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Tuesday, March 1, 2016

01/03/2016: Grain slowdown but Asia still no. 1

http://www.victam.com/
Image: Bogdan
The year 2016 has begun with a sluggish outlook for global grain markets. According to the USDA, falling rice and corn production are expected for 2015/16. Wheat and coarse grains production are also down, with trade in wheat and flour remaining mostly unchanged year on year. The International Grains Council estimates a 2 percent slump in world grain production this year.

Across the world, a slowdown in the Chinese economy is having a knock-on effect on global demand and markets. In the EU, depressed livestock markets will see a contraction in compound feed production this year, predicts the European Feed Manufacturers’ Federation (FEFAC). The Middle East has also not been spared, with depressed oil prices and political challenges impacting demand appetites in the region.

In the face of such a dull start to the year, Asia remains the world’s No.1 region for pig, layer, broiler and aqua feed, representing 35 percent of world feed production. Annual feed production growth averages at 4 percent, with many of the region’s governments increasing their focus on feed and food safety.

From staple food crop, to alternative energy and feed ingredients

The staple Asian crop, rice saw prices beginning to firm up towards the end of 2015 with supply outlook remaining tight into 2016. Rice trade is expected at 42 million tonnes this year, fuelled mainly by Asian demand. Thailand is seen to overtake India as lead exporter with 10 million tonnes of export for the first time since 2011.

Commodity price volatilities and new approaches to feed formulation have led to soaring demand for DDGS in Southeast Asia over the past decade. DDGS use in aquafeed has increased over the years at inclusion rates of 5-7 percent on average for the region’s top aquaculture producers – Indonesia, Thailand and Vietnam. Opportunities to increase DDGS inclusion rates could be increased further, at 10 percent in aquafeeds.

As countries move up the income ladder, so do their demands for food and energy. Southeast Asia has tremendous biomass potential with abundant natural resources and no lack of raw materials such as rice husks, residues and wastes from sugar mills for bagasse, palm oil kernel, forestry products, and other byproducts from the agro-processing industry.

It is estimated that the region has 38 million tonnes of rice husks which can be used as fuel for heat and energy, in addition to ample wood wastes from various non-industrial plantations. Thailand, Indonesia and the Philippines generate about 34 million tonnes of bagasse annually. Given the region’s abundant resources and energy needs, the opportunities for biomass pelletizing technologies are plentiful.

Get up to date at VICTAM Asia 2016

The unique three-in-one FIAAP/ VICTAM/GRAPAS concept addresses the distinct yet highly complementary sectors from animal feed ingredients and nutrition, to the grain and milling sectors. , respectively. The GRAPAS Asia Conference on 29 March will profile rice and flour milling and grain processing and the 2nd ASEAN Feed and Rice Symposium will be hosted by Victam International on 30 March.

Also on 30 March are Petfood Forum Asia and GMP + Feed Safety conferences. Nutritionists and feed formulators can look forward to the opening day with the FIAAP Animal Nutrition Conference and Aquafeed Horizons Asia on 29 March while the Biomass Conference will round up the three-day expo on 31 March.

For more information on FIAAP/ VICTAM/ GRAPAS Asia 2016, visit the site HERE.  


The Aquaculturists
This blog is maintained by The Aquaculturists staff and is supported by the
magazine International Aquafeed which is published by
Perendale Publishers Ltd

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