News: Southeast Asia
USSEC participated in the 7th Aquatech Philippines: Aquaculture Expo & Convention in Tagaytay City on July 21. This year’s theme was “Exploring the Latest Innovations for Higher Production, Best Alternatives and Strategies for Global Marketability.”
Aquatech Philippines, for the past six years, has been gathering experts and stakeholders from the aquaculture sector. This sole technical event in the Philippines focusing in aquaculture recognizes the importance of the collection and sharing of knowledge in aquaculture activities by facilitating a comprehensive trade exhibition, technical conference, free livelihood seminars, and fellowship activities. The event aims to develop sustainable aquaculture in the country and contribute to the alleviation of poverty and was attended by nearly 150 participants from different aquaculture stakeholders in the Philippines.
USSEC Technical Manager – Philippines and Southeast Asia Demonstration Coordinator Levy Loreto Manalac presented and discussed “The USSEC Soy In Aquaculture Program’s Work on Improvement of the Philippines Milkfish Chanos chanos Industry Through Better Feed and Feeding Approaches.” USSEC Marine Fish Aquaculture Specialist Hsiang Pin Lan presented and discussed “Milkfish Disease and Health Management: Observations and Findings in Philippines.”
USSEC’s aquaculture program recently welcomed an experienced marine fish broodstock expert, Dr. Robert Vassallo Agius, to Thailand to speak primarily to the Asian sea bass hatchery industry. The target of the presentation was to highlight the importance of formulated broodstock feeds as both a biosecurity measure and for better production. Originally intended for an audience of about 40 participants, the final number swelled to over 60 as industry learned of the seminar’s content, with both commercial and government interest as well as commercial feed firms.
This topic, and another on larval nutrition and rearing, benefited from the fact that Dr. Agius is one of the leading individuals working on broodstock nutrition in Japan and Europe. It is also an important one as Thailand is a major producer of large numbers of Asian sea bass fingerlings for domestic and regional use, but not particularly high quality ones.
High quantities of high quality marine fish fingerlings are an important step to moving to industrial-scale production of marine fish in Southeast Asia and will lead to a requirement for high quality and consistent feeds for growout operations. It is in that area that USSEC expects expanded promotion of U.S. Soy products in the marine fish aquaculture industry.
USSEC organized and hosted a Southeast Asia (SEA) trade delegation made up of importers and end-users of agricultural products from August 28 to September 8, 2016 in the United States. This mission resulted in trades and negotations of more than $125 million in U.S. ag products.
The main highlight of the mission was the 2016 U.S. Soy Global Trade Exchange in Indianapolis, Indiana on August 30 and September 1. Throughout the course of the 12-day visit, besides participating in the conference and meeting with U.S. producers and suppliers, participants also had the opportunity to experience firsthand farming operations, grain storage facilities, oilseed crushing plants, transloading and port facilicities, and, in the process, interact and network with U.S. Soy producers, U.S. suppliers and service providers along the U.S. soy supply chain such as loadport surveyors, among others.
The trade mission, led by USSEC’s SEA representatives, was comprised of 57 executives representing 45 companies from Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The SEA delegation, divided into two separate teams according to their purpose and use of soy products, included senior agricultural industry executives, owners, and directors from trading, crushing, feed milling, livestock-raising, and food processing companies and associations.
In addition to attending the U.S. Soy Global Trade Exchange in Indianapolis, the SEA (feed) team also participated in the Indiana Field Day event on September 2 where they toured the Indianapolis Motor Speedway and visited with major grain company Bunge, Integrity Biofuels, and the Reichenbach Farm.
Meanwhile, the SEA (food) team members traveled toward Cincinnati, Ohio to continue with their program, which included visits with U.S. exporters Ceres Commodities, Bluegrass Farms, and Rogers Grain Inc. While passing through Kentucky and Tennessee, the feed team visited with Ray Mackey on his farm, enjoyed a lunch hosted by the Kentucky Soybean Board, and met with Glen Hutchinson on his farm.
In Nashville, Tennessee, the feed team was further divided into two teams with one group landing in Norfolk, Virginia, while the other group continued on to New Orleans. The program in Norfolk included meetings with Lansing Trade Group, Perdue Agribusiness, the North Carolina Department of Agriculture, Federal Grain Inspection Service and local farming operations – Batemans, Pendleton, and Moore Farms. In New Orleans, the team visited Thionville Labs, CHS Inc., Bunge, and the Russell Marine Group.
This year’s SEA trade mission was well-received by both team members and U.S. growers, U.S. companies, the U.S. Department of Agriculture (USDA), and other ag-organizations that hosted the groups on location and shared their time and expertise to the benefit of the U.S. agricultural industry. Through the support and effort provided by USSEC and the entire U.S. Soy family, the U.S. Soy Advantage message was well-communicated throughout this mission.
Based on written feedback from the SEA trade team, over 350,000 metric tons of U.S. agricultural products with an estimated value of $125 million USD were negotiated and/or traded throughout the course of this mission.
As a result of producing aquafeed with less fishmeal, taurine has risen in importance as an important ingredient that supplies protein. Taurine allows animals, especially marine fish that require high amounts of protein, to achieve a balanced diet.
Vietnamese feed mills in Vietnam have been specializing in pangasius feed, and feed formulators have not yet turned their focus to taurine.
Recently, another freshwater species, snakehead, became a motivation to use taurine and lecithin in the diet. Snakehead requires high levels of protein and fat in feed (45 percent crude protein, 10 percent crude fat). The role of corn gluten meal (CGM) is also important to steady the unbalanced amino acid profile when using soy products as a main source to replace protein demand in marine fish.
The above-mentioned ingredients need to be recommended to feed formulators in order to get a suitable formulation with the lowest cost. USSEC Vietnam focuses on those specific ingredients, and taurine and lecithin will be a subject in the upcoming Asian Aquaculture Feed Formulation Database (AAFFD) workshop.
USSEC’s goal is to give aquaculture feed formulators more confidence in using a soy-optimized diet. The U.S. Soybean Sustainability Assurance Protocol (SSAP) will be a key method to promote U.S. Soy products during seminars and workshops.
USSEC organized the 2016 Southeast Asia U.S. Agricultural Cooperators Conference (also known as the Southeast Asia Buyers Conference), together with the U.S. Grains Council (USGC), and Foreign Agricultural Service – U.S. Department of Agriculture (FAS‐USDA), from July 31 to August 3, in Mactan-Cebu, Philippines.
The conference is recognized as the premier agricultural event in the region, and over 120 companies with representatives from Thailand, Indonesia, Malaysia, Philippines, Vietnam, Singapore, Myanmar, New Zealand, and the United States participated. The three-day conference, themed “Building Sustainable Agribusiness for the Next Decade,” was attended by more than 230 participants consisting of key U.S. Soy and feed grain customers from across Southeast Asia. A large number of U.S. and international suppliers, regional and local representatives of international trading companies also attended. The Southeast Asia Buyers Conference has long established itself as a venue not just for information and knowledge gathering, but also as a business networking platform to explore opportunities to negotiate and trade U.S. agricultural products.
22 invited speakers, including grower leaders, USSEC senior personnel from the U.S., and renowned industry experts shared their insights on a wide repertoire of relevant industry topics:
- World Soy, Corn and Wheat Update – Production, Supply and Demand
- Outlook and Price Scenarios for Oilseeds, Oils & Meal
- Global Climate Change and its Impact on Agriculture
- Transportation and Logistics Trends Affecting the Global Agricultural Trade
- S. Soybean Processing Industry and its Challenges
- Themes and Innovation Shaping the Evolution in Agriculture
- China’s Agricultural Landscape and its Impact on Regional Trade
- Strategic Southeast Asia Country Updates
United Soybean Board (USB) director David Williams gave a presentation on the 2016-17 U.S. soybean crop outlook, sharing details of his own farm in Michigan. Monte Peterson, American Soybean Association (ASA) director, highlighted the U.S. Soy farmers’ commitment to produce the best quality and most consistent product on a daily basis for their international customers. He also discussed the importance of sustainable farm practices including conservation, modern technology, and biotechnology.
Rosalind Leeck, USSEC Marketing Director – Market Access/ FTO, emphasized the commitment of U.S. Soy growers in applying sustainable soy production practices for personal (passing it down to the next generation), social, and commercial reasons. She also shared details of the U.S. Soybean Sustainability Assurance Protocol (SSAP) and explained how importers and end-users can benefit from this program. Keith Schrader, chairman of the Minnesota Soybean Research and Promotion Council (MSR&PC) and MSR&PC director Paul Dahlseng were also on hand to share their knowledge and experience as U.S. soy growers with the participants.
Overall, participants expressed that the speakers helped them better understand the relevant issues and current trends affecting their business and agriculture as a whole. Many recognize the need for quality inputs, constant information update, production and marketplace best practices as key factors to business sustainability. The interactive panel question and answer sessions continued to be a major highlight of the conference – with the help of a specialized technical application, participants have been able to voice/vote on their questions to speakers candidly resulting in frank and in-depth discussions.
Based on the feedback received, over 1 million metric tons of U.S. agricultural products with an estimated value of USD $300 million (basis futures value only) were negotiated and traded at the conference.
The conference was made possible by South Dakota Soybean Research and Promotion Council (main sponsor), funding support from USB, FAS, MSR&PC, and the Kentucky Soybean Board. In addition, the event received outstanding support from 19 corporate sponsors including the CME Group, CoBank, and 17 major commodity trading houses.
As part of its commitment to promote sustainable marine aquaculture development, Indonesian marine aquaculture stakeholders have established a group to regularly discuss issues and challenges, along with ways to promote sustainable marine aquaculture production and marketing. The discussions are mainly held via online chats, but are sometimes live through presentations and lunch together.
USSEC Indonesia has been working with the group to encourage the development of a roadmap to allow better planning and management of Indonesian marine aquaculture development. The development of marine aquaculture will boost quality feed production in Indonesia, eventually leading to soy use in aquafeed. Marine fish feed production requires high quality ingredients (primarily soy), thus ensuring the potential absorption of U.S. Soy in aquaculture feed production.
USSEC conducted the “USSEC Risk Management in Milkfish Cage Culture and Health & Disease Management Workshop” in Bolinao and Alaminos in Pangasinan, Philippines on July 19 and 20. The workshop aimed to inform milkfish cage farmers on how to manage risk in milkfish cage culture and teach health management and disease prevention to maximize profit.
Levy Loreto Manalac, USSEC Philippines Technical Manager and Southeast Asia Demonstration Coordinator, presented and discussed risk management in milkfish cage aquaculture to maximize profit including the use of quality feeds, good feeding management, and best culture management.
Hsiang Pin Lan, USSEC Marine Fish Aquaculture Specialist, presented and discussed milkfish health management and disease prevention in milkfish marine cage culture emphasizing USSEC’s low volume high density (LVHD) cage culture technologies, with proper feeding management and understanding the fish growth rate in relation to feeding levels and feed conversion ratio to minimize pollution to the environment and optimizing economic return.
The participants understood and realized the value of using high quality feeds and the importance of best management practices in a risk-free and disease-free milkfish cage culture.
The two workshops were attended by 97 participants including milkfish cage operators, technicians, feed managers, staff from local government units, aqua feed miller’s staff and a cage manufacturer from Bolinao, Anda, Alaminos and Sual, all in Pangasinan and Rabon, La Union.
USSEC attended the first international fair organized specifically for Vietnam’s shrimp industry from June 24 to 26. The Ministry of Agriculture and Rural Development (MARD) of Vietnam and the People Committee of Bạc Liêu province co-organized the event. About 100 booths from multinational producers, chemical and equipment manufacturers, and shrimp feed companies exhibited at the event.
Shrimp extensive culture systems occupy about 70 percent of the shrimp farming area in Vietnam. Stocking density for tiger shrimp (P. monodon) is 20-30 post larvae (PL) /square meter (sqm) and for white leg shrimp (P. vannamei), 100-150 PL/sqm. In 2014, white leg shrimp represented 60.6 percent of Vietnam’s total production at 660,000 metric tons (MT) /year.
As a carnivorous animal, tiger shrimp requires a higher protein level in feed, 42 to 36 percent, while white leg shrimp are more omnivorous with protein levels at 26 to 32 percent. According to a 2012 survey, 30 to 40 percent of Vietnamese farmers still used unsuitable tiger shrimp feed for white shrimp because they believed that using higher protein feed would speed up the growth rate in white shrimp.
Vietnam has 20 shrimp feed mills that produced 500,000 to 600,000 MT of shrimp feed in 2015. The top five feed mills represent 67.6 percent of the total production. Shrimp feed are commonly viewed as pellet feed, but some companies offer extruded sinking shrimp feed, claiming better digestion. Shrimp larva pellet feed is mainly imported from two key players, INVE and Bernaqua.
Every year, Vietnam produced about 143 billion of shrimp PL. Viet Uc Company is the leader with a 28 percent market share. Stocking size is PL14, but some companies offered a PL15 for the PL14 price to gain a competitive advantage.
Thus far, USSEC Vietnam has not been active in the country’s shrimp industry. There are many issues where the industry needs technical support, including better feed and health management. The outlook of Vietnam’s shrimp industry is positive in the near future. The fact that an international fair was organized in Vietnam for specifically for the shrimp industry implies a bright future for Vietnam’s export market.
USSEC conducted an aquaculture seminar, Floating Feed Feeding Management in Cage Aquaculture, for the staff and managers of Southeast/Sahara Feeds Corp. Cage Farm in Taal Lake, Talisay, Batangas, Philippines on June 11.
USSEC Philippines Technical Manager – Aquaculture Levy Manalac discussed the proper use of extruded floating feed and good feeding management with extruded floating feeds in cage culture. These tips will help milkfish and tilapia cage farmers to reach more efficient, better production and profitability and will also help improve water quality in the area by having lower feed conversion ratios (FCR)FCR, better contributing to continuous fish farming. The goal of this seminar is to ensure continuous, and even increasing, demand in U.S. Soy products in aquafeed manufacturing.
34 participants, including technicians, feed managers, office staff and warehouse staff attended the seminar.
USSEC conducted three workshops in the major cities of Jakarta, Bangkok and Manila from May 23 through 31 to promote U.S. Soy. The “Agribusiness Series” is a custom-made program designed by USSEC in cooperation with the Northern Crop Institute (NCI) / North Dakota State University (NDSU) and the International Grains Program (IGP) to create a platform for USSEC to stress the benefits and advantages of U.S. soybeans and soybean meal to a select audience.
The theme for the series of workshops is “Managing Risk and Profitability from Field to Food.” Each workshop featured a two-day program aimed at educating and informing buyers of global supply and demand dynamics, pricing trends and other significant market developments, with particular focus on U.S. Soy.
Speakers at the workshop included U.S. Soy grower leader, C.D. Simmons III (director, United Soybean Board (USB)) from Leland, Mississippi; Dr Frayne Olsen (NDSU); Jay O’Neil (IGP, Kansas State Unviersity); Dr. Budi Tangendjaja (USSEC Technical Consultant – Jakarta); and Dr. Basilisa Reas (USSEC Technical Consultant – Manila and Bangkok), as well as Timothy Loh (USSEC Regional Director – Southeast Asia).
Mr. Simmons shared his family’s sustainable farming practices and provided insights into the production and export of U.S. Soy international destinations. He talked about the investments in technology that he has made to increase field productivity and took questions from the participants on farming, cost of production, and price risk hedging from a producer’s perspective, among other subjects.
Other topics covered in the workshop include: supply and demand outlook, price/risk management and hedging strategies, and functionality of raw feed ingredients and the importance of quality. Comparison between U.S. and alternative origination was also discussed in terms of economic and nutritional advantages in animal feed formulation. Mr. Loh also gave a presentation on the U.S. Soy Sustainability Assurance Protocol (SSAP) program.
Tina Liao from the CME Group was also on hand to provide the attendees with additional insights into risk management as she introduced CME’s latest offering of shorted-dated grains options and “QuickStrike,” an online option pricing and analysis tool developed by CME for buyers to identify trends and trade opportunities.
The workshops were generally well-attended and even over-subscribed in some locations. Overall, more than 120 local importers, end users, traders, and suppliers attended the workshops. This includes local representatives from major trading companies, commercial staff, animal nutritionists and finance executives coming from feed mills, integrated livestock, swine and poultry companies.
USSEC recently organized a tour trip to Shanghai, China to visit intensive pond aquaculture (IPA) sites.
The group of 40 visitors came from Egypt, India and Vietnam and attended an IPA seminar on the first day. Dr. Jesse Chappell of Auburn University introduced participants to the principle and concept of IPA. USSEC Aquaculture Program Manager Jim Zhang and USSEC Technical Manager Zhou Enhua provided information about China’s aquaculture industry and the implementation of IPA in China.
The first site visited was a state-owned farm, Maotian Wetland Eco-Agri Investment Co., Ltd., located to the west of Shanghai. Maotian has a total area of about 100 ha. In 2014, Maotian constructed two units of IPA cells in a four ha pond. After the first year’s economic success and efficiency (production increased 20 percent with a 75 percent lower labor cost), the farm manager added two more cells to each IPA unit to create five-cell units. Feed used is mainly USSEC-formulated feed with a U.S. Soy-optimized diet that contains more than 50 percent of U.S. Soy product.
On the second day, participants visited Yancheng Zheng Rong Fisheries Ecological Co., Ltd. This is a private company farm located in Hengji Town, Jianhu of Jiansu province and is currently the largest IPA farm with a 52-cell unit in a 27 ha pond, constructed in 2015. Due to the success of 2015 production (ROI 40 percent, 200 percent increase in production, lower labor cost, especially the flesh quality of fish living in a moving water environment), another IPA system is under construction with a 28-cell unit. In total, Yancheng Zheng Rong built 80 cells for its two IPA units.
A wrap-up meeting among the Vietnamese visitors was conducted by USSEC Vietnam. There was very positive feedback from the group. As a seafood export country, IPA technology could be a positive image for Vietnam to demonstrate to the export market.
USSEC and the Northern Crops Institue (NCI), under the auspices of the United Soybean Board (USB) and American Soybean Association (ASA), and with support from the Qualified State Soybean Boards (QSSBs) in Minnesota, North Dakota, South Dakota, and Kentucky, jointly organized its first U.S. Agribusiness and Partnership Program in Fargo, North Dakota from June 13-16.
An international team of 17 customers from Indonesia, Vietnam, Philippines, and Thailand were invited to participate in this unique marketing initiative. USSEC Technical Consultants Dr. Basilisa Reas, and Dr. Budi Tangendjaja, based in the Philippines and Indonesia respectively, led the team. Each was also a featured presenter during the short course.
Delegates were selected to participate because of their role as a decision-maker or influencer in the purchasing process. The main objective of this short course, in addition to providing trade and technical information, was to emphasize the U.S. Soy Advantage to importers in terms of its sustainable production, efficient and reliable logistic and transportation system, transparent and reliable trade practices, better consistency and quality of product, better value for the dollar, and importance of valuing soy against amino acid and metabolizable energy values as opposed to crude protein.
The program for this short course included the following subjects: Overview of the U.S. and Global Soy and Grain Industry; Dynamics of International Grain Trading Practices; Insights into U.S. Soy and Grain Production Practices; Grain Handling, Storage, and Transportation and Impact of Freight on Price; Contract Specifications for Export; Fundamentals of Futures, Basis and Cash Price; Price and Risk Management (Domestic vs. Export Markets); Appreciation of Soybean and Soybean Meal Quality Parameters; Introduction to Soybean “Crushing” – Meal and Oil; Full Fat Soybean Meal – Production and Uses; U.S. Soybean Meal in Feed Rations – Meta Analysis / Comparative Studies; and Latest Developments in Animal Nutrition and Feed Formulation.
Several field and facility tours were also included in the short course.
A key objective of this program is to convince customers who may be still “sitting on the fence” to give U.S. Soy serious consideration and at least try U.S. Soy in their operations. This was an ideal venue to talk about product specifications and address trade issues with the experts on hand. Ultimately, the goal of the program is to build preference and increase U.S. Soy exports to Southeast Asia.
During the NCI short course in Fargo, USSEC set up a small roundtable meeting to introduce Rob Prather, owner of Global Processing, to the Filipino delegates. The meeting resulted in the sale of three containers of U.S. soybeans to Global Agro Milling Corp (GAMC). Yvonne Que, the owner and operations manager of GAMC, was impressed with the quality of the soybean samples Mr. Prather showed her, which led to the deal. The 62 metric tons (MT) of soybeans will be shipped to the Philippines as soon as the necessary documentation is completed.
GAMC is a family owned group of companies with two commercial feedmills, three farms with 3000 in three different locations, two lines of Insta-pro extrusion machines, and a flour mill. GAMC, under its trading company Besthope, also trades major ingredients throughout the country such as corn and cassava from the province of Mindanao, along with soybean meal. Most of the soybean meal used in both their own operations and produced for trading is supplied by local soybean traders. Mrs. Que said that they want to be assured of enough U.S. soybeans for the production of full fat soybean meal (FFSBM) in their extrusion plant. GAMC extrudes 1500-2000 MT of FFSBM per month.
The Philippines is U.S. Soy’s largest market for U.S. soybean meal outside of North America and so far this year has exceeded its FY 2015 same time last year by over 400,000 MT.
USSEC recently met with the Philippines’ Department of Agriculture – Bureau of Fisheries and Aquatic Resources (DA-BFAR) in Diliman, Quezon City to learn their plans and program for the country’s aquaculture sector over the next five years. The head of the Inland Fisheries and Aquaculture Division presented the newly approved “Comprehensive National Fisheries Industry Development Plan Medium-Term 2016-2020” (CNFIDP 2016-2020) to USSEC, after months of consultation from various fisheries sectors.
This is a new development for the aquaculture industry in Philippines, as it now has a focused vision for increasing aquaculture production over the next five years. The vision of the CNFIDP 2016-2020 is a “sustainable and competitive fisheries industry” and must address the following issues: sufficient contribution to national food security; inclusive growth within the industry; sustainable, science-based fisheries and aquatic resource management practices; compliance to international laws, policies and standards, and enforcement of local laws and regulations; strengthened capacities in infrastructure, technologies, human resource, and information sharing; and resilience to environmental hazards.
To achieve these goals, targets were developed through the combination of science-based information as presented by resource persons from academic and research institutions, and actual observed situational information from industry front liners.
The CNFIDP 2016-2020 has a target aquaculture production of: a 4 percent annual increase in milkfish production; a 6 percent annual increase in tilapia production; a 10 percent annual increase in shrimp production; a 5.4 percent increase in mud crab production over 5 years; a 10 percent increase in shellfish production over 5 years; and a 25 percent increase in seaweed production over 5 years.
BFAR’s aquaculture strategies to achieve these goals are similar with those of the USSEC Soy in Aquaculture program for the Philippines with strategies that include: secure quality fry/seed supply through coordinated investments in propagation facilities (broomstick, hatcheries, nurseries laboratories);institutionalize Good Aquaculture Practices (GAqP) for key commodities and promote sustainable aquaculture; assure quality and traceability of aquaculture inputs and outputs; invest in species with high commercial potential; optimize operation of mariculture parks; and ensure climate/disaster resilience of the aquaculture sector.
These strategies to increase production will use a lot of formulated feeds, ensuring an increase in demand for the usage of U.S. soybean meal and other soy products as the major ingredient of formulated aquafeeds.
USSEC conducted a two-day seminar/workshop on Animal Nutrition and Feed Formulation May 11-12 in Iloilo City, Philippines. The seminar focused on feed formulation in diverse manufacturing and production challenges. Among the participants were the nutritionists and production staff of the commercial feedmills of Philippine Foremost, the sister company of the biggest U.S. soybean meal importer in the country, along with other commercial swine and poultry farms.
The seminar’s theme, “The Science and Application of Animal Nutrition, Feed Production and Feed Formulation,” suggested the significance of using the right nutrient specifications of major ingredients, so the amino acid and energy source ingredients in feed formulation were discussed in particular. The higher digestible essential amino acid content of U.S. soybean meal versus meal of other origins was highlighted and used in the formulation exercises. Other topics included the production and utilization of full fat soy, fats and oil in swine and poultry diets, extrusion process, pest control, application of quality assurance and quality control measures.
The participants found the topics highly relevant and useful as they actively participated during the open forum and in hands-on exercise in feed formulation.
Extrusion technology has been the key tool for Vietnamese feedmillers to manufacture quality pellet feed for the country’s aquafeed market. This technology helps solve the problems of uneven size pellets; sinking vs. floating feed; extruder screw configuration; and calculating the die opening area, which are major concerns for feedmill staff. USSEC Vietnam conducted a tailor-made seminar with questionnaires sent to participants one month prior to the seminar date. Following the feedmill’s response, the seminar content was set up to give a solution to specific questions raised.
USSEC consultant and director of Texas A & M University’s Food Protein R&D Center Mian Riaz was invited to be the key speaker and to interact with feedmill participants for two in-house seminars in Binh Duong and Dong Thap provinces, and one public seminar in Saigon.
At the in-house seminars, participants felt free to express their technical issues. At the public seminar, where the production and formulation staffs came from different companies, it was assumed that the ambiance would be sensitive; the interaction was truly open, however, since feedmill staff could get a chance to share experiences from each other regardless of the competitive situation on the aquafeed market.
Plant protein, especially from soy, was concluded to be a good replacement to fishmeal to contribute to the stability of the pellet, thanks to its good functional protein properties.
Furthermore, participants were impressed by U.S. Soy production’s approach through the U.S. Soy Sustainability Assurance Protocol (SSAP) certification and reacted positively to U.S. Soy’s video “This is Harvest.”
USSEC – SEA held its Aquaculture Feed Nutrition Workshop in Manila on March 16.
The conference was organized by USSEC Technical Consultant, Aquaculture – Philippines Levy Manalac and USSEC Feedmill and Nutrition Consultant Mark Newman. Mr. Newman discussed what is new in fish and shrimp nutrition and how to utilize U.S. Soy products to reduce the amount of fishmeal and fish oil in aquaculture feeds. USSEC Technical Consultant, Animal Utilization – Philippines Basilisa Reas talked about the amino acid and energy in soybean meal used in poultry and livestock as a model for aquaculture nutrition. Katherine Bentoy, Alltech Technical Sales-Aquaculture, presented her experience with low and zero fish meal diets in the Japanese Marine Aquaculture Industry.
The workshop was attended by 29 participants from different aquaculture feedmills, a feed additive supplier, feedmill machineries, and an aqua feed formulation software in Philippines.
The USSEC aquaculture team recently visited an intensive shrimp farm in Indonesia.
USSEC Aquaculture Program Lead Technical Consultant – SEA Lukas Manomaitis, together with other USSEC contractors and representatives of Matahari Sakti feedmill visited Yu-Shan Phillip’s intensive shrimp farm in Sidayu Gresik. This is an important visit because it is an indication of a possible move to better culture practices in the shrimp industry where shrimp production is currently conducted in isolated, covered ponds instead of open ponds. This technology has been perfected in Brazil, according to the Global Aquaculture Association (GAA), and it is encouraging to see this technology now being tested in Southeast Asia. High intensity systems such as this favor high quality feeds that minimize fishmeal, a good target for U.S. Soy and U.S. soy protein concentrate (SPC) products in particular. The aquaculture team also plans to conduct a U.S. Soy-optimized shrimp feeding demonstration with Matahari Sakti Feedmill in FY16
As a result of raw materials and export prices falling throughout 2015 due to overproduction, many Vietnamese aquaculture farms switched from pangasius to other species for the local market, which caused a severe shortage of the fish. Beginning in February 2016, pangasius material price increased rapidly, and so at this time, farm companies that have a proper long-term investment strategy can reap the greatest benefits. Unfortunately, these companies are few in quantity compared to the rest of the Vietnam’s fish industry.
According to business consultants, this is the first time in 10 years that the pangasius industry faces a severe shortage of material.
As the first farm cooperator in Vietnam to apply In-Pond Raceway Technology (IPA), Tafishco, a farm and processing company that consults with USSEC, plans to improve its pangasius fingerling production. Tafishco began construction of the first IPA floating raceway at its farm in An Giang Province in February 2016. With this new technology, Tafishco expected to use fewer fingerlings (1.5 million with IPA compared to 7.5 million with traditional technique) to produce the same numbers of fish at harvest (300,000 pieces) from the same same pond size.
IPA is expected to help Tafishco eliminate fingerling shortage as well as produce enough raw materials for their processing factory from their own 30 hectares for pangasius production and other 70 hectares of contracted farms.
USSEC hosted a delegation of Minnesota farmers on its 2016 See For Yourself mission. The group met with USSEC and the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) before touring a typical Hanoi marketplace.
About 45 percent of the general population in Vietnam is between 25 and 45 years old. The middle and affluent class in Vietnam is expected to double in size between 2014 and 2020, from 12 million to 33 million people, making Vietnam an important market for U.S. soybean farmers.
Mark Dries, Counselor for Agricultural Affairs for FAS, addressed the Minnesota delegation, telling the farmers that Vietnam is an important market for their product.
“This has been a big and growing market for you,” he said. “I think it is clear through your selection that you made a wise decision with your checkoff investments.”
USSEC Country Director – Vietnam Tran Trong Chien also addressed the delegation, talking about the growth of Vietnam, specifically in pork production and consumption, and the importing of feed ingredients.
“We have to import about 70 percent of the feed ingredients for livestock in Vietnam,” he said.
According to Mr. Dries, Vietnam is the 11th largest market for U.S. exports. While Vietnam imports 95 percent of its soybean meal and whole soybeans, the U.S. is competing with countries such as Argentina and Brazil for a place in the market. Of that market, Mr. Chien says Vietnam imports about 10 percent of its soybean meal from the U.S. and about 50 percent of its whole soybeans from the U.S.
“The government is very clear about the efficiency to produce soybeans in Vietnam,” Mr. Chien said. “It’s cheaper to import to supply the demand.”
Mr. Chien also told the Minnesota delegation that Vietnam’s pork, poultry and aquaculture industries are growing, on average, by 6 to 7 percent each year.
With more than 26 million hogs raised in the country, Vietnam ranks sixth worldwide in production and 7th in consumption of pork.
USSEC conducted marine fish hatchery technical servicing in the Philippines in February.
USSEC Technical Consultant, Aquaculture – Philippines Levy Manalac, USSEC Aquaculture Program Lead Technical Consultant – Southeast Asia (SEA) Lukas Manomaitis, and USSEC Asia Marine Specialist, Aquaculture – SEA Hsiang Pin Lan provided technical servicing to address fish health management issues and to help improve the survival rates, growth efficiency, and production of red coral trout and mouse grouper at the Palawan Aquaculture Corporation in Coron, Palawan, Philippines.