News: Middle East / North Africa
As part of the study to improve marketing of Egyptian aquaculture products, a wrap up workshop was held on April 18 at the Conrad Hotel in Cairo, entitled “Improved Marketing of Egyptian Aquaculture Products.” Forty participants attended the event. They included fish farmers (both freshwater and marine), traders, feed mill operators, researchers, and some development partners.
The workshop aimed to present the findings of the study undertaken by Ian Goulding and Maggie Kamel to “Characterize and Improve Distribution of Aquaculture Products in Egypt.” The seminar was divided into four sessions: analysis and key findings of the study; recommendations to improve marketing; guidelines for handling of aquaculture products; and discussion.
Based on a SWOT analysis of the aquaculture sector, Goulding drew recommendations for both the private sector, centering around developing new marketing channels through investment in processing and distribution infrastructure; improving safety, hygiene and handling conditions; improved organization of the sector (strengthened association of aquaculture operators); and generic marketing support.
Participants actively engaged in a vibrant discussion over the recommendations. They agreed on the need for establishing an organization to better represent the interests of the sector and lead some of the marketing activities required to support the sector. They also discussed potential technical assistance activities that could be extended by development partners such as training and study tours.
USSEC – Middle East/North Africa (MENA) organized the 3rd Regional Dairy Nutrition Conference, held at the Kempinski Hotel Ishtar in Dead Sea, Jordan from April 8 – 11.
United Soybean Board (USB) director Jacob Parker of North Carolina and American Soybean Board (ASA) director Dave Poppens of South Dakota traveled to Jordan for this event and spoke to attendees about their experiences as U.S. farmers and about the benefits of U.S. Soy. Orestes Vasquez, Senior Agricultural Attaché, Foreign Agricultural Service (FAS), U.S. Embassy – Cairo, gave the opening welcome and Brent Babb, USSEC Regional Director – EU/MENA also welcomed participants to the conference.
The program included: Export Logistics from USA to the Middle East Region; Cow Environment and Comfort Management (mitigation of heat stress with limited resources); Evaluation and Application of Bypass Protein in Dairy Rations; Feeding the Heat Stressed Dairy Cow – Managing the Total Mix Ration (TMR); TMR Formulation for Dairy Cows – The Cost Effect of Bypass Soy to Dairy Diets; Calf Nutrition and its Impact on Later Performance; and A Partnership – The U.S. Soy Total Quality Experience.
65 participants from the Middle East, North Africa, and Turkey participated in the conference. Participants included major dairy producers and feed millers in the region.
The activity ended with a field visit led by Frank Delfino of Delfino Nutrition and Management, Inc. to one of the most advanced dairy farms in the region.
Feedback from conference speakers was very positive.
“The 3rd Regional Dairy Nutrition Conference, put together by USSEC – MENA, was a well-organized educational event with a good range of presentation topics and key individuals associated with the dairy industry from the Middle East and North Africa among the attendees,” said Dave Gast, Head Nutritionist, AGP. “The conference provided an excellent opportunity to meet with current customers as well develop new business relationships with prospects for U.S. soybean products. The large attendance at this conference speaks well for the quality of the conference and the value of the social and educational opportunities provided to those in attendance. Looking forward to more great conferences.”
Mr. Delfino stated, “The first day of the conference had very engaged MENA participants with excellent questions and discussion both during and after presentations. The ‘one on one’ meetings lasted well after presentations and into the evening. Could not have been a better venue.”
“Everything ran very smoothly and the attendees chosen, a total of 65 people from 11 countries, was a great mix of cultures and buyers,” said Kevin Sinnott, president of Fornazor International. “We have met many buyers we did not know before the seminar and look forward to following up with all of them on potential business. All of the presenters were very informative.”
A USSEC delegation composed of American Soybean Association (ASA) director Kevin Scott and United Soybean Board (USB) directors Jim Carroll and John Harrell participated in the 4th Poultry Roundtable for Maghreb’s feed industry recently held at Skhirat, Morocco, accompanied by Brent Babb, USSEC Regional Director – EU / Middle East North Africa (MENA). The USSEC event provided an excellent platform to discuss current issues in poultry feeding in Maghreb.
The grower leaders’ team and experts visited leading poultry and feed customers in Morocco to further increase awareness of U.S. Soy quality, reliability, and sustainability among feed and poultry producers. They highlighted their commitment in building strong trade relationships with their professional partners in the Moroccan feed industry and animal producers, especially poultry.
On April 3, the presidents of Moroccan Federation of Poultry Associations (FISA) and the Feed Manufacturers Association (AFAC) signed a certificate of recognition of U.S. Soy’s sustainability following the production protocol outlined in the U.S. Soy Sustainability Assurance Protocol (SSAP). FISA and USSEC will partner to provide quality, sustainable, and reliable feed to the local industry.
In his speech, Mr. Babb briefly summarized years of partnership and explained U.S. soybeans’ sustainability and current interests.
USSEC continues to develop targeted promotional efforts to accompany the growth of the sector and to help differentiate U.S. soybean meal from others in the Moroccan market. Morocco‘s livestock sector and feed industries continue to grow and become professionally oriented, setting a good example for other North Africa markets. Over 500,000 tons of poultry feed and another half million tons were produced yearly over the last eight years.
The signature of the certificate was well received by the federation, which is very aware of the value and strength of the U.S. supply chain and the high value and quality of U.S. soybean meal.
Over 80 percent of the feed produced in Morocco is by mills that are members of AFAC.
A team of eight key customers from the Tunisian poultry and feed industry attended the 4th USSEC Maghreb Poultry Nutrition Roundtable, held in Skhirat in the Rabat area, Morocco on April 4 and 5.
United Soybean Board (USB) director Jim Carroll III, USB director John Harrell, and American Soybean Association (ASA) director Kevin Scott traveled to Morocco to participate in this event. USSEC consultant Dr. Riadh Karma escorted the Tunisian team.
The Tunisian team members viewed the event as a great success and said it provided an excellent opportunity for them to learn more about advanced poultry nutrition and flock nutrition management.
The participants from Tunisia appreciated being present among a large audience of people from neighboring countries to exchange experiences and do business. After the conference, all of them had, in addition to updated nutrition knowledge, a better idea about the sustainability of the soy production in the U.S.
Dr. Nabil Darwish, chairman of Egyptian Poultry Producers, spoke at the U.S. – Middle East/North African (MENA) Agribusiness Trade Mission in Cairo, Egypt on April 2. Below is the text of the speech that Dr. Darwish delivered to USSEC chairman Jim Miller, USSEC CEO Jim Sutter, and representatives of the Egyptian soy industry.
“On behalf of the Egyptian Poultry Association, welcome again to Egypt and thanks to the great events and programs that have been organized by the USSEC team over the past few years.
We have found the events and programs very useful because of the following points:
- Gathered decision makers from around the world in the same field under one roof and gave us a chance to talk about the opportunities and challenges of our industries and listen to each other’s perspective and viewpoints
- Opportunity to meet potential customers and suppliers in the events and broaden our network which created many opportunities
- Opportunity to meet with the industry’s specialists and broaden our technical network, which helps in the improvement and advancement of our industry
- Tackle some of the important topics facing our industry like disease prevention, biosecurity, cost-efficient feed formulation, nutrition, and production efficiency
- Emphasize the importance of the quality of commodities in feed production; U.S.-origin soybeans improving diet quality and performance
- Discuss purchasing of raw material and the different purchasing approaches that can be done to decrease the feed cost
- Logistics handling and its importance in trade sustainability
- What to look at and what to look for to facilitate and influence purchasing decisions
- Appreciate technical services program to extruders & presses to make expelled soybean meal for poultry
- We found the events very well organized and the team was always helpful; we thank you very much for the great efforts that have been done and we look forward to attend future events.”
USSEC participated in the U.S. – Middle East/North Africa (MENA) Agribusiness Trade Mission that took place in Cairo, Egypt from April 2 – 6. Over 40 U.S. business representatives met with senior Egyptian government and private sector officials to discuss ways to expand agricultural trade between the United States and Egypt.
USSEC chairman and American Soybean Association (ASA) Jim Miller, USSEC CEO Jim Sutter, USSEC Acting Asia Subcontinent (ASC) Regional Lead Pam Helmsing, and USSEC Regional Consultant – MENA Mousa Wakileh traveled to Cairo and Alexandria to meet with soy industry leaders from Egyptian animal, aquaculture, feed and soy processing industries.
After the opening session on the first day, USSEC’s team participated in a soy industry roundtable meeting with 12 attendees, including the largest soybean crushing industry, feed millers, poultry producers, and aquaculture representatives in Cairo to review recent joint programs and to discuss opportunities for future collaboration. Along with feed formulation and the proper valuation of U.S. Soy amino acids’ profile, the group discussed ongoing poultry disease issues limiting profitability in the local industry. USSEC is sponsoring poultry disease training in Egypt and at the University of Florida with one of world’s leading experts and plans to continue the training in the coming years.
Alexandria is home to major soy industry activity in Egypt and meetings were held at two expanding facilities on day two. Alex Seeds showed its new crushing and soy oil bottling facility, which expands their crush facility to 5,000 tons per day, and Cargill displayed its crushing plant that is expanding to 6,000 tons per day.
A soy industry lunch to discuss the Egyptian market concluded the visit to the soy crushing plants. Lunch attendees included Mark Slupek, Foreign Agricultural Services (FAS) Deputy Administrator; Darrell Upshaw, Program Manager; Ron Verdonk, Regional Agricultural Minister Counselor; J. Bret Tate, Agricultural Attaché; and Ahmed Wally, U.S. Department of Agriculture (USDA) – FAS Agricultural Specialist; and two of the largest local traders and crushers.
A visit to the new office building of the Wadi Group was conducted to talk to CEO and president of Wadi Holdings Tony Freiji and his team about their business and their views on issues facing the industry in Egypt.
The visit to Egypt concluded with a soy industry dinner with 25 attendees, including Mr. Verdonk and the largest soybean crushers, feed millers, and poultry producers.
It is clear after speaking with mission participants and Egyptian industry representatives that there is optimism in the air and an expectation of even better days ahead. USSEC looks forward to a continued relationship and working together with the Egyptian animal, aquaculture, feed, and soy processing industries on various marketing initiatives and programs. Egypt has long been the largest market for U.S. Soy in the MENA region, and USSEC programs have supported strong growth in the Egyptian crushing, extrusion, poultry nutrition and diseases, dairy, and aquaculture industries.
USSEC conducted its 4th Poultry Roundtable for Maghreb’s Feed Industry on April 4 and 5 in Skhirat (Rabat area), Morocco. The conference, part of USSEC’s FY17 promotional program in the Middle East / North Africa (MENA) region, provided an excellent platform to discuss current issues in poultry feeding in Maghreb. Over 45 key customers from the feed and poultry industry attended the conference: 9 from Tunisia, 13 from Algeria and 24 from Morocco.
The program aimed to update feed mill owners and managers, nutritionists, integrators, traders, and others recent advances in nutrition and feeding of poultry, showing the advantages of U.S. soybean meal.
USSEC Regional Director – MENA Brent Babb highlighted the importance of Maghreb markets within MENA and globally. Morocco and Tunisia are the largest buyers of U.S. Soy products, which are the main U.S. agricultural value products in Maghreb, a leading export destination for U.S. Soy products.
USSEC and American Soybean (ASA) director Kevin Scott and United Soybean Board (USB) directors Jim Carroll and John Harrell visited leading poultry customers’ facilities in Morocco. Mr. Carroll and Mr. Scott presented their respective farming operations, U.S. Soy production, and showed the sustainability of their practices. They presented U.S. soybean farmer sustainability goals by 2025.
Dr. Rory Deverel, vice president of INTL FC Stone Ltd, covered global supply and demand of different feed commodities, market trends, and variation factors.
A presenter from each of the three markets updated attendees on poultry and feed industries in their respective markets and discussed various aspects of the soy business in the Maghreb region during the panel organized at the end of the roundtable conference. “B” to “B” sessions were then held with USSEC consultant experts.
The conference was followed by field visits to key customers’ facilities in feed and poultry industry. All customers visited were satisfied with the consistent quality of U.S. soybean meal and the reliability of the U.S. soybean value chain. These two main recognized advantages of U.S. Soy products are not found when soybean meal is sourced from other origins.
Team discussions at one-on-one meeting with Alf Al Mabrouk covered quality issues of U.S. soybean meal. At Alf Sahel, the largest mill in Morocco, a visit was organized to the new extrusion facility that was recently installed. Purchasing and logistics of soy products from the U.S. were discussed at Sofalim feed mill where the team highlighted the need for high quality feed and ingredients such as U.S. hipro meal to obtain top performance for the company turkey and broiler productions.
Although Morocco’s compound feed production declined to 3.75 million metric tons (MMT) in 2016 due to the avian influenza (AI) outbreak with 73 percent going to the poultry industry, poultry remains by far the main the largest user of soybean meal.
USSEC recently launched a post-harvest and fish hygiene study in Egypt. The study, which is being carried out by Megapesce, aims to improve the market opportunities for Egyptian aquaculture products. Currently, Egypt ranks eighth globally in terms of aquaculture production. However, the post-harvest, cold chain, and processing infrastructure are minimal to non-existent, putting downward price pressure on Egyptian aquaculture products that have to sold in the spot market that operates entirely as fresh produce with no opportunities for freezing and processing, which typically allows the excess product to maintain value. Consequently, Egypt suffers from seasonality of supply.
This study will identify opportunities to increase the value for Egyptian aquaculture products by creating the means for extending the shelf life of fish and a sustainable price.
A fruitful meeting between USSEC and the U. S. Grains Council (USGC) was held in March 2017 at USGC’s regional office in Tunis, on invitation of Ramy Haj Taieb. Mr. Taieb was appointed as USGC’s new regional director for Africa and the Middle East in January 2017.
Mr. Taieb served as the trade manager of Poulina Group Holding, the largest ingredient and feed company in Tunisia, for about twenty years. In addition to being an important USSEC customer, he participated with USSEC, the American Soybean Association (ASA), and American Soybean Association – International Marketing (ASA-IM) in many events and trips to the United States. USSEC Consultant – Tunisia Dr. Riadh Karma, represented USSEC at this meeting. Mohamed Ali Hsayri, an experienced USGC consultant and assistant of the regional director, also attended the meeting.
The meeting provided an opportunity to share information on the Tunisian ingredient feed and animal production market, as well as current and future approaches for USGC and USSEC activities in Tunisia and in Maghreb. There was a detailed exchange on future events and activities in order to coordinate and improve the respective calendars for both cooperators’ activities, as well as customer choices for each event.
A diversified team of Moroccan delegates representing the feed, poultry, dairy, and oil industries attended the 5th U.S. Soy Regional Trade Exchange –European Union (EU) / Middle East – North African (MENA) held in Lisbon, Portugal from February 8 -10.
Representatives from the leading poultry integrators, the largest feed mill, a dairy cooperative, and a vegetable oil refiner had the opportunity to meet other professional buyers from the greater region, along with traders and U.S. suppliers. This year’s edition of the trade exchange welcomed a number of attendees from several markets with great success, partially attributed to the high level and quality of all participants including customers, experts, USSEC and grower leaders’ representatives, that help to protect U.S. Soy’s market share in Morocco.
The Moroccan team’s participation in USSEC events reflects the importance of the U.S. as a major supplier of high quality soybeans and soy products. USSEC teams, consultants, and staff assisted professionals to learn more about the organization, the U.S. Soy value chain, and its world position.
The main factors impacting demand for U.S. Soy as a key ingredient in animal feed were among the issues discussed during interactions between suppliers and buyers.
Morocco has been able to maintain its place in the top ten U.S. Soy export markets for soybean meal and soy oil and remains the leading consumer of U.S. Soy products in the MENA region with a soybean meal market estimated at over 600,000 tons. Its imports include U.S. soybean meal, hulls, oil, and beans adding up to a total bean equivalent of nearly 600,000 tons per year.
Poultry remains the main market driver with about 19 kilograms (kg) of poultry meat consumed per capita and an average annual growth of 5 to 7 percent through modern structured emerging integrations.
USSEC continues to support animal industries in Morocco through targeted programs strengthening the U.S. as a major supplier of high-quality soybeans and products, highlighting the strength and intrinsic advantages of the whole soybean value chain. All team members had a higher understanding of soybean meal differentiation based on origin.
USSEC hosted a team of delegates from Morocco’s feed, egg and poultry industries at the International Production and Processing Expo (IPPE) in Atlanta, Georgia from January 31 – February 2. The show, considered to be in the top 50 of all U.S. trade shows, is a world meeting forum for suppliers, producers, and processors displaying the latest equipment and services representing the entire chain of protein production and processing, creating a meeting platform for international soy buyers and U.S. suppliers. This year’s conference welcomed a record number of attendees with over 31,000 from more than 130 countries. Key decision makers from poultry operations, integrated companies, feed mills, associations, and allied industry professionals share ideas, network, and conduct business.
At the luncheon hosted by USSEC, attendees learned how to differentiate soybean meal by origin and the advantages of U.S. soybean meal through the presentation of Dr. Gonzalo Mateos, professor of Animal Science at the University of Madrid, titled “Have You Checked You Soybean’s Pedigree Lately? Evaluating the Nutritive Value of Soybean Meal in Poultry Diets.”
USSEC consultant – North Africa Benabdeljelil K. accompanied customers and guided them through various activities conducted by USSEC and IPPE. At the USSEC booth, they learned more about the organization and U.S. Soy products through discussions with grower leaders, including United Soybean Board (USB) director Bob Metz, American Soybean Board (ASA) director Brian Ogletree, and Rusty Smith, Arkansas Soybean Promotion Board. USSEC team members and several consultants from other markets discussed several issues related to soybean use with customers.
The main factors impacting demand for U.S. Soy as a key ingredient in animal feed, successful tactics to differentiate and create a preference for U.S. Soy, specific promotion materials, common communication messages adapted to regional needs were the issues discussed during the animal utilization meeting held by USSEC CEO Jim Sutter, aiming to develop successful and focused actions helped by collective expertise and resources.
The one-on-one interactions during the three-day event improved confidence and trust levels with the U.S Soy industry and USSEC’s worldwide operations.
USSEC worked closely with the Foreign Agricultural Service (FAS) to arrange a visit to a fish farm in Egypt for members of the U.S. Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies on February 22.
The visit included the following members from the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies: Rachel Santos, professional staff; Carlisle Clarke, majority clerk; Patrick Carroll, professional staff; and Jessica Schulken, minority clerk.
The visit also included members of the U.S. Department of Agriculture (USDA) / FAS: Chris Church, Director, Legislative Affairs; Ronald Verdonk, Minister-Counselor; and Dr. Ahmed Wally, Agricultural Specialist.
Essam el Barabary, a prominent member of the Egyptian aquaculture industry, hosted the visitors at his farm in Burg el Arab outside of Alexandria.
Hussain Mansour, chief executive of Aller Aqua Egypt, an Egyptian-Danish partnership company, also attended the tour. Aller Aqua is among the top aqua feed producers in Egypt with a production capacity up to 150,000 metric tons of extruded feed, making the company the largest feed producer in Egypt.
During the visit, Mr. Essam explained the production strategy for the farm and the advantage of having good water quality. He explained that water quality at the farm has enabled him to produce a variety of fish species including tilapia, mullet, sea bass, and European eel. Mr. Essam said that the feed for the farm is supplied predominantly from Aller Aqua.
Mr. Hussain explained that Egypt ranks eighth in terms of world aquaculture production, second in the production of tilapia, and first in mullet production. He also stressed the importance of using high quality raw material in feed production and that his preference to use U.S. soybean meal is for its digestibility and consistent quality. He stated that the quality attributes of U.S. soybean meal are clearly visible upon physical evaluation of the product.
During the discussion, Mr. Hussain pointed out that digestibility of U.S. soybean meal, measured by protein solubility (KOH) was clearly demonstrated during a feed trial that was conducted during 2013, which was sponsored by USSEC and implemented at WorldFish. At that time, Aller Aqua produced the feed according to the parameters and formulation provided by USSEC, primarily the use of U.S soybean meal in the diet. Mr. Hussain went on to explain that the growth rate achieved during the trial is due to the highly digestible protein content of U.S. soybeans.
USSEC Country Representative – Egypt Salah Taher, who organized the visit together with USDA/FAS, explained to the committee members that building a preference for U.S. Soy in the Egyptian aquaculture industry is a continuous effort that the USSEC team has been promoting through close cooperation with the aqua industry. Seminars, feed trials, and one-on-one technical visits are among the tools used by USSEC to demonstrate the advantage of using U.S. Soy.
Mr. Taher went on to explain the scale of the Egyptian aquaculture, an industry that produces 1.2 million metric tons (MMT) of fish annually and is the primary source of protein for 90 million Egyptians. Per capita consumption of fish is currently 21 kilograms (kg) higher than the per capita world average, which is approximately 19 kg.
Mr. Essam also hosted a luncheon, which was served in a traditional Egyptian tent. During lunch, Mr. Essam and his colleagues presented a number of general topics, including the importance of developing a cold chain and cold storage to overcome the price fluctuation that results from seasonality of supply.
Discussions focused on the quality, consistency and sustainability of U.S. Soy during the 5th U.S. Soy Global Trade Exchange for Europe – Middle East/North Africa (EU/MENA) during the recent conference in Lisbon, Portugal. More than 180 customers and 15 USSEC members from 32 countries gathered to discuss the global soy market situation and expectations for the feed and food industry for Europe and the Middle East. USSEC’s two-day conference is one of the few events combining the soy industry throughout those regions and leading soy crushers, feed companies, and poultry and livestock producers were in attendance.
Conference presenters highlighted the importance of the Europe and Middle East market with data showing that EU-28 and Russia represented the top three countries in poultry and pork production growth since 2010, behind only the U.S. Additionally, 13 of the top 30 global feed-producing countries are in Europe and MENA and were represented at the USSEC conference. With one-third of the global gross domestic product (GDP), this region continues to increase its soy consumption and remains highly competitive in poultry and pork production.
USSEC and United Soybean Board (USB) director Todd Gibson, American Soybean Association (ASA) director Bill Wykes, and USB director Andy Fabin highlighted the sustainability of U.S. Soy in their presentations. Each emphasized the sustainability practices of his farm and his production expectations for the upcoming growing season.
Regional customers noted their appreciation in hearing about soy production straight from the producers. USSEC Regional Director – EU/MENA Brent Babb stressed the importance of the U.S. Soy Sustainability Assurance Protocol (SSAP) and the positive environmental indicators of U.S. Soy production. Nick Major, representing FEFAC, the European Feed Association, discussed the importance of sustainability to consumers and retailers in the Europe market. The SSAP meets the benchmark of FEFAC’s soy sourcing guidelines and is a welcome source of sustainable soy supply for the European market. The EU is one of the major users of the SSAP certification system, which now totals over 6.7 million tons in export shipments this marketing year, over 10 percent of U.S. Soy exports.
USSEC recently hosted a seminar in Egypt to introduce the principles of quality analysis in soybeans to the country’s aquafeed industry. A total of 60 participants attended the event, representing the top aquaculture feed mill and aqua produces.
Ronald Verdonk, Minster-Counselor, Foreign Agricultural Services (FAS) Cairo inaugurated the seminar. In his opening speech, Mr. Verdonk stressed the importance of the agriculture and trade relationships between Egypt and the United States and the role that FAS plays in promoting U.S agriculture exports. He also applauded the developments that the Egyptian aquaculture industry has witnessed in the last decade, citing the rapid and continuous development of the sector.
USSEC consultant Dr. Jan van Eys, the keynote speaker at the event, commented, “It is a delight to come back to Egypt and see the progress being made in aqua production and the feed industry in general. Many challenges remain but there is a clear and discernable progress in the understanding of the key areas that contribute to efficient aqua and livestock production. This is very clear where it concerns the feed industry and the utilization of ingredients such as soy products. Control of ingredient quality and formulation have clearly become key components of improved feed production and thus of the livestock productivity of as a whole and aqua production in particular. USSEC has greatly contributed to this positive development and logically sees its efforts rewarded in a continuous increase in the use of U.S.-originated soy products.”
During the seminar, Professor Mohamed Fathy Osman delivered a presentation on fish nutrition and highlighted the difference between crude protein, digestible protein, and amino acid profile when formulating a least-cost diet. Professor Fathy also stressed the importance of cooking raw materials and extrusion technology as a method of improving digestibility and feed efficacy.
Guest speaker Dr. Alaa Badr, product manager at Skretting Nutreco, concluded the seminar by delivering a presentation on the importance of quality control in feed production. He stressed the impact of high quality raw material in the manufacturing process to guarantee high quality feed.
Dr. Badr also highlighted the importance of traceability of ingredients as well as the final product. Quality standards for different raw materials and the importance of controlling the inflow of raw material by using near infrared (NIR) as a method for accurate formulation and controlling the quality of received raw materials and final product, while minimizing the risk of mycotoxins by using rapid analysis method when receiving raw materials. This is a standard procedure conducted before manufacturing to protect the quality of the final product.
In the days following the seminar, the USSEC team conducted three one-on-one industry visits with aquafeed mills to provide the necessary support for the adoption of soy quality parameters in feed manufacturing.
In 2015, Egypt’s aquaculture industry produced 1.3 million metric tons (MMT) of fish, consuming approximately 1 million tons of soybean meal. As the industry grows, the Egyptian economy faces new challenges.
In November 2016, the Egyptian pound, which was traditionally pegged to the U.S. dollar, was floated; that move has reduced the value of the pound by almost 50 percent, impacting the price of ingredients for the aqua industry and, consequently, the price of aqua feed.
To assist the Egyptian aqua industry, USSEC consultant Tim O’Keefe of Aqua-Food Technologies, traveled to Egypt to meet with top aquafeed producers to provide insights on least cost formulations as a means to control the soaring prices of feed.
USSEC Aquaculture Contractor – Egypt Salah Taher accompanied Mr. O’Keefe during his visit. The two met with representatives from Skretting, Aller Aqua, Cairo Poultry Group, and Koudjis Kapo.
Through these meetings, the team learned that the prices of fish have increased to meet the increasing cost production. The Egyptian aquaculture market is expected to continue growing at 8 to 10 percent each year as Egyptians continue to favor the consumption of fish over poultry and beef.
The Egyptian per capita consumption of fish in 2015 accounted for 21 kilograms (kg) per capita higher than the world average, which is approximately 19 kg per capita.
A second visit is scheduled in May 2017 to deliver training on least cost formulations for aqua feeds.
Sutas, a USSEC customer and Turkey’s largest dairy producer, opened its third integrated dairy facility in Izmir, Turkey on December 23 with an investment of $80 million.
Sutas processes 2,200 tons of milk daily and produces 360,000 tons of dairy feed yearly. The company enjoys a 15 percent market share for milk in Turkey with gross sales in 2015 of 2.3 billion Turkish lira (TL) and 2.6 billion TL in 2016.
The investment in Sutas’ new facilities is about $80 million U.S. dollars (USD) and they will process 1000 tons of milk and produce 600 tons per day of feed, along with 6.4 megawatts of electricity and 100 tons of organic fertilizer. Sutas is already collecting 2,200 tons of milk with 8 percent of this amount is coming from their owned dairy farms and the rest collected from 28,000 farmers in different parts of Turkey.
The president, prime minister, minister of agriculture and many other government ministers attended the opening of the new facilities. Sutas executives present included Mr. Yilmaz, president; Mr. Tezel, vice president; and Mrs. Serpil Veral, CEO.
One of Sutas’ main goals in this investment is to export its products to Russia. Russia was importing €5 billion worth of dairy products before the embargo from EU countries, but is now importing these products from Argentina and Brazil. Turkey is producing a large amount of dairy products that they currently export to Russia and Japan, but they will now be producing different types of dairy products giving them a greater opportunity in these markets.
Sutas also acquired dairy companies in Romania and Macedonia and invested $20 million USD in those companies to supply dairy products to the EU. Turkey is currently not allowed to export dairy products to the EU.
Sutas has been in the dairy business for three generations and celebrates its 41st year in the business this year. Their integrated business model is “from the grass to the table” and they opened their first facility in Karacabey /Bursa in 2004 using this model. Since that time, they have invested $620 million USD in this business with 3 facilities. With the new facility, they are estimated to grow 50 percent in 2016.
Sutas is a very good partner to USSEC who regularly participates in USSEC’s events in Turkey and events in other countries, such as the U.S. Soy Global Trade Exchange in the U.S. While many companies are holding their investments in Turkey at this time, Sutas’ investment in Izmir is noteworthy. USSEC congratulates SUTAS for its new investment and trust in the dairy business and the consumption of dairy products.
Ozpekler Trout Company, a customer and supporter of USSEC, will build a fish feed plant in Denizli, Turkey with the first double screw extruder in the country.
Ozpekler Company produces trout, exporting all its production to Europe. The company partners with a Dutch firm for its marketing in the EU. They produce around 5000 tons of trout each year in 5 facilities in the western part of Turkey. The company already has a hatchery, grow-out farms in lakes and concrete pools, and a processing plant, but was missing a feed plant to complete its integration. With this investment, they will become an integrated company.
Ozpekler, the third largest trout producer in Turkey, attends USSEC’s many aqua events in Turkey and in the U.S., including the Kansas State aquafeed manufacturing course, Idaho farm visits, and USSEC’s regional aqua investment conference in Dubai.
As a result of USSEC’s efforts, Ozpekler decided to build its own feed factory, which will have a double screw extruder, the first in Turkey, allowing them to use less starch in their feed and achieving a higher protein content, consuming more U.S. Soy. The company will also have a pulverizer, which will allow them to produce larval feed for baby fish. The location of the feed mill will be in Denizli where Ozpekler has its head office and all other facilities. The capacity of the feed mill will be five tons per hour of extruded feed.
On December 6, USSEC organized a feed formulation course in Casablanca, Morocco. The one-day event, held for the first time in Morocco’s market, bought together 15 nutritionists and feed formulators from 11 feed mills covering about 50 percent of compound poultry feed production.
The goal of the course was to increase knowledge and improve the usage of U.S. Soy products and help differentiate soybean meal of different origins in feed formulation.
USSEC consultant and formulation expert Sirri Khayan presented feed formulation and purchasing planning for profitable feed production to selected young professionals from different companies. He insisted on setting different matrices for meals from different origins. Based on his experience in other markets of the Middle East / North Africa (MENA) region, Mr. Khayan optimized several poultry diets simultaneously using full fat soybean, U.S. soybean meal and soy oil.
Feed mills are increasingly interested in getting maximum value from the ingredients they use. Developing formulations based on digestible nutrient values of soybean meal by origin leads to better poultry nutrition. Benchmarking every step of poultry feed production and multi-diet formulation helps improve overall profitability.
Improving knowledge on the nutrient supply of U.S. soybean meal such as higher lysine content and availability, along with consistent quality, ultimately leads to increased preference for U.S. Soy.
USSEC continues to improve knowledge of U.S. soybean products’ customers. The short course helped achieve its goal in educating young professionals by allowing them to gain more experience in poultry feed formulation and soybean meal differentiation by origin.
USSEC jointly organized a soybean meal quality Near Infrared Spectroscopy (NIR) workshop for Morocco’s leading feed mills with local feed association AFAC on November 29 and 30. Nineteen participants, including quality control specialists and nutritionists, represented major feed companies. The main objectives of the one-on-one workshop were to assist feed mill laboratory managers to properly evaluate U.S. soybean meal composition using the available NIR technologies and increase understanding of its specific value compared to soybean meals of other origins.
An expert and a consultant visited leading feed and turkey producers, holding technical discussions that highlighted the benefits of this technology in improving the quality control of ingredients and compound feed. The visits showed the high value of the U.S. soybean meal and companies’ efforts to take full advantage of its nutritional quality.
Dr. Ir Pierre Dardenne, expert at the Walloon Agricultural Research Centre in Belgium, gave a presentation preceding the visits.
Improving knowledge in calibration, data validation, and statistical interpretation of analytical results contributes to better use of the nutrients supplied by soybean meal.
USSEC continue to sustain demand for U.S. Soy and develop the loyalty of leading customers. The Morocco market imports U.S. soybeans, soy hulls, soybean oil and meal. Poultry remains the primary driver of Morocco’s soybean meal market.
Egypt has long been the largest market for U.S. Soy in the Middle East and North Africa, and USSEC programs have supported strong growth in the Egyptian crushing, poultry, dairy, and aquaculture industries.
Brent Babb, USSEC Regional Director – EU/MENA, along with USSEC regional consultant Mousa Wakileh, recently traveled to Cairo and Alexandria to meet with local soy industry contacts. Two years ago, Egypt imported over 26 million bushels of U.S. Soy, but that number fell to only 11 million bushels last year due to local import authorities’ concerns on weed seeds and the limited availability of foreign currency. On the first day of visits, however, the group received good news that a solution for importing U.S. Soy was reached and normal imports could restart, and so Egypt has already received its first Panamax vessel of U.S. Soy. USSEC and the U.S. Department of Agriculture worked closely with the Egyptian soy industry and government officials to resolve the issues limiting U.S. Soy imports.
Mr. Babb and Mr. Wakileh met with the Egyptian Poultry Industry in Cairo to review recent joint programs and discuss opportunities for future collaboration. Along with feed formulation and the proper valuation of U.S. Soy amino acids, the group discussed ongoing poultry disease issues limiting profitability in the local industry. In 2016, USSEC sponsored poultry disease training at the University of Florida and plans to continue the training in 2017.
Alexandria is home to major soy industry activity in Egypt, and meetings were held at two new and expanding facilities. The Wadi Group hosted to the team at their port facility, which is jointly owned with ADM. Wadi is one of the largest soy crushers in Egypt, along with poultry and aquaculture production. Additionally, Alex Seeds showed their new crushing and soy oil bottling facility, which expands their crush facility to 5,000 tons per day.
A soy industry dinner at Wadi Group Alexandria Egypt port facility – Nile Stevedoring and Storage Company concluded the Egypt visit. 25 attendees, including the largest soybean crushers, feed millers, and poultry producers attended, along with Ron Verdonk, Counselor at U.S. Embassy, Cairo.