Participants hailed from Egypt, Saudi Arabia, Morocco, Tunisia, and Turkey. USSEC consultant Sirri Kayhan escorted the 23 visitors representing the Middle East dairy industry.
The first part of the training was held in Roanoke, Virginia. During this session, genomics or DNA testing was discussed along with upcoming changes in the Nutrition Research Council’s (NRC) nutrient requirements for dairy cows.
Dr. Charles Stallings, professor emeritus of dairy science, gave a lecture, “The U.S. and Virginia Dairy Industries: What is Driving the Changes?” Dr. Bennet Cassell, professor emeritus of dairy science, spoke on “The Genomic Revolution or How Changes in Measuring Genes Have Changed Genetic Improvement.” After lunch, participants listened to results from nutrition research at Virginia Tech, given by Dr. Mark Hanigan, professor of dairy science.
The following day, the group toured Virginia Tech’s new dairy facilities and visited the Florey dairy farm in Dublin where they saw a demonstration of robotic milking.
The group then traveled to Madison, Wisconsin to attend the World Dairy Expo.
USSEC recently provided technical assistance to livestock producers in the states of San Luis Potosi and Jalisco, Mexico.
USSEC technicians, Carlos Campabadal and Carlos Espinosa, visited VALI feed mill in San Luis Potosi. VALI produces all types of feeds and also sells roasted and extruder full fat soybean meal (FFSBM), purchasing between 4,000 to 5,000 metric tons (MT) of U.S. soybean meal. During this visit, discussions were related to feed production, especially in the area of roasted and extruder FFSBM, including the nutritional differences between these two products, their nutritional value, and the methodology to evaluate the processing effect.
In Jalisco, the consultants visited Forrajes Mendez. This feed mill produces all types of feeds (2,000 MT/month) and sells feed ingredients (5,000 MT/month) to producers that make their own feed. They buy between 1,500 to 2,000 MT of U.S. soybean meal. Mr. Campadabal and Mr. Espinosa visited the storage area to evaluate the quality of the feed ingredients and to review the process to produce the feed.
The next visit was to Tinajeros Dairy Farm, which is known for its Holstein dairy cows. This farm has a forage program, and the USSEC consultants made some recommendations about it and also about the use of U.S. soybean bypass protein in their rations.
Next up was Forrajes Mercado, a feed mill that sells 3,000 MT of feed of different species and feed ingredients. They purchase 1,500 to 2,000 MT of U.S. soybean meal. The feed mill was visited and USSEC reviewed the quality of the feed ingredient, finding that the soybean meal was of good quality. The consultants saw feed production, reviewed the particle size of the feeds, and discussed the quality of the U.S. soybean, the methodology to evaluate this product.
The last visit was to a beef cattle feedlot, La Mezquitera, which has 300 cattle of different breeds. The cattle’s diet utilizes U.S. soybean meal as a source of protein, which is not common in feedlot cattle. USSEC provided several nutritional and management recommendations to improve performance.
In late September, USSEC – European Union (EU) organized a “Sustainable Soy” visit to the United States for contacts from the European feed industry. Participants came from the United Kingdom, France, the Netherlands, Poland, Hungary and the Czech Republic. The trip focused on the key elements of the U.S. Sustainable Soy Assurance Protocol (SSAP), particularly the conservation and compliance requirements, and aimed to demonstrate the principles of sustainable soy production in the United States.
Starting in Washington D.C, both the U.S. Department of Agriculture’s (USDA) Natural Resources Conservation Service (NRCS) and the National Agricultural Statistics Service (NASS) provided briefings on their activities and programs and their impact on sustainable agricultural production in the United States. NRCS’s long history of conservation practices and its compliance systems and NASS’s data collection and dissemination both contribute critical elements to the SSAP. The American Soybean Association, the North American Export Grain Association, the National Grain and Feed Association, the Field to Market Alliance, and the American Feed Industry Association all provided detailed briefings on their programs.
State level NRCS offices organized visits to the farms of Mike and Mary Brown in Hartley, Delaware and Mark Eck in Henderson, Maryland where participants saw firsthand conservation practices and activities that improved wildlife habitats, soil erosion and water quality. The group visited historic Annapolis, Maryland before catching a late night flight to Des Moines, Iowa.
In Iowa, State NRCS representatives described their new Resource Stewardship Evaluation (RSE) program, a tool which strengthens and modernizes conservation planning by evaluating current management and conservation activities in the five critical areas of soil management, water quality and quantity, air quality and wildlife habitat, thereby helping producers better identify their conservation goals.
Later, the group visited Iowa State University (ISU) in Ames and received briefings on cutting edge research on water quality activities aimed at reducing nutrient runoff. The group also took a walking art tour of the ISU campus with the highlight being the Grant Wood (“American Gothic”) murals in the university’s library.
The next day was organized in close cooperation with the Iowa Soybean Association (ISA) and started with briefings by their environment staff on the range of their conservation related activities with additional briefing on their research and community outreach efforts. The Iowa Agriculture Water Alliance provided a briefing on their activities to improve water quality and reduce nutrient runoff. The group then visited the farm of Lee Tesdell in Lincoln, Iowa where a number of conservation practices were demonstrated, including a bioreactor used to reduce nitrate levels in runoff water. The group then visited the farm of Rick Kimberley where the highlight was watching the soybean harvest begin. At both farms, the group engaged with the producers, asking questions on various aspects of the operations and gaining critical insights into soybean production, sustainability, conservation measures, the global market situation and current prices and prospects.
The final visit was to the ADM soybean crushing facility in Des Moines. The facility partners with Unilever and Field to Market Alliance in producing soybean oil for a famous brand of mayonnaise. AMD described the process of crushing and refining and their engagement with the 700 local farmers who sustainably produce soybeans for the Field to Market project.
After a busy week, the group provided their initial feedback and impressions, discussed the role of GM soybeans in sustainability, and brainstormed on the next steps in promoting the SSAP and sustainable U.S. Soy to the European market. All participants agreed that, like U.S. farms, no two markets are alike, and USSEC’s promotion and engagement efforts must be tailored to the specific conditions and requirements of each market. Undoubtedly, the participants gained insights into the diversity and richness of U.S. farming, a better understanding of the challenges ahead, and assurances of U.S. producers’ commitment to sustainability and to supplying sustainably produced soybeans to global markets.
USSEC provided technical assistance to one of the largest poultry operations in the Mexican state of Aguas Calientes.
USSEC consultants Carlos Campabadal and Carlos Espinosa provided technical assistance to Sabro Pollo, which produces 900,000 broilers and 15,000 metric tons (MT) of broiler feed weekly. The company purchases 3600 to 4000 MT per month of U.S. soybean meal from a local company.
Topics discussed were the advantages of using U.S. soybean meal as a source of protein and problems that may be experienced in broiler performance with the use of high levels of dried distillers grains with solubles (DDGs) such as reduction in gains and feed conversion due to the rancidity of the oil, high fiber content, low amino acids digestibility, and the presence of mycotoxins in this product. The USSEC consultants recommended the use of U.S. soybean oil, because it has higher energy levels and is an excellent product, especially for pre-starter diets.
The second visit was to FOGASA, which produces 20,000 MT/month of feed. During this visit, the consultants discussed the use of special sources of U.S. bypass protein in dairy cattle such as SoyPlus and several nutrition and management topics to help increase the use of U.S. soybean meal.
The last company visited was Nutry Pollo. This company produces 5 million broilers per cycle and produces 9,000 MT of broiler feed, purchasing 2,500 to 3,000 MT of U.S. soybean meal. The topics discussed were related to the level of urease in soybean meal, and the methodology to measure this parameter as well as the optimum level (0.01 -0.05) to process soybean meal. The consultants also discussed the use of enzymes, mycotoxins in the corn, tannins in the sorghum, and the importance of making a good pre-starter diet. Because this company is using free fatty acids as a source of energy, it was recommended to change to soybean oil and the use of full fat soybean meal since they have an Anderson extruder.
In Tunisia, feed formulation is mainly based on imported maize and soybeans, with a low inclusion level of other ingredients and byproducts such as wheat bran, barley, dried distiller grains with solubles (DDGs), and vegetable oils, among others. Optimization of feed formulation and quality control is crucial in the Tunisian feed industry because it is a highly competitive market with low profit margins.
Near infra red spectro-photometry (NIRS) technology is now routinely used for the evaluation of raw materials and the control of compound feed quality in Tunisia’s major feed companies. In this context, and in order to increase local awareness of U.S. Soy’s sustainable high quality, to improve the understanding of the value of soybean meals of different origins, and educating the local industries to appreciate valuable raw material, USSEC held a Near Infrared Spectroscopy Workshop on September 8 in Tunis, Tunisia. Sixteen participants, including laboratory technicians and nutritionists using NIRS technology representing major feed companies and reference laboratories, attended this event.
This event was hosted by GIPAC, the National Poultry Association, in their Tunis headquarters. The GIPAC institution has always enjoyed a fruitful partnership with USSEC. Dr. Denis Bastianelli, an expert in NIRS technology from CIRAD Research Institute, France, conducted the workshop. He gave three presentations: an introduction on NIRS technology; the use of NIRS technology in animal nutrition; and NIRS techniques used in the laboratory and online NIRS equipment.
He pointed out that Tunisian company laboratories generally use a generic calibration provided by their equipment (spectrometers) suppliers, without having a complete control on the reliability of the results used. NIRS could also most likely be used in a wider range of applications. The training aimed to present NIRS technique, its potential, its limitations, and the conditions of its implementation in the industry. A very productive discussion also took place amongst participants.
On September 9, Dr. Riadh Karma, USSEC Technical and Commercial Consultant for Tunisia, escorted Dr. Bastianelli on a field visit of two major new feed mills located in Jebel Oust; both of the feed mills are using NIRS technology equipment.
The first visit was to Nutrimix SNA’s (Poulina Group Holding) new feed mill, which is a top level mill equipped to produce 400 metric tons (MT) per day per plant. At this plant, a new extrusion facility of 24 MT per hour is being constructed, in addition to a 30,000 MT soybean storage facility.
The second visit was to a small plant called ALFA / Medimix Nord with a smaller capacity of 10 MT per hour.
During the plant and laboratory visits, Dr. Bastianelli and Dr. Karma actively participated with their customers in very interesting discussions on the benefits of this technology to improve ingredients and compound feed quality control, especially in matters of the use of soybean meal.
USSEC and American Soybean Association (ASA) director Kevin Scott of Valley Springs, South Dakota and United Soybean Board (USB) director Jim Willers of Beaver Creek, Minnesota, recently visited two farms and a feed mill in Germany. The purpose of the visits was to generate a greater preference for U.S. Soy, to gain insights into the conditions and challenges facing German producers, and to exchange information on a wide range of soy-related issues, including sustainability and biotechnology.
The first stop was at the dairy farm of Hermann and Soehnke Schlichtmann in Oldendorf. The farm has been in the family for six generations but only began to focus on milk production in 1985, when they started with 16 cows. They currently manage a 340 milking cow operation and cultivate about 500 acres of grass, maize, and rye for their own feed production. They purchase soybean meal from one of the international importers and crushers in Hamburg.
The Schlichtmanns are members of DMK, a large cooperative with 7000 members and 26 factories, located mainly in northwest Germany. The Schlichtmanns’ farm is one of DMK’s model farms, open to the public, investors, and others to demonstrate the company’s commitment to sustainability. DMK has developed the MilkMasters Program to monitor and encourage producers to adopt more sustainable production practices. Producers are scored and measured against 140 indicators, and can earn a premium of up to one cent per liter on their milk. For example, if they know the manufacturer of their feed, they receive five points; if they know the soy content of their feed, they earn ten points; if the soy is recognized as sustainably produced, by a scheme such as FEFAC (under which the U.S. Soy Sustainability Assurance Protocol [SSAP] is recognized), they receive 20 points.
Milk producers in Germany are under tremendous pressure from the large retailers and non-government organizations (NGOs) to eliminate soy, and, in particular, genetically engineered (GE) soy, from their feed. Most dairy producers believe this is irrational but they need to provide what the market demands. Apparently, consumers can understand GE versus non-GE, while issues such as sustainability and sustainable sourcing guidelines are too difficult for them to understand.
The visit continued with a stop at the feed mill of Stader-Saatzucht in Apensen. With a capacity of 100,000 metric tons (MT) a year, the mill is one of the operations for a large and diverse company with holdings from gas stations to potato processing. They use about 3000 MT of soybean meal a month, buying directly from the trading company in Hamburg. The company is focused on high quality, specialized feed products. The managers stated that they will produce whatever the market wants, which increasingly means non-GE soy. There is great pressure, including European Commission (EC) member state government subsidies and research, to eliminate soy altogether from the feed, using locally produced rapeseed and other alternative crops. However, no alternative has the same attributes as soy in terms of protein quality and price.
On the final day, the USSEC group visited the farm of Thomas Kunz in Heidenrod-Niedermeilingen. Mr. Kunz is the vice president of the Hessian Farmers Association (in the Frankfurt region) and operates farms in three different locations with a total of almost 2000 acres, a large operation by German standards. The Kunz farm is located in a small village that dates back almost 400 hundred years. The Kunz operation is focused on high quality customized swine production for local butchering and processing. He produces almost all of his feed, purchasing soymeal as needed for his feeding requirements. The group visited his buildings, and saw his feed processing and farm equipment before tasting the pork products available in his small on-farm shop.
USSEC organized one-on-one extrusion training at MEDIMIX and SNA, the two largest feed companies in Tunisia, on August 17 and 18. These companies are Tunisia’s two largest poultry integrators and have been using full fat soybean meal (FFSBM) for about four years.
USSEC consultant, Dr. Mian Riaz, Director- Food Protein Research & Development Center at Texas A & M University, visited the two extrusion units at MEDIMIX and SNA and trained the nutritionist, engineers and technicians of both companies, giving advanced presentations on soybean extrusion, as well as on animal waste extrusion. In addition to technical aspects, training emphasized the high value of U.S. Soy and its sustained amino acid profile. A field visit allowed Dr. Riaz to give the staff advice on process and maintenance. Discussions on new uses in animal waste extrusion, extruded pet food, and fish feed using soybean meal interested the both companies’ staff for current and future potential new investments.
Mohamed Chikhaoui, the general manager of Poulina Group Holding’s (PGH) four SNA feed mills, announced the start of the construction of a new extrusion unit (24 one ton per hour extruders) and a 30,000 metric ton (MT) bean storage facility during his meeting with Dr. Riaz and Riadh Karma, USSEC Technical and Commercial Consultant – Tunisia.
These two working days, one at each company, helped increased the awareness of quality of U.S. Soy, improved the understanding of the value of U.S. soybean meal compared to other origins, and educated the main local companies on how they could improve their extrusion process.
30 participants from 13 Latin American countries took part in the Regional Agricultural Production Course (RAPCO) Poultry Nutrition Course July 26 – 29 held at the International Grains Program (IGP) Institute Conference Center in Manhattan, Kansas. The course partnership between the IGP Institute and USSEC provided participants with knowledge and details of poultry nutrition, essentials for avian health.
Instructors at this four day course taught many areas of poultry nutrition and feed practices including details on the bird’s digestive system, effects of selected mycotoxins in poultry, how to maximize the use of energy in poultry diets, nutrient values of soybean meal from different origins, broiler management, amino acid profile and requirement for broilers and layers, growth promoting antibiotics, and how to maximize the use of calcium and phosphorus.
“Our partnership with USSEC is very important for the IGP Institute, so for us it is critical to provide them with the best technical program and with the best service for their trainings,” says Carlos Campabadal, curriculum manager for feed manufacturing and grain storage and program coordinator for all Spanish language trainings at the IGP Institute. “The relationship between IGP Institute and USSEC helps provide technical value to the overseas clients of U.S. soybean and soybean meal.”
USSEC recently brought Dr. Jannes Doppenberg, a swine nutrition and feed manufacturing expert of Schorthorst Feed Research in the Netherlands, to Poland to work with selected swine production influencers.
The project involved a tour of Poland by Dr. Doppenberg and Jerzy Kosieradzki, USSEC Technical Director – Northeast Europe, which aimed to illuminate the added value of U.S. soybean meal on a personal level to nutritionists representing key commercial feed and pig growing companies. For this endeavor, in-company meetings worked better than group sessions such as seminars or conferences because of language differences, but, most importantly, because trust and confidence need to be built before nutritionists are willing to discuss their feed formulation work in detail with “outside” consultants.
Among the customers visited was CEDROB, Poland’s largest chicken integrator, which is now expanding into integrating swine production. They already have 9000 sows, which has given them the possibility to develop a full line of piglet, pig, and sow feeds. They were shown in greater detail the added value of U.S. soybean meal in reducing production costs per bird and pig produced.
At LIRA-Pasze, a feed compounder, their main production is pig feeds, which represents 70 percent of total feed production. The company specializes in high margin piglet feeds (branded as Porcus) and manufactures piglet feeds for Cedrob. The company operates three feed mills. They have focused strongly on feed technology by using extruders. Although LIRA’s feed production is relatively low, they are the market leader in piglet feeds and the use of extruders. Convincing Lira to exclusively use U.S. soybean meal as a high quality soybean meal source in their piglet feeds will help to position U.S. Soy in Polish pig feed production.
Smithfield is by far the leader in pig production and meat processing in Poland, and Agriplus is their integrated pig growing company. Currently, they have 80,000 sows with plans to increase to 120,000 in 3-4 years and then to 145,000 sows. The largest sow farm they own has over 10,000 sows and they use 90 percent contract growers to finish pigs. They currently produce around 850,000 tons of feed a year and will need to expand as sow/pig numbers increase. They have feed mills and slaughter facilities all over Poland. Because they want to produce more antibiotic free pork, protein quality will need to be very high in order to keep the crude protein content as low as possible. The usage of higher quality U.S. soybean meal was recommended.
Further professional discussions with these and other influencers of the Polish swine production sector about cutting edge swine nutrition and production know-how, including optimal utilization of U.S. soybean products and USSEC assistance, are planned for FY17.
USSEC teamed up with the International Grains Program (IGP) Institute to teach poultry nutrition training to Japanese industry professionals July 25 – 29 at the IGP Institute Conference Center in Manhattan, Kansas. The partnership between USSEC and the IGP Institute provided participants with education and training on milling practices and U.S. grains.
Eight students from Japan gained knowledge in several areas of poultry nutrition including quality control in a feed mill, batching and mixing, particle size reduction for poultry feed production, broiler breeder nutrition and management, the effects of selected mycotoxins, reducing the toxic effects of mycotoxins in poultry, and nutritional differences between soybean meal sources.
Course participant Takamasa Iijichi, executive director at AXYZ in Kagoshima, Japan says he attended the training program because he was interested in the course topics. He also says he has enjoyed everything in the course, especially the presentation about soybean meal.
“The ideas taught at the IGP Institute help us know how to make our feed more efficiently,” Mr. Ijichi explains.
Participants also attained knowledge through tours around Kansas by visiting Midwest Ag Services in Seneca, Kansas, and a soybean farm at Rezac Land and Livestock near Belvue, Kansas. The Kansas State University O.H. Kruse Feed Technology Center was toured as well.
“I have witnessed the relationship between USSEC and IGP for almost 10 years,” states USSEC consultant Miguel Escobar. “I have seen these courses grow and every time they are more important for our customers around the world.”
USSEC recently provided technical services for full fat soybean meal in Egypt and Jordan.
Dr. Mian Riaz, director of the Food Protein Research & Development Center and head of the Extrusion Technology Program for the nutrition and food science department at Texas A&M University, visited Cairo, Egypt and Amman, Jordan from August 13 – 15.
In Jordan, Dr. Riaz visited Atrab International Trading Co. and Al Jazeera Poultry Company to discuss full fat soy and its quality. Al Jazeera is in the process of building a new feed mill and wanted to know about soybean processing and whether it should be made separate or part of the feed mill.
In Egypt, Dr. Riaz visited Wadi Holding Co. and inspected their original feed mill. Currently, the company has three extruders making full fat soybean meal and is planning to install a new extruder at its extraction plant facility at a different location. Dr. Riaz gave a presentation on the mechanical processing of soybeans, as the company is interested in building a new plant in Ethiopia for soybean processing. He showed a video about full fat soybean processing and quality and discussed in detail their drawing and new site for full fast soybean production. Dr. Riaz also discussed the opportunity to make texturized soy protein for meat application. Wadi is planning to start businesses devoted to pet food, aquafeed and shrimp feed.
Next, Dr. Riaz visited Pyramid Poultry in Sadat City. This feed mill is in the process of installing 36 new extruders with presses to produce mechanically expelled soybean meal for poultry. Currently, they are building their factory, and then they will start making full fat and express meal. Pyramid has already bought all the extruders and presses needed for their operation. They are currently making full fat soybean meal with one Turkish extruder for their poultry feed. Dr. Riaz provided their staff with information about the quality of soybean meal, processing, and extrusion parameters. He also showed video on the production of full fat and express meal. The company is interested in refining soybean oil from their mechanically expelled operation and has already purchased the refining equipment, which they will install after the completion of their facility.
Dr. Riaz visited the Egyptian Poultry Association and gave an extrusion seminar for making feed, which was very well attended by representatives from the poultry industry.
Finally, Dr. Riaz visited Cairo Poultry feed operation. At this time, the company is using Chinese extruders to make full fat soy and they recently installed an expander for full fat soybean production. Dr. Riaz gave a presentation on full fat soybean processing and its quality parameters and explained the principles of operation of dry and wet extruders as well as expanders. More than 15 staff from the Cairo feed mill attended Dr. Riaz’s seminar.
The Euro-Asian poultry conference, “International Poultry Forum Baikal 2016,” was held July 4-8 in Ulan-Ude, the capital of the republic Buryatia (located in the Asian part of the Russian Federation). The Russian organizer of the event, International Poultry Forum LLC, is a member of the International Poultry Council and of the Euro-Asian Poultry Association. Attendees included representatives, specialists, traders, poultry producers, and feed compounders from different regions of the Russian Federation and from the surrounding countries of Kazakhstan, Belarus, Ukraine, Azerbaijan, and Japan. USSEC co-sponsored the conference and associated activities.
USSEC consultants presented two papers, introducing different aspects of U.S. Soy and its proper application and usage in feed formulation. Dr. Jan van Eys introduced the “Importance of Soy and Soybean Meal; Control of Quality Parameters for Soy Products and their Application in Broiler Feeding,” and Dr. Iani Chihaia presented “Fine Tuning of Ingredient Matrix for Accurate and Economic Poultry Feed Formulation.”
The presentations were well received and by the end of the lectures, participants posed several questions about U.S. Soy quality and feed formulation techniques. The information delivered during the event through the papers presented and one-to-one interactions was appreciated by the Russian, Belarus and Kazakhstan poultry and feed professionals, and they showed interest by interacting with USSEC to learn more about the advantages of soy in poultry feeding and precise feed formulation.
Active discussions and networking, visiting with end users and potential customers, and general exchanges during and around the conference represented an important aspect of the overall activities and these clearly led to opportunities to expand recognition and engagement for USSEC.
The potential of expansion for U.S. Soy exports is a great opportunity in a growing feed market with considerable opportunity to increase its soybean meal consumption. Follow-up with the various contacts established at this conference, especially those in neighboring countries, will be necessary to consolidate gains in recognition.
USSEC’s attendance and participation at this important regional conference allowed the organization to communicate its message of the advantages of U.S. Soy to a unique international audience and, consequently, allowed U.S. Soy to be positioned as a key, competitive source of value relative to soy of other origins in a region where an increase in competition is crucial for the livestock and feed industries.
USSEC collaborated with the U.S. Grains Council (USGC) and two Chinese partners, the China Chamber of Commerce for Import & Export of Foodstuffs, Native Produce & Animal By-products (CFNA) and Dalian Commodity Exchange (DCE) to sponsor the 2016 U.S.-China Grains & Oilseed Forum in Beijing on June 17. This joint event provided a platform for grains and oilseed industry representatives from China and the U.S. to discuss policy and market uncertainties, potential means to address them, and the implications for traders and end users in China.
Invited speakers included Joe Glauber, former chief economist of U.S. Department of Agriculture (USDA); Song Hongyuan, director general of Research Institute of Rural Economy of the Chinese Ministry of Agriculture; Mike Every, chief analyst from Rabobank International Asia; Zhang Jianping, director of Foreign Economies of the National Development and Reform Commission; Hanver Li, President of Shanghai JC Intelligence Co.; Jenny Campbell, chief analyst from DHF; and Bell Chen, senior vice President of Asia Division. USSEC member R.J. O’Brien presented a wide range of topics to about 140 participants from government agencies, research institutes, industry associations, and agribusiness companies from both the U.S. and China. The invited speakers interacted with the audience on many issues such as the global economic and financial situation, non-price support policies, corn and soybean market outlooks, and price risk management recommendations. The Minister Counselor for Agricultural Affairs at the U.S. Embassy, Bruce Zanin, together with senior officials from the event’s co-sponsoring organizations, opened the program to support industries between the two countries in the discussion of improving trade relations for sustainable food security and food safety in China.
American Soybean Association (ASA) director Lawrence Sukalski provided opening remarks on behalf of the U.S. Soy industry, demonstrating U.S. Soy’s commitments to the development of China’s soybean value chain from soybean crushing to feed milling to animal production by long-term cooperation in technology transfer and marketing services.
Prior to the forum in Beijing, Mr. Sukalski was escorted by USSEC Country Director – China Xiaoping Zhang and USSEC Marketing Manager Claudia Chong on several field visits in Qinhuangdao, Hebei Province and Beijing to further enhance the partnership with Yihai Kerry Group, CP Group and Dabeinong Feed Group.
June was a busy month in Southern Europe for USSEC. In addition to attending national and regional feed association assemblies usually held in June, USSEC organized a risk management course in Tarragona, Spain; a country meeting in Murcia, Spain; and a country meeting in Rennes, France.
The risk management course, coordinated with FCStone, boasted an attendance of 40 customers hailing from all regions of Spain. The course objective was to teach raw materials management and how to reduce purchasing risk in a volatile market, especially related to soybean meal. Participants had the opportunity over the two-day course to learn how markets work and studied several tools to manage risk in a constantly changing market. The training program also provided USSEC with an opportunity to present the U.S. soybean meal quality advantage and disseminate information about the U.S. Soybean Sustainability Assurance Protocol (SSAP) and U.S. Soy sustainability. The importance of sustainability in purchasing is increasing in Spain but is still below Northern European levels.
USSEC also held two country meetings in June. The first took place in Murcia, Spain with the feed association collaboration. Murcia is located in a major area of Spain’s pork production. 25 customers attended the meeting, and the agenda focused on quality, sustainability and soy markets. USSEC consultant Jan van Eys discussed quality, Jaime Nola Miralles of FCStone talked about general raw material markets and how to manage risk; and USSEC consultants Mercedes Ruiz and Lola Herrera spoke about cask markets in the Spanish ports. USSEC’s mission and its activities in Spain and Europe were presented during the introduction.
USSEC collaborated with the U.S. consulate in Bretagne, and the Foreign Agricultural Service (FAS) in Paris to hold a similar program in Rennes. This country meeting also featured a presentation about soybean markets from Lucile Lefebvre, FAS – Paris, and a presentation about the French market was given by Christophe Callu Merite, Feed Alliance General Manager, Sanders purchasing part of the Avril Group. 28 key French feed compounders and soybean meal importers attended the meeting.
Spring is a busy time for the feed associations assemblies in southern Europe.
USSEC collaborates with many country level associations including IACA in Portugal, ASSALZOO in Italy, SNIA in France, and CESFAC in Spain, which represent a total of 60 million tons of industrial feed, more than 30 percent of the European market.
Sustainability was a main topic at all of the assemblies. USSEC had the opportunity to be present at all feed association events and to share the story of U.S. Soy sustainability and the U.S. Soy Sustainability Assurance Protocol (SSAP) with feed association members.
Industry innovation and competitiveness are also important subjects at these conferences.
In Portugal, the USSEC team discussed U.S. Soy sustainability and quality. Customers appreciated the presentation and gained a better understanding how U.S. farmers produce their crops sustainably.
In Italy, USSEC updated the sustainability situation, giving the association the good news that the SSAP is accepted in the European Feed Manufacturers’ Association’s (FEFAC) sustainability scheme.
The creation of DURALIN, the French organization for sustainable supply in all feed and food chain, SNIA, and the French co-op, has given France a strong direction in its sustainability program.
The SNIA’s annual assembly in Spain was held on June 3. In addition to sustainability, discussions focused on how the most successful businesses must be sustainable and competitive at the same time.
USSEC also participated in the regional feed association assemblies in Galicia and Andalucia, Spain. USSEC had the opportunity at both meetings to talk about SSAP during the general assembly and in one-on-one customer conversations.
The CESFAC Assembly in Spain discussed following France’s model of organizing a roundtable to present sustainability from two different views – government and industry. Lola Herrera, USSEC consultant in southern Spain, moderated the roundtable and had the opportunity to talk about SSAP and how U.S. farmers produce soy sustainably.
United Soybean Board (USB) director Scott Singlestad of Minnesota and American Soybean Association (ASA) director Kendall Culp from Indiana attended the CESFAC assembly where they had the opportunity to meet the main players in the Spanish market. The grower leaders also had the opportunity to visit the NUTRECO head office in Madrid; the port of Cadiz, a main area to import soybean meal; and a farm in Andalucia, which produces fruits, durum wheat and corn. They also travelled to Zamora to visit COBADU, which is an example of a Spanish cooperative that practices “field to table.” The coop has 14,000 association members that produce grains, hogs, cattle, chicken, and other livestock. COBADU produces feed for their association use at two plants, and is currently building a third plant.
The third annual conference of the Romanian Feed Association (ANFNC) took place on June 30 in the capital city of Bucharest. The event is convened annually to gather related experts and industry delegates to exchange their newest ideas and experiences in the field of the animal nutrition and feed manufacturing. With the theme of “Squeezing the Most out of Vegetal Protein Ingredients,” the conference speakers focused on taking a smarter approach to better using protein and improving the conversion of feed into meat.
The theme event engaged a large amount of current as well as potential new ANFNC members who were eager to learn more about the organization and converse with their industry peers. Top feed industry suppliers Bunge, DSM, Evonik, DuPont and Andritz Feed & Biofuel joined the efforts in conference organization, and prominent international speakers discussed soy market trends, technical solutions for efficient use of vegetal protein ingredients and feed manufacturing aspects.
Daniel Herrero, conference keynote speaker and Global Protein Product Line Manager at BUNGE Europe, offered an review of soybeans and soybean meal supply and demand, while USSEC consultant Iani Chihaia gave a comprehensive presentation on vegetal protein ingredient usage in animal nutrition and consumption trends in the world. Mr. Chihaia also highlighted the benefits of U.S. Soy in terms of amino acids digestibility and dollar saving derived from correct soy application and use in animal feeding.
The European Crop Report, presented by Anca Ion of Evonik, provided a perspective on nutrient content of Romania’s major feed ingredients, emphasizing the impact of soy variability on poultry performances. DSM and DuPont’s speakers detailed the enzyme products available today to get as much as possible form soybean meal: energy, amino acids and phosphorus. Advanced feed conditioning technology for improved thermal modification of protein raw materials introduced by Andritz’s speaker was a topic of high interest, as well.
In addition to quality presentations, the active participation of the key industry influencers contributed to the success of this year’s conference. This success was driven not only by the fact that the participants were able to obtain the most current and professional information on trends in the global agricultural business, but also to achieve short- and long-term business arrangements.
USSEC held its exclusive training course devoted to recent advances in poultry production and nutrition at the Escuela Tecnica Superior de Ingenieros Agronomos of the Madrid Polytechnic University (UPM), Spain. Dr. Gonzalo G. Mateos, USSEC consultant and professor at UPM, coordinated the course. The event’s audience was composed of commercial nutritionists of key poultry integrators and compound feed manufacturers from Turkey, Poland and the Czech Republic, who were recruited and accompanied by two USSEC local representatives, Sirri Kayhan (Turkey) and Jerzy Kosieradzki (Northeast Europe).
The lineup of lecturers included twelve Spanish academics and commercial experts and one Norwegian scientist. The classroom portion of the course began with digestive physiology that prepared the ground for more in-depth broiler nutrition topics such as feeding programs and flock management, genetic improvement, and health and animal welfare, all of which are nutritional factors affecting wet litter problems in poultry. The focus on optimal utilization of various nutrients began with starch and fat digestion, fiber, energy sources, and protein sources, with a special focus on soybeans and soybean products, to move to the use of feed additives.
A special section was devoted to broiler production in hot weather, microbial contamination in feed production and feedstuffs, and final feed products’ quality control programs, with soybean meal being widely commented upon. Two speakers shared practical aspects of feeding broiler chicks and the effects of management on carcass quality in finished broilers. Some time was given to feeding the modern laying hen that included feed form, particle size and nutrient requirements and influencing egg quality with nutrition, etc.
Feed mill design, with special attention to its effects on hygiene, cost efficiency and product quality, was followed by feed milling technology. Both topics were taught on the second day. The speakers discussed quality and feed safety programs in the EU-28 with the participants.
After three days of long and intensive classes, the participants went on a bus tour of the Spanish feed labs (Cargill’s Central Quality Control Lab in Madrid), poultry growing complex (Cesar de Escalona’s farm at Malpica de Tajo), commercial feed mill (Veravic integration at Casatejada), and commercial broiler farm (Julian Cepeda at Caceres) to supplement theoretical and practical training. The participants were especially pleased that Dr. Mateos traveled with them as a chief trainer and was able to explain the many professional issues raised during the field visits and discuss the content of some of the lectures as well.
Speaking on behalf of all training course participants, Elzbieta Pietkiewicz, a poultry veterinarian and nutritionist at the third largest feed company in Poland, said, “It was the best training program I have ever participated in, with the exception of a similar one held also by USSEC in Madrid three years ago. In just a week’s time we had a chance to learn so much and discuss the many practical issues we face in our daily work. We were honored by having such a great group of speakers sharing their knowledge with us.”
USSEC recently released its Soybean Meal Quality by Origin report, no. 6/2016, based on current (August) and future (November-January) feedstuff prices of week 27 for feeds of different species.
As always, the report shows the added value of higher quality soybean meal by origin for different regions based on current feedstuff prices in feeds for swine, layers and/or broilers.
Report highlights include:
- Although soybean meal is sold on a per unit of protein basis, differences in digestible energy and amino acid content contribute more to the value of soybean meal.
- Differences in value are largest for broiler feeds, followed by layer and swine feeds in all regions.
- Soybean meal prices have decreased slightly in the Netherlands, Spain and Poland after significant increases last month. The future price (November-January) is higher than the current price. In Romania, the price of soybean meal has increased slightly, however.
- With very good harvest predictions, feedstuff prices can decrease further in the near future.
- On an equal protein content basis, the value differences (in energy, mineral and digestible amino acid content) of U.S. soybean meal over that of other origins is: € 8.20-23.00 (U.S. vs. Brazil) and € 9.30-26.80/MT (U.S. vs. Argentina) or respectively 1.9 to 5.4 percent and 2.2 to 6.3 percent.
Read the report here: USSEC SBM quality by origin report nr 6 2016
Acting upon a request from the Polish Grain & Feed Chamber, a longtime USSEC cooperator, and its allies in Poland’s poultry, swine and dairy industries, USSEC organized a special seminar devoted to the benefits of biotech soybean products and derived feeds and the threats to the European livestock industry if it turns its back on genetically enhanced soybeans.
The ban on GM feed was introduced in Poland in 2006, but has never been fully implemented, thanks to moratoriums on putting the law into practice adopted every few years under pressure from the local feed and livestock industries. The present moratorium ends on December 31 and threatens to cut the Polish food chain off from necessary soybean imports.
Marek Przeździak, a director of the Polish Federation of Food Producers and an agricultural lawyer, who works closely with EuropaBio Group, spoke about various negative consequences of asynchronous authorization of new GM crop events in the EU to European agriculture and economy as a whole. While registration of novel biotech events takes only 12 months in Australia and 23 months in the U.S., the EU needs 78 months to close such a process. Such asynchronous and asymmetric authorization increases financial risk for suppliers and leads to disruption in the whole agricultural production chain and a 25 percent rise in food prices. If only conventional beans are allowed in Europe, the disruptions in major soy exporting countries may boost soy and soy-based feed prices by more than 200 percent.
Dr. Francisco Areal, researcher at the University of Reading, UK, presented various studies proving GM soybeans were indispensable raw materials in the EU and evaluated several alternatives and their economic impacts on feed manufacturing and livestock producing sectors; he assumed both Spanish and EU perspectives.
“The total impact of a potential ban on imports of soy to Spain would result in $60 billion in added cost,” concluded Dr. Areal. “The EU could only replace 10 to 20 percent of soybeans and soymeal imported to the EU with increased production and imports of non-biotech protein-rich crops.”
The educational event was completed with a broad picture analysis by Professor Tomasz Twardowski, a Polish biotechnologist and educator, on “Polish and EU Bio Economy without GMO: Is it Possible?” and USSEC Regional Director – EU / Middle East/North Africa (MENA) Brent Babb’s expose on safety, quality and sustainability of U.S. Soy, which transitioned into a vigorous discussion.
Some interesting regulatory solutions to improve biotech feedstuffs and food trade were presented by the participants and speakers that were carefully noted by USSEC and the Chamber’s reps to be further discussed in an industry meeting with the hope to result in an official industry request to Polish legislators.