Southeast Asia currently has a total population of 636 million, which the U.S. Census Bureau projects to increase to 697 million by 2025. Although there is a wide mix of cultures and religions, the region is relatively stable socially and politically. Southeast Asia’s economy is the sixth largest in the world. Collectively, ASEAN’s (Association of Southeast Asian Nations) largest economies, which include Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, is projected to continue its robust economic growth, boasting an approximate 5 – 6 percent annual average growth rate compared with 3.0 to 3.5 percent for the global economy.
With its growing population – an additional 6 million mouths to feed annually – and burgeoning middle-class consumers with rising disposable household incomes, Southeast Asia’s animal protein consumption is projected to achieve a compounded annual growth rate of 20 percent in the next five years. Largely dependent on imported raw feed ingredients, this region needs to increase its purchase of soybean and soybean meal exponentially to meet demand, especially considering that five countries in this region are ranked within the top 20 global broiler producers, five countries are ranked in the top 10 in global aquaculture production, and Vietnam and the Philippines rank #4 and #6 in global pork production, respectively. Total projected imports for U.S. soybeans into Southeast Asia in 2015 are about 3.4 MMT and 2.5 MMT of soybean meal, accounting for over 59 percent and an 18 percent share of the overall market, respectively. This is a 240 million bushel market for U.S. Soy.
Southeast Asia’s regional economies are relatively open and market-driven, and ASEAN countries have good relations with the United States. U.S. exports of agricultural products to ASEAN countries totaled $10.7 billion in 2013. Leading categories include: soybeans ($1.7 billion), dairy products ($1.3 billion), wheat ($1.1 billion), cotton ($923 million), and soybean meal ($909 million). Southeast Asia represents a market with a combined estimated GDP of more than $6 trillion in 2015. A core competency of the major markets in this region is its ability to adopt new technologies and management systems rapidly. Biotechnology acceptance is not a major issue.
Southeast Asia Directory - Regional
Boon Yee Yeong
Hsiang Pin Lan
Southeast Asia Directory - Phillipines
Southeast Asia Directory - Indonesia
Southeast Asia Directory - Thailand
Southeast Asia Directory - Vietnam
Tran Trong Chien
Nguyen Ngan Hanh
Diep Ngoc Phan
Nguyen Vo Hoang
Southeast Asia Directory - Myanmar
May Myat Noe Lwin
Southeast Asia News
USSEC – Southeast Asia (SEA), led by Lukas Manomaitis, USSEC Aquaculture Program Lead Technical Consultant – SEA; Levy Loreto L. Manalac, USSEC Technical Consultant, Aquaculture – Philippines; Pamudi, USSEC Technical Consultant, Aquaculture – Indonesia; and Hsiang Pin Lan, USSEC Asia Marine Specialist, Aquaculture – SEA, together with international speakers helped the Philippines to develop a sustainable, high-volume, export-focused marine fish aquaculture sector in a workshop conducted on May 8 at the Marco Polo Ortigas Hotel in Pasig City, Philippines.
According to Mr. Manomaitis, USSEC has been working with the marine fish aquaculture sector in Philippines for the past few years and anticipates that the current industry will become larger scale and will produce a large volume of marine fish products. In order for this to succeed, the industry will have to focus on extra-regional sales of product and not primarily on intra-regional trade (national or SEA regional sales). This workshop aimed to inform, educate, and discuss important topics as the Southeast Asian marine fish aquaculture industry starts to develop larger scale production.
During the workshop the invited resource speakers presented the following topics:
- Roy C. Ortega, OIC of IFAD of DA-BFAR, discussed the Philippines Fishery government current policy and future policy plans for marine fish aquaculture.
- Manomaitis provided an introduction to USSEC and discussed the seminar topic and workshop program.
- Matt Brooker, business development manager of The Fishin’ Company in the U.S., presented requirements for a company’s entry into a marine fish export market including how a species market is developed or expanded (if already existing), format, volume, quality, certifications, and challenges and opportunities.
- Elsie Tech, vice president South Luzon, Hi-VAP Inc. and technical consultant of Palawan Aquaculture Corp., discussed and introduced HI-VAP Inc. and how they see the marine fish industry in the next five years.
- Pamudi gave an introduction to the ideas of standards setting and certification bodies for marine fish export market.
- Isidor Yu, farm assurer, GlobalGAP, discussed the importance of standards and certifications for aquaculture products and for export products in particular.
- Lourdes Tanco, managing director of MIDA Trade Ventures International Inc., talked about how Philippine marine fish producers may need to link to the processing and export industry for smooth development of the industry.
This workshop was highlighted by the four different sectors in four breakout sessions where they discussed and addressed the following:
- Import related: What is the best way to link to markets, identify products and encourage buyers to look at SEA marine fish production?
- Certification related: What are the key concerns with regards to standards/certifications that may impact a move to an export marine fish aquaculture industry?
- Government: What actions in the short/medium/long term are needed to support an export marine fish aquaculture industry?
- Industry actions: What changes need to occur within the current industry to move to export volumes? How will feeds be a part of this?
The workshop was attended by 36 marine fish farmers and company, aquaculture feedmills, seafood importers and exporters, Bureau of Fisheries and Aquatic Resources and other government agencies, members of Philippine Association of Fish Producers Inc. (PAFPI), Philippine Milkfish Industry Group Inc. (PhilMIG), High Value Aqua Philippines Inc. (Hi-VAP), fish cage manufacturers, and other aquaculture stakeholders in Philippines.
USSEC – Southeast Asia conducted in-house seminars and visits to several aquaculture feedmills in the Philippines to address different issues in their feedmill productions and aquaculture feed formulations from February 21 – 23.
Levy Loreto L. Manalac, USSEC Technical Consultant, Aquaculture – Philippines and Mark Newman, USSEC Feedmill and Nutrition Consultant, led this effort. In order to properly address each aqua feedmill issue, USSEC requested pre-questionnaires from each feedmill to guide USSEC during the in-house seminar.
Mr. Newman presented and discussed extrusion principles and equipment in aquaculture feed production; feeds and feeding management; and milkfish and tilapia nutrition, including the use of U.S. Soy products to reduce the amount of fishmeal and fish oil in aquaculture feeds at the Davao South Feedmill Corporation (Vitarich Feed Corp. third party toll milling partner), Philippine Foremost Milling Corp., and CJ Phils.
At Santeh Feeds Corp. Mr. Newman presented and discussed nutrition and feeds for marine shrimp, processing sinking feeds for shrimp, and current manufacturing trends.
38 feedmill staff, Q&A staff, and managers from four different aquaculture feedmills in Philippines attended the in-house seminar.
About 15,000 of the 23,000 floating net cages (FNCs) in Jatiluhur Reservoir in Purwakarta Regency, West Java, Indonesia began to be removed early last month and will continue to be removed until February 2018. The remaining cages will then be partially removed until the end of next year. An excessive number of cages, up to six times the allowable number, has been blamed for threatening the water supply for Jakarta and Java-Bali’s power supply. Purwakarta Regent Deddy Mulyadi initiated this action.
FNC aquaculture, which mostly produces common carp, started in the reservoir in 1988 and has been a dilemmatic industry in Purwakarta. With an annual production of 70,000 tons per year, involving 3,636 farm households and with a potential estimated tax of $90.2 million (USD) per year, the industry claimed to boost the local economy. However, among those cages, only 3,000 FNCs were officially registered and the registrations expired last year, while the rest were illegal, threatening the water supply and Java-Bali’s power supply.
Although many fish farmers complained about the action, they do not have any right to reject or sue the local government because they established the cages illegally and were instructed to remove them a couple years ago. The farmers now need alternative jobs to make a living. The local government has proposed that the reservoir could be an attractive tourist water spot, involving most of the former cage fish farmers to manage the spot without disrupting the reservoir’s sustainability.
USSEC’s aquaculture program has considered the Jatiluhur and other Indonesian reservoirs for sustainable, environmental-friendly aquaculture, farming the land and sustaining the sea and other water bodies.
USSEC, together with the U.S. Grains Council (USGC), and the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS), organized the 2017 Asia Grain Transportation Conference (GTC) in Ho Chi Minh City, Vietnam.
Mary Tarnowka, U.S. Consul General, U.S. Embassy, Ho Chi Minh City, Vietnam, officially opened this year’s GTC at the Sheraton Saigon. The event received its highest turnout to date: over 230 participants from across the region and beyond, with 12 nationalities representing around 100 companies. A large delegation of U.S. Soy family members and stakeholders attended, comprised of soy grower leaders, U.S. exporters, speakers, and guests.
The North and South Dakota Qualified State Soybean Boards (QSSB) were the main sponsors of this year’s conference, represented by Mike Appert, vice chairman of the North Dakota Soybean Council, and Joshua Kayser, South Dakota Soybean Association director.
Mr. Kayser gave a presentation on “U.S. Growers Perspectives: U.S. Soybean Crop Production Outlook,” while Mr. Appert assisted in co-chairing the “U.S. Soy Supply – Ensuring Quality & Sustainability through the Value Chain” session during the Southeast Asia Soy Symposium, another USSEC major regional event that is strategically held back to back with the GTC (see following story).
A reception was held for sixteen U.S. grower leaders from eight states and other U.S. Soy Family representatives, which provided a positive message to the participants and also helped to draw the connection between U.S. growers with their destination markets even closer.
As a result of the collective efforts of the organizers, sponsors, supporters, U.S. Soy Industry representatives, and presenters that provided their expertise and insights, 92 percent of 132 respondents polled indicated that this year’s conference experience was between “high value” and “very high value.” The majority of participants rated the speakers highly with over 93 percent indicating their experience from “good” to “very good.” The presentations were broad ranging, yet in-depth with relevant discussions about key Asian markets, the global outlook for grain and soy, trends in ocean freight, and supply chains for food and agri-products. This year, the organizers introduced two special forum sessions, the “U.S. Ag Producers Forum” and “U.S. Ag Exporters Forum,” which were also very well received and attracted strong participation and responses from the participants. Since introducing the e-platform, Pigeonhole, five years ago to manage the questions and answer sessions for these events, the quality of participation and interaction has been outstanding.
Finally, as with every Grain Transportation Conference, the organizers put together a major success criterion, which is marked by the amount of U.S. agricultural products that this important U.S. ag marketing platform has been able to generate for U.S. Soy stakeholders. Based on written evaluations submitted, over 1.1 million metric tons (MMT) of U.S. agricultural products were traded or negotiated at this year’s event. About 600,000 metric tons (MT) of U.S. soybeans and soybean meal were reportedly transacted or equivalent to about 25 million bushels of soybeans. In addition, over half a million metric ton (MMT) of U.S. corn, distiller’s dried grains with solubles (DDGS), and wheat were also transacted at the conference.
Vietnam is one of the world’s fastest growing markets for soy because of rapid economic growth and rising population. I gave a presentation this morning on the global soy supply and demand situation. This afternoon I moderated a panel discussion of U.S. farmers attending the meeting. I am very impressed with those attending and with the positives happening in this country. Vietnam ostensibly remains a communist country, but you would not realize it because of all of the capitalism happening here. Great, growing market for U.S. Soy.
-USSEC consultant John Baize
The organizers sincerely thank the North Dakota Soybean Council, South Dakota Soybean Research and Promotion Council, Minnesota Soybean Research and Promotion Council, Kentucky Soybean Association, corporate sponsors, and industry supporters for making the Asia Grain Tranportation Conference a resounding success.